Mar 31, 2018
Report on the Standalone Ind AS financial statements
We have audited the accompanying standalone Ind AS financial statements of Hindustan Tin Works Limited ("the Company"), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the standalone Ind AS financial statements").
Management''s Responsibility for the Standalone Ind AS 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 standalone Ind AS financial statements that give a true and fair view of the state of affairs, profit/loss (including other comprehensive income), changes in equity and cash flows 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.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. In conducting 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 standalone 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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 standalone 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 these standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, these standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, its profit including other comprehensive income and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2016 (''the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by the 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, Statement of Changes in Equity and the Statement of Cash Flows dealt with by this report are in agreement with the books of account.
(d) In our opinion, these financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Indian Accounting Standards) Amendment Rules, 2016 issued by Ministry of Corporate Affairs.
(e) On the basis of written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to adequacy of the internal financial control over financial reporting and the operating effectiveness of such controls, refer to our report in "Annexure B".
(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 and Companies (Audit and Auditors) Amendment Rules, 2017, in our opinion and to the best of our information and according to the explanations given to us:
i. The financial statement discloses the impact of pending litigation as referred to in note no. 33.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.
ANNEXURE "A"
To the Independent Auditors'' report on standalone financial statements of Hindustan Tin Works Limited.
Referred to in paragraph 1 under the heading, "Report on Other Legal and Regulatory Requirements" of our report of even date:
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets with respect to most of its fixed assets.
(b) The capitalised fixed assets are physically verified by the management according to a regular programme designed to cover all the items over a period of three years. Pursuant to the planned programme during the year, fixed assets have been physically verified by the management during the year, which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noted on such verification.
(c) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, the title deeds of immovable properties included in property, plant and equipment are held in the name of the Company.
(ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. The Company has maintained proper records of inventory. The discrepancies noticed on verification between the physical stock and the book records were not material.
(iii) According to the information and explanations given to us, the company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, the provisions of clause 3(III) (a), (b) and (c) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities.
(v) In our opinion and according to the information and explanations given to us, the Company did not receive any deposits covered under sections 73 to 76 of the Companies Act and the rules framed there under with regard to deposits accepted from the public during the year.
(vi) We have broadly reviewed the books of account maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 148 of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.".
(vii) In respect of statutory dues:
(a) According to the information and explanations given to us, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, goods and service tax, cess and other material statutory dues applicable to it.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material undisputed statutory dues were outstanding, as at the year end, for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of Income-tax or Sales tax or Service tax or Goods and Services tax or duty of Customs or duty of Excise or Value added tax which have not been deposited by the Company on account of disputes.
(viii) Based on our audit procedures performed for the purpose of reporting the true and fair view of the standalone financial statements and according to the information and explanations given to us by the management, the Company has not defaulted in repayment of dues to financial institutions or banks. The Company does not have any debenture holders.
(ix) In our opinion and according to information and explanations given by the management, monies raised by the company by way of term loans were applied for the purpose for which they were raised. The Company has not raised money by way of initial public offer or further public offer (including debt instruments) during the year.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or any fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanation given by the management, transaction with related parties are in compliance with section 177 and 188 of Companies Act,2013 where applicable and details have been disclosed in the notes to the standalone financial statements where applicable, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us, during the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of Paragraph 3 of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us and based on our examination of the records, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, Clause (xv) of the Order is not applicable.
(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. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
Annexure "B"
To the Independent Auditors report of even date on the financial statements of Hindustan Tin Works Limited.
To the Members of Hindustan Tin Works Limited
Report on the Internal Financial Controls under clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Hindustan Tin Works Limited ("the Company") as of 31st March, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. 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 the Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were 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 auditors'' judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of the Management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the standalone financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 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 on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Mukesh Raj & Co.
Chartered Accountants
Firm''s Reg. No: 016693N
Place : Delhi Mukesh Goel
Date : 30.05.2018 Partner
M.No. 094837
Mar 31, 2016
INDEPENDENT AUDITORS'' REPORT
To the Members of
HINDUSTAN TIN WORKS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of HINDUSTAN TIN WORKS LTD ("the Company"), which comprise the Balance Sheet as at March 31st, 2016, the Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on 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 reasonableness of the accounting estimates made by Companies Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2016;
(b) In the case of the Statement of Profit and Loss, of the Profit for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 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 the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f. With respect to 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 B"
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
I. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 28.1 to the financial statements;
II. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
III. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
(i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of the available information.
b) As explained to us, the Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified in a phased manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. Accordingly, the physical verification of fixed assets has been carried out by the management during the year. We are informed that discrepancies noticed on such verification were not material and have been properly dealt with in the books of account.
c) According to the information and explanations given to us, the title deeds of immovable property are held in the name of Company.
