Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of GRP Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information. (Hereinafter referred to as âStandalone Ind AS Financial Statementsâ)
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone Ind AS Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015 as amended.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Ind AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS Financial Statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the Standalone Ind AS Financial Statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Standalone Ind AS Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone Ind AS Financial Statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Standalone Ind AS Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Standalone Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its profit (including comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matters
The comparative figures for the previous year ended 31st March, 2017 included in the financial statement, is based on the standalone financial statements for the year ended 31st March, 2017 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by the predecessor auditor who have expressed an unmodified opinion vide their report dated 30th May, 2017. The adjustment to those financial statements for the difference in the accounting principles adopted by the Company on transition to Ind AS have been audited by us. Our opinion on the standalone financial statements is not modified in respect of the above matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Aâ 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 including other comprehensive income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder.
e) On the basis of the written representations received from the directors as on March 31, 2018 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us :
1. The Company disclosed the impact of pending litigations as at March 31, 2018 on its financial position in its Standalone Ind AS Financial Statements-Refer Note No.36.
2. The Company has made provision, as at March 31, 2018 as required under the applicable law or accounting standards, for material foreseeable losses, if any on long-term contracts including derivative contracts.
3. There has been no delay in transferring the amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year.
ANNEXURE âAâ TO THE INDEPENDENT AUDITORâS REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF GRP LIMITED (Referred to in Paragraph 1 under the heading of âReport on other legal and regulatory requirementsâ of our report of even date)
i. In respect of its fixed assets :
a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.
b. As explained to us, all 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 nature of its assets. No material discrepancies were noticed on such physical verification.
c. According to the information and explanation given to us and on the basis of our examination of the records of the company, the title deeds of immovable property are held in the name of the company .
ii. As explained to us, physical verification of the inventories have been conducted at reasonable intervals by the management, which in our opinion is reasonable, having regard to the size of the Company and nature of its inventories. No material discrepancies were noticed on such physical verification.
iii. The Company has granted unsecured Loans to a wholly owned Subsidiary Company which is covered in register maintained under Section 189 of the Act. The Company has not granted any secured/unsecured loans to firms or limited liability partnership or other parties covered in the register maintained under Section 189 of the act.
a) In respect of the aforesaid loan, the terms and conditions of grant of loans are not prima facie prejudicial to the interest of the company.
b) In respect of the aforesaid loan to wholly owned Subsidiary Company, as per revised terms, there were no amounts due for repayment of principal and interest during the year. The above loan to wholly owned subsidiary is repayable after 3 years and interest thereon is charged annually.
c) In respect of the aforesaid loan to wholly owned Subsidiary Company, there are no overdue amounts at the end of the year.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with provisions of Section 185 and 186 with respect of loans and investments made. We are informed that company has not provided any guarantee or securities during the year.
v. According to the information and explanations given to us, the Company has not accepted any deposits within the meaning of provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under. Therefore, the clause (v) of paragraph 3 of the Order is not applicable to the Company
vi. Pursuant to Rules made by Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same and are of the opinion, that prima facie, prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of records with a view to determine whether they are adequate or complete.
vii. In respect of Statutory dues :
a. According to information and explanation given to us and the records of the Company, examined by us, in our opinion undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, goods and service tax, cess and any other statutory dues have been regularly deposited with appropriate authorities by the company According to information and explanation given to us, no undisputed amount in respect of the aforesaid dues were outstanding as at March 31, 2018 for a period of more than six months from the date of becoming payable.
b. According to the information and explanations given to us and the records of the Company examined by us particulars of dues of income tax, sales tax including value added tax, service tax, duty of customs, duty of excise, goods and service tax, cess as at March 31, 2018 which have not been deposited on account of dispute are as follows:
Name of The Statute |
Nature of Dues |
Period to which the amount relates |
Amount (Rs. in Lakh) |
Forum Where Dispute is pending |
Gujarat Value Added Tax |
Sales Tax |
F.Y.2013-14 |
46.03 |
Joint Commissioner (Appeal) |
Maharashtra Value Added Tax |
Sales Tax |
F.Y.2011-12 |
92.14 |
Joint Commissioner (Appeal) |
Maharashtra Value Added Tax |
Sales Tax |
F.Y.2013-14 |
55.37 |
Joint Commissioner (Appeal) |
Income Tax Act, 1961 |
Income Tax |
F.Y.2008-09 |
13.96 |
CIT(A)-Mumbai |
Income Tax Act, 1961 |
Income Tax |
F.Y.2010-11 |
23.54 |
ITAT-Mumbai |
Income Tax Act, 1961 |
Income Tax |
F.Y.2014-15 |
84.84 |
CIT(A)-Mumbai |
Income Tax Act, 1961 |
Income Tax |
F.Y.2015-16 |
20.11 |
CIT(A)-Mumbai |
Finance Act, 1944 |
Central Excise |
January 2005 to March 2012 |
131.85 |
CESTAT |
Finance Act, 1944 |
Service Tax |
July 2012 to September 2016 |
13.03 |
Commissioner (Appeal)-Pune |
Total |
480.87 |
|
viii. In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to Banks or Financial institution.
