Mar 31, 2023
independent auditor''s report
To the Members of Insecticides (India) LimitedReport on the Audit of the Standalone Financial
StatementsOpinion
We have audited the accompanying standalone financial
statements of Insecticides (India) Limited ("the Company"),
which comprise the Balance Sheet as at March 31, 2023, the
Statement of Profit and Loss (including other comprehensive
income), the Statement of Changes in Equity and the Statement
of Cash Flows for the year then ended, and notes to the financial
statements, including a summary of the significant accounting
policies and other explanatory information (hereinafter referred
to as "the standalone financial statements").
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 Companies
Act, 2013 (" the Act") in the manner so required and give a
true and fair view in conformity with the Indian Accounting
Standards prescribed under section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules,2015, as
amended, ("Ind AS") and other accounting principles generally
accepted in India, of the state of affairs of the Company as at
March 31, 2023, the profit and total comprehensive income,
changes in equity and its cash flows for the year ended on that
date.
We conducted our audit of the standalone financial statements
in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act. Our responsibilities under those
Standards are further described in the ''Auditor''s Responsibilities
for the Audit of the Standalone Financial Statements'' section
of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India (ICAI) together with the ethical
requirements that are relevant to our audit of the Standalone
financial statements under the provisions of the Act and the
Rules made thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the
ICAI''s Code of Ethics. 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.
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone financial statements of the current period. These
matters were addressed in the context of our audit of the
standalone financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion
on these matters. We have determined the matters described
below to be the key audit matters to be communicated in our
report.
Information Other than the Standalone Financial
Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the
preparation of the other information. The other information
comprises the information included in the Management
Discussion and Analysis, Board''s Report including Annexures
to Board''s Report, Business Responsibility Report, Corporate
Governance and Shareholder''s Information, but does not
include the standalone financial statements and our auditor''s
report thereon. The other information is expected to be made
available to us after the date of the auditor''s report.
Our opinion on the standalone financial statements does not
cover the other information and we do not express any form of
assurance or conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is
materially inconsistent with the standalone financial statements
or our knowledge obtained during the course of our audit or
otherwise appears to be materially misstated.
When we read the other information identified above, if we
conclude that there is a material misstatement therein, we are
required to communicate the matter to those charged with
governance.
Responsibilities of Management and Those Charged With
Governance for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters
stated in section 134(5) of the Act with respect to the preparation
of these standalone financial statements that give a true and
fair view of the financial position, financial performance, total
comprehensive income, changes in equity and cash flows of
the Company in accordance with Ind AS and other accounting
principles generally accepted in India. 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 financial statements that give
a true and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing the standalone financial statements, the Board of
Directors 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 the Board of Directors either intends to
liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors are also responsible for overseeing the
Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone
Financial Statements
Our objectives are to obtain reasonable assurance about whether
the Standalone Financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor''s report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee that
an audit conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually
or in aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these
standalone financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of
the standalone financial statements, whether due to fraud
or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial controls
relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing
our opinion on whether the Company has an adequate
internal financial controls system in place and the operating
effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the Company''s ability to continue as a
going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor''s
report to the related disclosures in the standalone financial
statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor''s
report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure, and content
of the standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone
financial statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably
knowledgeable user of the financial statements may be
influenced. We consider quantitative materiality and qualitative
factors in (i) planning the scope of our audit work and in
evaluating the results of our work; and (ii) to evaluate the effect
of any identified misstatements in the financial statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters.
We describe these matters in our auditor''s report unless law or
regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order,
2020 ("the Order"), issued by the Central Government
of India in terms of section 143 (11) of the Act, we give in
the "Annexure A" a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our
audit, we report that:
a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required
by law have been kept by the Company so far as it
appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss
including Other Comprehensive Income, Statement
of Changes in Equity and the Statement of Cash Flow
dealt with by this Report are in agreement with the
relevant books of account.
d) In our opinion, the aforesaid standalone financial
statements comply with the Ind AS 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 March 31, 2023 taken on
record by the Board of Directors, none of the directors is
disqualified as on March 31,2023 from being appointed
as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial
controls with reference to financial statement of the
Company and the operating effectiveness of such
controls, refer to our separate Report in "Annexure
B". Our report expresses an unmodified opinion
on the adequacy and operating effectiveness of the
Company''s internal financial controls with reference to
financial statement.
g) With respect to the other matters to be included in the
Auditor''s Report in accordance with the requirements
of section 197(16) of the Act, as amended:
In our opinion and to the best of our information
and according to the explanations given to us, the
remuneration paid by the Company to its directors
during the year is in accordance with the provisions of
section 197 of the Act.
h) 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,
as amended 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 as on March 31, 2023 in its financial
position in its standalone financial statements.
Refer Note 39 to the standalone financial
statements.
ii. The Company has made provision, as required
under the applicable law or accounting standards,
for material foreseeable losses, if any, on long¬
term contracts including derivative contracts.
iii. There has been no delay in transferring amounts,
required to be transferred, to the Investor
Education and Protection Fund by the Company.
iv. (a) The Management has represented that,
to the best of its knowledge and belief, no
funds (which are material either individually
or in the aggregate) have been advanced or
loaned or invested (either from borrowed
funds or share premium or any other sources
or kind of funds) by the Company to or in any
other person or entity, including foreign entity
("Intermediaries"), with the understanding,
whether recorded in writing or otherwise,
that the Intermediary shall, whether, directly
or indirectly lend or invest in other persons or
entities identified in any manner whatsoever
by or on behalf of the Company ("Ultimate
Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate
Beneficiaries.
(b) The Management has represented, that, to
the best of its knowledge and belief, no
funds (which are material either individually
or in the aggregate) have been received by
the Company from any person or entity,
including foreign entity ("Funding Parties"),
with the understanding, whether recorded in
writing or otherwise, that the Company shall,
whether, directly or indirectly, lend or invest
in other persons or entities identified in any
manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures that have been
considered reasonable and appropriate in
the circumstances, nothing has come to our
notice that has caused us to believe that the
representations under sub-clause (i) and (ii)
of Rule 11(e), as provided under (a) and (b)
above, contain any material misstatement.
v. As stated in Note 36(b) to the standalone financial
statements
(a) The final dividend proposed in the previous
year, declared and paid by the Company
during the year is in accordance with Section
123 of the Act, as applicable.
