Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying financial statements of GUJARAT BOROSIL LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "financial statements").
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of state of affairs (financial position), profit (financial performance) including other comprehensive income, cash flows and statement of 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 relevant rules thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the rules made thereunder.
We conducted our audit of the financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit including other comprehensive income, its cash flows and the statement of changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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 financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act read with relevant rules thereunder;
e) On the basis of the written representations received from the directors as on 31st March, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A";
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:
(a) The Company has disclosed the impact of pending litigations on its financial position in its financial statement as referred to in Note no. 37, 40 and 41 to the financial statements.
(b) The Company does not have long term contracts including derivative contracts for which there were any material foreseeable losses.
(c) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company;
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India, in terms of sub-section (11) of Section 143 of the Act, we give in "Annexure B" hereto, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
"ANNEXURE Aâ TO INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 1 (f) under ''Report on Other Legal and Regulatory Requirements'' of our report of even date to the members of Gujarat Borosil Limited on the financial statements for the year ended 31st March, 2018)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Actâ)
We have audited the internal financial controls over financial reporting of Gujarat Borosil Limited ("the Company") as of 31st March, 2018 in conjunction with our audit of the 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 (the "Guidance Note") issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of 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 Act.
Auditor''s 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 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 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 authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
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 over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note.
"ANNEXURE B" TO INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 2 under the heading "Report on Other Legal and Regulatory Requirements" of our report of even date to the members of Gujarat Borosil Limited on the financial statements for the year
ended 31st March, 2018)
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, the Company has physically verified assets, in accordance with a phased program of verification, 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 as compared with the available records.
c. According to the information and explanations given to us and records examined by us and based on the examination of the deed provided to us, we report that, the title deeds of immovable properties are held in the name of the Company.
ii. In respect of its inventories:
As explained to us, inventories have been physically verified during the year by the management, except for inventories in transit for which management confirmation has been received. In our opinion the frequency of verification is reasonable. Discrepancies noticed on physical verification of the inventories between the physical inventories and book records were not material, having regard to the size of the operations of the Company, and the same have been properly dealt with.
iii. The Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnership or other parties covered in register maintained under section 189 of the Act. Therefore, the provisions of the clause (iii) of paragraph 3 of the Order are not applicable to the Company.
iv. The Company has not given any loan, made investments and provided guarantees and securities during the year. Therefore, the provisions of the clause (iv) of paragraph 3 of the Order are not applicable to the Company.
v. According to the information and explanations given to us, the Company has not accepted any deposit from the public. Therefore, the provisions of clause (v) of paragraph 3 of the Order are not applicable to the Company.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under Section 148(1) (d) of the act, as applicable and are of the opinion that, prima facie, the prescribed accounts and records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. According to the information and explanations given to us, in respect of statutory dues:
a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Income tax, Sales tax, Service tax, Customs Duty, Excise Duty, Value Added Tax, Cess, Goods and Service Tax and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of such statutory dues were outstanding as at 31st March, 2018 for a period of more than six months from the date they became payable.
b) Details of dues of Duty of Income Tax, Service Tax and Sales Tax aggregating to Rs. 908.11 Lacs that have not been deposited on account of disputed matters pending before appropriate authorities are as under:
Name of the Statutes |
Nature of the Dues |
Period to which it relates |
Amounts (Rs. in Lacs) (*) |
Forum where the dispute is pending |
Income Tax Act, 1961 |
Income Tax |
Assessment Year(A.Y) 2012-13 to 2015-16 |
52.58 |
CIT (A) Vadodara |
A.Y. 2010-12 |
195.74 |
ITAT, Ahmedabad |
||
A.Y. 2003-04 |
83.88 |
Gujarat High Court |
||
Gujarat Sales Tax Act, 1969 |
Sales Tax |
2000-01, 2002-03 and 2004-05 |
550.84 |
Joint Commissioner of Commercial Tax, Vadodara |
2013-14 |
14.95 |
Joint Commissioner of Commercial Tax Appeals, Vadodara |
||
Service Tax under Finance Act, 1994 |
Service Tax |
April 2011 to October 2015 |
10.12 |
CESTAT, Ahmedabad |
Total |
908.11 |
* Net of amount paid under protest
viii. Based on our audit procedures and according to the information and explanations given by the management, we are of the opinion that as on 31st March, 2018 the Company has not defaulted in repayment of dues to banks. The Company does not have any borrowings from financial institutions, government and debenture holders.
ix. According to the information and explanations given to us, during the year the Company has not raised any money by way of initial public offer, further public offer (including debt instruments) and no new term loans raised during the year. Therefore, provisions of clause (ix) of paragraph 3 of the Order are not applicable to the Company.
x. Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and on the basis of information and explanations given by the management, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi. I n our opinion and according to the information and explanations given to us, the Company has paid or provided managerial remuneration in accordance with the requisite approvals mandated by the provision of section 197 read with Schedule V to the Act.
xii. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause (xii) of paragraph 3 of the Order are not applicable to the Company.
xiii. According to the information and explanations given to us, Company''s transactions with the related parties are in compliance with section 177 and 188 of the Act, as applicable and details of such transactions have been disclosed in the financial statements as required by the applicable Indian accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the Company, during the year, the Company has not raised any money by preferential allotment or private placement of share or debentures. Therefore, the provisions of clause (xiv) of paragraph 3 of the Order are not applicable to the Company.
xv. According to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with directors or persons connected with him, therefore, the provisions of clause (xv) of paragraph 3 of the Order are 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.
For Chaturvedi & Shah
Chartered Accountants
Firm Registration No: 101720W
R. Koria
Partner
Membership No. 35629
Place: Mumbai
Date:10th May, 2018
Mar 31, 2017
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of GUJARAT BOROSIL LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2017, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information. Managementâs Responsibility for the Ind AS 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 Ind AS financial statements that give a true and fair view of state of affairs (financial position), profit (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 relevant rules there under.
