Mar 31, 2023
Ion Exchange (India) Limited
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the standalone financial statements of Ion Exchange (India) Limited (the âCompanyâ), its IEI Shareholding (Staff Welfare) Trusts - Sixty trusts and HMIL Shareholding Trust''s (Seventeen trusts) (collectively referred to as the âtrustsâ) which comprise the standalone balance sheet as at 31 March 2023, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information in which are included the Returns for the year ended on that date audited by the branch auditors at Bengaluru and (hereinafter referred to as ''Standalone Financial Statements'').
In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of the branch auditor and trusts auditors on financial statements of such branch and trusts as were audited by the branch auditors, and trusts auditors, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âActâ) 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 31 March 2023, and its profit and other comprehensive loss, changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs 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 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 thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us along with the consideration of reports of the branch and trusts auditors referred to in paragraph (a) of the âOther Mattersâ section below, is sufficient and appropriate to provide a basis for our 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.
Revenue Recognition |
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See note 1.17, note 26 and note 40 to standalone financial statements |
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The key audit matter |
How the matter was addressed in our audit |
Revenue Recognition The arrangement for EPC business contracts includes fixed price contracts. Revenue for such contracts usually extends beyond a reporting period. Contract revenue is measured based on the proportion of contract costs incurred for work performed to date relative to estimated total contract costs. It is computed as per the input method. The estimate is formed by the Company considering the following: ⢠Application of the revenue recognition accounting standard is complex. One of the key estimate is total cost-to-completion of these contracts. It is used to determine the percentage of completion of the relevant performance obligation. ⢠This method requires the Company to perform an initial assessment of total estimated cost and further reassess these estimates on a periodic basis, including end of each reporting period. Considering the significant estimate involved in measurement of revenue in EPC business, we have considered measurement of revenue as a key audit matter. |
Our audit procedures over estimation of total contract costs and revenue recognition for EPC business included the following: ⢠Tested the design, implementation and operating effectiveness of key internal financial controls and processes. This includes estimation of total project cost-to-completion related revenue; ⢠For selected sample of contracts, we inspected key contractual terms with signed contracts and assessed revenue recognized in accordance with Ind AS by: ⢠Observed the approval of percentage of completion workings. ⢠For selected samples, tested the Company''s forecasted cost to completion, through comparison of costs incurred with project budgets, and executed purchase orders and agreements. Identified significant variations and tested variations resulting into re-estimating the remaining costs to complete the contract. ⢠Compared, on a sample basis, revenue transactions recorded during the year with the underlying contracts, progress reports, invoices raised on customers and collections in bank accounts. Also, checked the related revenue, contract costs, evaluation for onerous contracts, contract assets and unearned revenue had been recognised in accordance with the Company''s revenue recognition policies. ⢠Performed analytical procedures on incurred and estimated contract costs or efforts. It includes assessment of contracts with unusual or negative margins, little or no movement in efforts from previous periods. |
Recovery of carrying value of investments |
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See note 1.13 and note 44 to standalone financial statements |
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The key audit matter |
How the matter was addressed in our audit |
Recovery of carrying value of investment The Company has investments in subsidiaries and associates. These investments are accounted for at cost less any provision for impairment. The Company evaluates the indicators of impairment of the said investments regularly by reference to the requirements under Ind AS 36 Impairment of Assets. The Company carries out impairment assessment for each investment by: ⢠Comparing the carrying value of each investment with the net asset values of each company. ⢠Comparing the performance of the investee companies with projections used for valuations and approved business plans. The recoverable amounts of the above investments are estimated in order to determine the extent of the impairment loss. As impairment assessment involves significant assumptions and judgment, we regard this as a key audit matter. Refer to note 6 - "Investments" of the standalone financial statements. |
Our audit procedures included the following: ⢠Assessed the indications of impairment of investments in subsidiaries and associates. We have also examined the basis of estimates of the recoverable amounts of these investments, the assumptions used in making such estimates, and the allowance for impairment. ⢠Comparison of the carrying values of the Company''s investment in subsidiaries and associates with their respective net asset values/ recoverable values and the consequent allowance for impairment if any. ⢠Evaluated key assumptions in the Company''s valuation models used to determine recoverable amount including assumptions of projected adjusted EBITDA, growth rate, rate used for discounting cash flows etc. We also evaluated the forecasts based on historical performance. ⢠Assessment for indications of impairment of such investments. In cases where such indicators existed, we have assessed for the estimation made by the Company for the recoverable amounts. ⢠Tested the arithmetical accuracy of the computation of recoverable amounts of cash generating units. ⢠Involved internal valuation expert to assist in evaluating the key assumptions of the valuations. We tested the related disclosures in Note 6 of the financial statements. |
The Company''s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Board of directors report, but does not include the financial statements and auditor''s report thereon. The Board of directors report is expected to be made available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the Board of directors report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions, as applicable under the relevant laws and regulations.
Management''s and Board of Directors'' Responsibilities for the Standalone Financial Statements
The Company''s Management and Board of Directors are 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 state of affairs, profit and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. The respective management and Board of Directors of the company/ branch/ board of trustees of the welfare trusts are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 respective Management and Board of Directors/ Board of Trustees are 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/ Board of Trustees either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The respective Board of Directors/ Board of Trustees are also responsible for overseeing the Company''s financial reporting process of each company/trust.
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 the 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 control 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 adequate internal financial controls with reference to financial statements 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 the Management and Board of Directors.
⢠Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting in preparation of standalone financial statements 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.
⢠Obtain sufficient appropriate audit evidence regarding the financial statements of branch and trusts of the Company to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the audit of financial statements of such branch and trusts included in the standalone financial statements of which we are the independent auditors. For the other branch and trusts included in the standalone financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion. Our responsibilities in this regard are further described in paragraph (a) of the section titled âOther Mattersâ in this audit report.
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.
(a) We did not audit the financial statements of 1 branch and 77 trusts included in the standalone financial statements of the Company whose financial statements reflect total assets of Rs. 4,903.95 Lacs as at 31 March 2023, total revenue of Rs 13,066.08 Lacs total net profit after tax of Rs 968.96 Lacs and net cash outflows of Rs 65.83 Lacs for the year ended on that date, as considered in the standalone financial statements. The financial statements of these branch and trusts have been audited by the branch and other auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of branch and trusts, is based solely on the report of such branch and other auditors.