(b) The interim dividend declared and paid by the
Company during the year and until the date
of this report is in compliance with Section
123 of the Act
(c) The Company has not proposed a final
dividend for the year.
vi. Proviso to Rule 3(1) of the Companies (Accounts)
Rules, 2014 for maintaining books of account
using accounting software which has a feature of
recording audit trail (edit log) facility is applicable
to the Company with effect from April 1, 2023,
and accordingly, reporting under Rule 11(g) of
Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March
31, 2023.
For S S Kothari Mehta & Company For Devesh Parekh & Co.
Chartered Accountants Chartered Accountants
Firm''s registration number: 000756N Firm''s registration number: 013338N
Vijay Kumar Devesh Parekh
Partner Partner
Membership number: 092671 Membership number: 092160
UDIN: 23092671BGSICG6247 UDIN: 23092160BGVSFJ7368
Place: New Delhi Place: New Delhi
Date : May 30, 2023 Date : May 30, 2023
Mar 31, 2018
INDEPENDENT AUDITORâS REPORT ON STANDALONE FINANCIAL STATEMENT
To the Members of Insecticides (India) Limited
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS Financial Statements of Insecticides (India) Limited (âthe Companyâ) which comprise the Balance Sheet as at March 31, 2018, the statement of Profit and Loss (including other comprehensive income), Statement of Cash Flow and the Statement of Changes in Equity for the year then ended and a summary of significant accounting policies and other explanatory information (herein after referred to as âStandalone Ind AS Financial Statementsâ).
Managementâs 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 (âthe Actâ) with respect to the preparation of these Standalone Ind AS Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and the Statement of changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; the 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 mis-statement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS Financial Statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified Section 143 (10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Standalone Ind AS Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone Ind AS Financial Statements. The procedures selected depend on the 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 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 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 the Standalone Ind AS Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the financial position of the Company as at March 31, 2018, and its financial performance including other comprehensive income, its cash flows and the Statement of changes in equity for the year ended on that date.
Other Matter
The comparative financial information for the year ended 31st March, 2017 and the transition date opening balance sheet as at 1st April, 2016 prepared in accordance with Ind AS included in these standalone financial statements, are based on the previously issued statutory financial statements for the year ended 31st March, 2017 and 31st March, 2016 respectively prepared in accordance with Accounting Standards prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) which were audited by the predecessor auditor whose reports dated 27th May, 2017 and 30th May, 2016 respectively expressed unmodified opinion on those standalone financial statements, and have been adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have been audited by us. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the âAnnexure A'' a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 including Other Comprehensive Income, the statement of cash flow and the statement of changes in equity dealt with by this report are in agreement with the books of accounts;
(d) in our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the Indian Accounting Standards specified under Section 133 of the Act read with relevant rule issued there under;
(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 the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ to this report; and
(g) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS Financial Statements - refer note 38 to the standalone Ind AS Financial Statements.
ii. the Company has made provision, as required under the applicable law or Accounting Standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
âAnnexure Aâ to the Independent Auditorâs Report
The Annexure as referred in paragraph (1) âReport on Other Legal and Regulatory Requirements of our Independent Auditors'' Report to the members of Insecticides (India) Limited on the Standalone Ind AS Financial Statements for the year ended March 31, 2018, we report that:
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant & equipment.
(b) The property, plant & equipment have been physically verified by the management according to the programme of periodical verification in phased manner which, in our opinion, is reasonable having regard to the size of the Company and the nature of its Property, Plant & Equipment. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of records of the Company, the title deeds of immovable properties are held in the name of the Company.
S.No |
Name of the Statue |
Nature of the dues |
Period to which it relates |
Forum where Dispute Is Pending |
Gross Liability (A) |
Amount Deposited under protest (B) |
Net Amount (A - B) |
1 |
Gujarat Stamp Act, 1958 |
Stamp Duty |
2013-14 |
Commissioner of Revenue Department, Tehsil Vagra, District Bharuch |
89.60 |
19.60 |
70.00 |
2 |
Gujarat Value Added Tax Act, 2003 |
VAT & CST |
2011-12 & 2012-13 |
Joint Commissioner of commercial Tax, Baroda |
268.27 |
85.28 |
182.99 |
3 |
Andhra Pradesh VAT Act, 2005 |
VAT |
June 2014 to July 2015 |
Appellate Tribunal, Visakhapatnam |
122.08 |
61.04 |
61.04 |
4 |
MP VAT Act, 2002 |
Central Sales Tax |
2012-13 |
Assistant Commissioner , VAT, Indore |
1.52 |
0.15 |
1.37 |
5 |
West Bangal VAT Act, 2003 |
Penalty |
2010-11 |
Appellate Authority, VAT, West Bengal |
5.70 |
5.70 |
Nil |
6 |
Central Excise Act, 1944 |
Excise Duty |
2015-16 |
Central Excise & Service Tax Audit Commissionerate, Jaipur |
352.10 |
13.20 |
338.89 |
ii. We have been explained by the management that the inventory (except stock in transit, for which material has been received) has been physically verified at reasonable intervals and the procedures of physical verification of inventory followed by the management are reasonable in relation to the size of the company and nature of its business. According to information and explanations given to us, the material discrepancies, if any, noticed on such physical verification of inventory as compared to book records were properly dealt within the books of accounts.
iii. 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 paragraph iii (a) to (c) of the Order are not applicable to the Company.
iv. The Company has not given any loans, investments, guarantees, and security under the provisions of Section 185 and 186 of the Act. Accordingly, the provisions of paragraph
(iv) of the Order is not applicable to the Company.
v. The Company has not accepted any deposits from public. Accordingly, the provisions of paragraph (v) of the Order is not applicable to the Company.
vi. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by Central Government for the maintenance of the cost records under Section 148(1) of the Act in respect to the Company''s products to which said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have however not made a detailed examination of the said records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and on the basis of examination of the records of the Company, the Company has generally been regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, sales-tax, income tax, service tax, goods and service tax, custom duty, excise duty, value added tax, entry tax, cess and any other material statutory dues with the appropriate authorities and further there were no undisputed statutory dues payable for a period of more than six months from the date they become payable as at March 31, 2018.
(b) According to the records and information and explanations
given to us, there are no dues in respect of income tax, sales tax, service tax, goods and service tax, duty of excise, duty of custom, stamp duty and value added tax that have not been deposited on account of any dispute except as given below:
(ii) The Managing Director shall act in accordance with the Articles of Association of the Company and shall abide by the provisions contained in Section 166 of the Act with regard to duties of directors.
(iii) The Managing Director shall adhere to the Companyâs Code of Conduct.
(iv) The office of Managing Director may be terminated by the Company or by him by giving the other 3 (three) monthsâ prior notice in writing.