(ii) The physical verification of the inventory has been carried out by the management in accordance with the perpetual inventory programme, at regular intervals during the year. In our opinion, the frequency of such verification is reasonable having regard to the size of the Company and the nature of its business. The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were not material and have been properly dealt with in the books of account.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.
(iv) According to the information and explanations given to us, the Company has complied with Section 185 & 186 of the companies act, 2013 in respect of loans, investment, guarantees and securities.
(v) The Company has not accepted any deposit from the public within the meaning of Section 73 to 76 or any other relevant provisions of the Companies Act and rules framed there under.
(vi) We have broadly reviewed the Cost Records maintained by the Company specified by Central Government under Sub Section (1) of Section 148 of the Companies Act and are of the opinion that prima facie the prescribed 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) (a) According to information and explanations given to us and on the basis of our examination of the records
of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of employees'' state insurance and duty of excise.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31st March,2016 for a period of more than six months from the date they became payable
(b) According to the information and explanations given to us, the particulars of the disputed dues as at
31.03.2016 which has not been deposited on account of matters pending in appeal before appropriate authorities are as under:
Name of the Stature |
Nature of the Dues |
Amount Involved (Rs. in Lac) |
Period to which amount relates |
Forum where the dispute is pending |
Haryana Local Area Development Tax Act, 2000 |
Entry Tax |
21.34 |
FY 2008-09 to FY 2015-16 |
Hon" ble Supreme Court |
Total |
|
21.34 |
|
|
(viii) According to information and explanations given to us, the Company has not defaulted in repayment of dues to any bank / financial institutions.
The Company does not have any debenture holders / bond holders as at the balance sheet date.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments).
According to informations and explanations given to us the term loan raised by the Company have been applied for the purpose it has been obtained.
(x) According to the information and explanations given to us no material fraud by the company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a ''NIDHI company. Accordingly, paragraph 3 (xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to Registered under section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India"]. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance 168 Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For M.L. Puri & Co.
Chartered Accountants
FRN No. 002312N
Place: New Delhi M. L. Puri
Date: 30th May, 2016 Partner
M. No. 9198
Mar 31, 2015
We have audited the accompanying financial statements of HINDUSTAN TIN
WORKS LTD ("the Company"), which comprise the Balance Sheet as at March
31 st, 2015, the Statement of Profit and Loss and Cash Flow Statement
for the year then ended and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the Accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
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 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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on 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 reasonableness of
the accounting estimates made by Companies Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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 the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 st March,
2015 from being appointed as a director in terms of Section 164 (2) of
the Act.
f. With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
I. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 28.1 to the
financial statements;
II. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.]
III. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITORS'' REPORT (Referred to in paragraph 1 of our
report of even date)
(i) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of the available information.
b) As explained to us, the Company has a regular programme of physical
verification of its fixed assets by which all fixed assets are verified
in a phased manner, which in our opinion is reasonable, having regard
to the size of the Company and nature of its assets. Accordingly, the
physical verification of fixed assets has been carried out by the
management during the year. We are informed that discrepancies noticed
on such verification were not material and have been properly dealt
with in the books of account.
(ii) a) The physical verification of the inventory has been carried out
by the management in accordance with the perpetual inventory programme,
at regular intervals during the year. In our opinion, the frequency of
such verification is reasonable having regard to the size of the
Company and the nature of its business.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material and have been properly dealt with in the
books of account.
(iii) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods &
services. During the course of audit, we have not observed any
continuing failure to correct major weakness in internal controls.
(v) The Company has not accepted any deposit from the public within the
meaning of Section 73 to 76 or any other relevant provisions of the
Companies Act and rules framed thereunder.