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, 2020 (âthe Orderâ) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. A. As required by Section 143(3) of the Act, we report, to the extent applicable, 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 and proper returns adequate for the purpose of our audit have been received from the branch not visited by us.
c. The reports on the accounts of the branch office of the Company audited under Section 143(8) of the Act by branch auditor have been sent to us and have been properly dealt with by us in preparing this report.
d. The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account and with the returns received from the branch not visited by us.
e. In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
f. On the basis of the written representations received from the directors as on 31 March 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2023 from being appointed as a director in terms of Section 164(2) of the Act.
g. With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
B. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit
and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
a. The Company has disclosed the impact of pending litigations as at 31 March 2023 on its financial position in its standalone financial statements - Refer Note 49 to the standalone financial statements.
b. 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.
c. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
d. (I) The management has represented that, to the best of their knowledge and belief, as disclosed in the Note
55(iv) to the standalone financial statements, no funds 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(s) or entity(ies), including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The management has represented that, to the best of their knowledge and belief, as disclosed in the Note 55(v) to the standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(iii) Based on the audit procedures performed 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 d (i) and d (ii) of Rule 11(e), as provided under (i) and (ii) above, contain any material misstatement.
e. The final dividend paid by the Company during the year, in respect of the same declared for the previous years, is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.
As stated in Note 58 to the standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.
f. As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only with effect from 1 April 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is not applicable.
C. With respect to the matter to be included in the Auditor''s Report under Section 197(16) of the Act:
In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.
For B S R & Co. LLP Chartered Accountants Firm''s Registration No. 101248W/W-100022
Glenn D''souza
Place : Mumbai Partner
Date : 26 May 2023 Membership No. 112554
ICAI UDIN:23112554BGWSAO5958
Mar 31, 2018
Report on the Audit of the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of Ion Exchange (India) Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2018, 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 summary of the significant accounting policies and other explanatory information, in which are incorporated the return for the year ended on that date audited by the branch auditor of the Company''s branch at Bengaluru and IEI Shareholding (Staff Welfare) Trusts (Sixty Trusts) audited by respective auditor of the Trusts (herein after referred to as âStandalone Ind AS financial statementsâ).
Management''s Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134 (5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone Ind AS financial statements that give a true and fair view of the state of affairs, profit/loss and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (âInd ASâ) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standard) Rules, 2015 as amended.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the Standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone Ind AS financial statements. The procedures selected depend on the 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 controls 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 state of affairs of the Company as at 31 March 2018, its profit, other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Other matter
We did not audit the financial statements/information of one branch and sixty trusts included in the Standalone Ind AS financial statements of the Company whose financial statements / financial information reflect total assets of Rs 803,645,190 as at 31 March 2018, as well as total revenues is Rs 997,795,887, total profit after tax of Rs. 90,760,969 and total comprehensive income of Rs 91,769,716 for the year then ended on 31 March 2018, as considered in the Standalone Ind AS financial statements. The financial statements/information of this branch have been audited by the branch auditor whose reports have been furnished to us, and our opinion in so far as it relates to the amounts included in respect of this branch and IEI Shareholding Trusts (Sixty Trusts), is based solely on the report of such branch auditor and auditor of Trusts.
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 in terms of Section 143 (11) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The reports on the accounts of the branch office of the Company audited under Section 143 (8) of the Act by the branch auditor and report on accounts of the IEI Shareholding Trusts (Sixty Trusts) have been sent to us and have been properly dealt with by us in preparing this report.
(d) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
(e) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standard) Rules, 2015 as amended.
(f) On the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors are disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(g) 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 âAnnexure Bâ.
(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, in our opinion and to the best of our information and according to the explanations given to us:
1. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Ind AS financial statements - Refer Note 49 to the Standalone Ind AS financial statements.
2. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
3. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
4. The disclosures in this Standalone Ind AS financial statements regarding details of specified bank notes held and transacted during 8 November 2016 to 30 December 2016 have not been made since the requirement does not pertain to financial year ended 31 March 2018.
Annexure A to the Independent Auditorâs Report - 31 March 2018 on the Standalone Ind AS financial statements
(Referred to in our report of even date)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets, by which all fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, a portion of the fixed assets has been physically verified by the management during the year and no material discrepancies have been noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us, the title deeds of immovable properties, as disclosed in Note 2 to the Standalone Ind AS financial statements, are held in the name of the Company, except for the following:
(Amount in Rupees)
Particulars |
Freehold Land |
Buildings |
Gross block as at 31 March 2018 |
1,844,060 |
Nil |
Net block as at 31 March 2018 |
1,844,060 |
Nil |
(ii) The inventory, except goods-in-transit and stock lying with third parties, has been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable. In respect of inventory lying with third parties, these have substantially been confirmed by them. The discrepancies noticed on verification between the physical stocks and the book records were not material.
(iii) The Company has granted unsecured loans to eleven companies covered in the register maintained under Section 189 of the Companies Act, 2013 (''the Act'').
a. In our opinion, the rate of interest and other terms and conditions on which the loans had been granted to the companies listed in the register maintained under Section 189 of the Act were not, prima facie, prejudicial to the interest of the Company.
b. The loans granted are repayable on demand. We are informed that the Company has not demanded repayment of such loan from four such companies during the year and other companies has paid the loan as per demand, and thus, there has been no default on the part of the companies covered in the register maintained under section 189 of the Act. The payment of interest has not been regular in case of three subsidiaries.
c. There are no overdue amounts in respect of the loan granted to companies listed in the register maintained under section 189 of the Act.
(iv) In our opinion, and according to the information and explanations given to us, in respect of investments, loans, guarantee and security, the Company has complied with the provisions of Section 185 and 186 of the Act.
(v) In our opinion, and according to the information and explanations given to us, during the year the Company has not accepted any new deposits. The Company has complied with the provisions of Section 73 to 76 of the Act or other relevant provisions of the Act and the rules framed thereunder/the directives issued by the Reserve Bank of India (as applicable) with regard to deposits accepted from the public. No order has been passed by the Company Law Board or National Company Law Tribunal (as applicable) or Reserve Bank of India or any Court or any other Tribunal.
(vi) We have broadly reviewed the records maintained by the Company pursuant to the rules prescribed by Central Government for maintenance of cost records under Section 148 (1) of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such records.
(vii) (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, service tax, goods and services tax, duty of customs, duty of excise, value added tax, cess, professional tax and other material statutory dues, as applicable, with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees state insurance, income tax, sales tax, service tax, goods and services tax, duty of customs, duty of excise, value added tax, cess, professional tax and other material statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of Income tax, Sales tax, Value added tax, Service tax, goods and services tax, duty of customs, duty of excise which have not been deposited with the appropriate authorities on account of any dispute other than those mentioned in Annexure I to this report.
(viii) According to the information and explanations given to us, the Company has not defaulted in repayments of loans or borrowings to financial institutions or banks. The Company neither have any loans or borrowings from Government nor has it issued any debentures, as at the balance sheet date.