Except for the aforesaid revision in salary, all other terms and conditions of his re-appointment as the Managing Director of the Company as approved earlier by the shareholders, shall remain unchanged. The Board recommends and proposes to pass the resolution set out at item no. 7. of the notice as an Special Resolution. The terms as set out in the resolution and explanatory statement may be treated as an abstract of the terms of appointment pursuant to Section 196 of the Companies Act, 2013.
Shri Rajesh Aggarwal is interested in the resolution set out at Item No. 7 of the Notice. Shri Hari Chand Aggarwal and Smt. Nikunj Aggarwal, being related to Shri Rajesh Aggarwal may be deemed to be interested in the said resolution. The other relatives of Shri Rajesh Aggarwal may be deemed to be interested in the said resolution of the Notice, to the extent of their shareholding interest, if any, in the Company. Save and except the above, none of the other Directors / Key Managerial Personnel of the Company / their relatives are, in any way, concerned or interested, financially or otherwise, in the resolution.
The relevant resolutions passed at the Board and Committee Meetings and other allied documents being referred in the resolution, are available for inspection at the Registered Office of the Company on any working day between 11.00 a.m. to 01.00 p.m. upto the date of AGM and will also be available for inspection at the venue of the AGM ,
viii. In our opinion and according to the information and explanations provided by the management, the Company has not defaulted in repayment of loans or borrowing to any bank.
As per information and explanations given to us, the Company had not taken any loan or borrowings from government and financial institutions. Further, the Company had not issued any debenture.
ix. According to the information and explanations given to us, the company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year. The term loans have been applied for the purpose for which they were raised.
x. Based upon the audit procedures performed for the purpose of reporting true and fair view of the Financial Statements and according to the information and explanations provided by the management, no instance of fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with schedule V of the Companies Act, 2013.
xii. The Company is not a Nidhi Company and hence reporting under paragraph 3(xii) of the Order is not applicable to the Company and hence not commented upon.
xiii. According to the information and explanations provided by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Standalone Ind AS Financial Statements, as required by the applicable accounting standards.
xiv. According to the information and explanations given to us, the Company has not made any preferential allotment of shares or private placement of shares or fully / partly convertible debentures during the year in terms of provisions of Sections 42 of the Act and hence, reporting under paragraph 3(xiv) of the Order is not applicable to the Company and, not commented upon.
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 him. Accordingly, paragraph (xv) of the Order is not applicable.
xvi. According to the information and explanation provided to us, the provision of section 45-IA of the Reserve Bank of India Act, 2013 are not applicable to the Company.
âAnnexure Bâ to the Independent Auditorâs Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ) as referred to in paragraph 2(f) of âReport on Other Legal and Regulatory Requirements of our Independent Auditorsâ Report to the members of Insecticides (India) Limited on the Standalone Ind AS Financial Statements for the year ended March 31, 2018:
We have audited the internal financial controls over financial reporting of Insecticides (India) Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Standalone Ind AS Financial Statements of the Company for the year ended on that date.
Managementâs 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 (âICAI''). 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.
Auditorâs 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 and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the standalone Ind AS Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Ind AS 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 Ind AS Financial Statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with 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 Ind AS Financial Statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Devesh Parekh & Co. For S. S. Kothari Mehta & Co.
Chartered Accountants Chartered Accountants
Firm''s Reg. No. 013338N Firm''s Reg. No. 000756N
Devesh Parekh Harish Gupta
Proprietor Partner
Membership No: 092160 Membership No: 098336
Place : Delhi
Date : May 28th, 2018
Mar 31, 2017
To,
The Members of INSECTICIDES (INDIA) LTD.
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Insecticides (India) Limited (âthe companyâ),which comprise the Balance Sheet as at March 31, 2017, 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 for the year then ended.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone 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 and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone financial statements that give 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 Companyâs Directors, as well as evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone 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 March 31, 2017; and its Profits and its Cash Flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) 0rder,2016 (ââthe orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act,, we give in the âAnnexure Aâ 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, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by the Company so far as 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 written representations received from the directors as on 31 March, 2017, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
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 is subject to Legal proceedings and claims, which has arisen in the ordinary course of business. The Company''s management does not reasonably expect that these legal actions, when ultimately concluded and determined, will have a material and adverse effect on the companyâs results of operations or financial condition (Refer Note No-45).
ii. The Company has made provision as at March 31, 2017, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund during the year by the company.
iv. The Company has provided requisite disclosures in the standalone financial statement as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and these are in accordance with the books of accounts maintained by the Company. (Refer Note-54)
ANNEXURE A TO INDEPENDENT AUDITORâS REPORT
(Referred to in point 1 under the heading âReport on Other Legal & Regulatory Requirementsâ of our report of even date)
1. In respect of its Fixed Assets:
a. The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.
b. As explained to us, the Fixed Assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.
c. According to the information and explanations given to us and on the basis of our examination of the records of the company, the title deeds of immovable properties, as disclosed in Note 12 on fixed assets to the standalone financial statements are held in the name of the company.
2. In respect of its Inventories:
As explained to us, the inventories have been physically verified by the management at regular intervals during the year and in our opinion the frequency of verification is reasonable. Also there was no material discrepancies noticed on physical verification of inventory as compared to the book records.
3. The Company has not granted any loans secured or unsecured to the Companies, Firm (s), Limited liability partnerships or other parties covered in the register maintained u/s 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii) of the Companies (Auditor''s Report) Order, 2016 (as amended) (the order) is not applicable to the company and hence not commented upon.
4. The company has not given any loans, investments, guarantees, and security under the provisions of section 185 and 186 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iv) of the Companies (Auditor''s Report) Order, 2016 (as amended) (the order) is not applicable to the company and hence not commented upon.
5. According to the information and explanations given to us, the Company has not accepted any deposits from its members or from the public during the year under audit within the meaning of section 73 to section 76 or any other relevant provisions of the Companies Act, 2013 & the rules framed there under to the extent notified. Therefore the provisions of clause (v) of paragraph 3 of the Order are not applicable to the Company.
6. We have broadly reviewed the cost records maintained by the Company pursuant to the companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under section 148(1) of the Companies Act and are of the opinion that, prima facie, 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.
