Home  »  Company  »  India Gelatine &  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of India Gelatine & Chemicals Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of INDIA GELATINE & CHEMICALS LIMITED (the Company'), which comprise the balance sheet as at 31st March 2015, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE 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 and presentation 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 misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

OPINION

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31KMarch 2015 and its profit and its cash flows for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1 As required by the Companies (Auditor's Report) Order, 2015 ("the Order*) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.

2. As required by Section 143 (3) of the Act, wereportthat:

(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

(b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

(c) the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;

(d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

(e) on the basis of the written representations received from the directors as on 31st March 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2015 from being appointed as a director in terms of Section 164 (2) of the Act; and

(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 Item No. 4 (ii) of Note No. 25 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 - Refer Item No. 12 of Note No. 25 of the financial statements, and

iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education arid Protection Fund by the Company.

ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in our Independent Auditors' Report to the members of the Company on the financial statements for the year ended 31st March 2015, we report that:

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.

(ii) (a) Inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

(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 has maintained proper records of inventory and no material discrepancies were noticed on physical verification.

(iii) (a) The Company has not granted loan to body corporate covered in the register maintained under section 189 of the Companies Act, 2013 ('the Act').

(b) In the case of the loan granted to the body corporate listed in the register maintained under section 189 of the Act, the borrower has been regular in the payment of the interest as stipulated. The terms of arrangements do not stipulate any repayment schedule and the loans are repayable on demand. Accordingly, paragraph 3(iii)(b) of the Order is not applicable to the Company in respect of repayment of the principal amount.

(c) There are no overdue amounts of more than rupees one lakh in respect of the loan granted to the body corporate listed in the register maintained under section 189 of the 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 with regard to purchase of inventory and fixed assets and sale of services. We have not observed any major weakness in the internal control system during the course of the audit.

(v) The Company has not accepted any deposits from the public.

(vi) The Company has maintained cost records under Section 148(1)oftheAct.

(vii) (a) According to the 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, ESIC, Income Tax, Sales Tax, Wealth Tax, Excise Service Tax, Duty of Customs, Value Added Tax, Cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, income Tax, Sales Tax, Wealth Tax, Service Tax, Duty Of Customs, Value Added Tax, Cess and other material statutory dues were in arrears 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, there are no material dues of Wealth Tax, Duty of Customs and Cess which have not been deposited with the appropriate authorities on account of any dispute. However, according to information and explanations given to us, the following dues of Excise Duty and Service Tax have not been deposited by the Company on account of disputes :

Name of the Nature of dues Amount Period to which Statute (Rs. lacs) the amount relates

Central Excise Act, Excise Duty 8.15 1980-81 to 1944 1983-84

Service Tax Service 36.01 2008.09 to Act Tax 2013-14

Name of the Statute Forum where the dispute is pending

Central Excise Dy. Commissioner of CEGAT Excise Act 1944

Service Tax Act CESTAT Ahmedabad & Commissioner of Excise

According to the information and explanations given to us the amounts which were required to be transferred to the Investor Education And Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules there under has been transferred to such fund within time.

(viii) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in the immediately preceding financial year.

(ix) The Company did not have any outstanding dues to financial institutions, banks or debenture holders during the year.

(x) In our opinion and according to the information and the explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

(xi) The Company did not have any term loans outstanding during the year or in our opinion and according to the information and explanation given to us the Company has applied the term loans prima facie for the purpose for which the loans were obtained.

(xii) According to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the course of our audit.

For Mahendra N. Shah & Co., Chartered Accountants FRN 105775W CA Chirag M. Shah Place :Ahmedabad Partner Date : 27.05.2015 M. No.F-45706


Mar 31, 2013

We have audited the accompanying financial statements of INDIA GELATINE & CHEMICALS LTD ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows ofthe Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 ofthe Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards,on Auditing issued by the Institute of Chartered Accountants of India.Those Standards require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment ofthe risks of material misstatement ofthe financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case ofthe Balance Sheet, ofthe state of affairs ofthe Company as at March 31,2013;

b) in the case ofthe Statement of Profit and Loss, ofthe profit forthe year ended on that date; and

c) in the case ofthe Cash Flow Statement, ofthe cash flows forthe year ended on that date.

1. As required by the Companies (Auditor''s Report) Order, 2003 (''the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 ofthe 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 beliefwere necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e) on the basis of written representations received from the directors as on March 31,2013, and taken on record by the Board of Directors, none ofthe 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 ofthe Companies Act, 1956.

Referred to in Paragraph 3 ofthe Auditors'' Report of even date to the members of India Gelatine & Chemicals Ltd. on the Financial Statements forthe year ended 31st March, 2013

1. (a) The Company is maintaining proper records showing full particulars including quantitative details and situation of Fixed Assets.