ix. In our opinion and according to the information and explanation given to us term loans have been applied for the purpose for which they were obtained. The Company has not raised any money by way of initial public offer or further public offer during the year.
x. In our opinion and according to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
xii. In our opinion and according to the information and explanations given to us, company is not a Nidhi company and hence reporting under clause (xii) of paragraph 3 of the Order is not applicable.
xiii. In our opinion and according to the information and explanations given to us, all transactions with related parties are in compliance with Sections 177 and 188 of the Act and their details of such transactions have been disclosed in the Standalone Ind AS Financial Statements, as required by the applicable Indian accounting standards.
xiv. In our opinion and according to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year and hence clause (xiv) of paragraph 3 of the Order is not applicable to the Company.
xv. In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transaction with the directors or persons connected with him and covered under Section 192 of the Act. Hence, clause (xv) of the paragraph 3 of the Order is not applicable to the Company.
xvi. In our opinion and according to the information and explanations provided to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORâS REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF GRP LIMITED
(Referred to in paragraph 2 (f) under âReport on Other Legal and Regulatory Requirementsâ of our report of even date) Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-Section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the Internal Financial Control over financial reporting of GRP LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Standalone Ind AS Financial Statements of the Company for the year then ended.
Management Responsibility for the Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India(âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note issued by ICAI and the Standards on auditing prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Standalone Ind AS Financial Statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Standalone Ind AS Financial Statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the Standalone Ind AS Financial Statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.
For DKP & Associates
Chartered Accountants
(Firm Registration no. 126305W)
D K Doshi
Place : Mumbai Partner
Date: 26th May 2018 Membership No.037148
Mar 31, 2017
To the Members of GRP Limited
Report on the Standalone Financiazl Statements
1. We have audited the accompanying standalone financial statements of GRP Limited (âthe Companyâ), which comprise the balance sheet as at 31st March 2017, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. 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
3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.
4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India,
a) In the case of the Balance Sheet of the state of affairs of the Company as at 31st March 2017,
b) In 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.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (âthe Orderâ) and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure âAâ a statement on the matters specified in the paragraph 3 and 4 of the order.
10. 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 standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the directors as on 31st March 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2017 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over the financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure âBâ.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and information and explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March 31, 2017 on its financial position in its financial statement-Refer Note 29
ii. The Company has made provision as at March 31, 2017 as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2017.
iv. The Company has provided requisite disclosures in the standalone financial statements as to holding as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 on the basis of information available with the Company. Based on audit procedure and relying on management''s representation, we report that disclosures are in accordance with the books of accounts maintained by the Company and as produced to us by the Management.- Refer Note 17 of Notes to Financial Statements.
Annexure -"A" to the Auditors'' Report
Annexure referred to an Independent Auditorsâ Report of even date to the members of GRP Limited on Standalone financial statements for the year ended 31st March, 2017.
We report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) As explained to us, the inventory (excluding stocks lying with third parties) has been physically verified by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been dealt with in the books of account.
(iii) The Company has granted unsecured loan to a subsidiary company which is covered in the register maintained under Section 189 of the Act. The Company has not granted any secured / unsecured loans to firms or limited liability partnership or other parties covered in the register maintained under Section 189 of the Act.
a) In respect of the aforesaid loan, the terms and conditions of granting of loan are not prejudice to the interest of the company.
b) In respect of the aforesaid loan, there was no amount due during the year.
c) In respect of the aforesaid loan, there was no overdue amount during the year.
(iv) In our opinion and according to the information and explanation given to us, the Company has complied with the provisions of S.185 and S.186 of the Companies Act 2013 in respect of the loan and investments made. We are informed that the Company has not provided any guarantee or securities during the year.
(v) The Company has not accepted any deposits from the public within the meaning of sections 73 to 76 of the Companies Act and rules framed there under to the extent notified. 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.
(vi) Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148 (1) of the Act. in respect of its products. We have broadly reviewed the same and are of the opinion that, prima facie, the prescribed accounts and record have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are adequate or complete.