(vi) We have broadly reviewed the Cost Records maintained by the
Company specified by Central Government under Sub Section (1) of the
Companies Act and are of the opinion that prima facie the prescribed
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) (a) According to information and explanations given to us and on
the basis of our examination of the records of the Company, the Company
is generally regular in depositing, with the appropriate authorities,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees'' State Insurance, Income tax, Sales tax,
Wealth tax, Service tax, Customs duty, Excise duty, Cess and other
statutory dues. According to the information and explanations given to
us, no undisputed amounts remain payable in respect of such statutory
liabilities as at 31st March, 2015 for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us, the
particulars of the disputed dues as at 31.03.2015 which have not been
deposited on account of matters pending in appeal before appropriate
authorities are as under:
Name of the Stature Nature of Amount Period to
the Dues Involved which
(Rs. in Lac) amount relates
Income Tax Income 16.25 AY 2012-13
Act, 1961 Tax
Haryana Local Area Entry Tax 20.41 FY 2008-09
Development Tax Act, 2000 to FY 2014-15
Total 36.46
Income Tax Act, 1961
Haryana Local Area Development Tax Act, 2000
Total
Name of the Statute Forum where the dispute is pending
Income Tax Act 1961 Commissioner of Income Tax (Appeals)
Harayana Local Area Hon" ble Supreme Court
Development Tac Act 2000
(c) The company has transferred the amount which is required to be
transferred to investor education and protection fund in accordance
with the relevant provisions of the companies Act, 1956 (1 of 1956) and
rules made thereunder.
(viii) The company has not incurred cash losses during the year as well
as in the immediately preceding financial year. The Company does not
have accumulated losses as at the end of the financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
bank or bonds/debenture holders as at the Balance Sheet date.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xi) As per the information and explanations given to us on an overall
basis the term loans taken by the company have been applied for the
purposes for which they were obtained.
(xii) According to the information and explanations given by the
management, no fraud on or by the Company has been noticed or reported
during the year.
For M.L. Puri & Co.
Chartered Accountants
FRN 002312N
Place : New Delhi M. L. Puri
Date : 27th May, 2015 Partner
M. No. 9198
Mar 31, 2014
We have audited the accompanying financial statements of Hindustan Tin
Works Limited, which comprise the Balance Sheet as at March 31, 2014,
and the Statement of Profit and Loss and Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act 2013., This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
Internal Control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Companies Act 1956 to the extent applicable and the
Companies Act 2013 (to the extent notified) in the manner so required
and give a true and fair view in conformity with the accounting
principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this Report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act 1956 read with General Circular 15/2013 dated 13th
September 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act 2013.
(e) On the basis of the written representations received from the
directors as on March 31, 2014 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
(f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITORS'' REPORT
Referred To In Paragraph 1 of "Report On Other Legal And Regulatory
Requirements" Of Our Report Of Even Date
1) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information,
(b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
(c) In our opinion, the company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2) In respect of its inventories:
(a) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3) In respect of the loans, secured or unsecured, granted or taken by
the Company to/from companies, firms or other parties covered in the
register maintained under section 301 of The Companies Act , 1956:
(a) As informed to us, the Company has not granted any loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act,
1956.Therefore clauses b, c & d are not applicable.
(e) The company has not taken loan from the company covered in the
register maintained under section 301 of the Companies Act, 1956.
Therefore clauses f & g are not applicable.
4) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
system.
5) In respect of the contracts or arrangements referred to in section
301 of The Companies Act, 1956:
(a) In our opinion and according to the information and explanations
given to us that transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
section 301 of The Companies Act , 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us that transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
section 301 of The Companies Act , 1956 and exceeding the value of
Rs.5,00,000/- in respect of each party during the year has been made at
prices which appear reasonable as per information available with the
company.
6) According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Therefore, the
provisions of clause vi of paragraph 4 of the order are not applicable
to the company.
7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8) We have broadly reviewed the cost records maintained by company
pursuant to the Companies (Cost Accounting Records) Rules 2011
prescribed by the Central Government under section 209(1) (d) of The
Companies Act, 1956 and are of the opinion that prima facia, the
prescribed cost 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.
9) In respect of statutory dues:
(a) According to the records of the company, undisputed statutory dues
including provident fund, Investor education and protection fund,
employees'' state insurance, income-tax, sales-tax, wealth-tax, service
tax, customs duty, excise duty, cess and other statutory dues
applicable have been generally regularly deposited with the appropriate
authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid dues were
outstanding as at 31st March, 2014 (Except Rs.5.62 Lakhs on account of
Utter Pradesh Trade Tax) for a period of more than six months from the
date of becoming payable.