(b) There is a regular programme of verification which in our opinion, reasonable having regard to the size of the Company and the nature of its fixed assets. As informed, no material discrepancies were noticed on such verification.

(c) During the year, the company has not disposed off substantial part of Fixed Assets.

2. (a) Inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size ofthe Company and the nature of its business.

(c) The Company has maintained proper records of inventory and no material discrepancies were noticed on physical verification.

3. (a) The Company has granted Loans to companies, firms or other parties covered in the register maintained under Section 301 ofthe Act.

(i) The Company has granted loan to associate concern and maximum amount outstanding at any time is aggregating to Rs. 500 lacs during the year.

(ii) In our opinion and according to the information and explanations given to us, the rate of interest, wherever applicable and other terms and conditions are not prima-facie prejudicial to the interest ofthe Company.

(iii) The payment of Principal Amount as well as Interest thereof are also regular.

(iv) In respect of loans granted by the Company, the same are repayable on demand and Rs. 500 lacs is outstanding atthe end ofthe year.

(b) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under Section 301 of the Act. Accordingly the provisions of Clauses iii(e), iii(f) and iii(g) of the Order are not applicable.

4. In our opinion, there are adequate internal control systems commensurate with the size of the Company and the nature of its business, with regard to the purchase of inventory, fixed assets and sale of goods and services. During the course of our audit, no major weaknesses have been noticed in internal control system.

5. (a) The particulars of contracts or arrangements referred to in Section 301 of the Act, have been entered in the register maintained under that section.

(b) The transactions in excess ofRs. 500 lacs made in pursuance of contracts or arrangements referred to in Section 301 ofthe Act are, in our opinion, at prices which are primafacie reasonable having regard to the prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of Section 58A and 58AA any other relevant provisions of the Act.

7. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business.

8. We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the rules made by the Central Government of India, the maintenance of cost records has been prescribed under Clause (d) of sub-section (1) of Section 209 ofthe Act, and are ofthe opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination ofthe records with aviewto determine whetherthey are accurate or complete.

9. (a) The Company is generally regular in depositing the undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-Tax, Value Added Tax, Wealth-Tax, Service-Tax, Custom Duty, Excise Duty, Cess and other material statutory dues as applicable with the appropriate authorities. No undisputed amounts payable in respect of such taxes, duties, cess were outstanding, as at 31st March, 2013 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 following demands as on 31.03.2013 have not been deposited since appeals are pending before the relevant authorities.

Name of the Nature of dues Amount Period to which Forum where the Statute (Rs. lacs) the amount relates dispute is pending

Central Excise Duty 23.56 1980-81 to Dy. Commissioner Excise Act, & Service Tax 1983-84 of CEGAT Excise 1944

10. The Company has no accumulated losses as at the end ofthe financial year and it has not incurred cash losses in the current and immediately preceding financial year.

11. The Company has not defaulted in repayment of dues to the bank during the year.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of Clause (xii) of the Order are not applicable to the Company.

13. The Company is not a Chit Fund or a Nidhi/Mutual Benefit Fund/Society. Accordingly, the provisions of Clause (xiii) ofthe Order are not applicable to the company.

14. The Company has maintained proper records of transactions and contracts in respect of trading in securities and other investments and timely entries have been made therein. All securities & other investments have been held by the Company in its own name.

15. In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions. Accordingly, the provisions of clause (xv) ofthe Order are not applicable to the Company.

16. In our opinion and according to the information and explanation given to us the Company has applied the term loans prima facie for the purpose for which the loans were obtained.

17. According to information and explanations given to us on an overall examination of the Balance Sheet and Cash Flow Statement 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 to parties or companies covered in the register maintained under Section 301 of the Act.

19. The Company has not raised any funds through debentures during the year.

20. The Company has not raised any money by public issues during the year.

21. Based on audit procedure performed and as per the information and explanations given by the Management, no fraud on or by the Company was noticed or reported during the year.

For Mahendra N. Shah & Co.,

Chartered Accountants

FRN 105775W

Chirag M. Shah

Place : Ahmedabad Partner

Dated : 31.05.2013 M. No.F-45706


Mar 31, 2011

1) We have audited the attached Balance Sheet of M/s. India Gelatine & Chemicals Ltd., as at 31st March, 2011 and the Profit and Loss Account and the Cash Flow Statement for the year ended on that date. These Financial Statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these Financial Statements based on our audit.

2) We conducted our audit in accordance with auditing standards generally accepted in India. These Standards require that we plan and perform the audit to obtain reasonable assurance about whether the Financial Statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3) As required by the Companies (Auditor's Report) Order, 2003 as amended by the Companies (Auditor's Report) (Amendment) Order, 2004 (together the 'Order') issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 (the 'Act') and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4) Further to our comments in the Annexure referred to above, we report that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;

(ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

(iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

(iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section(3C) of section 211 of the Act.

