Mar 31, 2018
The Independent Auditorsâ Report on the Standalone Financial Statements of ISHAN DYES & CHEMICALS LIMITED
(Referred to in paragraph 1 (f] under ''Report on Other Legal and Regulatory Requirementsâ of our report of even date) REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (i) OF SUBSECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 ("THE ACT")
We have audited the internal financial controls over financial reporting of ISHAN DYES & CHEMICALS LIMITED ("the Company") as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
MANAGEMENT''S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and whether such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and payments of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company''s assets that could have a material effect on the financial statements
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31,2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note.
Annexure"B"
Independent Auditors'' Report on the Standalone Financial Statements of ISHAN DYES & CHEMICALS LIMITED
(Referred to in paragraph 2, under ''Report on Other Legal and Regulatory Requirementsâ section of our Report of even date)
Annexure to the Independent Auditors'' Report of even date to the members of Ishan Dyes & Chemicals Ltd. on the financial statements for the year ended 31st March 2018.
Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report that:
(iii) In respect of fixed assets:
a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b. As Explained to us, all the fixed assets have been physically verified by the management at reasonable intervals. No material discrepancies between book records and the physical inventories have been noticed on such verification. In our opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the Company and the nature of its assets.
(iv) In respect of inventories:
a. The inventories have been physically verified at reasonable intervals by the management.
b. The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As per the information and explanation given to us, no material discrepancies were noticed on physical verification.
(v) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
(vi) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities.
(vii) According to the information and explanations given to us, the Company has not accepted any deposit from the public. Therefore, the provisions of Clause (v) of paragraph 3 of the Order is not applicable to the Company.
(viii] On the basis of records produced we are of the opinion that prima facie cost records and accounts prescribed by the Central Government under sub section (1] of section 148 of the Companies Act, 2013 in respect of products of the Company* covered under the rules under said section have been made and maintained. However we are neither required to carry out nor have carried out any detailed examination of such accounts and records.
(ix] In respect of statutory dues:
a. According to the information and explanations give to us, the Company in general is regular in depositing undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, duty of Customs, Duty of Excise, Value Added Tax, Goods and Service Tax, Cess and other material statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31,2018 for a period of more than six months from the date of becoming payable
b. The details of the dues outstanding in respect of Income Tax, Sales Tax, Wealth Tax, Service Tax, duty of Customs, Duty of Excise, Value Added Tax and Cess which have not been deposited as on March 31, 2018 on account of disputes in case of Ishan Dyes & Chemicals Limited are given below:
Name of the Statue |
Nature of dues |
Amount (in Rs.) |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act |
Notice for short deduction/ payment of TDs and interest thereon |
1,03,119 |
AY 2017-18, AY 2016-17 and prior years. |
TDS Authority |
Commercial Tax |
CST Penalty |
21,949 |
FY 2011-12 |
DEO for Appeal JC Office |
Commercial Tax |
VAT Penalty |
1,21,050 |
FY 2011-12 |
DEO for Appeal FC Office |
(x] In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and Government and dues to debenture holders.
(xi] In our opinion and according to the information and explanations given to us, monies raised by way of debt instruments and the term loans during the year have been applied by the Company for the purposes for which they were raised.
(xii] In our opinion and 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.
(xiii) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xiv) The Company is not a Nidhi Company and hence reporting under clause (xii) of Paragraph 3 of the Order is not applicable.
(xv) In our opinion and according to the information and explanations given to us the Company''s transactions with its related party are in compliance with Sections 177 and 188 of the Companies Act, 2013, where applicable, and details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xvi) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of Paragraph 3 of the Order is not applicable to the Company.
(xvii) In our opinion and according to the information and explanations given to us, during the year, the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence reporting under clause (xv) of Paragraph 3 of the Order is not applicable to the Company.
(xviii) In our opinion and according to information and explanations provided to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Date: 29th May, 2018 For G.S. Mathur & Co.
Place: Ahmedabad Chartered Accountants
CA. Bhargav Vaghela
Partner
M. No: 124619
Mar 31, 2016
1. REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of SHAN DYES & CHEMICALS LIMITED [ "the Company)which comprise the Balance Sheet as at March 31, 2016, the Profit and Loss Statement and the Cash Flow Statement for the year then ended and a summary of the significant accounting policies and other explanatory information.
2. MANAGEMENT S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Company''s Board of Directors is responsible for the matters stated in Section 134(5] of the Companies Act, 2013 ("The Act") with respect to the preparation 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 Accounting Standards prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 [as amended}.
This responsibility also includes maintenance of adequate accounting records in Accordance with the provisions of the Act; 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 the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3. AUDITORS'' RESPONSIBILITY
a. Guru responsibility is to express an opinion on these standalone financial statements based on our audit.
b. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under and the Order under section 143 [11) of the Act.
c. We conducted our audit of the standalone 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 financial statements are free from material misstatement.
d. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether [Jut: to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone 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 the reasonableness of the accounting estimates made by the Company''s Board of Directors, as well as evaluating the overall presentation of the standalone financial statements.
c. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for per audit opinion on the standalone financial statements.