7. In respect of Statutory Dues:
a. According to the records of the Company apart from certain instances of delay in depositing the undisputed statutory dues, the company has been regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities during the year. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2017 for a period of more than six months from the date of becoming payable.
b. According to the records of the Company, the disputed statutory dues aggregating to Rs.4,51,55,512/- that have not been deposited on account of disputed matter pending before Appropriate Authorities are as under:
S. No. |
Name of the Statute |
Nature of Dues |
Period to which it relates |
Forum where Dispute is Pending |
Amount (Rs.) |
1. |
VAT Act |
VAT |
2011-12 |
Joint Commissioner of Commercial Tax, Baroda |
5738441 |
2. |
VAT Act |
VAT |
2012-13 |
Joint Commissioner of Commercial Tax, Baroda |
15981600 |
3. |
CST Act |
CST |
2012-13 |
Joint Commissioner of Commercial Tax, Baroda |
5106740 |
4. |
Revenue Department |
Stamp duty |
â |
Commissioner of Revenue Department, Tehsil Vagra, District B haruch |
8960000 |
5. |
VAT Act |
Penalty |
2010-11 |
Appellate Authority, VAT, West Bengal |
570000 |
6. |
VAT Act |
Central sales tax |
2012-13 |
Assisstant Commissioner, VAT, Indore |
152441 |
7. |
VAT Act |
VAT |
June 2014 to July 2015 |
Commercial Tax Officer, Vijaywada |
9766290 |
8. Based on our audit procedures and according to the information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of loans/borrowings to any financial institutions, banks or government. Further the company does not have any debentures issued/outstanding any time during the year.
9. Based on our audit procedures and according to the information and explanation given to us, the term loans availed by the company were prima facie applied for the purposes for which they were raised. No money was raised by way of initial public offer or further public offer (including debt instruments).
10. According to the information and explanations given to us, no material fraud by the company or on the Company by its officers or employees has been noticed or reported during the year. Accordingly, the provisions of clause 3(x) of the Companies (Auditor''s Report) Order, 2016 (as amended) (the order) is not applicable to the company and hence not commented upon.
11. According to the information and explanations given to us and based on our examination of the records of the company, the company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
12. In our opinion and according to the information and explanation given to us, the Company is not a Nidhi Company. Accordingly, the provisions of clause 3(xii) of the Companies (Auditor''s Report) Order, 2016 (as amended) (the order) is not applicable to the company and hence not commented upon.
13. According to the information and explanations given to us and based on our examination of the records of the company, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in Note 35 of the Standalone Financial Statements as required by the applicable accounting standard.
14. 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.
15. According to the information and explanations given to us, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3(xv) of the Companies (Auditor''s Report) Order, 2016 (as amended) (the order) is not applicable to the company and hence not commented upon.
16. 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 Companies (Auditor''s Report) Order, 2016 (as amended) (the order) is not applicable to the company and hence not commented upon.
ANNEXURE B TO INDEPENDENT AUDITORâS REPORT
(Referred to in point 2(f) under the heading âReport on Other Legal & Regulatory Requirementsâ of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of INSECTICIDES (INDIA) LIMITED ('''' the Company'''') as of March 31, 2017 in conjunction with our audit of standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies , the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs Internal Financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing deemed to be prescribed under section 143 (10) of the Act, to the extent applicable to an audit of internal financial controls ,both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India . Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness, Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial controls 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 companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company ; (2)provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with the 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 companyâs 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 to 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 March 31,2017, based on the internal controls 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 MOHIT PAREKH & CO.
Chartered Accountants
Firm Reg. No. 0002067N
(ADITI GUPTA)
Partner
Membership No. 523498
Place : Delhi
Dated : May 27, 2017
Mar 31, 2015
We have audited the accompanying financial statements of Insecticides
(India) Limited ("the company"),which comprise the Balance Sheet as at
31 March 2015, the Statement of Profit and Loss, 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 Financial Statements The Company's
Board of Directors is responsible for the matters 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 the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give 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 accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India; of the state of affairs of the Company as
at March 31, 2015; and its Profits 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, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as 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 written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 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 is subject to Legal proceedings and claims, which has
arisen in the ordinary course of business. The Company's management
does not reasonably expect that these legal actions, when ultimately
concluded and determined, will have a material and adverse effect on
the company's results of operations or financial condition. (Refer Note
No- 42)
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
and as required on long term contracts including derivative contracts;
iii The Company was not required to transfer any amount to the Investor
Education and Protection Fund during the year.
Annexure to Independent Auditor's Report
(Referred to in point 1 under the heading "Report on Other Legal &
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, 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.
2. In respect of its Inventories:
a. As explained to us, the inventories have been physically verified by
the management at regular intervals during the year and 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 inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. The Company has not granted any loans secured or unsecured to the
Companies, Firm (s) or other parties covered in the register maintained
u/s 189 of the Companies Act, 2013. Accordingly, the provisions of
clause 3(iii) of the Companies (Auditor's Report) Order, 2015 (as
amended) (the order) is not applicable to the company and hence not
commented upon.
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, fixed assets and also for the
sale of goods and services. During the course of our audit, we have not
noticed any continuing failure to correct major weakness in such
internal control system of the company.
5. According to the information and explanations given to us, the
Company has not accepted any deposits from its members or from the
public during the year under audit within the meaning of section 73 to
section 76 or any other relevant provisions of the Companies Act, 2013
& the rules framed there under. Therefore the provisions of clause (v)
of paragraph 3 of the Order are not applicable to the Company.
6. We have broadly reviewed the cost records maintained by the Company
pursuant to the companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 148(1) of the
Companies Act and are of the opinion that prima facie 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.
7. In respect of Statutory Dues:
a. According to the records of the Company apart from certain
instances of delay in depositing the undisputed statutory dues, the
company has been regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
statutory dues with the appropriate authorities during the year.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2015 for a period of more than six months
from the date of becoming payable.
b. According to the records of the Company, the disputed statutory
dues aggregating to H68032008/- that have not been deposited on account
of disputed matter pending before Appropriate Authorities are as under:
S.
No. Name of the Nature of Dues Period to which it
Statute relates
1. Central Excise Excise Duty Sep'04 to Aug'07
Act,1944
2 VAT Act Penalty 2010-11
3. VAT Act Central Sales Tax 2009-10
4. VAT Act VAT 2010-11
5. VAT Act Central Sales Tax 2010-11
6. VAT Act Central sales tax 2012-13
7. VAT Act VAT 2014-15
8. VAT Act Central Sales Tax 2010-11
Name of the Statute Forum where Dispute is Pending Amount (In
Lacs)
Central Excise Appellate Tribunal-New Delhi 186.11
Act,1944
VAT ACT Appellate Authority, VAT, West
Bengal 5.70
VAT ACT VAT Tribunal, Jammu 14.42
VAT ACT Appellate Authority, VAT, West
Bengal 12.22
VAT ACT Appellate Authority, VAT, West
Bengal 2.78
VAT ACT Assistant Commissioner, VAT,
Indore 1.52
VAT ACT Deputy Commissioner (Appeals), 21.13
Jaipur
VAT ACT Commissioner Appeal, Assessing 415.77
VAT ACT Authority, Commercial Ta x Circle G,
Jammu
c. The amount was not required to be transferred to Investor Education
& Protection Fund during the year and as such the clause is not
applicable to the company during the year under consideration.