(b) The disputed statutory dues aggregating Rs. 35,94,670/- that have
not been deposited on account of disputed matters pending before
appropriate authorities are as under:
Particulars Period to which Demand Forum where
the amount Raised dispute is
relates (Rs.) pending
Income Tax 2010-11 3,62,890/- The appeal is pending
before the Commissioner
of Income Tax(A)
Income Tax 2011-12 32,31,780/- The appeal is pending
before the Commissioner
of Income Tax(A)
(10) The company does not have accumulated losses at the end of the
financial year. The company has not incurred cash losses during the
financial year covered by the audit and the immediately preceding
financial year.
11) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and banks.
12) In our opinion and according to the information and explanations
given to us and based on the information available, no loans and
advances have been granted by the company on the basis of security by
way of pledge of shares, debentures and other securities.
13) In our opinion, the Company is not a chit fund / nidhi / mutual
benefits fund / society. Therefore the provisions of clause xiii of
paragraph 4 of the order are not applicable to the company.
14) The company is not regularly dealing in shares and there is no
transaction of trading in shares during the year. The company has
maintained proper records of the transactions and contracts in respect
of dealing or trading in shares, securities, debentures and other
investments and timely entries have been made therein. All shares,
securities, debentures and other investments have been held by the
company in its own name.
15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
16) The company has raised new term loans during the year. The term
loans outstanding at the beginning of the year and those raised during
the year 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, we are of the
opinion that there are no funds raised on short-term basis have been
used for long-term investment.
18) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19) The company has not issued any debenture during the year.
20) The company has not raised any money by way of public issue during
the year.
21) In our opinion and according to the information and explanations
given to us, no material fraud on or by the company has been noticed or
reported during the year.
For M.L. Puri & Co.
Chartered Accountants
FRN No. 002312N
Place : New Delhi M. L. Puri
Date : 28th May, 2014 Partner
M. No. 9198
Mar 31, 2013
Report on the Financial Statement
We have audited the accompanying financial statements of Hindustan Tin
Works Limited ("the Company") which comprise the Balance Sheet as at
March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''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 principles generally accepted in India including
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibilty
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 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 March 31, 2013;
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirments
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") as amended by the Companies (Auditor''s Report) Order, 2004,
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, the Statement of Profit and Loss,
and the 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 the written representations received from the
directors as on March 31, 2013, and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2013,
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
Referred To In Paragraph 1 of "Report On Other Legal And Regulatory
Requirements" of Our Report of Even Date
1) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
(b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
(c) In our opinion, the company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2) In respect of its inventories:
(a) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3) In respect of the loans, secured or unsecured, granted or taken by
the Company to/from companies, firms or other parties covered in the
register maintained under section 301 of The Companies Act, 1956:
(a) As informed to us, the Company has not granted any loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act,
1956.Therefore clauses b, c & d are not applicable.
(e) The company has taken loan from the company covered in the register
maintained under section 301 of the Companies Act, 1956, the maximum
amount involved during the year was Rs. 75 lakhs and the year end
balance of loan taken from such party was Nil.
(f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions of the
loans taken by the Company are not prima facie prejudicial to the
interest of the company.
(g) The loan taken is repayable on demand. As informed, that no
outstanding balance of such loan exists and there has been no default
on the part of the company.
4) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
system.
5) In respect of the contracts or arrangements referred to in section
301 of The Companies Act, 1956:
(a) In our opinion and according to the information and explanations
given to us that transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
section 301 of The Companies Act , 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us that transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
section 301 of The Companies Act, 1956 and exceeding the value of
Rs.5,00,000/- in respect of each party during the year has been made at
prices which appear reasonable as per information available with the
company.
6) According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Therefore, the
provisions of clause vi of paragraph 4 of the order are not applicable
to the company.
7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8) We have broadly reviewed the cost records maintained by company
pursuant to the Companies (Cost Accounting Records) Rules 2011
prescribed by the Central Government under section 209(1) (d) of The
Companies Act, 1956 and are of the opinion that prima facia, the
prescribed cost 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.
9) In respect of statutory dues:
(a) According to the records of the company, undisputed statutory dues
including provident fund, Investor education and protection fund,
employees'' state insurance, income-tax, sales-tax, wealth-tax, service
tax, customs duty, excise duty, cess and other statutory dues
applicable have been generally regularly deposited with the appropriate
authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid dues were
outstanding as at 31st March, 2013 (Except Rs.5.62 Lakhs on account of
Utter Pradesh Trade Tax) for a period of more than six months from the
date of becoming payable.