(ix) According to the information and explanations given to us, the term loans have been applied by the Company for the purpose for which they were obtained. The Company did not raise money by way of initial public offer or further public offer (including debt instruments) during the year.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations given to us and based on our examination of the records, the Company has paid or provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3 (xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us, transactions with the related parties are in compliance with provisions of sections 177 and 188 of the Act, where applicable and the details have been disclosed in the Standlone Ind AS financial statements as required by the applicable Indian accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3 (xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us and based on our examination of the records, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3 (xv) of the Order is not applicable to the Company.
(xvi) According to the information and explanations given to us , the Company is not required to be registered under Section 45-iA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3 (xvi) of the Order is not applicable to the Company.
Annexure B to the Independent Auditorâs Report - 31 March 2018 on the Standalone Ind AS financial statements
(Referred to in our report of even date)
Report on the Internal Financial Controls under Section 143 (3) (i) of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls with reference to financial statement of Ion Exchange (India) Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the Standalone Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal controls with reference to financial statements criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance noteâ) issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls with reference to financial statement based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and 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 ICAI. 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 with reference to financial statement 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 with reference to financial statement and their operating effectiveness. Our audit of internal financial controls with reference to financial statement included obtaining an understanding of internal financial controls with reference to financial statement, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal controls 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 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 Company''s internal financial control system with respect to financial statement.
Meaning of Internal Financial Controls with reference to financial statement
A company''s internal financial controls with reference to financial statement 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 controls with reference to financial statement includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to financial statement
Because of the inherent limitations of internal financial controls with reference to financial statement, 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 with reference to financial reporting of to future periods are subject to the risk that the internal financial controls with respect to financial statement 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 control system with reference to financial statement and such internal financial controls with reference to financial statement were operating effectively as at 31 March 2018, based on the internal controls with reference to financial statement criteria established by the Company considering the essential components of internal controls stated in the Guidance Note issued by ICAI.
Other Matters
We did not audit the internal financial controls over financial reporting of the Company''s branch at Bengaluru. The internal financial control over financial reporting of this branch have been audited by the branch auditor whose report have been furnished to us, and our opinion in so far as it relates to such internal financial controls with reference to financial statement included in respect of this branch, is based solely on the report of such branch auditor.
Annexure I to the Independent Auditors'' Report - 31 March 2018
(Referred to in our report of even date)
Name of the Statute |
Nature of the dues |
Demand including interest in Rupees |
Amount paid under protest in Rupees |
Financial year to which the amount relates |
Forum where dispute is pending |
Central Excise Act, 1944 |
Excise duty and penalty |
16,78,600 |
2004-2005 |
Customs, Excise and Service Tax Appellate Tribunal |
|
Sales Tax/CST/ VAT Act for Maharashtra, Gujarat, Uttar |
Disallowance on account of nonsubmission of |
12,040,964 |
2,400,000 |
1993-1994 1995-1996 2006-2007 2009-2010 |
Joint Commissioner Appeals |
Pradesh, Andhra Pradesh, Delhi and Goa states |
required forms |
24,362,659 |
2,782,028 |
2001-2003 2004-2005 2006-2008 2009-2010 2011-2014 |
Assistant Commissioner Appeals |
6,248,241 |
- |
2010-2011 |
Commercial tax appeals |
||
16,679,413 |
60,000 |
2010-2011 |
Objection Hearing Authority |
||
8,173,216 |
3,777,883 |
2008-2009 2010-2013 |
Deputy Commissioner of Commercial Taxes |
||
14,655,854 |
929,852 |
2008-2009 2010-2012 2013-2014 2014-2015 |
Deputy Commissioner of Sales Tax, Appeals |
||
420,427 |
- |
2008-2009 |
Additional Commissioner of Commercial Taxes |
||
2,478,901 |
500,000 |
2004-2005 2007-2008 |
Senior Joint Commissioner of Commercial Tax, Appeal |
||
Finance Act, 1994 - Service Tax |
Disallowance of service tax taken on input services |
1,278,596 |
4,48,114 |
2006-2013 |
Assistant Commissioner of Central Excise |
The Customs Act,1962 |
Liability on account of additional duty, interest and difference in valuation (to the extent ascertainable) |
2,258,117 |
2003-2004 |
Joint Director General of Foreign Trade |
|
Income Tax act, 1961 |
Income Tax Demand |
26,107,302 |
- |
2008-2009 2010-2011 |
Income Tax Appellate Tribunal |
Income Tax act, 1961 |
Income Tax Demand |
38,036,866 |
1,990,550 |
2009-2010 2012-2013 to 2014-2015 |
Commissioner of Income Tax (Appeal) |
Income Tax act, 1961 |
Income Tax Demand |
9,735,030 |
- |
2015-2016 |
Deputy Commissioner of Income Tax |
For B S R & Co. LLP
Chartered Accountants
Firm''s Registration No:
101248W/W-100022
Bhavesh Dhupelia
Mumbai Partner
23 May 2018 Membership No: 042070
Mar 31, 2015
We have audited the accompanying standalone financial statements of Ion
Exchange (India) Limited ('the Company'), which comprise the balance
sheet as at 31st March 2015, the statement of profit and loss, the cash
flow statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information, in
which are incorporated the return for the year ended on that date
audited by the branch auditor of the Company's branch at Bengaluru.
Management's responsibility for the standalone financial statements
The Company's Board of Director's is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable
and prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatements, whether due to fraud or error.
Auditor's 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
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the standalone financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation ofthe 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 31st March 2015, and its profits and its cash flows for the year
ended on that date.
Other matter
We did not audit the financial statements/information of one branch
included in the standalone financial statements of the Company whose
financial statements / financial information reflect total assets of
Rs. 46,72,00,513 as at 31st March 2015 and total revenues of Rs.
89,59,56,054 for the year ended on that date, as considered in the
standalone financial statements. The financial statements/information
of this branch have been audited by the branch auditor whose reports
have been furnished to us, and our opinion in so far as it relates to
the amounts and disclosures included in respect of this branch, is
based solely on the report of such branch auditor.
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, 2015 ('the
Order'), issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 ofthe said
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 and proper return adequate for the purposes of our audit
have been received from the branch not visited by us;
(c) The reports on the accounts of the branch office of the Company
audited under Section 143 (8) of the Act by branch auditor have been
sent to us and have been properly dealt with by us in preparing this
report;
(d) 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 and with the return received from the branch not
visited by us;
(e) 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;
(f) 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 31st March 2015, from being
appointed as a director in terms of Section 164(2)ofthe Act; and
(g) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 41 to the
financial statements,
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses; and
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Independent Auditors' Report - 31st March 2015
(Referred to in our report of even date)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation offixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. In accordance with this
programme, a portion of the fixed assets has been physically verified
by the management during the year and no material discrepancies were
noticed on such verification.