(vii) (a) According to the information and explanations given to us and the records of the company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues, including provident fund, employees'' state insurance, income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax and other material statutory dues, as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of income tax, sales- tax, including value added tax, duty of customs and duty of excise as at 31st March 2017 which have not been deposited on account of a dispute, are as follows :
Name of The Statute |
Nature of Dues |
Period to which the amount relates |
Amount (Rs in lakhs) |
Forum Where Dispute is pending |
G.VAT |
Sales Tax |
April 2006 to June 2013 |
0.02 |
Department Authorities |
Income Tax Act 1961 |
Income Tax |
F.Y.2008-09 |
13.96 |
CIT(A)- Mumbai |
Income Tax Act 1961 |
Income Tax |
F.Y.2010-11 |
23.54 |
CIT(A)- Mumbai |
Income Tax Act 1961 |
Income Tax |
F.Y.2014-15 |
32.78 |
Jurisdiction Assessing Officer, Mumbai |
Income Tax Act 1961 |
Income Tax |
F.Y.2015-16 |
20.55 |
Jurisdiction Assessing Officer, Mumbai |
The Central Excise Act, 1944 |
Central Excise |
January 2005 to March 2012 |
131.85 |
CESTAT |
The Central Excise Act, 1944 |
Central Excise |
July 2012 to Sept 2016 |
13.03 |
Department Authorities |
(viii) According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to bank. The company does not have any loans or borrowings from any financial institution or Government nor it has issued any debentures as at the balance sheet date.
(ix) In our opinion, and according to the information and explanations given to us, the term loans have been applied, on an overall basis for the purposes for which they were obtained. The Company has not raised money by way of initial public offer or further public offer during the year.
(x) During the course of our examination of the books and records of the company, carried out in accordance with generally accepted auditing practices in India, and according to the information and explanations given to us, we have not come across any instances of frauds by the Company or any material fraud on the company by its officer or employees nor have any instances of material fraud been reported to us by the management during the year.
(xi) According to the information and explanations given to us and based on our examination of the records of the company, the company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the company is not a nidhi company. Accordingly, Clause 3(xii) of the order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the company, transactions with the related parties are in compliance with sections 177 and 188 of the act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable Accounting Standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, Clause 3(xiv) of the order is not applicable to the Company.
(xv) According to the information and explanations given to us and based on our examination of the records of the company, the company has not entered into non-cash transactions with directors or person connected with them. Accordingly Clause 3(xv) of the order is not applicable to the Company.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, Clause 3(xvi) of the order is not applicable to the Company.
Annexure - "B" to the Auditors'' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of GRP Limited (âthe Companyâ) as of 31st March 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For A. B. Modi & Associates
Chartered Accountants
ICAI Firm''s Registration No.106473W
Rajesh S Shah
Partner
Place : Mumbai Membership No 017844
Mumbai : 30th May, 2017
Mar 31, 2016
INDEPENDENT AUDITOR''S REPORT
To the Members of GRP Limited
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of GRP Limited (âthe Companyâ), which comprise the balance sheet as at 31st March, 2016, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. 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
3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.
4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India,
a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2016,
b) In 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
9. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure âAâ a statement on the matters specified in the paragraph 3 and 4 of the order.
10. 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 standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 30 to the financial statements;
ii. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure referred to an Independent Auditorsâ Report of even date to the members of GRP Limited on Standalone financial statements for the year ended 31st March, 2016.
We report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) As explained to us, the inventory (excluding stocks lying with third parties) has been physically verified by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been dealt with in the books of account.
(iii) The Company has granted unsecured loan to a wholly owned subsidiary company which is covered in the register maintained under Section 189 of the Act. The Company has not granted any secured / unsecured loans to firms or limited liability partnership or other parties covered in the register maintained under Section 189 of the Act.
(a) In respect of the aforesaid loan, the terms and conditions of granting of loan are not prejudicial to the interest of the company.
(b) In respect of the aforesaid loan, there was no amount due during the year.
(c) In respect of the aforesaid loan, there was no overdue amount during the year.
(iv) In our opinion and according to the information and explanation given to us, the Company has complied with the provisions of Section 185 and 186 of the Act with respect to loan and investments.
(v) In our opinion and according to information given to us, the company has complied with the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act and rules framed there under to the extent applicable in respect of acceptance of deposits. 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.
(vi) We have been informed that the company is not covered under the rules made by the Central Government of India in respect of the maintenance of cost records as has been specified under sub-section (1) of Section 148 of the Act. We have, therefore, not examined the records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues, including provident fund, employees'' state insurance, income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax and other material statutory dues, as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of income tax, sales- tax, including value added tax, duty of customs and duty of excise as at 31st March 2016 which have not been deposited on account of a dispute, are as follows:
Name of The Statute |
Nature of Dues |
Period to which the amount relates |
Amount (Rs in lakhs) |
Forum Where Dispute is pending |
G.VAT |
Sales Tax |
April 2006 to June 2013 |
0.62 |
Department Authorities |
Income Tax Act 1961 |
Income Tax |
F.Y.2010-11 |
69.00 |
Mumbai Tribunal |
Income Tax Act 1961 |
Income Tax |
F.Y.2011-12 |
25.94 |
CIT(A)- Mumbai |
The Central Excise Act, 1944 |
Central Excise |
January 2005 to April 2012 |
130.24 |
CESTAT |
The Central Excise Act, 1944 |
Central Excise |
September 2010 to July 2015 |
5.38 |
Department Authorities |
According to the information and explanations given to us and the records of the Company examined by us, there are no other statutory dues than mentioned in the aforesaid list which have not been deposited on account of any dispute.