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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these 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 there under.
We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the 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 Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the 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 Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 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 31st March, 2017 and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matters
The comparative financial information of the Company for the year ended 31st March 2016 and the transition date opening balance sheet as at 1st April 2015 included in these Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006, audited by the predecessor auditor, whose report for the year ended 31st March, 2016 and 31st March, 2015 dated 20th May, 2016 and 18th May, 2015 respectively expressed an unmodified opinion on those financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
Our opinion is not modified in respect of above said matter.
Report on Other Legal and Regulatory Requirements
1. 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 Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act read with relevant rules there under;
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 financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ;
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:
(a) The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statement as referred to in Note no. 37, 40 and 41 to the Ind AS financial statements.
(b) The Company does not have long term contracts including derivative contracts for which there were any material foreseeable losses.
(c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
(d) The Company has provided requisite disclosures in the Ind AS financial statements as regards to its holdings and dealings in Specified Bank Notes as defined in the Notification S.O. 3407 (E) dated 8th November, 2016 of the Ministry of Finance, during the period from 8th November, 2016 to 30th December, 2016. Based on audit procedure performed and representations provided to us by the management, we report that the disclosures are in accordance with the books of account maintained by the Company and as produced to us by the management.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India, in terms of sub-section (11) of Section 143 of the Act, we give in âAnnexure Bâ hereto, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
(Referred to in paragraph 2 under the heading âReport on Other Legal and Regulatory Requirementsâ of our report of even date to the members of Gujarat Borosil Limited on the Ind AS financial statements for the year ended 31st March, 2017)
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, the Company has physically verified assets, in accordance with a phased program of verification, 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 as compared with the available records.
c. According to the information and explanations given to us and records examined by us and based on the examination of the deed provided to us, we report that, the title deeds of immovable properties are held in the name of the Company.
ii. In respect of its inventories:
As explained to us, inventories have been physically verified during the year by the management. In our opinion the frequency of verification is reasonable. Discrepancies noticed on physical verification of the inventories between the physical inventories and book records were not material, having regard to the size of the operations of the Company, and the same have been properly dealt with.
iii. The Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnership or other parties covered in register maintained under section 189 of the Act.
iv. The Company has not given any loan, made investments and provided guarantees and securities during the year. Therefore, the provisions of the clause (iv) of paragraph 3 of the Order are not applicable to the Company.
v. According to the information and explanations given to us, the Company has not accepted any deposit from the public. Therefore, the provisions of clause (v) of paragraph 3 of the Order are not applicable to the Company.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under Section 148(1) (d) of the act, as applicable and are of the opinion that, prima facie, the prescribed accounts and records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. According to the information and explanations given to us, in respect of statutory dues:
a. The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Income tax, Sales tax, Service tax, Customs Duty, Excise Duty, Value Added Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of such statutory dues were outstanding as at 31st March, 2017 for a period of more than six months from the date they became payable.
b. Details of dues of Duty of Income Tax, Excise, Service Tax and Sales Tax aggregating to Rs.1596.23 Lacs that have not been deposited on account of disputed matters pending before appropriate authorities are as under:
Name of the Statutes |
Nature of the Dues |
Period to which it relates |
Amounts (Rs. in Lacs) (*) |
Forum where the dispute is pending |
Income Tax Act, 1961 |
Income Tax |
Assessment Year(A.Y) 2012-13 to 2015-16 |
52.58 |
CIT (A) Vadodara |
A Y. 2010-12 |
195.74 |
ITAT, Ahmedabad |
||
A Y. 2003-04 |
83.88 |
Gujarat High Court |
||
Gujarat Sales Tax Act, 1969 |
Sales Tax |
2000-01, 2002-03 and 2004-05 |
550.84 |
Joint Commissioner of Commercial Tax, Vadodara |
Central Excise Act, 1944 |
Excise Duty |
February 1999 to June 2005 |
662.05 |
CESTAT, Ahmedabad |
Service Tax under Finance Act, 1994 |
Service Tax |
April 2007 to December 2011 |
1.47 |
CESTAT, Ahmedabad |
From April 2007 to September 2016 |
49.67 |
Commissioner (Appeal) Surat II |
||
|
|
Total |
1596.23 |
|
* Net of amount paid under protest.
viii. Based on our audit procedures and according to the information and explanations given by the management, we are of the opinion that as on 31st March, 2017 the Company has not defaulted in repayment of dues to banks. The Company does not have any borrowings from financial institutions, government and debenture holders.
ix. According to the information and explanations given to us, during the year the Company has not raised any money by way of initial public offer, further public offer (including debt instruments) and now term loans raised during the year. Therefore, provisions of clause (ix) of paragraph 3 of the Order are not applicable to the Company.
x. Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and on the basis of information and explanations given by the management, no 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, the Company has paid or provided managerial remuneration in accordance with the requisite approvals mandated by the provision of section 197 read with Schedule V to the Act.
xii. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause (xii) of paragraph 3 of the Order are not applicable to the Company.
xiii. According to the information and explanations given to us, Companyâs transactions with the related parties are in compliance with section 177 and 188 of the Act, as applicable and details of such transactions have been disclosed in the financial statement as required by the applicable Indian accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the Company, during the year, the Company has not raised any money by preferential allotment or private placement of share or debentures. Therefore, the provisions of clause (xiv) of paragraph 3 of the Order are not applicable to the Company.
xv. According to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with directors or persons connected with him, Therefore, the provisions of clause (xv) of paragraph 3 of the Order are not applicable to the Company.
xvi. In our opinion and according to 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.