(ii) (a) The inventory, except goods-in-transit and stocks
lying with third parties, has been physically verified by the
management during the year. In our opinion, the frequency of such
verification is reasonable. For stocks lying with third parties at the
year-end, written confirmations have been obtained.
(b) The procedures for the 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 inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) The Company has granted unsecured loans to
companies covered in the register maintained under Section 189 of the
Companies Act, 2013 ('the Act'). In the case of loans granted to the
companies listed in the register maintained under Section 189 of the
Act, the borrowers have been regular in repaying the principal amounts
as stipulated and in the payment of interest.
(b) There is no overdue amount of more than Rupees One Lac in respect
of loans granted to the companies listed in the register maintained
under Section 189 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchase of
certain items of inventories and fixed assets are for the Company's
specialised requirements and alternative sources are not available to
obtain comparable quotations, there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and with
regard to the sale of goods and services. We have not observed any
major weakness in the internal control system during the course of the
audit.
(v) In our opinion, and according to the information and explanations
given to us, the Company has complied with the provisions of Section
73, 74, 75 and 76 of the Act or other relevant provisions of the Act
and the rules framed thereunder/the directives issued by the Reserve
Bank of India (as applicable) with regard to deposits accepted from the
public. Accordingly, there have been no proceedings before the Company
Law Board or National Company Law Tribunal (as applicable) or Reserve
Bank of India or any Court or any other Tribunal in this matter and no
order has been passed by any of the aforesaid authorities.
(vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under Section 148(1) of the Act in respect
of products manufactured by the Company and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of the
records.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including provident fund, employees' state insurance,
income-tax, sales-tax, wealth tax, service tax, duty of customs, duty
of excise, value added tax, professional tax, cess and other material
statutory dues have been generally regularly deposited during the year
by the Company with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees'
state insurance, income-tax, sales-tax, wealth tax, service tax, duty
of customs, duty of excise, value added tax, professional tax, cess and
other material statutory dues were in arrears as at 31st March 2015 for
a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of wealth tax and cess which have not been deposited with
the appropriate authorities on account of any disputes, except dues of
sales tax, service tax, duty of customs, income tax, duty of excise and
value added tax as stated below:
Name of the Nature of the dues Demand in Amount
Statute Rupees paid under
protest in
Rupees
Central Excise Excise duty and 16,78,600 -
Act, 1944 penalty
Sales Tax/VAT Disallowance on 34,31,863 8,00,000
Act for account of non 59,14,792 8,00,000
Maharashtra, submission of
Gujarat, required forms 1,42,13,050 70,00,000
Andhra 30,29,440 10,00,000
Pradesh and
Goa states 26,21,528 -
6,97,121 -
12,84,683 3,25,000
5,56,682 1,95,000
1,23,78,969 -
62,48,241 -
Finance Act, Disallowance of 12,03,183 4,91,444
1994- service tax taken on
Service Tax input services
6,81,278 3,40,482
The Customs Liability on account 22,58,117 -
Act,1962 of additional duty,
interest and
difference in
valuation (to the
extent
ascertainable)
Income Tax Income Tax 22,60,330 -
Act 1961 demand
Income Tax Income Tax 1,08,31,992 -
Act 1961 demand
Income Tax Income Tax 1,52,75,310 -
Act 1961 demand
Income Tax Income Tax 8,91,856 -
Act 1961 demand
Name of the
Statute Period to Forum where dispute is
which the pending
amount
relates
Central Excise
Act, 1944 2004-2005 Customs, Excise and Service
Tax Appellate Tribunal
Sales Tax/VAT
Act for
Maharashtra,
Gujarat,
Andhra
Pradesh and
Goa states 1993-1994 Joint Commissioner Appeals
1995-1996 Joint Commissioner Appeals
1999-2000 Joint Commissioner Appeals
2000- 2001 Joint Commissioner Appeals
2006- 2007 Assistant Commissioner
Appeals
2007- 2008 Assistant Commissioner
Appeals
2008- 2009 Assistant Commissioner
Appeals
2009- 2010 Assistant Commissioner
Appeals
2009- 2010 Deputy Commissioner
Appeals
2010- 2011 Commercial tax appeals
Finance Act,
1994-
Service Tax 2011- 2014 Assistant Commissioner of
Central Excise
2006-2009 Additional Commissioner of
Central Excise
The Customs
Act,1962 2003-2004 Joint Director General of
Foreign Trade
Income Tax
Act 1961 2007- 2008 Commissioner of Income Tax
(Appeal)
Income Tax
Act 1961 2008- 2009 Deputy Commissioner of
Income Tax (Appeal)
Income Tax
Act 1961 2010-2011 Commissioner of Income Tax
(Appeal)
Income Tax
Act 1961 2006-2007 Commissioner of Income Tax
(Appeal)
(c) According to the information and explanations given to us, the
amount required to be transferred to Investor Education and Protection
Fund in accordance with the relevant provisions of the Companies Act,
1956 (1 of 1956) and rules made thereunder has been transferred to such
fund within time.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers and financial institutions. The Company did not have any
outstanding dues to debenture holders.
(x) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from banks, the
terms and conditions whereof, in our opinion, are not prima-facie
prejudicial to the interest of the Company. According to the
information and explanations given to us, the Company has not given any
guarantee or loans taken by others from financial institutions.
(xi) In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purpose for which they were obtained.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Bhavesh Dhupelia
Partner
Place : Mumbai Membership No: 042070
Date : 25th May 2015
Mar 31, 2014
We have audited the accompanying financial statements of Ion Exchange
(India) Limited ("the Company"), which comprise the Balance Sheet as at
31st March 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
accounting principles generally accepted in India, including the
Accounting Standards notified under the Companies Act, 1956, read with
General Circular 8/2014 dated 4th April 2014 issued by the Ministry of
Corporate Affairs. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Companies Act, 1956 ("the Act") in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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 and proper returns adequate for the purposes of our audit have
been received from branch not visited by us;
(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 and with the returns received from branch not visited by us;
(d) The report on the accounts of the branch offices audited under
section 228 by a person other than the company''s auditor has been
forwarded to us as required by clause (c) of sub-section (3) of section
228 and have been dealt with in preparing our report in the manner
considered necessary by us;
(e) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act, 1956, read with General Circular
8/2014 dated 4th April 2014 issued by the Ministry of Corporate
Affairs;
(f) On the basis of written representations received from the directors
as on 31st March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2014, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956.