(b) The disputed statutory dues aggregating Rs. 12,45,830/- that have
not been deposited on account of disputed matters pending before
appropriate authorities are as under:
Particulars Period to which Demand Forum where
the amount Raised dispute is
relates (Rs.) pending
Income Tax 2008-09 8,82,940/- The company is also in
appeal before ITAT
against the demand of
Rs. 8,82,940/-
Income Tax 2010-11 3,62,890/- The appeal is pending
before the Commissioner
of Income Tax(A)
(10) The company does not have accumulated losses at the end of the
financial year. The company has not incurred cash losses during the
financial year covered by the audit and the immediately preceding
financial year.
t11) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and banks.
12) In our opinion and according to the information and explanations
given to us and based on the information available, no loans and
advances have been granted by the company on the basis of security by
way of pledge of shares, debentures and other securities.
13) In our opinion, the Company is not a chit fund / nidhi / mutual
benefits fund / society. Therefore the provisions of clause xiii of
paragraph 4 of the order are not applicable to the company.
14) The company is not regularly dealing in shares and there is no
transaction of trading in shares during the year. The company has
maintained proper records of the transactions and contracts in respect
of dealing or trading in shares, securities, debentures and other
investments and timely entries have been made therein. All shares,
securities, debentures and other investments have been held by the
company in its own name.
15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
16) The company has raised new term loans during the year. The term
loans outstanding at the beginning of the year and those raised during
the year 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, we are of the
opinion that there are no funds raised on short-term basis have been
used for long- term investment.
18) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19) The company has not issued any debenture during the year.
20) The company has not raised any money by way of public issue during
the year.
21) In our opinion and according to the information and explanations
given to us, no material fraud on or by the company has been noticed or
reported during the year.
For M.L. Puri & Co.
Chartered Accountants
FRN No. 002312N
Place : New Delhi M. L. Puri
Date : 30th May, 2013 Partner
M. No. 9198
Mar 31, 2012
1. We have audited the attached Balance Sheet of Hindustan Tin Works
Limited, as at 31st March, 2012 and the Profit and Loss Account and
Cash Flow Statement of the company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence, supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) Order, 2004 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 3
above, we report that:-
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b. In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of the
books of the Company.
c. The Balance Sheet and Profit and Loss Account and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. Based on the representations received from the Directors and
information & explanations made available, we report that none of
directors are disqualified as on 31st March, 2012 from being appointed
as a Director in terms of Clause (g) of Sub-Section (1) of Section 274
of the Companies Act, 1956.
e. In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the accounting standards referred to in
Sub-Section (3C) of Section 211 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanation given to us, the accounts read together with other
noted thereon give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India.
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2012.
ii. In the case of Profit and Loss Account of the Profit for the year
ended on that date.
iii. In the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT (REFERRED TO IN PARAGRAPH 3 OF OUR
REPORT OF EVEN DATE) TO THE SHAREHOLDERS OF HINDUSTAN TIN WORKS LIMITED
We report that:
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) We are informed that major parts of the fixed assets were
physically verified 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 substantial part of fixed assets has not been disposed off
by the company.
2. (a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. (a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Therefore clauses b, c, &
d are not applicable.
e) The company has taken loan from the company covered in the register
maintained under section 301 of the Companies Act, 1956, the maximum
amount involved during the year was Rs. 44.62 lacs and the year end
balance of loan taken from such party was Nil.
f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions for
such loan are not prima facie prejudicial to the interest of the
company.
g) The loan taken is repayable on demand. As informed, the company has
repaid the balance outstanding of such loan, thus, there has been no
default on the part of the company.
h) There is no overdue amount of loan taken from the 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 is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
5. (a) 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 , and
(b) Transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of section 58(A). 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly review the books of accounts maintained by company
pursuant to the rules prescribed by the Central Government for the
maintenance of cost records under section 209 (1)(d) of the Act and are
of the opinion that prima facia, the prescribed accounts and records
have been made and maintained. However we have not made a detailed
examination of the records
9. (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
Investor education and protection fund, employees' state insurance,
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty, cess and other material statutory dues applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees'
state insurance, income-tax, wealth-tax, service tax, sales- tax,
customs duty, cess and other undisputed statutory dues were outstanding
as at 31.03.2012, for a period of more than six months from the date
they became payable.