For Chaturvedi & Shah
Chartered Accountants
Firm Registration No: 101720W
R. Koria
Partner
Membership No. 35629
Place: Mumbai
Date: 03-05-2017
Mar 31, 2015
We have audited the accompanying financial statements of GUJARAT
BOROSIL LIMITED, which comprise the Balance Sheet as at March 31, 2015,
the Statement of Profit and Loss and the Cash Flow Statement for the
year then ended, and a summary of the significant accounting policies
and other explanatory information.
Management's Responsibility for the Financial Statements
The company's Board of Directors is responsible for the matters stated
in section 134 of sub section 5 of the companies Act, 2013 with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India ,including the Accounting Standards
specified under section 133 of the Companies Act, 2013 , read with Rule
7 of the Companies (Account) Rules,2014. This responsibility also
includes maintenance of adequate accounting records in accordance with
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of 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 accounting estimates made by the company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the notes to the
financial statements:
a) Note no. 33 regarding provision for depreciation as per Company's
Act 2013, as prescribed in schedule II,
has been accounted for resulted in higher depreciation amounting to Rs.
72 lacs for the year as referred therein.
Our opinion is not modified in respect of this matter.
Report on other Legal and Regulatory Requirements
1. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors
as on March 31, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of sub-section (2) of section 164 of
the Companies Act, 2013.
2. 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 29A
contingent liability ,and 32 VETRAD matter, to the financial
statements;
ii. The company has made provision as required under the applicable
law for accounting standard , 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.
3. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (1) of section 143 of the Act, we give in the Annexure
statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE REFERRED TO IN OUR INDEPENDENT AUDITOR'S REPORT OF EVEN DATE
TO THE MEMBERS OF GUJARAT BOROSIL LIMITED ('THE COMPANY') ON THE
ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2015
On the basis of the information and explanation furnished to us and the
books and record examined by us in the normal course of audit and to
the best of our knowledge and belief we report that,
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) According to the information and explanation given to us the fixed
assets have been physically verified by the management at the end of
the year and the discrepancies noticed on such verification have been
properly dealt with in the books of accounts.
2. a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
b) According to the information and explanation given to us the
procedures of physical verification of Inventories followed by the
Management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) In our opinion and according to the information and explanation
given to us the Company is maintaining proper records of Inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were stands adjusted in the books of accounts.
3. The company has not granted any loans, secured or unsecured or
unsecured to companies, firms or other parties covered in register
maintained under section 189 of the Companies Act, 2013.
4. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of Inventory, Fixed Assets, and sale
of goods and services. During the course of our audit, no major
instances of continuing failure to correct any weaknesses in internal
controls have been noticed.
5. The Company has not accepted any deposit and directive issued by
the Reserve bank of India and provisions of sections 73 to 76 or any
other provisions of companies act 2013 and rules frames there under
will not applicable on company.
6. As per information and explanation given by the management,
maintenance of cost records have been prescribed by the Central
Government sub section 1 of section 148 of the Companies Act, 2013 and
we are of the opinion that prima-facie the prescribed accounts and
records are being maintained.
7. a) According to the information and explanations given to us and on
the basis of our examination of the books of accounts, the company is
generally regular in depositing with the appropriate authorities
undisputed statutory dues including Provident Fund, Employee's State
Insurance, Income Tax, Wealth Tax, Custom Duty, Excise Duty, Service
tax, Sales Tax, Value added tax, Cess and other statutory dues
applicable to it. We are informed that Employees State Insurance Act
does not apply to the company and According to the information &
explanations given to us, there is no arrears of outstanding statutory
dues as at the last day of the financial year concerned for a period of
more than six months from the date they became payable as at 31st March
2015.
b) According to the information & explanations given to us, the amount
dues payable in respect of Income Tax, Wealth Tax, Service tax, VAT,
Customs Duty, Sales tax, Excise Duty that have not been deposited with
the appropriate authorities on account of dispute and the form where
the dispute are pending are as given below -
Name of the status Nature of Dues Amount (Rs. In 'Lacs')
Income Tax Disallowance made Rs 217.03
Act 1961 for Rs 638.51 Lacs
Penalty U/S 271(1)(c) Rs 41.38
Disallowance made Rs. 5.36
for Rs. 15.76 Lacs
Reduction in Unabsorbed Rs 83.88
Depreciation
Rs. 246.78 Lacs
Gujarat Sales Tax Act Sales Tax (Including Rs 550.84
Interest & Penalty)
Central Excise Excise Duty Rs 1252.14
Act, 1944 (Including Interest & (Paid Under
Penalty) Protest
Rs 589.33)
Service tax Denial of Cenvat Credit Rs 1.47
Under Finance on Construction
Act 1994 Services of colony/GH
(Including Penalty
Rs. 0.74 Lacs)
Name of the status Period to which Forum where
Amount Relates dispute is pending
Income Tax Assessment CIT(A)Baroda
Act 1961 Year 12-13
Assessment Year
11-12
Assessment Year CIT(A)Baroda
97-98
Assessment Year ITAT ,
10-11 Ahmedabad
Assessment Year Gujarat High
03-04 Court
Gujarat Sales Tax F.Y.00-01 Joint Commissioner
Act F.Y 02-03 of Commercial
F.Y 04-05 Tax, Vadodara
Central Excise Feb.99 to SUPREME
Act, 1944 June.2005 COURT OF
INDIA
Service Tax April 2007 CESTAT
Under Finance to March 2011 Ahmedabad
Act 1994
c) According to the information & explanations given to us and on the
basis of our examination of the books of accounts, the amount required
to be transferred to investor education and protection fund is
accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and rules made thereunder has been transferred to such within
time.
8. The Company has accumulated losses at the end of the financial year
which is not more than fifty percent of its Net Worth. The company has
not incurred cash losses during the financial year covered by our audit
or in the immediately preceding financial year.