Other Matter
We did not audit total assets of Rs. 43,21,94,952 as at 31st March
2014, total revenues of Rs. 71,49,56,698 and net cash inflows amounting
to Rs.46,95,176 for the year then ended, included in the accompanying
financial statements in respect of branch not visited by us, whose
financial statements and other financial information have been audited
by other auditors and whose report has been furnished to us. Our
opinion, in so far as it relates to the affairs of the branch is based
solely on the report of other auditors. Our opinion is not qualified in
respect of this matter.
(Annexure referred to in paragraph 1 under the heading
"Report on other legal and regulatory requirements" of our report of
even date Re: Ion Exchange (India) Limited (''the Company'')
(i) (a) The Company has maintained proper records showing
full particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has granted unsecured loans to four Companies
(one being wholly owned subsidiary and three being subsidiaries)
covered in the register maintained under section 301 of the Act. The
maximum amount involved during the year for subsidiaries was
Rs.11,75,28,379 and year end balance of the loan was Rs.11,72,72,956.
The maximum amount involved during the year for wholly owned subsidiary
was Rs.6,16,71,990 and the year end balance of loans granted was
Rs.81,19,570.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
loan granted to subsidiaries are not prima facie prejudicial to the
interest of the Company. The Company has made interest-free loans to
wholly-owned subsidiaries. According to the information and
explanations given to us, and having regard to management''s
representation that the interest free loans are given to wholly-owned
subsidiaries of the Company in the interest of the Company''s business,
the rate of interest and other terms and conditions for such loans are
not prima facie prejudicial to the interest of the Company.
(c) The loans granted are re-payable on demand. We are informed that
the Company has not demanded repayment of any such loan during the
year, and thus, there has been no default on the part of the parties to
whom the money has been lent. The payment of interest has not been
regular.
(d) There is no overdue amount of loans granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Act.
(e) According to information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies, firms or
other parties covered in the register maintained under section 301 of
the Act. Accordingly, the provisions of clause 4(iii)(e) to (g) of the
Order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanation that purchases of certain
items of inventories and certain fixed assets are of proprietary nature
for which alternative sources are not available to obtain comparable
quotations, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the company in respect of these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five lakhs have been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at the relevant time
except in respect of transactions involving items of unique and
specialized nature, we are unable to comment whether the transactions
were made at prevailing market prices at the relevant time.
(vi) In respect of deposits accepted, in our opinion and according to
the information and explanations given to us, directives issued by the
Reserve Bank of India and the provisions of sections 58A, 58AA or any
other relevant provisions of the Act and the rules framed there under,
to the extent applicable, have been complied with. We are informed by
the management that no order has been passed by the Company Law Board,
National Company Law Tribunal or Reserve Bank of India or any Court or
any other Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government for
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the same.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
sales-tax, wealth-tax, service tax, customs duty, excise duty, cess and
other material statutory dues have generally been regularly deposited
with the appropriate authorities though there have been slight delays
in few cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty cess and
other material statutory dues were outstanding, at the year end, for a
period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of the statute Nature of dues Amount (Rs) Period to
which the
amount
relates
Central Excise Act, Excise duty and Penalty 16,78,600 2004-2005
1944
Sales Tax/VAT Act for Disallowance on account of 26,31,863 1993-1994
Maharashtra, Gujarat, non submission of required 51,14,792 1995-1996
Andhra Pradesh and forms
Goa states 1,22,13,050 1999-2000
20,29,440 2000-2001
26,21,528 2006-2007
6,97,121 2007-2008
4,11,560 2008-2009
62,48,241 2010-2011
5,48,123 2008-2009
Finance Act, 1994 Â Disallowance of service tax 2,20,296 2011-2012
Service Tax taken on input services
Finance Act, 1994 Â Disallowance of service tax 3,40,796 2006-2009
Service Tax taken on input services
The Customs Act,1962 Liability on account of
additional 22,58,117 1998,2002
duty, interest and
difference in and 2005
valuation (to the extent
ascertainable)
Name of the Statute Forum where the dispute is pending
Central Excise Act, 1944 Customs, Excise and Service Tax
Appellate Tribunal
Sales Tax/VAT Act for Joint Commissioner Appeals
Maharashtra, Gujarat, Andhra
Pradesh and Goa states
Joint Commissioner Appeals
Joint Commissioner Appeals
Joint Commissioner Appeals
Assistant Commissioner Appeals
Assistant Commissioner Appeals
Assistant Commissioner Appeals
Assistant Commissioner Appeals
Deputy Commissioner Appeals
Finance Act, 1994 Â Service Tax Assistant Commissioner of Central
Excise
Finance Act, 1994 Â Service Tax Additional Commissioner of Central
Excise
The Customs Act,1962 Joint Director General of Foreign
Trade
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced before us, the Company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) 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 Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
(xv) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from banks, the
terms and conditions whereof, in our opinion, are not prima-facie
prejudicial to the interest of the Company. According to the
information and explanations given to us, the Company has not given any
guarantee for loans taken by others from financial institutions.
(xvi) Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Act.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through a public issue during
the year
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm registration
number: 301003E
per Vijay Maniar
Place : Mumbai Partner
Date : 28th May 2014 Membership No. 36738
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Ion Exchange
(India) Limited ("the Company"), which comprise the Balance Sheet
as at 31st March 2013, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for 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
accounting principles generally accepted in India, including the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
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 judgement, including the assessment
of the risks of material misstatement of the financial statements,
whether due to fraud or error. I n making those risk assessments, the
auditor considers internal control relevant to the Company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs ofthe
Company as at 31st March 2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory 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 ofthe Order.
2. As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) Inouropinion proper books ofaccount as required by law have been
kept by the Company so far as appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from Ion Exchange Services Division not visited by us;
(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 and with the returns received from Ion Exchange Services
Division not visited by us;
(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 31st March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Other Matter
We did not audit total assets of Rs. 46,57,45,106 as at 31st March
2013, total revenues of Rs. 73,83,45,965 and net cash inflows amounting
to Rs. 1,09,99,632 for the year then ended, included in the
accompanying financial statements in respect of Ion Exchange Services
Division not visited by us, whose financial statements and other
financial information have been audited by other auditors and whose
report has been furnished to us. Our opinion, in so far as it relates
to the affairs of the Ion Exchange Services Division is based solely on
the report of other auditors. Our opinion is not qualified in respect
of this matter.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation offixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has granted unsecured loans to five Companies
(two being wholly owned subsidiaries and three being subsidiaries)
covered in the register maintained under section 301 of the Act. The
maximum amount involved during the year for subsidiaries was Rs.