4. OPINION
In our opinion and to the best of our information anti 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 India, of the state of affairs of the Company as at March 31, 2016, and its profit and its cash flows for the year ended on that date.
5. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by Section 143 (3) of the Act, we report that-
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by taw have been kept by the Company so far as it appears from our examination of those books.
C. The Balance Sheet, the Profit and Loss Statement, and the Cash Plow Statement dealt with by this Report are in agreement with the books of account.
d. in our opinion, the Balance Sheet, tin? Statement of Profit and LOSS, and the Cash Flow Statement comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts | Rules, 2014 as amended).
e. On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March. 2016 from being appointed as a director m terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer Lo our separate Report in "Annexure A".
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to user
[i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements as referred to in Note No. 31.
(ii)The Company did not have any long-term contracts including derivative contracts which lead to foreseeable losses;
iii) The Company does not have any tines that are required to he transferred to the Investor Education and Protection Fund.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the
Central Government In terms of Section 143(11] of the Act, we give in "Annexure Bstatement on the matters specified in paragraphs 3 and 4 of the Order.
REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORT! NC UNDER CLAUSE (i) OF SUBSECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 ("THE ACT")
We have audited the internal financial controls over financial reporting of ISHAN DVES & CHEMICALS LIMITED ("the Company") as of March 31, 2016 in conjunction With our audit of [he standalone financial statements of the Company for the year ended on that date.
MANAGEMENTâS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company Considering the essential, components of internal control stated in the Guidance Note on Audit of Internal! Financial Controls Over Financial Reporting (she "Guidance Note'''') issued by the Institute of Chartered Accountants of India, These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on the Company''s Internal financial controls over reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing prescribed under Section 143(10] of the Companies Act, 20 15, to the extent applicable to an audit of internal financial controls. Those standards and the Guidance Noël require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether internal financial controls over financial reporting was established and maintained and if Such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the Internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists, and resoling and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial regarding and the preparation of financial statements For external purposes in accordance with generally accepted accounting principles. A company''s internal Financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions rind dispositions of the assets of the company; (2) provide reasonable assurance that transactions arc recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and payments of the company are being made only in accordance with authorizations if management and directors of the company; and [3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company''s assets that could have a material effect on the financial statements
inherent limitations of internal financial controls over financial reporting
Because of the Inherent limitations of internal financial controls over financial reporting, Including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the Internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016. based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
Annexure to the Independent Auditors'' Report of even date to the members of Ishan Dyes & Chemicals Ltd. on the financial statements for the year ended 31stMarch 2016.
based on the audit procedures performed for the purpose of reporting a trite and fair view on the financial statements of the Company and taking into consideration tike information and explanations given to us and the books of account and Other records examined by US in the normal course of audit, we report that:
I. In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars, inducting quantitative details and situation of fixed assets.
(b) As Explained to us, all the fixed assets have been physically verified by the management at reasonable intervals. No material discrepancies between book records and the physical inventories have been noticed on such verification. In our opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the Company and the nature of its assets,
II. In respect of inventories :
(a) The inventories have been physically verified at reasonable intervals by the management.
[II) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As per the information and explanation given to us, no material discrepancies were noticed on physical verification
III. The company has mil granted any loans, secured or unsecured lo companies firms, limited liability partnerships (LLPs) or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clauses 3(iii) [a], 3(iii) b] and 3{iii) (c) of the Order are not applicable.
IV. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities.
According to the information and explanation given to us the company has not accepted any deposit from the public within the meaning of section 73to 76 of the Act and the companies Act (Acceptance of deposits) Rules 2014 (as amended) Therefore the provisions of clause (v)of paragraph 3 of the order are not applicable to the company.
vi. on the basis of records government under sub section (1) of section 148 of the companies Act 2013 in respect of products of the company covered under the rules under said section out any detailed examination of such accounts and records.
vii. According to the information and explanations give to us, the Company in general is regular in depositing 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, CASs and other material statutory dues with the appropriate authorities. According to the Information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2016 fore period of more than six months from the date of becoming payable
[b) The dues outstanding in respect of Income Tax, Sales Tax, Wealth Tax, Service Tax, duty of Customs, Duty of Excise, Value Added Tax and Cass which have not been deposited as on March 31,2016on account of disputes are given below:
Name of the Statue |
Nature of dues |
Amount (Rs. in lacks) |
Period to which the u mount relates |
Forum where dispute is pending |
Income Tax Act |
Penalty u/s 271 (1) (b) |
Not determined |
AY 2011-12 |
DCIT, Circle-3, Baroda |
Income Tax Act |
4.92 |
VIII. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or harrowing to financial institutions, banks and Government and dues to debenture holders.
IX. In our opinion and according to the information and explanations given to us, monies raised by way of debt instruments and the term loans during The year have been applied by the Company for the purposes for which they were raised.
X. In our opinion and according to the information and explanations given to us, no material fraud by the Co top any or on the Company by its officers or employees leas been noticed or reported during the year.
XI. In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of sec Lion 197 read with Schedule V to the Companies Act, 2013.