9. In our opinion and according to the information and explanations
given by management, the Company has not defaulted in repayment of dues
to any financial institution or bank.
10. According to the information and explanations given to us, the
company has not given any guarantees for loan taken by others from bank
or financial institution.
11. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
12. During the course of our examination of books and records of the
Company, carried out in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud by the Company, noticed or reported during the year, nor have
we been informed of such case by the Management.
For SINGHI & CO.
9th FLOOR, TWIN TOWER, Chartered Accountants
LOKHANDWALA COMPLEX FRN -110283W
ANDHERI (W), MUMBAI-400053
MAHARASHTRA,INDIA PRAVEEN KUMAR SINGHI
Partner
Dated- 18th DAY OF MAY, 2015 Membership No -051471
Mar 31, 2013
Report on the financial statement
We have audited the accompanying financial statements of GUJRAT BOROSIL
LIMITED, which comprise the Balance Sheet as at March 31, 2013, and the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for 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 ActÂ). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Profit and Loss Account, of the loss for the year
ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
OrderÂ), 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.
THE ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE OUR REPORT OF EVEN DATE
TO THE MEMBERS OF GUJARAT BOROSIL LIMITED (''THE COMPANY'') ON THE
ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED 31ST MARCH, 2013
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) The company has granted unsecured loans to one company in
earlier year covered in the register maintained under Section 301 of
the Companies Act, 1956. The maximum amount involved during the year
was Rs. 10263 (In thousands) [P.Y. Rs. 9167(In thousands)] and the year
ended Balance of Loan granted to such Companies was Rs. 3328 (In
thousands) [P.Y. Rs. 9167(In thousands)].
(b) In our opinion, the rate of interest and other terms and condition
on which loans are given by the Company are not, prima facie,
prejudicial to the interest of the company.
(c) The terms of repayment of this loan/ICD has been extended by three
years, in previous year and no loan other than aforesaid has been
granted to company covered in register maintained under section 301 of
the Companies Act, 1956.
(d) The company has taken loan from one party listed in the register
maintained under Section 301 of the Companies Act, 1956. The maximum
amount involved during the year in such transaction is Rs.137784 (In
thousands). [P.Y. Rs. 955296 (In thousands)] and the year end balance of
loan taken from such companies was Rs.116082(In thousands) [P.Y. Rs.
58705(In thousands)]
(e) In our opinion and according to the information & explanation given
to us, the rate of interest and other terms and conditions on which
loans have been taken from companies listed in the register maintained
under Section 301 of the Companies Act, 1956 are not prima facie
prejudicial to the interest of the company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, 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) As per information & explanations given to us and in our opinion,
the transactions, contract & arrangement entered into by the company
with parties covered u/s 301 of the Companies Act, 1956 exceeds five
lacs rupees in respect of any party, in a financial year have been made
at prices/rate which are reasonable having regard to prevailing market
price/rate at the relevant time.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
7. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records are being maintained.
9. (a) According to the information and explanation given to us and on
the basis of our examination of the books of accounts of the company,
the Company is generally regular in depositing with appropriate
authorities undisputed statutory including Provident Fund, Investor
Education and Protection Fund, Income-tax, Sales-tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, cess to the extent applicable
and any other material statutory dues applicable to it. We are informed
that Employees State Insurance Act does not apply to the company.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of income tax, wealth tax, service
tax, sales tax, customs duty, excise duty and cess were outstanding for
the period of more than 6 month from the date they become payable as at
31st March 2013.
(c) According to the information and explanations given to us, the dues
in respect of Income Tax, Wealth Tax, Custom Duty, Excise Duty, Sales
Tax and Service Tax that have not been deposited with the appropriate
authorities on account of dispute and the forum where the dispute are
pending are as given below:-
10. The Company has accumulated losses at the end of financial year
which is not more than fifty percent of its Net Worth and has not
incurred cash loss during the financial year covered by our audit. In
the immediately preceding financial year the company has suffered cash
loss.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution or bank.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments. However the
company has made investment in mutual fund during the year of the
surplus funds for short duration. Proper records and timely entries
have been maintained in this regard & further investments specified are
held in their own name.
15 According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution
16 Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
17 Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2013, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. The Company has not issued any debentures.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no material fraud on or by the
Company has been noticed or reported during the course of our audit
year, nor have we been informed of such case by the management.
For SINGHI & CO
9TH FLOOR, TWIN TOWER, Chartered Accountants
LOKHANDWALA COMPLEX FRN: 110283W
ANDHERI(W), MUMBAI-400053
MAHARASHTRA, INDIA PRAVEEN KUMAR SINGHI
Partner
Dated: 9th May, 2013 Membership No. : 051471
Mar 31, 2012
We have audited the attached Balance Sheet of GUJARAT BOROSIL LIMITED
as at 31st March, 2012, the statement of Profit & Loss Account and the
Cash Flow statement for the year ended on that date, annexed thereto,
which we have signed under reference to this report. These financial
statements are the responsibility of the Company's Management. Our
responsibility is to express our opinion on these financial statements
based on our audit.
We conducted our audit in accordance with the Auditing standards
generally accepted in India. These 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.