(viii) According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to bank. The company has not taken any loan from financial institution or government or have issued any debenture.
(ix) In our opinion, and according to the information and explanations given to us, the term loans have been applied, on an overall basis for the purposes for which they were obtained. The Company has not raised money by way of initial public offer or further public offer during the year.
(x) On our examination of the books and records of the company, carried out in accordance with generally accepted auditing practices in India, and according to the information and explanations given to us, we have not noticed or reported any fraud by the Company or any fraud on the company by its officer or employees.
(xi) According to the information and explanations give to us and based on our examination of the records of the company, the company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the company is not a nidhi company. Accordingly, paragraph 3(xii) of the order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the company, transactions with the related parties are in compliance with Sections 177 and 188 of the act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, paragraph 3(xiv) of the order is not applicable.
(xv) According to the information and explanations given to us and based on our examination of the records of the company, the company has not entered into non-cash transactions with directors or person connected with them. Accordingly paragraph 3(xv) of the order is not applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xiv) of the order is not applicable.
For A. B. Modi & Associates
Chartered Accountants
Firm''s registration number: 106473W
Rajesh S. Shah
Partner
Place: Mumbai Membership No 017844
Date : 20th May, 2016
Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of GRP 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"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of 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 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 fows 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") as amended, 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, 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.
The annexure referred to in our report of even date to the members of
GRP Limited on the financial statements of the company for the year
ended 31st March, 2014. We report that:
1. 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 as per regular programme of verification which, in our opinion,
is reasonable having regard to the size of the Company and the nature
of its assets. No material discrepancies were noticed on such
verification.
c) The Fixed Assets disposed off during the year were not substantial
so as to effect its going concern status.
2. a) As explained to us, the Inventory (excluding stocks with third
parties) has been physical verified by the management during the year.
In respect of inventory lying with the third parties, these have been
confirmed by them. 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 the nature of its business.
c) In our opinion and on the basis of our examination of the inventory
records, the Company is generally maintaining proper records of its
inventories. The discrepancies noticed on verification between the
physical stocks and book records were not material and have been
properly dealt within the books of account.
3. a) According to the information and explanation given to us, The
Company has not granted any loans , secured or unsecured to companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Accordingly, the provisions of clause
4(ii)(a) to (d) of the Order are not applicable and hence not commented
upon.
b) The Company has taken unsecured loans/deposits from fifteen (15)
parties covered in the register maintained under Section 301 of the
Companies Act 1956. The maximum amount involved during the year and the
year end balance of such loans aggregates to Rs. 98.50 lakh and Rs.
92.50 lakh respectively.
c) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions on
which loans have been taken by the company are not, prima facie,
prejudicial to the interest of the Company.
d) In respect of the aforesaid loans, the Company is regular in
repaying the principal amounts and interest thereon as stipulated.
4. In our opinion and according to the information and explanation
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system.
5. a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the act have been entered in the register
required to be maintained under that section. b) In our opinion and
according to the information and explanation given to us, the
transactions made in pursuance of contracts / arrangements entered in
the Register maintained under section 301 of the Companies Act, 1956
and exceeding the value of Rs.5 lakh in respect of a party during the
year have been made at prices which appear reasonable as per
information available with the Company.
6. In our opinion and according to the information and explanation
given to us, the directives issued by the Reserve Bank of India and the
provisions of section 58A, section 58AA or any other relevant
provisions of the Act and Rules framed there under, to the extent
applicable, have been complied with. We are informed by the management
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 under section 58A and section 58AA of the Companies Act, 1956.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of business of the Company.
8. We have broadly reviewed the cost accounting records maintained by
the Company pursuant to rules made by the Central Government under
clause (d) of the sub section (1) of Section 209 of the Act and we are
of the opinion that prima facie the prescribed accounts and records
have been made and maintained. We are, however not required to carry
out a detailed examination of the same.
9. a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investors Education and Protection Fund, Employees''
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other statutory dues applicable to
it with the appropriate authorities. According to the information and
explanation given to us, no undisputed amounts payable in respect of
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty and cess were outstanding at the year end for a period of more
than six months from the date they became payable.
b) According to the books of accounts and records as produced and
examined by us in accordance with the generally accepted auditing
practice in India, there are no dues of Income tax, Sales tax, Wealth
tax, Service tax, Custom duty, Excise duty or Cess which have not been
deposited on account of any dispute except details of the amounts not
deposited on account of any disputes are as follows:
Name of The
Statute Nature of Dues Financial
Year Amount Forum Where
dispute is pending
( Rs.
in
lakhs)
The Bombay
Sales Act,
1959 Sales Tax. 1995-96 0.51 Tribunal - MST
Mumbai
Income Tax
Act, 1961 Income Tax 2010-11 69.00 Commissioner of
Income Tax (A),
Mumbai
The Central
Excise Act,
1944 Central Excise June-2005
to 125.33 CESTAT Â Ahemdabad
June 2011
10. The Company does not have accumulated losses. The Company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date.
12. 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 security by way of pledge of
shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund
/nidhi / mutual benefit fund / societies are not applicable to Company.