8. The Company does not have accumulated losses at the end of the
financial year and has not incurred any cash loss during the financial
year covered by our audit or in the immediately preceding financial
year.
9. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions and banks.
10. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
11. To the best of our knowledge and belief and according to the
information and explanations given to us, the term loans availed by the
company were prima facie applied for the purposes for which they were
raised.
12. During the course of our examination of the books & records of
company, carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instance of material fraud
on or by the company, noticed or reported during the year nor we have
been informed of any such case by the management.
FOR MOHIT PAREKH & CO.
Chartered Accountants
Firm Reg. No. 0002067N
Mohit Parekh
Place: Delhi Proprietor
Dated: May 27, 2015 Membership No. 081069
Mar 31, 2014
We have audited the accompanying Financial Statements of INSECTICIDES
(INDIA) LIMITED (''the Company''). Which comprise the Balance Sheet as at
March 31, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of Significant
Accounting Policies and other Explanatory Information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these Financial
Statements that give a true and fair view of the Financial Position,
Financial Performance and Cash Flows of the Company in accordance with
the accounting principles generally accepted in India including
Accounting Standards notified under the Companies Act, 1956 read with
General Circular 15/2013 dated September 13, 2013 issued by the
Ministry of Corporate Affairs in respect of Section 133 of 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. 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, 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 & Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
OrderÂ) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards notified under
the Companies Act, 1956 read with General Circular 15/2013 dated
September 13, 2013, issued by the Ministry of Corporate Affairs in
respect of Section 133 of the Companies Act, 2013.
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITOR''S REPORT
(Referred to in Paragraph 1 under the heading " Report on Other Legal &
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, 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 substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its Inventories
a. As explained to us, the Inventories have been physically verified by
the management at regular intervals during the year and 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 inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of Inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of the Loans, Secured or Unsecured, granted or taken by
the Company to /from Companies, Firm(s) or other parties covered in the
register maintained Under Section 301 of the Companies Act, 1956:
a) The Company has not obtained Unsecured Loans from the Companies,
Firm(s), or other parties covered in the register maintained Under
Section 301 of the Companies Act, 1956. Accordingly, the provisions of
clause 4(iii) (e) to (g) of the Companies (Auditor''s Report) Order,
2003 (as amended) (the order) are not applicable to the company and
hence not commented upon.
b) The Company has not granted any Loans Secured or Unsecured to the
Companies, Firm (s) or other parties covered in the register maintained
Under Section 301 of the Companies Act, 1956. Accordingly, the
provisions of clause 4(iii) (a) to (d) of the Companies (Auditor''s
Report) Order, 2003 (as amended) (the order) are not applicable to the
company and hence not commented upon.
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, Fixed Assets and also for the
sale of Goods and Services. During the course of our audit, we have not
noticed any continuing failure to correct major weakness in such
Internal Control System of the Company.
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, the transactions made in pursuance of contracts or
arrangements that needed 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, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5 Lacs in
respect of any party during the year have been made at prices which
appear reasonable as per the 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 during the year
under audit within the meaning of Section 58A and Section 58AA of the
Companies Act, 1956. Therefore the provisions of clause (vi) of
paragraph 4 of the Order are not applicable to the Company.
7. On the basis of Internal Audit Reports broadly reviewed by us, we
are of the opinion that, coverage of Internal Audit Function carried
out by a firm of chartered accountants appointed by the management as
well as Company''s Internal Audit Department is commensurate with the
size of the company and nature of its business. .
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie 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 apart from certain instances
of delay in depositing the undisputed statutory dues, the Company has
been regular in depositing undisputed statutory dues including
Provident Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
statutory dues with the appropriate authorities during the year.
According to the information and explanations given to us, the Investor
Education & Protection Fund is not applicable to the Company during the
year under consideration.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2014 for a period of more than six months
from the date of becoming payable.
c. According to the records of the Company, the disputed statutory dues
aggregating to Rs. 695.72 Lacs that have not been deposited on account
of disputed matter pending before Appropriate Authorities are as under:
S. Name of the Statute Nature of Dues Period to which it
No. relates
1. Central Excise Act,1944 Excise Duty Mar''02 to Oct''02
2. Central Excise Act,1944 Excise Duty Sep''04 to Aug''07
3. Sales Tax Act Central Sales Tax 2009-10
4. Sales Tax Act Central Sales Tax 2008-09
5. Sales Tax Act Central Sales Tax 2010-11
6. West Bengal VAT Act VAT 2010-11
S. Name of the Statute Forum where Dispute Amount
No. is Pending (Rs.In Lacs)
1. Central Excise Appellate Tribunal-New Delhi 75.67
Act,1944
2. Central Excise Appellate Tribunal-New Delhi 161.72
Act,1944
3. Sales Tax Act Sales Tax Tribunal, Jammu 14.42
4. Sales Tax Act Appellate Authority, Sales Tax,
Nagpur 15.93
5. Sales Tax Act Dy. Commissioner of Sales
Tax (Appeals) - Jammu 415.77
6. West Bengal VAT Act Appellate Authority, Sales Tax, 12.22
10. The Company does not have accumulated losses at the end of the
financial year and has not incurred any cash loss during the financial
year covered by our audit or in the immediately preceding financial
year.
11. Based on our audit procedures and according to the information and
explanation 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 explanations given to us and
based on the information available, the Company has not granted loans
and advances on the basis of security by way of pledge of Shares,
Debentures and Other Securities.
13. In our opinion, the Company is not a Chit Fund or a Nidhi/Mutual
Benefit Fund/Society. Therefore the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. In our opinion, the Company is not dealing or trading in Shares,
Securities, Debentures and Other Investments. Accordingly, the
provisions of clause (xiv) of paragraph 4 of the Order are not
applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
Banks or Financial Institutions.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, the Term Loans availed by the
Company were prima facie applied for the purposes 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 that have
been used for Long Term Investment.
18. During the year, the Company has not made any Preferential
Allotment of Shares to Parties, Firm(s) and 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 money by way of Public Issue during the
year.
21. During the course of our examination of the books & records of
Company, carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instance of material fraud
on or by the Company, noticed or reported during the year nor we have
been informed of any such case by the Management.
For MOHIT PAREKH & CO.