As required by the Companies (Auditors' Report) Order, 2003 as amended
by the Companies Auditor's Report (Amendment) Order, 2004 issued by the
Central Government of India in terms of Sub Section (4A) of Section 227
of the Companies Act, 1956, we enclose as Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief . were necessary for the purposes of
our audit.
b) In our opinion, proper books of account as required by the Companies
Act, 1956 (as amended) have been kept by the Company so far as appears
from our examination of such books.
c) The Balance Sheet, statement of Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, statement of Profit & Loss
Account and Cash Flow Statement dealt with by this report comply with
the Accounting Standards issued by the Institute of Chartered
Accountants of India, to the extent applicable to the company, as
referred to in sub-section (3C) of Section 211 of the Companies Act,
1956.
e) On the basis of the written representation received from directors
and taken on records by the Board of Directors, we report that none of
the director is disqualified, as on 31st March, 2012 from being
appointed as a Director in term of clause (g) of the Sub section (1) of
Section 274 of the Companies Act, 1956; and
f) In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts read together with the
notes thereon and attached thereto, give the information required by
the Companies Act, 1956 (as amended) in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
I) In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2012;
ii) In the case of the statement of Profit & Loss Account, of the Loss
of the Company for the year ended on that date; and .
iii) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
On the basis of the information and explanations furnished to us and
the books & records examined by us in the normal course of audit and to
the best of our knowledge and belief, we report that:
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its Fixed
Assets.
b) According to the information and explanations given to us, the
management during the year has physically verified the Fixed Assets,
and no material discrepancies were noticed on such verifications with
book records.
c) During the year, the Company has not disposed off any major part of
the Fixed Assets, so as to affect its going concern.
2. a) The stock of raw material, stores & spare parts and finished
goods have been physically verified by the management at reasonable
intervals during the year.
b) . In our opinion and according to the information, and explanations
given to us, the procedure, followed by the management for physical
verification of stock are reasonable and adequate in relation to the
size of the Company and nature of its business.
c) The Company is maintaining proper records of inventory & the
discrepancies, not material, between the physical verification of stock
as compared to book stock have been properly dealt with in books of
account. -
3. a) The Company has granted unsecured loans to one Company in early
year covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved ' during the year was
Rs 9167 (In thousands) [P.Y. Rs 56627 (In Thousand)] and the year-end
balance of loan granted to such Companies was f 9167 (In thousands)
[P.Y Rs 8273 (In thousands)].
b) In our opinion, the rate of interest and other terms and condition
on which-loans are given by the Company are not, prima facie,
prejudicial to the interest of the Company.
c) The terms of repayment of this loan/ICD has been extended by three
years. No loan other than aforesaid loan has been granted to Companies,
firms or other parties covered in the register ë maintained under
Section 301 of the Companies Act, 1956.
d) The Company has taken loan from one party listed in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year in such transaction is Rs 955296 (In
thousands) [P.Y. Rs 658473 (In thousands)] and the year-end balance of
loan taken from such Companies was Rs 58705 (In thousands) [P.Y. Rs
658473 (In thousands)].
e) In our opinion and according to the information & explanations given
to us, the rate of interest and , other terms and conditions on which
loans have been taken from companies, Firms or Other Parties listed in
the register maintained under section 301 of the Companies Act, 1956
are not, prime facie, prejudicial to the interest of the company.
4. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to the Purchases of raw material, stores & spare
parts, components, plant and machinery, equipment, other assets and
with regard to the sale of goods and services.
5. a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered into the register, maintained under section 3Q1
of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information & explanations given
to us, the transactions made in pursuance of contracts or arrangement
entered in the register maintained under Section 301 of the Companies
Act, 1956 and exceeding the value of rupees five lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing . market prices at the relevant time.
6. The Company has not accepted any deposits from the public;
accordingly clause 6 of the Order is not applicable.
7. In our opinion, the Company has an internal audit system,
commensurate with its size and the nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub - section (1) of Section 209 of the
Act, and are of - the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made
a detailed examination of the records with a view to determine whether
they are accurate or complete.
9. a) According to the information & explanations given to us and on
the basis of our examination of the books of accounts of the Company,
the Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund, Income
Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Service Tax, Cess
and other material statutory dues applicable to it. We are informed
that Employees State Insurance Act does not apply to the Company.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Sales tax, Wealth
Tax, Custom Duty, Excise Duty, Service Tax and Cess were outstanding
for a period of more than six months from the date they become payable
as at 31st March, 2012.
c) According to the information and explanations given to us, the dues
in respect of Income-Tax, Wealth Tax, Custom duty, Excise duty, Sales
Tax and Service Tax that have not been deposited with the appropriate
authorities on account of dispute and the forum where the disputes are
pending are as given below Statement of disputed dues as on 31.03.2012:
Name of the Nature of Dues Amount (Rs In Period to which Forum
where
statute Thousands) Amount Relates dispute
is
pending
Central
Excise Excise Duty Against
demand of Feb. 99 to SUPREME
COURT
Act, 1944 (Including Rs 125214. June.2005 OF INDIA
Interest &
Penalty) Paid Rs 58933
Central Excise Excise Duty Against demand
of July 2005 to Commiss
ioner
Act, 1944 (Including
Interest & Rs 65087 June, 2006 Central
Excise &
Penalty) (L.Y.Rs 65087) Custom
Surat-ll
Rs 10000 (matter
Remand
(L.Y. Rs
10000) back by
CESTAT)
Gujarat Sales Sales Tax Rs 55084 2000-01, Joint
Commiss
ioner
Tax Act (Including
Interest & 2002-03 and of Commerc
ial Tax,
Penalty) 2004-2005 Vadodara.
Income Tax Income Tax Against the 2008-2009 CIT
(Appeal),
Act, 1961 demand of Rs 17831 Vadodara.
(Paid Rs 5209)
The Service Tax Service Tax Against the
demand 2008-2009 Commiss
ioner
under The (Including
Interest & of Rs 660 (Appeals)
Finance Act, Penalty) Paid Rs 365 Surat-II
1994 .
The Service Tax Service Tax Against the
demand Aug. 2008 to Commiss
ioner
under The (Including
Interest & of Rs 1683 Dec. 2010 (Appeals)
Finance Act, Penalty) Surat-ll
1994
10. The Company has accumulated losses at the end of the financial
year which is not more than fifty percent of its Net Worth. The Company
has incurred cash losses, both during the financial year covered by our
audit report and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
12. According to the information and explanation given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other Securities.