(v) In our opinion and to the best of our information and according to the explanations given to us, the said Accounts read together with the significant Accounting Policies and other notes thereon give the information required by the Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011;

(b) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and

(c) in the case of the Cash Flow Statement of the Cash flows for the year ended on that date.

5) On the basis of written representations received from the directors, as on 31st March, 2011, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act.

ANNEXURE TO THE AUDITORS' REPORT

Referred to in Paragraph 3 of the Auditors' Report of even date to the members of India Gelatine & Chemicals Ltd. on the financial statements for the year ended 31st March, 2011.

1. (a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

(b) There is a regular programme of verification which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets. As informed, no material discrepancies were noticed on such verification.

(c) During the year, the company has not disposed off substantial part of fixed assets.

2. a) Inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

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 has maintained proper records of inventory and no material discrepancies were noticed on physical verification.

3. a) The Company has granted loans to companies, firms or other parties covered in the register maintained under section 301 of the Act.

(i) The Company has granted loan to associate concern and maximum amount outstanding at any time is aggregating to Rs. 20.25 Crores during the year.

(ii) In our opinion and according to the information and explanations given to us, the rate of interest, wherever applicable and other terms and conditions are not prima-facie prejudicial to the interest of the Company.

(iii) The payment of principal amount as well as interest thereof are also regular.

(iv) In respect of loans granted by the Company, the same are repayable on demand and Rs. 6.00 crores is outstanding at the end of the year.

b) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Act. Accordingly the provisions of clauses iii(f) and iii(g) of the Order are not applicable.

4. In our opinion, there are adequate internal control systems commensurate with the size of the Company and the nature of its business, with regard to the purchase of inventory, fixed assets and sale of goods and services. During the course of our audit, no major weaknesses have been noticed in internal control system.

5. a) The particulars of contracts or arrangements referred to in section 301 of the Act, have been entered in the register maintained under that section.

b) The transactions in excess of Rs. 5 Lacs made in pursuance of contracts or arrangements referred to in section 301 of the Act are, in our opinion, at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of section 58A, 58AA and other relevant provisions of the Act.

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 the Central Govt, has not prescribed maintenance of cost records under section 209(1 )(d) of the Companies Act, 1956 for the products manufactured by the Company.

9. (a) The Company is generally regular in depositing the undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income-Tax, Value Added Tax, Wealth-Tax, Service- Tax, Custom Duty, Excise Duty, Cess and other material statutory dues as applicable with the appropriate authorities. No undisputed amounts payable in respect of such taxes, duties, cess were outstanding, as at 31st March, 2011 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 following demands as on 31.03.2011 have not been deposited since appeals are pending before the relevant authorities.

Sr. Name of the Nature of Amount Period to No. Statute dues Rs.lacs which the amount relates

1 Central Excise Duty 23.56 1980-81 to Excise Act, 1944 & Service Tax 1983-84

Name of the Forum where the Statute dispute is pending

Central Dy. Commissioner of Excise Act, 1944 CEGAT Excise

10.The Company has no accumulated losses as at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.

11. The Company has not defaulted in repayment of dues to the bank during the year.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause (xii) of the Order are not applicable to the Company.

13. The Company is not a chit fund or a nidhi/mutual benefit fund / society. Accordingly, the provisions of clause (xiii) of the Order are not applicable to the company.

14. The Company has maintained proper records of transactions and contracts in respect of trading in securities and other investments and timely entries have been made therein. All securities & other investments have been held by the Company in its own name.

15. In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions. Accordingly, the provisions of clause (xv) of the Order are not applicable to the Company.

16. In our opinion and according to the information and explanation given to us, the Company has applied the term loans prima facie for the purpose for which the loans were obtained.

17. According to information and explanations given to us on an overall examination of the Balance Sheet and Cash Flow Statement 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 to parties or companies covered in the register maintained under section 301 of the Act.

19. The Company has not raised any funds through debentures during the year.

20. The Company has not raised any money by public issues during the year.

21. Based on audit procedure performed and as per the information and explanations given by the Management, no fraud on or by the Company was noticed or reported during the year.



For MAHENDRA N. SHAH & CO. Chartered Accountants Firm Reg. No. 105775W CHIRAG M. SHAH Partner M.NO.F-45706

Place AHMEDABAD Date 26.07.2011


Mar 31, 2010

1) We have audited the attached Balance Sheet of M/s. India Gelatine & Chemicals Ltd., as at 31st March, 2010 and the Profit and Loss Account and the Cash Flow Statement for the year ended on that date. These Financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these Financial Statements based on our audit.