CHARTERED ACCOUNTANTS
(MOHIT A. PAREKH)
Place : Delhi Proprietor
Dated : May 28, 2014 M.No.- 081069
Firm Regn. No. - 002067N
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of INSECTICIDES
(INDIA) LIMITED, which comprise the Balance Sheet as at March 31, 2013,
the Statement of Profit and Loss and Cash Flow Statement for the year
then ended and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
the accounting 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 Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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 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 & Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITOR''S REPORT
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, 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 substantial part
of fixed assets during the year and the going concern status of the
company is not affected.
2. In respect of its Inventories:
a. As explained to us, the inventories have been physically verified
by the management at regular intervals during the year and 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 inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory 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 u/s 301 of the Companies Act, 1956:
(a) The Company has obtained unsecured loans from the Companies,
Firm(s), or other parties covered in the register maintained u/s 301 of
the Companies Act, 1956. In our opinion, the rate of interest and other
terms and conditions on which loans have been taken are prima facie not
prejudicial to the interest of the company. The Company is regular in
repaying the principal amounts as stipulated and has been regular in
the payment of interest, wherever applicable.
(b) The Company has not granted any loans secured or unsecured to the
Companies, Firm (s) or other parties covered in the register maintained
u/s 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, fixed assets and also for the
sale of goods and services. During the course of our audit, no major
weaknesses have been noticed in internal controls system.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered in the register maintained u/s
301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs. Five Lacs in
respect of any party during the year have been made at prices which
appear reasonable as per the 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 during the year
under audit within the meaning of Section 58A and Section 58AA of the
Companies Act, 1956. Therefore the provisions of clause (vi) of
paragraph 4 of the Order are not applicable to the Company.
7. On the basis of internal audit reports broadly reviewed by us, we
are of the opinion that, coverage of internal audit function carried
out by a firm of chartered accountants appointed by the management as
well as company''s internal audit department is commensurate with the
size of the company and nature of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie 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 apart from certain instances
of delay in depositing the undisputed statutory dues, the Company has
been regular in depositing undisputed statutory dues including
Provident Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
statutory dues with the appropriate authorities during the year.
According to the information and explanations given to us, the Investor
Education & Protection Fund is not applicable to the company during the
year under consideration.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2013 for a period of more than six months
from the date of becoming payable.
c. According to the records of the Company, the disputed statutory
dues aggregating to Rs. 254.80 Lacs that have not been deposited on
account of disputed matter pending before Appropriate Authorities are
as under:
S.
No. Name of Nature of Period to
the Statute Dues which it relates
1 Central Excise Act,1944 Excise Duty Mar''02 to Oct''02
2 Central Excise Act,1944 Excise Duty Sep''04 to Aug''07
3 Sales Tax Act Sales Tax 2009-10
4 Income Tax Act Income Tax A.Y.-2010-11
Name Forum where Amount
Dispute is
Pending in Lacs
Central Excise Act,1944 Appellate 75.67
Tribunal-New Delhi
Central Excise Act,1944 Appellate 161.72
Tribunal-New Delhi
Sales Tax Act Commercial Tax 14.42
Circle, Samba
(J & K)
Income Tax Act CIT (A), N. Delhi 2.99
10. The Company does not have accumulated losses at the end of the
financial year and has not incurred any cash loss during the financial
year covered by our audit or in the immediately preceding financial
year.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions or banks.
12. In our opinion and according to the explanations given to us and
based on the information available, the Company has not granted loans
and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a Chit fund or a Nidhi/Mutual
Benefit Fund/Society. Therefore the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments during the year.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, the term loans availed by the
company were prima facie applied for the purposes 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 that
have been used for Long Term Investment and similarly no funds raised
on Long-Term basis that have been used to finance Short-Term assets
except core working capital.
18. During the year, the Company has not made any preferential
allotment of shares to parties, firms and 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 money by way of public issue during the
year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year that causes the financial statements to be materially
misstated.
For MOHIT PAREKH & CO.
CHARTERED ACCOUNTANTS
(MOHIT A. PAREKH)
Place : Delhi Proprietor
Dated : May 25, 2013 M.No: 081069
Firm Regn. No. - 002067N
Mar 31, 2012
We have audited the attached Balance Sheet of INSECTICIDES (INDIA)
LIMITED as at March 31, 2012 and also the Statement of Profit and Loss
for the year ended on that date and the Cash Flow Statement for the
year ended on that date annexed thereto. These financial statements are
the responsibility of the Company's Management. Our responsibility is
to express an opinion on these financial statements based on our audit.
1. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the Financial Statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditor's Report) Order, 2003 and as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
3. Further to our comments in the Annexure referred to in paragraph 2
above, we report that :
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit ;
b) In our opinion, proper books of accounts 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
accounts ;
d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement comply with accounting standards referred to in
sub-section 3(C) of Section 211 of the Companies Act, 1956 ;
e) On the basis of written representations received from the directors
of the company, as on March 31, 2012 and taken on records by the Board
of Directors, we report that none of the directors of the company are
disqualified as on March 31, 2012 from being appointed as directors in
terms of clause (g) of sub-section (1) of Section 274 of the Companies
Act, 1956.
f) In our opinion and to the best of our information and explanations
given to us, the said accounts read together with Significant
Accounting Policies and Notes to Accounts give the information required
under 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 so far as relates to the Balance sheet, of the state of affairs
of the Company as at March 31, 2012;
ii) In so far as relates to the Statement of Profit and Loss , of the
PROFIT for the year ended March 31, 2012; and
iii) In so far as relates to the Cash Flow Statement, of the CASH FLOWS
for the year ended March 31, 2012.
ANNEXURE TO AUDITOR'S REPORT REFERRED TO IN PARAGRAPH 2 OF OUR REPORT
OF EVEN DATE TO THE MEMBERS OF INSECTICIDES (INDIA) LIMITED, ON THE
ACCOUNTS FOR THE YEAR ENDED ON MARCH 31, 2012.
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, the Fixed Assets have been physically verified
by the management during the year 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. During the year, the Company has not disposed off substantial part
of fixed assets and the going concern status of the Company is not
affected.
2. In respect of its Inventories
a. As explained to us, the inventories have been physically verified
by the management at regular intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. a. The Company has obtained unsecured loans from the Companies,
Firm(s), or other parties covered in the register maintained under
Section 301 of the Companies Act, 1956. In our opinion, the rate of
interest and other terms and conditions on which loans have been taken
are prima facie not prejudicial to the interest of the Company. The
Company is regular in repaying the principal amounts as stipulated and
has been regular in the payment of interest, wherever applicable.
b. The Company has not granted any loans secured or unsecured to the
Companies, Firm (s) or other parties covered 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, fixed assets and also for the
sale of goods. During the course of our audit, no major weaknesses have
been noticed in internal controls system.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956
a. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed 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, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs. Five Lacs in
respect of any party during the year have been made at prices which
appear reasonable as per the information available with the Company.