14. In our opinion and according to the information and explanation
given to us, the Company is not dealing or trading in shares,
securities, debentures or other Investments and hence, the requirements
of Para 4 (xiv) are not applicable to the Company.
15. 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.
16. In our opinion and according to the information and explanation
given to us, on overall basis, the term loans have been applied for the
purposes for which they were obtained.
17. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to explanations given to us,
there are no funds raised on short-term basis which have been used for
long-term investment.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under Section
301 of the Companies Act. 1956 during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through a public issue during
the year.
21. During the course of our examination of the books of account and
records of the Company carried out in accordance with the generally
accepted auditing practices in India, and according to the information
and explanations given to us, we have neither come across any instances
of material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such cases by management.
For A. B Modi & Associates
Chartered Accountants
Firm ''s Registration No: 106473W
(Rajesh S. Shah)
Partner
Membership No. 17844
Mumbai : 26th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of GRP Limited
("the Company"), which comprise the Balance Sheet as at March 31, 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
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 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.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to the Auditors'' Report
The annexure referred to in our report of even date to the members of
GRP Limited on the financial statements of the company for the year
ended 31st March, 2013.
We report that:
1. 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 as per regular programme of verification which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. No material discrepancies were noticed on such
verification.
c) The Fixed Assets disposed off during the year were not substantial
so as to effect its going concern status.
2. a) As explained to us, the Inventory (excluding stocks with third
parties) has been physically verified by the management during the
year. In respect of inventory lying with the third parties, these have
been confirmed by them. 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 the nature of its business.
c) In our opinion and on the basis of our examination of the inventory
records, the Company is generally maintaining proper records of its
inventories. The discrepancies noticed on verification between the
physical stocks and book records were not material and have been
properly dealt within the books of account.
3. a) The Company has granted interest free unsecured loan to an
associate company covered in the register maintained under section 301
of the Companies Act, 1956. In respect of the said loan the maximum
amount outstanding at any time during the year is Rs. 2.63 lakh and the
year end balance is Rs. Nil.
b) In our opinion and according to the information and explanation
given to us, the Nil rate of interest and other terms and conditions
are prima facie not prejudicial to the interest of the Company
considering that the said loan is to an associate concern in which the
company is holding 46% of share capital.
c) There is no stipulation as to interest or repayment of the said loan
given. However there is no outstanding balance as at the end of the
year.
d) There are no overdue amounts at the end of the year.
e) The Company has taken unsecured loans/deposits from sixeteen (16)
parties covered in the register maintained under Section 301 of the
Companies Act 1956. The maximum amount involved during the year and the
year end balance of such loans aggregates to Rs. 101.00 lakh and Rs.
98.50 lakh respectively.
f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions on
which loans have been taken by the company are not, prima facie,
prejudicial to the interest of the Company.
g) In respect of the aforesaid loans, the Company is regular in
repaying the principal amounts and interest thereon as stipulated.
4. In our opinion and according to the information and explanation
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system.
5. a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the act have been entered in the register
required to be maintained under that section.
b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts /
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5 lakh in
respect of a party during the year have been made at prices which
appear reasonable as per information available with the Company.
6. In our opinion and according to the information and explanation
given to us, the directives issued by the Reserve Bank of India and the
provisions of section 58A, section 58AA or any other relevant
provisions of the Act and Rules framed thereunder, to the extent
applicable, have been complied with. We are informed by the management
that, no order has been passed by the Comapny Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal under section 58A and section 58AA of the Companies Act, 1956.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of business of the Company.
8. According to the information and explanation given by the
management, maintenance of cost records has been prescribed by the
Central Government under clause (d) of the sub section (1) of Section
209 of the Act and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained.
9. a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investors Education and Protection Fund, Employees''
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other statutory dues applicable to
it with the appropriate authorities. According to the information and
explanation given to us, no undisputed amounts payable in respect of
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty and cess were outstanding at the year end for a period of more
than six months from the date they became payable.