13. In our opinion, the Company is not a chit fund or a nidhi
Mutual benefit fund/ society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditor's Report) order, 2003 are not
applicable to the Company.
14. In our opinion the Company is not dealing in or trading in Shares
securities, Debentures and Other investments. Company has investment in
Limited Liability Partnership.
15. In our opinion and according to the information and explanation
given to us, the Company has not given guarantees for loans taken by
others from banks or financial institutions; accordingly clause 4(xv)
of the Companies (Auditor's Report) Order, 2003 is not applicable.
16. In our opinion, the Term loans have been applied for the purpose
for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, in our
opinion no funds raised on short-term basis have been used for long-
term purposes.
18. According to the information and explanations given to us, the
Company has made allotment of 9% Cumulative Non - Convertible
Redeemable Preference Shares to Company covered in the register
maintained under Section 301 of the Act. In our opinion, the price at
which Shares have been Issued is not prejudicial to the interest of the
Company.
19. According to the information and explanations given to us during
the year of audit report, the Company has not issued debentures.
20. The Company has not raised any money by public issues during the
year; accordingly clause 4(XX) of the Companies (Auditor's Report)
Order, 2003 is not applicable
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud by the Company, noticed or reported during the year, nor have
we been informed of such case by the management.
FOR SINGHI&COMPANY
CHARTERED ACCOUNTANTS
9TH FLOOR, TWIN TOWERS, FRN. 110283W
LOKHANDWALA COMPLEX,
ANDHERI (W), MUMBAI - 400 053. (PRAVEEN KUMAR SINGHI)
MAHARASHTRA, INDIA PARTNER
DATED: 24th DAY, OF MAY, 2012 (M. No. 051471)
Mar 31, 2011
We have audited the attached Balance Sheet of GUJARAT BOROSIL LIMITED
as at 31st March 2011, the Profit & Loss Account and the Cash Flow
Statement for the year ended on that date, annexed thereto, which we
have signed under reference to this report. These financial statements
are the responsibility of the Company's Management. Our responsibility
is to express our opinion on these financial statements based on our
audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. These 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.
As required by the Companies (Auditor's Report) Order, 2003 as amended
by the Companies Auditor's Report (Amendment) Order, 2004 issued by the
Central Government of India in terms of Sub Section (4A) of Section 227
of the Companies Act, 1956, we enclose as Annexure, a statement on the
matters specified in paragraphs 4 & 5 of the said Order.
Further to our comments in the Annexure referred above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of account as required by the Companies
Act, 1956 (as amended) have been kept by the Company so far as appears
from our examination of such books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, the Profit & Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards issued by the Institute of Chartered Accountants
of India, to the extent applicable to the company, as referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
e) On the basis of the written representation received from directors
and taken on record by the Board of Directors, we report that none of
the Directors is disqualified, as on 31st March, 2011 from being
appointed as a Director in term of clause (g) of Sub Section (1) of
Section, 274 of the Companies Act, 1956; and
f) In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts read together with the
notes thereon in particular note no. B- 2(c) in Schedule 19, give the
information required by the Companies Act, 1956 (as amended) in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
I) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
II) In the case of the Profit & Loss Account, of the Loss of the
Company for the year ended on that date; and
III) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE ON THE
ACCOUNTS FOR THE YEAR ENDED 31 ST MARCH, 2011 OF GUJARAT BOROSIL
LIMITED.
On the basis of the information and explanations furnished to us and
the books & records examined by us in the normal course of audit and to
the best of our knowledge and belief, we report that:
1. a) The Company has maintained proper records showing full
particulars including quantitative
details and situation of its Fixed Assets.
b) According to the information and explanations given to us, the
management during the year has physically verified the Fixed Assets,
and no material discrepancies were noticed on such verifications with
book records.
c) During the year, the Company has not disposed off any major part of
the Fixed Assets, so as to affect its going concern.
2. a) The stock of raw material, stores & spare parts and finished
goods have been physically verified
by the management at reasonable intervals during the year.
b) In our opinion and according to the information, and explanation
given to us, the procedure, followed by the management for physical
verification of stock are reasonable and adequate in relation to the
size of the Company and nature of its business.
c) The Company is.maintaining proper records of inventory & the
discrepancies, not material, between the physical verification of stock
as compared to book stock have been properly dealt with in books of
account.
3. a) The Company has granted unsecured loans to two Companies covered
in the register maintained
under Section 301 of the Companies Act, 1956. The maximum amount
involved during the year was Rs.56627 (In thousand) (P.Y. Rs. 122310)
(In thousand) and the year-end balance of loan granted to such
Companies was Rs.8273 (In thousand) (P.Y. Rs.56457) (In thousand).
b) In our opinion, the rate of interest and other terms and condition
on which loans are given by the Company are not, prima facie,
prejudicial to the interest of the Company.
c) The terms of repayment of this loan is on demand and as explained by
the Company it has exercised the option and to that extent have
recovered from these companies. No loan other than aforesaid loans has
been granted to Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
d) The company has taken loan from one party listed in register
maintained u/s 301 of Companies Act, 1956 the maximum amount involved
during the year in such transactions is Rs.658473 (In thousand) (P.Y.
Rs.Nil) and the year end balance of loan taken from such party was
Rs.658473 (In thousand) (P.Y. Rs.Nil).
e) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which loans have been taken from companies, Firm or Other Parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie, prejudicial to the interest of the
company.
f) The loan and interest repayment is not due up to 31-3-2011.
4. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to the purchases of raw material, stores & spare
parts, components, plant and machinery, equipment, other assets and
with regard to the sale of goods and services.