6. The Company has not accepted any deposits from the public during
the year under audit within the meaning of Section 58A and Section 58AA
of the Companies Act, 1956. Therefore the provisions of clause (vi) of
paragraph 4 of the Order are not applicable to the Company.
7. On the basis of internal audit reports broadly reviewed by us, we
are of the opinion that, coverage of internal audit function carried
out by a firm of chartered accountants appointed by the management as
well as company's internal audit department is commensurate with the
size of the company and nature of its business. .
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie 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 apart from certain
instances of delay in depositing the undisputed statutory dues, the
Company has been regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
statutory dues with the appropriate authorities during the year.
According to the information and explanations given to us, the Investor
Education & Protection Fund is not applicable to the Company during the
year under consideration.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2012 for a period of more than six months
from the date of becoming payable.
c. According to the records of the Company, the disputed statutory
dues aggregating to Rs.252.73 Lacs that have not been deposited on
account of disputed matter pending before Appropriate Authorities are
as under:
S. Name of the
Statute Nature of Period to
which Forum where Amount
No. Dues it relates Dispute is (Rs. in
Pending Lacs)
1. Central
Excise
Act,1944 Excise Duty Mar'02 to
Oct'02 Appellate 75.67
Tribunal-
New Delhi
2. Central
Excise
Act,1944 Excise Duty Sep'04 to
Aug'07 Appellate 161.72
Tribunal-
New Delhi
3. Sales Tax
Act Sales Tax 2011-12 Asansol (W.B.) 5.70
4. Sales Tax Act Sales Tax 2011-12 Ghaziabad (U.P.) 9.64
10. The Company has no accumulated losses and has not incurred any
cash losses during the financial year covered by our audit or in 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 or Banks.
12. In our opinion and according to the explanations given to us and
based on the information available, the Company has not granted loans
and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a Chit fund or a Nidhi/Mutual
Benefit Fund/Society. Therefore the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments during the year.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
Banks or Financial Institutions.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, the term loans availed by the
company were prima facie applied for the purposes 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 that
have been used for Long Term Investment and similarly no funds raised
on Long Term basis that have been used to finance Short Term Assets
except core working capital.
18. During the year, the Company has not made any preferential
allotment of shares to parties, firms and 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 money by way of public issue during the
year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year that causes the financial statements to be materially
misstated.
For MOHIT PAREKH & CO.
CHARTERED ACCOUNTANTS
(MOHIT A. PAREKH)
Place : Delhi Proprietor
Dated : May 26, 2012 M.No.- 081069
Firm Regn. No. - 002067N
Mar 31, 2011
We have audited the attached Balance Sheet of INSECTICIDES (INDIA)
LIMITED as at March 31, 2011 and also the Profit and Loss Account for
the year ended on that date and the Cash Flow Statement for the year
ended on that date annexed thereto. These Financial Statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditor's Report) Order, 2003 and as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
3. Further to our comments in the Annexure referred to in paragraph 2
above, we report that :
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit ;
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books ;
c) The Balance Sheet, Profit and Loss account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts ;
d) In our opinion, the Balance Sheet, Profit & Loss Account & Cash Flow
Statement comply with accounting standards referred to in sub-section
3(C) of Section 211 of the Companies Act, 1956 ;
e) On the basis of written representations received from the directors
of the Company, as on March 31, 2011 and taken on records by the Board
of Directors, we report that none of the directors of the Company are
disqualified as on March 31, 2011 from being appointed as directors in
terms of clause (g) of sub-section (1) of Section 274 of the Companies
Act, 1956.
f) In our opinion and to the best of our information and explanations
given to us, the said accounts read together with Significant
Accounting Policies and Notes to Accounts give the information required
under 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 so far as relates to the Balance sheet, of the state of affairs
of the Company as at March 31, 2011 ;
ii) In so far as relates to the Profit and Loss Account, of the PROFIT
for the year ended on March 31, 2011; and
iii) In so far as relates to the Cash Flow Statement, of the Cash Flows
for the year ended on March 31, 2011.
ANNEXURE TO AUDITORS' REPORT REFERRED TO IN PARAGRAPH 2 OF OUR REPORT
OF EVEN DATE TO THE MEMBERS OF INSECTICIDES (INDIA) LIMITED, ON THE
ACCOUNTS FOR THE YEAR ENDED ON MARCH 31, 2011.
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, the Fixed Assets have been physically verified
by the management during the year 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. During the year, the Company has not disposed off substantial part
of fixed assets and the going concern status of the Company is not
affected.
2. In respect of its Inventories:
a. As explained to us, the inventories have been physically verified
by the management at regular intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. (a) The Company has not obtained any Secured / Unsecured Loans from
the Companies, Firm(s) or other parties covered in the register
maintained u/s 301 of the Companies Act, 1956.
(b) The Company has not granted Loans any Secured or Unsecured to the
Companies, Firm (s) or other parties covered in the register maintained
u/s 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, fixed assets and also for the
sale of goods. During the course of our audit, no major weaknesses have
been noticed in internal controls system.
5. In respect of transactions covered under Section 301 of
the Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered in the register maintained u/s
301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees Five Lacs in
respect of any party during the year have been made at prices which
appear reasonable as per the information available with the Company.
6. The Company has not accepted any deposits from the public during the
year under audit within the meaning of Section 58A and Section 58AA of
the Companies Act, 1956. Therefore the provisions of clause (vi) of
paragraph 4 of the Order are not applicable to the Company.
7. On the basis of internal audit reports broadly reviewed by us, we
are of the opinion that, coverage of internal audit function carried
out by a firm of chartered accountants appointed by the management as
well as Company's internal audit department is commensurate with the
size of the Company and nature of its business.
8. We have been informed that the Central Goverment has prescribed
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956. We have test checked / reviewed the accounts and records of
the Company in this connection and are of the opinion, that prima
facie, the prescribed accounts and records have been made and
maintained.
9. In respect of Statutory Dues:
a. According to the records of the Company apart from certain
instances of delay in depositing the undisputed statutory dues, the
Company has been regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
statutory dues with the appropriate authorities during the year.