(b) As regards dues not deposited on account of disputes, the position
as explained by the Company is as under:
Particulars Period to which Demand
the amount Raised
relates (Rs.)
Income Tax 2008-09 14,49,744
Income Tax 2009-10 29,59,928
Excise 1995-96 1,32,000
Particulars Forum
Remarks where
pending
Income Tax CIT Appeal has deleted the ITAT
demand of Rs. 5,66,804/- and the
department is in appeal before ITAT
and the Company is also in appeal
before ITAT against the demand of Rs.
8,82,940/-
Income Tax The appeal is also pending before CIT(A)
the Commissioner of Income Tax
Excise Remanded back by CESTAT Commissione
to Commissioner Appeals. Appeals.
Company has deposited Rs.60,000
against the demand.
(10) The company has no accumulated losses at the end of the financial
year.
(11) Based on our audit procedures and as per the information and
explanations given by the management, the Company has not defaulted in
repayment of dues to financial institutions and banks. The company has
not issued any debentures during the year
(12) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(13) The Company is not a chit fund, nidhi, mutual benefits fund or a
society, accordingly, clause 4(xiii) of the order not applicable.
(14) The company is not regularly dealing in shares and there is no
transaction of trading in shares during the year. Proper records have
been maintained and timely entries have been made for the shares
already held by company. Shares have been held by the company in its
own name.
(15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(16) In our opinion and according to the information and explanations
given to us by the management, term loans are applied for the purpose
for which the loans were obtained.
(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 no funds raised on short-term basis have been used for long-term
investment
(18) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
(19) The company has not issued any debenture during the year.
(20) The company has not raised any money by public issue during the
year.
(21) Based on the audit procedures performed and the representation
obtained from the management, we report that no fraud on or by the
company has been noticed or reported during the year under audit.
For M.L. Puri & Co.
Chartered Accountants
FRN No. 002312N
Place : Delhi M. L. Puri
Date : 9th August, 2012 Partner
M. No. 9198
Mar 31, 2011
1. We have audited the attached Balance Sheet of Hindustan Tin Works
Limited, as at 31st March 2011 and the Profit and Loss Account and Cash
Flow Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence, supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 as
amended 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 3
above, we report that:- (a) We have obtained all the information and
explanations, which to the best of our knowledge and belief were
necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of the
books of the Company.
(c) The Balance Sheet and Profit and Loss Account and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) Based on the representations received from the Directors and
information & explanations made available, we report that none of the
directors are disqualified as on 31st March, 2011 from being appointed
as a Director in terms of Clause (g) of Sub-Section (1) of Section 274
of the Companies Act, 1956.
(e) In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the accounting standards referred to in
Sub-section (3C) of Section 211 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanation given to us, the accounts read together with other
notes thereon give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India.
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2011.
ii) In the case of Profit and Loss Account of the Profit for the year
ended on that date.
iii) In the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT (REFERRED TO IN PARAGRAPH 3 OF OUR
REPORT OF EVEN DATE) TO THE SHAREHOLDERS OF HINDUSTAN TIN WORKS LTD
1. (a) The Company has maintained proper records, showing full
particulars including quantitative details
and situation of fixed assets.
(b) We are informed that major parts of the fixed assets were
physically verified 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 substantial part of fixed assets has not been disposed off
by the company during the year.
2. (a) On the basis of information and explanations obtained, stocks
of finished goods, raw materials & stores physical checked by
management at reasonable intervals.
(b) The procedure of physical verification of stocks followed by the
management is reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stock and
book records were not material.
3. (a) The company has not granted loan to parties covered in the
register maintained under Section 301 of the Companies Act, 1956.,
therefore clauses b, c, & d are not applicable.
(e) The company has taken loan from the company covered in the register
maintained under Section 301of the Companies Act, 1956. The maximum
amount involved during the year was Rs.155.22 lacs and the year end
balance of loan taken from such party was Rs.44.00 lacs.
(f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions for
such loan are not prima facie prejudicial to the interest of the
company.
(g) The loan taken are repayable on demand. As informed, the company
has not demanded the balance outstanding of such loan, thus, there has
been no default on the part of the company.