9,57,03,203 and year end balance of the loan was Rs. 9,19,93,137. The
maximum amount involved during the year for wholly owned subsidiaries
was Rs. 4,76,44,984 and the year end balance of loans granted to such
parties was Rs. 73,24,279.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
loan granted to subsidiaries are not prima facie prejudicial to the
interest of the Company. The Company has made interest-free loans to
wholly-owned subsidiaries. According to the information and
explanations given to us, and having regard to management''s
representation that the interest free loans are given to wholly-owned
subsidiaries of the Company in the interest of the Company''s business,
the rate of interest and other terms and conditions for such loans are
not prima facie prejudicial to the interest of the Company.
(c) The loans granted are re-payable on demand. We are informed that
the Company has not demanded repayment of any such loan during the
year, and thus, there has been no default on the part of the parties to
whom the money has been lent. The payment of interest has not been
regular.
(d) There is no overdue amount of loans granted to companies, firms or
other parties listed in the register maintained under section 301 ofthe
Act.
(e) According to information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies, firms or
other parties covered in the register maintained under section 301 of
the Act. Accordingly, the provisions of clause 4(iii)(e) to (g) of the
Order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanation that purchases of certain
items of inventories and certain fixed assets are of proprietary nature
for which alternative sources are not available to obtain comparable
quotations, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system ofthe company in respect of these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five lakhs have been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at the relevant time
except in respect of transactions involving items of unique and
specialized nature, we are unable to comment whether the transactions
were made at prevailing market prices at the relevant time.
(vi) In respect of deposits accepted, in our opinion and according to
the information and explanations given to us, directives issued by the
Reserve Bank of India and the provisions of sections 58A, 58AA or any
other relevant provisions of the Act and the rules framed there under,
to the extent applicable, have been complied with. We are informed by
the management that no order has been passed by the Company Law Board,
National Company Law Tribunal or Reserve Bank of India or any Court or
any other Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government for
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the same
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees'' state insurance,
income-tax, sales- tax, wealth-tax, service tax, customs duty, excise
duty, cess and other material statutory dues have generally been
regularly deposited with the appropriate authorities though there have
been slight delays in few cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance,
income-tax, wealth-tax, service tax, sales-tax, customs duty, excise
duty, cess and other material statutory dues were outstanding, at the
year end, for a period of more than six months from the date they
became payable.
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are ofthe opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced before us, the Company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) 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 Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company
(xv) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from banks, the
terms and conditions whereof, in our opinion, are not prima-facie
prejudicial to the interest of the Company. According to the
information and explanations given to us, the Company has not given any
guarantee for loans taken by others from financial institutions.
(xvi) Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination ofthe balance sheet ofthe Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained undersection
301 ofthe Act.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through a public issue during
the year
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
For S.R. Batliboi & Co. LLP
ICAI Firm registration number: 301003E
Chartered Accountants
per Vijay Maniar
Partner
Membership No. 36738
Place : Mumbai
Date : 30th May 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Ion Exchange (India)
Limited ('the Company') as at 31st March, 2012 and also the
Statement of Profit and Loss 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended) ("Order") issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956,
("Act") we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii. The Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report are in agreement with the
books of account;
iv. In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Act.
v. On the basis of the written representations received from the
Directors, as on 31st March, 2012, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Act.
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Act, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India;
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Ali fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has granted unsecured loans to five Companies
(three being wholly owned subsidiaries and two being subsidiaries)
covered in the register maintained under section 301 of the Act. The
maximum amount involved during the year for subsidiaries was
Rs.7,30,46,925 and year end balance of the loan was Rs.6,79,21,925.
The maximum amount involved during the year for wholly owned
subsidiaries was Rs. 5,24,21,659 and the year- end balance of loans
granted to such parties was Rs. 4,29,08,374.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
loan granted to subsidiaries are not prima facie prejudicial to the
interest of the Company. The Company has made interest-free loans to
wholly- owned subsidiaries. According to the information and
explanations given to us, and having regard to management's
representation that the interest free loans are given to wholly-owned
subsidiaries of the Company in the interest of the Company's business,
the rate of interest and other terms and conditions for such loans are
not prima facie prejudicial to the interest of the Company.
(c) The loans granted are re-payable on demand. We are informed that
the Company has not demanded repayment of any such loan during the
year, and thus, there has been no default on the part of the parties to
whom the money has been lent. The payment of interest has not been
regular.
(d) There is no overdue amount of loans granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Act.
(e) According to information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies, firms or
other parties covered in the register maintained under section 301 of
the Act. Accordingly, the provisions of clause 4(iii)(e) to
(g) of the Order are not applicable to the Company and hence not
commented upon.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanation that certain items
purchased are of special nature for which suitable alternative sources
do not exist for obtaining comparative quotations, there is an adequate
internal control system commensurate with the size of the Company and
the nature of its business, for the purchase of inventory and fixed
assets and for the sale of goods and services. During the course of our
audit, we have not observed any major weakness or continuing failure to
correct any major weakness in the internal control system of the
company in respect of these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five lacs have been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at the relevant time
except in respect of transactions involving items of unique and
specialised nature, we are unable to comment whether the transactions
were made at prevailing market prices at the relevant time.
(vi) In respect of deposits accepted, in our opinion and according to
the information and explanations given to us, directives issued by the
Reserve Bank of India and the provisions of sections 58A, 58AA or any
other relevant provisions of the Act and the rules framed there under,
to the extent applicable, have been complied with. We are informed by
the management that no order has been passed by the Company Law Board,
National Company Law Tribunal or Reserve Bank of India or any Court or
any other Tribunal.
(vii) In our opinion, the Company has an Internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government for
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees' state insurance, income-tax,
sales-tax, wealth-tax, service tax, customs duty, excise duty, cess and
other material statutory dues have generally been regularly deposited
with the appropriate authorities though there have been slight delays
in few cases.
(b) According to the information and explanations given to us,
undisputed dues in respect of income-tax which were outstanding, at the
year end, for a period of more than six months from the date they
became payable, are as follows:
Name of the statute Nature of dues Amount
Income Tax Act, 1961 Tax deducted at Source 62,075
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of the statute Nature of dues Amount (in Rs.)