b) According to the books of accounts and records as produced and
examined by us in accordance with the generally accepted auditing
practice in India, there are no dues of Income tax, Sales tax, Wealth
tax, Service tax, Custom duty, Excise duty or Cess which have not been
deposited on account of any dispute except details of the amounts not
deposited on account of any disputes are as follows:
Name of the Statute Nature of Financial
dues Year
The Bombay Sales Act, 1959 Sales Tax 1995-96
Income Tax Act, 1961 Income Tax 2008-09
Income Tax Act, 1961 Income Tax 2009-10
The Central Excise Act, 1944 Central Excise Feb - 05 to
August - 10
The Central Excise Act, 1944 Central Excise April - 05
to July - 11
The Central Excise Act, 1944 Central Excise Jan - 05
to Jan - 13
Name of the Statute Amount Forum where dispute
(Rs. in
lakhs) is pending
The Bombay Sales Act, 1959 0.51 Tribunal - MST Mumbai
Income Tax Act, 1961 29.72 ITAT
Income Tax Act, 1961 178.29 CIT(A)
The Central Excise Act, 1944 64.04 Tribunal - Central Excise
The Central Excise Act, 1944 06.23 Commissioner (A) -
Central Excise
The Central Excise Act, 1944 35.81 The Excise Department
10. The Company does not have accumulated losses. The Company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date.
12. 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 security by way of pledge of
shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund
/nidhi / mutual benefit fund / societies are not applicable to Company.
14. In our opinion and according to the information and explanation
given to us, the Company is not dealing or trading in shares,
securities, debentures or other Investments and hence, the requirements
of Para 4 (xiv) are not applicable to the Company.
15. 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.
16. In our opinion and according to the information and explanation
given to us, on overall basis, the term loans have been applied for the
purposes for which they were obtained except surplus term loan funds
which were lying pending utilisation had been kept in Fixed Deposit
Account with Bank.
17. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to explanations given to us,
there are no funds raised on short-term basis which have been used for
long-term investment.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through a public issue during
the year.
21. During the course of our examination of the books of account and
records of the Company carried out in accordance with the generally
accepted auditing practices in India, and according to the information
and explanations given to us, we have neither come across any instances
of material fraud by the Company, noticed or reported during the year,
nor have we been informed of such cases by management. A case of fraud
on the company is reported. During transit of the sealed export
container of reclaim rubber from company''s plant to port, contraband
material was fradulently substituted by somebody. According to the
information and explanation given to us by the management, the company
does not forsee any financial and / or any other implication in the
matter.
For A. B. Modi & Associates
Chartered Accountants
Firm ''s Registration No: 106473W
Rajesh S. Shah
Place : Mumbai Partner
Date : 28th May, 2013 Membership No.17844
Mar 31, 2012
1) We have audited the attached Balance Sheet of GRP Limited (Formerly
known as Gujarat Reclaim and Rubber Products Ltd.), as at 31st March,
2012, the Statement of Profit and Loss and the Cash Flow Statement of
the Company 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 misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements.An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation.We believe that our audit provides a reasonable basis for
our opinion.
3) As required by the Companies (Auditor's Report) Order, 2003 and as
amended by the Companies (Auditor's Report) (Amendement) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4) Further to our comments in the Annexure referred to above, we report
that:
i) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books;
iii) The Balance Sheet, Statement of Profit and Loss and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv) In our opinion, the Balance Sheet,Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
v) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the Directors is disqualified as on 31st March, 2012 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us,the said financial statements together
with the 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,:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
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 flow for the
year ended on that date.
Annexure referred to in paragraph [3] of our report of even date:
1. 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 as per regular programme of verification which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. No material discrepancies were noticed on such
verification.
c) The Company has not disposed of any substantial part of its fixed
assets during the year so as to effect its going concern status.
2. a) The Inventory (excluding stocks with third parties) has been
physically verified by the management during the year. In respect of
inventory lying with the third parties, these have been confirmed by
them. In our opinion, the frequency of verification is reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material and have been properly dealt with in the
books of account.
3. a) The Company has granted interest free unsecured loan to an
associate company covered in the register maintained under section 301
of the Companies Act, 1956. In respect of the said loan the maximum
amount outstanding at any time during the year is Rs. 41.65 Lakhs and the
year end balance is Rs. Nil.
b) In our opinion and according to the information and explanation
given to us, the Nil rate of interest and other terms and conditions
are prima facie not prejudicial to the interest of the Company
considering that the said loan is to an assoicate concern in which the
company is holding 46% of share capital.
c) There is no stipulation as to interest or repayment of the said loan
given. However during the year loan to an associate company amounting
to Rs. 32.50 Lakhs have been written off.
d) According to the company the amount is not recoverable considering
the net worth and future business prospect of the said company. The
Company has written off the amounts outstanding from the said associate
concern.
e) The Company has taken unsecured loans/deposits from sixeteen (16)
parties covered in the register maintained under Section 301 of the
Companies Act 1956.The maximum amount involved during the year and the
year end balance of such loans aggregates to Rs. 95.00 Lakhs and Rs. 95.00
Lakhs respectively.
f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions on
which loans have been taken by the company are not, prima facie,
prejudicial to the interest of the Company.
g) In respect of the aforesaid loans, the Company is regular in
repaying the principal amounts and interest thereon as stipulated.
4. In our opinion and according to the information and explanation
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system.
5. a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the act have been entered in the register
required to be maintained under that section.
b) In our opinion and according to the information and explanation
given to us, the transaction made in pursuance of contracts /
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5 lakhs in respect
of each party during the year have been made at prices which appear
reasonable as per information available with the Company.