(h) There is no overdue amount of loan taken from the 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 for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weaknesses in internal controls were either reported or noticed.
5. (a) 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; and (b) Transactions made in pursuance
of such contracts or arrangements have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. The Company has not accepted deposits from public within the
meaning of Sec.58 (A), 58AA or any other relevant provisions of the
Companies Act, 1956 and the rules framed thereunder.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business
8. We are informed that maintenance of cost records has not been
prescribed by the Central Government under Clause (d) of Sub-Section 1
of Sec 209 of the Act.
9. (a) According to the records of the Company , the Company has been
generally regular in depositing
with appropriate authorities the statutory dues including Provident
Fund, Employees State Insurance, Income tax , Sales tax , Wealth tax ,
Custom duty , Excise duty, Cess and other statutory dues. According to
the information and explanations given to us, there are no undisputed
amounts payable in respect of the aforesaid statutory dues , which have
remained outstanding as at 31.3.2011 for a period of more than 6 months
from the date they became payable.
(b) As regards dues not deposited on account of disputes, the position
as explained by the Company is as under:
Particulars Period to which Demand Forum
the amount Raised Remarks where
relates (Rs.) pending
SALES TAX 1996-97 to 98-99 11,52,000 Demand on Assessment Allahabad
Rs.590000/-
deposited the High Court.
demand and the
Hon'ble Allahabad
High Court has
granted Stay for
the balance amount
of Rs. 562000.
EXCISE 1995-96 1,32,000 Remanded back by
CESTAT to Commissioner
Commissioner
Appeals. Company Appeals.
has deposited
Rs. 60,000 against
the demand.
HARYANA
VAT 08-09, 09-10 15,56,035 Amount is payable
under Haryana High Court
& 10-11 local area
development tax act,
against that hon'ble
Punjab & Haryana
Court has granted
stay.
10. The Company has no accumulated losses at the end of the financial
year.
11. On the basis of the verification of records and information and
explanations given by the management, the Company has not defaulted in
repayment of dues to financial institutions and banks. The Company has
not issued any debentures during the year.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures or other securities.
13. The provision of any special statutes applicable to chits do not
apply to the Company.
14. The Company is not regularly dealing in shares but there are few
transactions of trading in shares for which proper records have been
maintained of the transactions and timely entries have been made
therein. Shares have been held by the Company in its own name.
15. The Company has not given any guarantee to Banks or Financial
Institution on behalf of other.
16. According to the records of the Company, term loans taken during
the year have been applied for the purpose for which they were
obtained.
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 funds raised on short terms basis have not been used for long term
investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Act.
19. The company has not issued any debenture during the year.
20. The company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the representation
obtained from the management , we report that no fraud on or by the
Company has been noticed or reported during the year under audit.
For M.L. Puri & Co.
Chartered Accountants
FRN No. 002312N
Place : New Delhi M. L. Puri
Date : 12th August, 2011 Partner
M. No. 9198
Mar 31, 2010
1. We have audited the attached Balance Sheet of Hindustan Tin Works
Limited, as at 31 st March 2010 and the Profit and Loss Account and
Cash Flow Statement of the Company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence, supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended 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 3
above, we report that:-
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of the
books of the Company.
(c) The Balance Sheet and Profit and Loss Account and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) Based on the representations received from the Directors and
information & explanations made available, we report that none of the
directors are disqualified as on 31 st March, 2010 from being appointed
as a Director in terms of Clause (g) of Sub-Section (1) of Section 274
of the Companies Act, 1956.
(e) In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the accounting standards referred to in
Sub-section (3C) of Section 211 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanation given to us, the accounts read together with other
notes thereon give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India.
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31 st March, 2010.
ii) In the case of Profit and Loss Account of the Profit for the year
ended on that date.
iii) In the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE) TO THE
SHAREHOLDERS OF HINDUSTAN TIN WORKS LTD
1. (a) The Company has maintained proper records, showing full
particulars including quantitative details and situation of fixed
Sassets.
(b) We are informed that major parts of the fixed assets were
physically verified at reasonable intervals. No material discrepancies
were noticed on such verification.
(c) There was no disposal of a substantial part of the Fixed Assets.
2. (a) On the basis of information and explanations obtained, stocks
of finished goods, raw materials & stores physical checked by
management at reasonable intervals.
(b) The procedure of physical verification of stocks followed by the
management is reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stock and
book records were not material.