Central Excise Act, Excise duty and Penalty 16,78,600
1944
Sales Tax/VAT Act for Disallowance on account 26,31,863
Maharashtra, Gujarat of non submission of
and Goa states required forms
51,14,792
3,09,79,413
33,99,447
6,97,121
6,73,123
Sales Tax/VAT Act for Disallowance on account 26,21,528
the state of Goa of non submission of
required forms and
disallowance of Input
Credit
Finance Act, 1994 - Disallowance of service 4,78,557
Services Tax tax allocated to
Manufacturing unit
Finance Act, 1994 Disallowance of service 5,14,560
- Service Tax tax taken on input services
Finance Act, 1994 Disallowance of service 6,81,278
- Service Tax tax taken on input services
additional duty, interest
and difference in valuation
(to the extent
ascertainable)
Name of the statute Period to which Forum where the dispute
the amount is pending
relates
Central Excise Act, 2004-05 Customers, Excise and
1944 Service Tax Appellate
Tribunal
Sales Tax/VAT Act for 1993-94 Joint Commissioner Appeals
Maharashtra, Gujarat
and Goa states
1995-96 Joint Commissioner Appeals
1999-00 Joint Commissioner Appeals
2000-01 Joint Commissioner Appeals
2007-08 Assistant Commissioner
Appeals
2008-09 Deputy Commissioner
Appeals
Sales Tax/VAT Act for 2006-07 Assistant Commissioner
State of Goa Appeals
Finance Act, 1994 - 2009-11 Assistant Commissioner of
Service Tax Central Excise
Finance Act, 1994 - 2007-09 Assistant Commissioner of
Service Tax Central Excise
Finance Act, 1994 - 2006-09 Assistant Commissioner of
Service Tax Central Excise
The Customs Act, 1962 1998, 2002 Joint Director General of
and 2005 Foreign Trade
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced before us, the Company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) 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 Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company
(xv) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from banks, the
terms and conditions whereof, in our opinion, are not prima-facie
prejudicial to the interest of the Company. According to the
information and explanations given to us, the Company has not given any
guarantee for loans taken by others from financial institutions.
(xvi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Act.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through a public issue during
the year
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
For S.R. BATLIBOi & CO.
Firm registration No.: 301003E
Chartered Accountants
per Vijay Maniar
Partner
Membership No.. 36738
Place : Mumbai
Date : 25th May, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of Ion Exchange (India)
Limited ('the Company') as at 31st March 2011 and also the Profit and
Loss Account 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended) ("Order") issued by the Central Government of India in terms
of sub-section (4A) of Section 227 of the Companies Act, 1956, ("Act")
we enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. Without qualifying our opinion we draw attention to note 15.1 of
schedule 17 of the financial statements. The remuneration paid to the
Executive Directors is in excess of the limits specified in Schedule
XIII of the Act by Rs. 2,50,66,516 for which steps have been taken by
the Company to obtain Central Government approval. Pending the final
outcome of the Company's application, no adjustments have been made to
the financial statements.
5. Further to our comments in the Annexure referred to above, we
report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the Act.
v. On the basis of the written representations received from the
directors, as on 31st March 2011 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Act.
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Act, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011;
b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure referred to in paragraph [3] of our report of even date Re:
Ion Exchange (India) Limited ('the Company')
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has granted unsecured loans to three Companies
(two being wholly owned subsidiaries and other being subsidiary)
covered in the register maintained under section 301 of the Act. The
maximum amount involved during the year for subsidiary was Rs.
4,05,62,592 and year end balance of the loan was Rs. 4,05,62,592. The
maximum amount involved during the year for wholly owned subsidiaries
was Rs. 3,07,94,121 and the year- end balance of loans granted to such
parties was Rs. 2,95,18,246.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
loan granted to subsidiary is not prima facie prejudicial to the
interest of the Company. The Company has made interest-free loans to
wholly-owned subsidiaries. According to the information and
explanations given to us, and having regard to management's
representation that the interest free loans are given to wholly-owned
subsidiaries of the Company in the interest of the Company's business,
the rate of interest and other terms and conditions for such loans are
not prima facie prejudicial to the interest of the Company.
(c) The loans granted are re-payable on demand. We are informed that
the Company has not demanded repayment of any such loan during the
year, and thus, there has been no default on the part of the parties to
whom the money has been lent. The payment of interest has not been
regular.
(d) There is no overdue amount of loans granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Act.
(e) According to information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies, firms or
other parties covered in the register maintained under section 301 of
the Act. Accordingly, the provisions of clause 4(iii)(e) to (g) of the
Order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanation that certain items
purchased are of special nature for which suitable alternative sources
do not exist for obtaining comparative quotations, there is an an
adequate internal control system commensurate with the size of the
Company and the nature of its business, for the purchase of inventory
and fixed assets and for the sale of goods and services. During the
course of our audit, we have not observed any major weakness or
continuing failure to correct any major weakness in the internal
control system of the company in respect of these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered.
(b) In respect of transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs entered into during
the financial year, because of the unique and specialized nature of the
items involved and absence of any comparable prices, we are unable to
comment whether the transactions were made at prevailing market prices
at the relevant time.
(vi) In respect of deposits accepted, in our opinion and according to
the information and explanations given to us, directives issued by the
Reserve Bank of India and the provisions of sections 58A, 58AA or any
other relevant provisions of the Act and the rules framed there under,
to the extent applicable, have been complied with. We are informed by
the management that no order has been passed by the Company Law Board,
National Company Law Tribunal or Reserve Bank of India or any Court or
any other Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause
(d) of sub-section (1) of section 209 of the Act for the products of
the Company.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees' state insurance, income-tax,
sales- tax, wealth-tax, service tax, customs duty, excise duty, cess
and other material statutory dues have generally been regularly
deposited with the appropriate authorities though there have been
delays in some cases.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441 A of the Act, we are not in a
position to comment upon the regularity or otherwise of the Company in
depositing the same.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other material statutory dues were outstanding, at the year end, for a
period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of the statute Nature of dues Amount (Rs.) Period to which
the amount relates
Central Excise Act,
1944 Excise duty
and Penalty 30,52,000 2004-05
Sales Tax Act for Disallowance on
account of 26,31,863 1993-94
Maharashtra, Gujarat non submission
of required
and Goa states forms
51,14,792 1995-96
45,238 1997-98
9,12,529 1997-98
4,11,495 1998-99
7,79,510 1998-99
3,09,79,413 1999-00
14,37,401 1999-00
33,99,447 2000-01
13,450 2000-01
29,55,733 2000-01
3,71,382 2000-01
6,97,121 2007-08
Sales Tax Act
for the Disallowance on
account of 26,21,528 2006-07
state of Goa non submission
of required
forms and
disallowance
of Input Credit
Finance Act,
1994 Disallowance of
service tax 6,57,976 2009-11
à Service Tax allocated to
Manufacturing
unit
Finance Act,
1994 Service Tax not
charged on 12,19,369 2003-05
à Service Tax Erection services
The Customs
Act,1962 Liability on
account of 22,58,117 1998, 2002
and 2005
additional duty,
interest and
difference in
valuation (to
the extent
ascertainable)
Name of the statute Forum where the dispute is pending
Central Excise
Act, 1944 Commissioner of Central Excise (Appeals)
Sales Tax Act for
Maharashtra, Gujarat
and Goa states Joint Commissioner Appeals
Joint Commissioner Appeals
Sales Tax Tribunal
Assistant Commissioner Appeals
Sales Tax Tribunal
Assistant Commissioner Appeals
Joint Commissioner Appeals
Assistant Commissioner Appeals
Joint Commissioner Appeals
Sales Tax Tribunal
Assistant Commissioner Appeals
Joint Commissioner of sales tax
Assistant Commissioner Appeals
Sales Tax Act for the
state of Goa Assistant Commissioner Appeals
Finance Act, 1994
à Service Tax Assistant Commissioner of Central
Excise
Finance Act, 1994
à Service Tax Commissioner of Central Excise (Appeals)
The Customs Act,1962 Joint Director General of Foreign Trade
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced before us, the Company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) 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 Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
(xv) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from banks, the
terms and conditions whereof, in our opinion, are not prima-facie
prejudicial to the interest of the Company. According to the
information and explanations given to us, the Company has not given any
guarantee for loans taken by others from financial institutions.