6. In our opinion and according to the information and explanation
given to us, the directives issued by the Reserve Bank of India and the
provisions of section 58A,section 58AA or any other relevant provisions
of the Act and Rules framed thereunder, to the extent applicable, have
been complied with. We are informed by the management that, no order
has been passed by the Comapny Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal
under section 58A and section 58AA of the Companies Act, 1956.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of business of the Company.
8. According to the information and explanation given to us and to the
best of our knowledge, the Central Government has not prescribed
maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Companies Act, 1956 for the products of the Company.
9. a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investors Education and Protection Fund, Employees'
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other statutory dues applicable to
it with the appropriate authorities. According to the information and
explanation given to us, no undisputed amounts payable in respect of
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty and cess were outstanding at the year end for a period of more
than six months from the date they became payable.
b) According to the books of accounts and records as produced and
examined by us in accordance with the generally accepted auditing
practice in India, there are no dues of Income tax, Sales tax, Wealth
tax, Service tax, Custom duty, Excise duty or Cess which have not been
deposited on account of any dispute except details of the amounts not
deposited on account of any disputes are as follows:
Name of The
Statute Nature of
Dues Financial
Year Amount
(Rs Lakhs.) Forum Where dispute
is pending
The Bombay
Sales Act,
1959 Sales Tax. 1995-96 0.51 Tribunal - MST
Mumbai
Income Tax
Act,1961 Income Tax 2003-04 10.18 Rectification
Pending
Income Tax
Act,1961 Income Tax 2006-07 25.11 I T Tribunal
Income Tax
Act,1961 Income Tax 2008-09 138.86 CIT (Appeal)
The Central
Excise Act,
1944 Central
Excise Feb - 05 to
August-10 27.15 Tribunal - Central
Excise
The Central
Excise Act,
1944 Central
Excise April-05 to
July-11 23.60 Commissioner (A) -
Central Excise
The Central
Excise
Act, 1944 Central
Excise Jan - 05 to
Dec - 11 78.47 The Excise
Department
10. The Company does not have accumulated losses. The Company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date.
12. 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 security by way of pledge of
shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund
/nidhi / mutual benefit fund/ societies are not applicable to Company.
14. In our opinion and according to the information and explanation
given to us, the Company is not dealing or trading in shares,
securities, debentures or other Investments and hence, the requirements
of Para 4 (xiv) are not applicable to the Company.
15. 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.
16. In our opinion and according to the information and explanation
given to us, on overall basis, the term loans have been applied for the
purposes for which they were obtained except surplus term loan funds
which are lying pending utilisation have been kept in Fixed Deposit
Account with Bank.
17. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to explanations given to us,
there are no funds raised on short-term basis which have been used for
long-term investment.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under Section
301 of the Companies Act. 1956 during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through a public issue during
the year.
21. During the course of our examination of the books of account and
records of the Company carried out in accordance with the generally
accepted auditing practices in India, and according to the information
and explanations given to us, we have neither come across any instances
of material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such cases by management.
For A. B Modi & Associates
Chartered Accountants
ICAI Firm Regd.No. 106473W
(Rajesh S. Shah)
Place : Mumbai Partner
Date : 28th June, 2012 Membership No. 17844
Mar 31, 2010
1) We have audited the attached Balance Sheet of GUJARAT RECLAIM &
RUBBER PRODUCTS LIMITED, as at 31 st March, 2010 and also the Profit
and Loss Account for the year ended on that date annexed thereto, and
the cash flow statement for the year ended on that date annexed
thereto, and the cash flow statement for the year ended on that date.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2) We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3) As required by the Companies (Auditors Report) Order, 2003 and as
amended by the Companies (Auditors Report) (Amendement) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4) Further to our comments in the Annexure referred to above, we report
that:
i) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books;
iii) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
iv) In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956;
v) On the basis of written representations received from the directors,
as on 31st March, 2010, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2010 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the
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 :
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
b) in the case of 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 flow for the
year ended on that date.
Annexure referred to in paragraph [3] of our report of even date:
1. a) The company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) Fixed Assets have been physically verified by the management during
the year as per regular programme of verification which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. No material discrepancies were noticed on such
verification.
c) The Company has not disposed of any substantial part of its fixed
assets during the year so as to effect its going concern status.
2. a) The Inventory (excluding stocks with third parties) has been
physically verified by the management during the year. In respect of
inventory lying with the third parties, these have been confirmed by
them. In our opinion, the frequency of verification is reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material and have been properly dealt with in the
books of account.