5. a) According to the all information and explanations given to us,
we are of the opinion that the
particulars of contracts or arrangements that need to be entered into
the register, maintained under section 301 of the Companies Act, 1956
have been so entered.
b) In our opinion and according to the information & explanations given
to us, the transactions"hnade in pursuance of contracts or arrangement
entered in the register maintained under Section 301 of the Companies
Act, 1956 and exceeding the value of rupees five lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public;
accordingly clause 6 of the Order'"' is not applicable.
7. In our opinion, the Company has an internal audit system,
commensurate with its size and the'tiature of its business. -,-.
8. As informed to us by the Company's management the maintenance of
cost records has hot been prescribed by the Central Government under
Section 209(1) (d) of the Companies Act, 1956.-"
9. a) According to the information & explanations given to us and on
the basis of our examination of the
books of accounts of the Company, the Company is generally regular in
depositing with appropriate authorities undisputed statutory dues
including Provident fund, Income Tax, Sales Tax.Wealth Tax, Custom
Duty, Excise Duty, Service Tax, Cess and other material statutory dues
applicable to it. We are informed that Employees State Insurance Act
does not apply to the Company.'
b) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Sales tax, Wealth
Tax, Custom Duty, Excise Duty, Service Tax and Cess were outstanding
for a period of more than six months from the date they become payable
as at 31st March, 2011.
æ c) According to the information and explanations given to us, the
dues in respect of Income -Tax, Wealth Tax, Custom duty, Excise duty,
Sales Tax and Service Tax that have not been "deposited with the
appropriate authorities on account of dispute and the forum where the
disputes are pending are as given below: ' .
Statement of disputed dues as on 31.03.2011:
Name of the Nature of Dues Amount (Rs. In Period to
which Forum Where
statute Thousands) Amount
Relates dispute is
pending
Central Excise Excise Duty Against
demand of Feb.99 to SUPREME
Act, 1944 (Including
Interest & Rs.125214. June.2005 COURT OF
Penalty) Paid Rs.58933 INDIA
Central Excise Excise Duty Against
demand of July 2005
to Commissioner
Act, 1944 (Including
Interest & Rs.65087 June.2006
(L.Y. Central Excise
&
Penalty) (L.Y.135128) July 2005
to Custom Surat
-II
Paid Rs.10000 June 2007) (matter refers
(LY.21129) back by
CESTAT)
Gujarat Sales Sales Tax 55084 2000-01, Joint
Tax Act (Including
Interest & 2002-03
and Commissioner
of
Penalty) 2004-2005 Commercial
Tax,
Vadodra
Income Tax Penalty u/s
271(1) Against demand
of A.Y.
2005-06 CIT(Appeal)
Act,1961 (c) Rs.2555 Vadodara.
(L.Y.2555) Paid
Rs.2555
(LY.Nil)
10. The company does not have accumulated losses neither at the end of
the financial year nor in the immediately preceding* financial year.
The Company has incurred cash losses, during the financial year covered
by our audit report. The Company has not incurred cash losses in the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
12. According to the information and explanation given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other Securities.
13. In our opinion, the Company is not a chit fund or a Nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
14. In respect of shares, securities, or other investments dealt in or
traded by the Company, proper records are the maintained in respect of
the transactions and contracts, and timely entries have been made
therein. All the investments are held by the company in its own name.
15. In our opinion and according to the information and explanation
given to us, the Cpmpany has not given guarantees for loans taken by
others from banks or financial institutions; accordingly clause 4(XV)
of the Companies (Auditor's Report) Order, 2003 is not applicable.
16. In our opinion, the term loans have been applied for the purpose
for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company in our
opinion no funds raised on short-term basis have been used for long
term purpose.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and Companies covered in the register maintained under Section 301 of
theAct.
19. According to the information and explanations given to us during
the year of audit report, the Company has not issued debentures.
20. The Company has not raised any money by public issues during the
year; accordingly clause 4(XX) of the Companies (Auditor's Report)
Order,. 2003 is not applicable.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud by the Company, noticed or reported during the year, nor have
we been informed of such case by the management.
FOR SINGHI & COMPANY
CHARTERED ACCOUNTANTS
9TH FLOOR, TWIN TOWERS, FRN. 110283W
LOKHANDWALA COMPLEX,
ANDHERI (W), MUMBAI - 400 053. (PRAVEEN KUMAR SINGHI)
MAHARASHTRA, INDIA PARTNER
DATED: 27th DAY OF MAY, 2011 (M. No. 051471)
Mar 31, 2010
We have audited the attached Balance Sheet of GUJARAT BOROSIL LIMITED
as at 31s1 March 2010 and the Profit & Loss Account for the year ended
on that date annexed hereto and the Cash Flow statement for the year
ended on that date which we have signed under reference to this report.
These financial statements are the responsibility of the Companys
Management. Our responsibility is to express our opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. These 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.
We report that:
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of Section 227 (4A) 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.
Further to our comments in the Annexure referred to in paragraph above:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of account as required by the Companies
Act, 1956 (as amended) have been kept by the Company so far as appears
from our examination of such books.
c) The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account.
d) In our opinion the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
e) On the basis of our examination of the books and records of the
Company an: the information furnished to us we state that no director
of the Company is disqualified from being appointed as a director under
clause (g) of the Sub - section (1) of Section 274 of the Companies
Act, 1956 with reference to the matter relating to the Company.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts read with the notes
thereon in particular note no. B-2(c) in Schedule 19, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
I) in the case of the Balance Sheet of the state of affairs of the
Company as at 31s1 March, 2010;
II) In the case of the Profit & Loss Account, of the Loss for the year
ended on that day ; and
III) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE ON THE
ACCOUNTS FOR THE YEAR ENDED 31 ST MARCH, 2010 OF GUJARAT BOROSIL
LIMITED.