3. In respect of unsecured Loans granted to company covered in the
register maintained under Section 301 of the companies Act 1956 and
according to the information and explanation given to us:-
(a) The company has granted loan to the Joint Venture Company covered
in the register maintained under Section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs. 63.67 lacs
and the year end balance of loan granted to such party was nil.
(b) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions for
such Icon are not prima facie prejudicial to the interest of the
company.
(c) The loans granted are repayable on demand. As informed, the company
has not demanded the balance outstanding of such loan, thus, there has
been no default on the part of the party to whom the money has been
lent. The payment of interest on such loan was not due at the year end.
(d) There are no overdue amounts and hence the provisions of Sub-clause
(d) of clause 4(iii) of the order are not applicable to the company.
(e) The company has taken loan from the company covered in the register
maintained under Section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs.94.54 lacs, the year end balance
of loan taken from such party was Rs. 50.92 lacs.
(f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions for
such loan are not prima facie prejudicial to the interest of the
company.
(g) The loan taken are repayable on demand. As informed, the company
has not demanded the balance outstanding of such loan, thus, there has
been no default on the part of the company. The payment of interest on
such loan was not due at the year end.
(h) There are no overdue amounts and hence the provisions of Sub-clause
(h) of clause 4(iii) of the order are not applicable to the company
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 for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weaknesses in internal controls were either reported or noticed.
5. (a) The particulars of contracts or arrangements referred to in
section 301 of the Act have been entered in the register required to be
mointained under that section; and
(b) Transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanation
given to us,the Company has not accepted deposits from the public
during the year .Therefore the provisions of clause 4(vi) of the order
are not applicable to the company.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business
8. We are informed that maintenance of cost records has not been
prescribed by the Central Government under Clause (d) of Sub-Section 1
of Sec 209 of the Act.
9. (a) According to the records of the Company, the Company has been
generally regular in depositing
with appropriate authorities the statutory dues including Provident
Fund, Employees State Insurance, Income tax, Sales tax, Wealth tax,
Custom duty, Excise duty, Cess and other statutory dues.
(b) According to the information and explanations given to us, there
are no undisputed amounts payable in respect of the aforesaid statutory
dues, which have remained outstanding as at 31.3.2010 for a period of
more than 6 months from the date they became payable.
(c) As regards dues not deposited on account of disputes, the position
as explained by the Company is as under:
Particulars Period to which Demand Forum
the amount Raised Remarks where
relates (Rs.) pending
SALES TAX 1996-97 to 98-99 11,52,000 Rs.590000/-
deposited against
Allahabad
the demand and the
Honble High Court.
Allahabad High Court
has granted stay for
the balance amount of
RS.562000.
EXCISE 1995-96 1,32,000 Remanded back by CESTAT
to Commissioner
Commissioner
Appeals. Company Appeals.
has deposited
Rs. 60,000 against
the demand,
HARYANAVAT 08-09 & 09-10 12,03,335 Amount is payable under
Haryana High Court
local area development
tax act, against that
honble Punjab &
Haryana Court has
granted stay.
10. The Company has no accumulated losses at the end of the financial
year.
11. In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.
12. In our opinion and 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 or other
securities.
13. The provision of any special statutes applicable to chits does not
apply to the Company.
14. According to the information and explanation given to us, during
the period covered by our audit report, the company is not dealing in
or trading in shares, securities, debentures and other investments.
15. In our opinion and according to the information and explanation
given to us, the Company has not given any guarantee for loans to Banks
or Financial Institution on behalf of other.
16. In our opinion and according to the information and explanation
given to us, the term loans taken during the year have been applied for
the purpose for which they were obtained.
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 funds raised on short terms basis have not been used for long term
investment.
18. According to the information and explanation given to us, during
the period covered by our audit report, the Company has not made any
preferential allotment of Equity shares to parties and companies
covered in the register maintained under section 301 of the Act.
19. The company has not issued any debenture during the year.
20. During the period covered by our audit report, the company has not
raised any money by way of public issue during the year.
21. To the best of our Knowledge and belief and according to the
information and explanation given to us, no material fraud on or by the
Company has been noticed or reported during the course of our audit.
For M.L. Puri & Co.
Chartered Accountants
Place : New Delhi M. L. Puri
Date :4th August 2010 Partner
M. No. 9198
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