(xvi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Act.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
For S. R. Batliboi & Co.
Firm Registration No. : 301003E
Chartered Accountants
per Vijay Maniar
Partner
Membership No. : 36738
Place : Mumbai
Date : 27th May 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Ion Exchange (India)
Limited (the Company) as at 31st March 2010 and also the Profit and
Loss Account 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended) (the order) issued by the Central Government of India in
terms of sub- section (4A) of Section 227 of the Companies Act, 1956,
(the Act) we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Without qualifying our opinion we draw attention to note 15.1 of
Schedule 17 of the financial statements. The remuneration paid to the
Executive Directors is in excess of the limits specified in Schedule
XIII of the Act by Rs. 82,08,569 for which steps are being taken by the
Company to obtain Central Government approval. Pending the final
outcome of the Companys application, no adjustments have been made to
the financial statements.
5. Further to our comments in the Annexure referred to above, we
report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books.
iii. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the Act.
v. On the basis of the written representations received from the
directors, as on 31st March 2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Act.
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Act, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2010;
b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure referred to in paragraph [3] of our report of even date Re:
Ion Exchange (India) Limited (the Company)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
Management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As informed, no
material discrepancies were noticed on such verification.
(c) There was no substantial disposal of fixed assets during the year.
(ii) (a) The Management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has granted unsecured loan to a Company covered
in the register maintained under section 301 of the Act. The maximum
amount involved during the year was Rs. 18,98,88,217 and the year end
balance of loan granted to such party was Rs. 3,31,16,178.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
Company.
(c) The loans granted are re-payable on demand. As informed, the
Company has not demanded repayment of any such loan during the year,
thus, there has been no default on the part of the party to whom the
money has been lent (Refer Note 26 of Schedule 17 of financial
statements). The payment of interest has not been regular.
(d) There is no overdue amount of loans granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Act.
(e) As informed, the Company has not taken any loans, secured or
unsecured from companies,
firms or other parties covered in the register maintained under section
301 of the Act. Hence clauses 4(iii)(f) & 4(iii)(g) of the Order are
not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanation that certain items
purchased are of special nature for which suitable alternative sources
do not exist for obtaining comparative quotations, there is an adequate
internal control system commensurate with the size of the Company and
the nature of its business, for the purchase of inventory and fixed
assets and for the sale of goods and services. During the course of our
audit, no major weakness has been noticed in the internal control
system in respect of these areas. During the course of our audit, we
have not observed any continuing failure to correct major weakness in
internal control system of the Company.
(v) (a) According to the information and explanations provided by the
Management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered.
(b) In respect of transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs entered into during
the financial year, because of the unique and specialized nature of the
items involved and absence of any comparable prices, we are unable to
comment whether the transactions were made at prevailing market prices
at the relevant time.
(vi) In respect of deposits accepted, in our opinion and according to
the information and explanations given to us, directives issued by the
Reserve Bank of India and the provisions of sections 58A, 58AA or any
other relevant provisions of the Act and the rules framed there under,
to the extent applicable, have been complied with. We are informed by
the Management that no order has been passed by the Company Law Board,
National Company Law Tribunal or Reserve Bank of India or any Court or
any other Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed
maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Act for the products of the Company.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, or employees state insurance,
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty, cess have generally been regularly deposited with the appropriate
authorities though there has been a slight delay in a few cases.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441 A of the Act, we are not in a
position to comment upon the regularity or otherwise of the Company in
depositing the same.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of the statute Nature of dues Amount
(Rs.)
Central Excise Act,
1944 Excise duty and Penalty 30,52,000
Sales Tax Act for Disallowance on account of 2,58,682
Maharashtra, Gujarat non submission of required
and Goa states forms
41,36,435
51,14,792
6,79,710
6,93,373
1,047
8,02,949
4,11,495
7,79,510
3,09,79,413
12,23,330
33,99,447
17,37,703
3,71,382
Sales Tax Act for the Disallowance on account 26,21,528
state of Goa of non submission of
required forms and
disallowance of Input
Credit
The Customs Act, 1962 Liability on account of 24,53,117
additional duty, interest
and difference in valuation
(to the extent
ascertainable)
Name of the statute Period to which the Forum where the dispute
is pending
amount relates
Central Excise Act, 2004-05 Commissioner of Central
Excise
1944
Sales Tax Act for 1991-92 Sales Tax Tribunal
Maharashtra,
Gujarat
and Goa states
1993-94 and 1994-95 Sales Tax Tribunal
1995-96 Dy. Commissioner Appeals
1995-96 Assistant Commissioner
Appeals
1996-97 Sales Tax Tribunal
1997-98 Sales Tax Tribunal
1997-98 Assistant Commissioner
Appeals
1998-99 Sales Tax Tribunal
1998-99 Assistant Commissioner
Appeals
1999-00 Sales Tax Tribunal
1999-00 Assistant Commissioner
Appeals
2000-01 Sales Tax Tribunal
2000-01 Assistant Commissioner
Appeals
2000-01 Joint Commissioner of
Sales Tax
Sales Tax Act for 2006-07 Assistant Commissioner
Appeals
the states of Goa
The Customs Act, 1998, 2002 and 2005 Custom, Excise and Service
Tax Appellate Tribunal.
1962
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceeding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the Management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) 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 Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
(xv) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from bank or
financial institutions, the terms and conditions whereof in our opinion
are not prima-facie prejudicial to the interest of the Company.
(xvi) Based on information and explanations given to us by the
Management, term loans were applied for the purpose for which the loans
were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Act.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the Management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For S. R. Batliboi & Co.
Firm Registration No. : 301003E
Chartered Accountants
per Vijay Maniar
Partner
Membership No. : 36738
Place : Mumbai
Date : 24th May 2010