On the basis of the information and explanations furnished to us and
the books & records examined by us in the normal course of audit and to
the best of our knowledge and belief, we report that:
1. a) The Company has maintained proper records showing full
particulars including quantitative details
and situation of its Fixed Assets and also, in view of the new project
commissioned during MarchIO, the Fixed Assets register is being
updated.
b) According to the information and explanations given to us, the
management during the year has physically verified the Fixed Assets,
and no material discrepancies were noticed on such verifications with
book records.
c) During the year, the Company has not disposed off any major part of
the Fixed Assets, so as to affect its going concern.
2. a) The stock of raw material, stores & spare parts and finished
goods havebeen physically verified
by the management at reasonable intervals during the year.
b) The procedure followed by the management for physical verification
of stock is reasonable and adequate in relation to the size of the
Company and nature of its business.
c) The Company is maintaining proper records of inventory & the
discrepancies, not material, between the physical verification of stock
as compared to book stock have been properly dealt with in books of
account.
3. a) The Company has granted unsecured loans to three Companies
covered in the Register
maintained under Section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 122310 (P.Y. Rs.176350) (In
thousand) and the year-end balance of loan granted to such Companies
was Rs. 56457 (P.Y. Rs.70162) (In thousand)
b) In our opinion, the rate of interest and other terms and condition
on which loans given by the Company are not prima facie prejudicial to
the interest of the Company.
c) The terms of repayment of this loan is, on demand and as explained
by the Company it has exercised the option and to that extent have
recovered from these companies. No loan other than aforesaid loans has
been granted to Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
d) According to the information and explanations given to us, the
Company has not taken any loan, secured or unsecured, from companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to the Purchases of raw material, stores & spare
parts, components, plant and.machinery, equipment, other assets and for
sale of goods and services.
5. a) According to the information and explanations given to us, we
are of the opinion that the particulars
of contracts or arrangements that need to be entered into the register,
pursuance of section 301 of the Companies Act, 1956 have been so
entered.
b) In our opinion and according to the information & explanations given
to us, the transactions made in pursuance of contracts or arrangement
entered in the register maintained under Section 301 of the Companies
Act, 1956 and exceeding the value of rupees five lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8. As informed to us by the Company the maintenance of cost records
has not been prescribed by the Central Government Under Section 209(1
)(d) of the Companies Act, 1956.
9. a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including provident fund, Income Tax, Wealth Tax, Custom Duty, Excise
Duty, Service Tax, Cess and other material statutory dues applicable
to it. We are informed that employees state Insurance Act, do not
apply to the Company.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Sales tax, Wealth
Tax, Custom Duty, Excise Duty, Service Tax and Cess were outstanding at
the year end for a period of more than six months from the date they
become payable.
c) According to the information and explanations given to us, the dues
in respect of Income -Tax, Wealth Tax, Custom duty, Excise duty, Sales
Tax and Service Tax that have not been deposited with the appropriate
authorities on account of dispute and the forum where the disputes are
pending are as given below:
Statement of disputed dues as on 31.03.2010: -
Name of the statute Nature of Dues Amount
(Rs. In thousands)
Central Excise Act, 1944 Excise Duty Against demand
(Including Interest of Rs.125213.
& Penalty) Paid Rs.58932
Central Excise Act, 1944 Excise Duty. Against demand
(Including Interest of Rs.135128.
& Penalty) Paid Rs.21129.
Gujarat Sales Tax Act Sales Tax 55084
(Including Interest
& Penalty)
Income Tax Act 1961 Penalty U/S. 271(1) C 2555
Name of the statute Period to which Forum where
Amount Relates dispute is pending
Central Excise Act, 1944 Feb, 99 to June,2005 SUPRFME COURT
OF INDIA
Central Excise Act, 1944 July,2005 to June,2007 CEST AT, Ahmedabad
Gujarat Sales Tax Act 2000-01,2002-03 Joint Commissioner
and 2004-2005 of Commercial Tax,
Vadodara
Income Tax Act 1961 Asst. yr 2005-06 OT (App<3), Vadodara
10. The Company neither has accumulated losses at the end of the
financial year nor has incurred cash losses, both in the financial year
under report and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
12. According to the information and explanation given to us, the
Company has not granted loans and advances On the basis of security by
way of pledge of shares, debentures and other Securities.
13. In our opinion, the Company is not a chit fund or a Nidhi mutual
benefit fund/ society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditors Report) order, 2003 are not applicable to the
Company.
14. In respect of shares, securities, or other investments dealt in or
traded by the Company, proper records are maintained in respect of the
transactions and contracts, and timely entries have been made
. therein. All the investments are held by the company in its own name.
16. The Company has obtained the term loans during the year and
applied for the new low iron glass project.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that the company has used funds raised on short-term basis for longr
term purposes amounting to Rs.2.80 Crore for its new low iron glass
project. The company has taken further long term loan in subsequent
period to meet the shortfall.
18. According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
Companies covered in the register maintained under Section 301 of
theAct.
19. According to the information and explanations given to us, during
the year of audit report, the Company has not issued debentures.
20. The Company has not raised any money by, public issues during the
year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance wjth the auditing standards
generally accepted in India, we have neither come across any instance
of fraud by the Company, noticed or reported during the year, nor have
we been informed of such case by the management.
FOR SINGHI & COMPANY
CHARTERED ACCOUNTANTS
9TH FLOOR. TWIN TOWERS, (PRAVEEN KUMAR SINGHI)
LOKHANDWALA COMPLEX, PARTNER
ANDHERI (W), MUMBAI - 400 053 (M. No. 051471)
DATED: 29th DAY OF MAY 2010. FRN 110283W