According to the information and explanations given to us, the Investor
Education & Protection Fund is not applicable to the Company during the
year under consideration.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2011 for a period of more than six months
from the date of becoming payable.
c. According to the records of the Company, the disputed statutory
dues aggregating to ` 237.38 lacs that have not been deposited on
account of disputed matter pending before Appropriate Authorities are
as under:
Sl. Amount
No. Name of Nature of Period to Forum where Rs. In
the Statute Dues which it dispute is Lacs)
relates pending
1 Central Excise Mar 02 to Appellate 75.67
Excise Act, Duty Oct 02 Tribunal-
1944 New Delhi
2 Central Excise Sep 02 to Appellate 161.72
Excise Act, Duty Aug 02 Tribunal-
1944 New Delhi
10. The Company neither has accumulated losses at the end of the
financial year, nor incurred cash losses during the current and also in
the immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions or banks.
12. In our opinion and according to the explanations given to us and
based on the information available, the Company has not granted loans
and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a Chit fund or a Nidhi/ Mutual
Benefit Fund/Society. Therefore the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments during the year.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, the term loans availed by the
company were prima facie applied for the purposes 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 that
have been used for Long Term investment and similarly no funds raised
on Long- Term basis that have been used to finance Short-Term assets
except core working capital.
18. During the year, the Company has not made any preferential
allotment of shares to parties, firms and 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 money by way of public issue during the
year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year that causes the financial statements to be materially
misstated.
For MOHIT PAREKH & CO.
Chartered Accountants
MOHIT A. PAREKH
M.No.- 81069
Firm Regn. No. - 002067N
Place : Delhi
Date : May 30, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of INSECTICIDES (INDIA) LTD.
as at March 31, 2010 and also the Profit and Loss Account for the year
ended on that date and the Cash Flow Statement for the year ended on
that date annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 and as
amended by the Companies ( Auditors Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
3. Further to our comments in the Annexure referred to in paragraph 2
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;b) In our opinion, proper books of accounts as required by law
have been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit and Loss account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
d) In our opinion, the Balance Sheet, Profit & Loss Account & Cash Flow
Statement comply with accounting standards referred to in sub-section
3(C) of Section 211 of the Companies Act, 1956 ;
e) On the basis of written representations received from the directors
of the Company, as on March 31,2010 and taken on records by the Board
of Directors, we report that none of the directors of the Company are
disqualified as on March 31,2010 from being appointed as directors in
terms of clause (g) of sub-section (1) of Section 274 of the Companies
Act, 1956.
f) In our opinion and to the best of our information and explanations
given to us, the said accounts read together with Significant
Accounting Policies and Notes to Accounts give the information required
under 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 so far as relates to the Balance sheet, of the state of affairs
of the Company as at March 31, 2010;
ii) In so far as relates to the Profit and Loss account, of the Profit
for the year ended March 31, 2010; and
iii) In so far as relates to the Cash Flow Statement, of the Cash Flows
for the year ended March 31, 2010.
ANNEXURE TO AUDITORS REPORT REFERRED TO IN PARAGRAPH 2 OF OUR REPORT
OF EVEN DATE TO THE MEMBERS OF INSECTICIDES (INDIA) LIMITED, ON THE
ACCOUNTS FOR THE YEAR ENDED ON MARCH 31, 2010
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, the Fixed Assets have been physically verified
by the management during the year 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. During the year, the Company has not disposed off substantial part
of fixed assets and the going concern status of the Company is not
affected.
2. In respect of its Inventories
a. As explained to us, the inventories have been physically verified
by the management at regular intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. (a) The Company has obtained secured/unsecured loans
from the Companies, Firm (s) or other parties covered in the register
maintained u/s 301 of the Companies Act, 1956. The rate of interest and
other terms and conditions are prima facie not prejudicial to the
interest of the Company.
(b) The Company has not granted loans any secured or unsecured to the
Companies, Firm (s) or other parties covered in the register maintained
u/s 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, fixed assets and also for the
sale of goods. During the course of our audit, no major weaknesses have
been noticed in internal controls.
5. In respect of transactions covered under Section 301 of the
Companies Act. 1956
a. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in the register maintained
u/s 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs. Five Lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market price at relevant time.
6. The Company has complied with the provisions of Sections 58A & 58AA
or any other relevant provisions of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public in earlier year(s). According to the
information and explanations given to us, no order has been passed by
the Company Law Board or National Company Law Tribunal or RBI or any
other Tribunal on the Company in respect of the aforesaid deposits.
7. In our opinion, the internal audit system of the Company is
commensurate with the size and nature of its business.
8. We have been informed that the Central Govt, has prescribed
maintenance of cost records under Section 209(l)(d) of the Companies
Act, 1956. We have test checked / reviewed the accounts and records of
the Company in this connection and are of the opinion, that prima
facie, the prescribed accounts and records have been made and
maintained.
9. In respect of Statutory Dues
a. According to the records of the Company, undisputed statutory dues
including Provident Fund, Employees State Insurance, Investor Education
and Protection Fund, Income Tax, Sales tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty, Cess and other statutory dues have been
generally regularly deposited with the Appropriate Authorities.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2010 for a period of more than six months
from the date of becoming payable.
c. According to the records of the Company, the disputed statutory
dues aggregating to Rs.279.33 Lacs that have not been deposited on
account of disputed matter pending before Appropriate Authorities are
as under:
Sl.
no. Name of
the Statute Nature of Dues Forum where
dispute is
pending Amount
(Rs.
In Lacs)
1. Central Excise
Act, 1944 Excise Duty Appellate
Tribunal -
New Delhi 75.67
2 Central Excise
Act, 1944 Excise Duty Appellate
Tribunal -
New Delhi 161.72
3. Service Tax
Act,1994 Service Tax Commissioner
Appeal -
Gurgaon 41.94
10. The Company has no accumulated losses and has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions or banks.
12. In our opinion and according to the explanations given to us and
based on the information available, the Company has not granted loans
and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a Chit fund or a Nidhi/ Mutual
Benefit Fund/Society. Therefore the provisions of Clause 4(xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
16. The Term Loans have been applied for the purpose for which they
were raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for Long Term Investment and similarly no funds raised
on Long- Term basis that have been used to finance Short-Term Assets
except core working capital.
18. During the year, the Company has not made any preferential
allotment of shares to parties, firms and companies covered in the
Register maintained under Section 301 of the Companies Act, 1956.
19. During the year, the Company has not created securities in respect
of debentures issued.
20. The Company has not raised money by way of public issue during the
year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year that causes the financial statements to be materially
misstated.
For MOHIT PAREKH & CO.
Chartered Accountants
Place : Delhi MOHIT A. PAREKH
Date : May 25, 2010 Proprietor
M.No.- 81069
Firm Regn. No. - 002067N
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