2) We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3) As required by the Companies (Auditors Report) Order, 2003 as amended by the Companies (Auditors Report) (Amendment) Order, 2004 (together the Order) issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 (the Act) and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4) Further to our comments in the Annexure referred to above, we report that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;

(ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

(iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

(iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section(3C) of section 211 of the Act.

(v) In our opinion and to the best of our information and according to the explanations given to us, the said Accounts read together with the significant Accounting Policies and other notes thereon 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 31" March, 2010;

(b) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and

(c) in the case of the Cash Flow Statement of the Cash flows for the year ended on that date.

5) On the basis of written representations received from the directors, as on 31st March, 2010, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act.

ANNEXURE TO THE AUDITORS REPORT

Referred to in Paragraph 3 of the Auditors Report of even date to the members of India Gelatine & Chemicals Ltd. on the financial statements for the year ended 31s March, 2010.

1.(a) The Company is maintaining proper records showing full particulars including quantitative details and situation of Fixed Assets.

(b) There is a regular programme of verification which in our opinion, reaonable having regard to the size of the Company and the nature of its fixed assets. As informed, no material discrepancies were noticed on such verification.

(c) During the year, the company has not disposed off substantial part of Fixed Assets.

2. a) Inventory has been physically verified by the management during the year. In our opinion, the frequency of

verification is reasonable.

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 granted Loans to Companies, firms or other parties covered in the register maintained under section 301 of the Act.

(I) The Company has granted loan to associate concern aggregating to Rs. 20.25 Crores during the year.

(ii) In our opinion and according to the information and explanations given to us, the rate of interest, wherever applicable and other terms and conditions are not prima-facie prejudicial to the interest of the Company.

(iii) The payment of Principal Amount as well as Interest thereof are also regular.

(iv) In respect of loans granted by the Company, the same are repayable on demand and Rs. 8.34 crore is outstanding at the end of the year.

b) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Act. Accordingly the provisions of clauses iii(f) and iii(g) of the Order are not applicable.

4. In our opinion, there are adequate internal control systems commensurate with the size of the Company and the nature of its business, with regard to the purchase of inventory, fixed assets and sale of goods and services. During the course of our audit, no major weaknesses have been noticed in the internal control system.

5. a) The particulars of contracts or arrangements referred to in section 301 of the Act, have been entered in the register maintained underthat section.

b) The transactions in excess of Rs. 5 Lacs made in pursuance of contracts or arrangements referred to in section 301 of the Act are, in our opinion, at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of section 58Aand 58AA and other relevant provisions of the Act.

7. Inouropinion, the Company has an internal audit system commensurate with its size and nature of its business.

8. We are informed that the Central Govt, has not prescribed maintenance of cost records under section 209(1 )(d) of the Companies Act, 1956 for the products manufactured by the Company.

9. (a) The Company is generally regular in depositing the undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, fringe benefit tax, value added tax, wealth-tax, service-tax, custom duty, excise duty, cess and other material statutory dues as applicable with the appropriate authorities. No undisputed amounts payable in respect of such taxes, duties, cess were outstanding, as at 31s1 March, 2010 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 following demands as on 31.03.2010 have not been deposited since appeals are pending before the relevant authorities.

Sr. No. Name of the Nature of Amount Period to Forum where

Statute dues (Rs.) (Lacs) which the the dispute

amount is pending relates

1 Central Excise Duty 20.86 1980-81 to Dy. Commissioner

Excise Act 1944 & Service Tax 1983-84 of & CEGAT Excise

10. The Company has no accumulated losses as at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.

11. The Company has not defaulted in repayment of dues to the bank during the year.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause (xii) of the Order are not applicable to the Company.

13. The Company is not a chit fund or a nidhi/mutual benefit fund / society. Accordingly, the provisions of clause (xiii) of the Order are not applicable to the company.

14. The Company has maintained proper records of transactions and contracts in respect of trading in securities and other investments and timely entries have been made therein. All securities & other investments have been held by the Company in its own name.

15. In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions. Accordingly, the provisions of clause (xv) of the Order are not applicable to the Company.

16. In our opinion and according to the information and explanation given to us the company has applied the Term Loans prima facie for the purpose for which the loans were obtained.

17. According to information and explanations given to us on an overall examination of the balance sheet and cash flow statement 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 to parties or companies covered in the register maintained under section 301 of the Act.

19. The Company has not raised any funds through debentures during the year.

20. The Company has not raised any money by public issues during the year.

21. Based on audit procedure performed and as per the information and explanations given by the management, no fraud on or by Company was noticed or reported during the year.

For MAHENDRA N. SHAH & CO.

Chartered Accountants

FRN.105775W

CHIRAG M. SHAH

Place : AHMEDABAD Partner

Date : 12-08-2010 M.NO.F-45706



 
Subscribe now to get personal finance updates in your inbox!