3. a) The Company has granted interest free loan to an associate
company covered in the register maintained under Section 301 of the
Companies Act, 1956. In respect of the said loan the maximum amount
outstanding at any time during the year is Rs.5,244,056/- and the year
end balance is Rs.5,100,000/-.
b) In our opinion and according to the information and explanation
given to us, the Nil rate of interest and other terms and conditions
are not prima facie prejudicial to the interst of the Company
considering the said loan to an assoicate concern and future
expectation of the company.
c) The principal amounts are repayable on demand and there is no
stipulation as to period in which loan is to be repaid.
d) In the absence of stipulation in respect of the terms of payment of
principal amount and interest of the aforesaid loan, we are unable to
comment whether reasonable steps have been taken by the Company for the
recovery of the principal amount and interest where the overdue amount
is more than rupees one lakh.
e) The Company has taken unsecured loans/deposits from twelve (12)
parties covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year and
the year end balance of such loans aggregates to Rs. 8,550,000/- and
Rs. 8,550,000/- respectively.
f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions on
which loans have been taken by the company are not, prima facie,
prejudicial to the interest of the Company.
g) In respect of the aforesaid loans, the Company is regular in
repaying the principal amounts and interest thereon as stipulated.
4. In our opinion and according to the information and explanation
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system.
5. a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that section.
b) In our opinion and according to the information and explanation
given to us, the transaction other than loan made in pursuance of
contracts / arrangements entered in the Register maintained under
Section 301 of the Companies Act, 1956 and exceeding the value of
Rs.5,00,000/- in respect of each party during the year have been made
at prices which appear reasonable as per information available with the
Company.
6. In our opinion and according to the information and explanation
given to us, the directives issued by the Reserve Bank of India and the
provisions of Section 58A. Section 58AA or any other relevant
provisions of the Act and Rules framed thereunder, to the extent
applicable, have been complied with. We are informed by the management
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 under Section 58A and Section 58AAof the Companies Act, 1956.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of business of the Company.
8. According to the information and explanation given to us and to the
best of our knowledge, the Central Government has not prescribed
maintenance of cost records under clause (d) of sub-section (1) of
Section 209 of the Companies Act, 1956 for the products of the Company.
9. a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investors Education and Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other statutory dues applicable to
it with the appropriate authorities. According to the information and
explanation given to us, no undisputed amounts payable in respect of
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty and cess were outstanding at the year end for a period of more
than six months from the date they became payable.
b) According to the books of accounts and records as produced and
examined by us in accordance with the generally accepted auditing
practice in India, there are no dues of Income tax, Sales tax, Wealth
tax, Service tax, Custom duty, Excise duty or Cess which have not been
deposited on account of any dispute.The particulars of dues of Income
tax, Sales tax, Wealth tax, Service tax, Custom duty, Excise duty or
Cess which have not been deposited on account of any dispute are as
follows:
Name of the Statute Nature of Financial Year
dues
The Bombay Sales Tax Sales Tax 1995-96
Act, 1959
Income Tax Act,1961 Income Tax 2003-04
Income Tax Act, 1961 Income Tax 2005-06
Income Tax Act, 1961 Fringe 2005-06
Benefits Tax
Income Tax Act, 1961 Income Tax 2006-07
Income Tax Act, 1961 Fringe 2006-07
Benefits Tax
The Central Excise Act, Central April, 2006 to
1944 Excise October,2006
The Central Excise Act, Central Jan, 2005 to
1944 Excise March, 2007
Name of the Statue Amount Forum where dispute is
(Rs.) pending
The Bombay Sales Tax
Act, 1959 51,956/- Maharashtra Sales Tax
Tribunal Mumbai
Income Tax Act,1961 653,103/- Commissioner (Appeals)
Income Tax Act, 1961 72,064/- Asst Commissioner of IT
Income Tax Act, 1961 7,385/- Asst Commissioner of I T
Income Tax Act, 1961 3,797,797/ Commissioner (Appeals)
Income Tax Act, 1961 261/- Asst Commissioner of I T
The Central Excise Act,
1944 183,771/- Commissioner-Central
Excise, Surat
The Central Excise Act,
1944 3,424,840/- Commissioner -Central
Excise
10. There are no accumulated losses of the Company as at the end of
the financial year. There are no cash losses during the financial year
and in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date.
12. 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 security by way of pledge of
shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund
/nidhi / mutual benefit fund / societies are not applicable to Company.
14. In our opinion and according to the information and explanation
given to us, the Company is not dealing or trading in shares,
securities, debentures or other Investments and hence, the requirements
of Para 4 (xiv) are not applicable to the Company.
15. 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.
16. In our opinion and according to the information and explanation
given to us, on overall basis, the term loans have been applied for the
purposes for which they were obtained.
17. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to explanations given to us,
there are no funds raised on short-term basis which have been used for
long-term investment.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through a public issue during
the year.
21. During the course of our examination of the books of account and
records of the Company carried out in accordance with the generally
accepted auditing practices in India, and according to the information
and explanations given to us, we have neither come across any instances
of material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such cases by management.
For A.B.Modi & Associates
Chartered Accountants
(Rajesh S. Shah)
Partner
Place: Mumbai Membership No. 17844
Date : 20th May 2010 Firm Regd.No. 106473W