XII- The Company is not a Nidhi Company and hence reporting under clause (xii) of Paragraph 3 of the Order is not applicable,
XIII. In our opinion and according to the information and explanations given to as the Company''s transactions with its related party are in compliance with Sections 177 and I 88 of the Companies Act, 2013, where applicable, and details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
XIV. During the year the Company has not made any preferential allotment or private pi a cement of shares or fully or partly convertible debentures anti hence reporting tinder clause (xiv) of Paragraph 3 of the Order is not applicable to the Company,
XV. In our opinion and according to the information and explanations given to us, during the year, the Company has not entered into any non-cash transactions with is directors or persons Connect⢠with him and hence reporting Under clause (xv) of Paragraph 3 of the Order is not applicable to the Company.
XVI. In our opinion and according to information and explanations provided to us, the Company is not required To be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Date: 20/05/2016 For GS. Mathur & Co.
Place: Ahmadabad Chartered Accountants
CA. Bhargav Vagheta
Partner
M.No:124619
Mar 31, 2015
We have audited the accompanying financial statements of Ishan Dyes &
Chemicals Limited ('the Company'), which comprise the Balance Sheet
as at 31 March 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
2. Management's responsibility for the Financial Statement
The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act")
with respect to the preparation and presentation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014 (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 financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
3. Auditors' Responsibility
a. Our responsibility is to express an opinion on these financial
statements based on our audit.
b. We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
c. 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.
d. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial controls relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well
as evaluating the overall presentation of the financial statements.
e. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31 March 2015 and its profit and its cash flows for the year ended
on that date.
5. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015
("the Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order
,to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. In our opinion, proper books of account as required by law have been
kept by the Company so faras appears from our examination of those
books;
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d. in our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
specified under Section 133 of the Companies Act,2013 read with the
Rule 7 of the Companies (Accounts) Rules, 2014(as amended);
e. On the basis of the written representations received from the
directors as on March 31, 2015, and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2015,
from being appointed as a director in terms of Section 164(2) of the
Act;
f. with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) the Company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in note
no. 31 ;
(ii) the Company did not have any long-term contracts including
derivative contracts which may lead to foreseeable losses;
(iii) the Company does not have any dues that are required to be
transferred to the Investor Education and Protection Fund.
Annexure to the Independent Auditors' Report of even date to the
members of Ishan Dyes & Chemicals Ltd. on the financial statements for
the year ended 31st March 2015.
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
I. In respect of fixed assets :
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management at
reasonable intervals. No material discrepancies between book records
and the physical inventories have been noticed on such verification. In
our opinion, the frequency of verification of the fixed assets is
reasonable having regard to the size of the Company and the nature of
its assets.
II. In respect of inventories :
(a) The inventories have been physically verified at reasonable
intervals by the management.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As per
the information and explanation given to us, no material discrepancies
were noticed on physical verification
III. The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013.
IV. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets, purchase of inventory and sale of goods.
During the course of our audit no major weakness has been noticed in
the internal controls. We have not observed any failure on the part of
the company to correct major weakness in internal control system.
V. The company has not accepted any deposits under the provisions of
section 73 to 76 or any other relevant provisions of the Companies Act
and the rules framed there under and as such the question of compliance
under the Companies Act or any other directives or orders does not
arise.
VI. On the basis of records produced we are of the opinion that prima
facie cost records and accounts prescribed by the Central Government
under sub section (1) of section 148 of the Companies Act, 2013 in
respect of products of 'the company' covered under the rules under
said section have been made and maintained. However we are neither
required to carry out nor have carried out any detailed examination of
such accounts and records.
VII. In respect of statutory dues:
(a) According to the information and explanations give to us, the
Company in general is regular in depositing 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, Cess and other material statutory dues with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at March 31, 2015 for a period of more than
six months from the date of becoming payable
(b) The dues outstanding in respect of Income Tax, Sales Tax, Wealth
Tax, Service Tax, duty of Customs, Duty of Excise, Value Added Tax and
Cess which have not been deposited as on March 31, 2015 on account of
disputes are given below:
Name of the Statue Nature of dues Amount
(Rs. in Lacs)
Income Tax Act Penalty u/s Not determined
271 (1) (b)
Income Tax Act Short payment 4.92
and Interest u/s
201(1A)
Name of the Statute Period to which the Forum where dispute
amount relates is pending
Income Tax Act AY 2011-12 DCIT, Circle-3, Baroda
Income Tax Act AY 2015-16 ITO (TDS)- Anand
(c) There were no amount which were required to be transferred to the
Investor Education and Protection Fund by the Company in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made there under.
VIII. The Company does not have any accumulated cash losses at the end
of the financial year and has not incurred cash losses in the current
and the immediately preceding financial year.
IX. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions or a bank
or to debenture-holders during the year.
X. The Company has not given guarantees for loans taken by others from
banks and financial institutions.
XI. In our opinion, the Company has applied the term loans for the
purposes they were obtained when specified.
XII. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the course of our audit.
Place: Ahmedabad For, G S MATHUR & CO
Date: 9th May, 2015 Chartered Accountants
Bhargav Vaghela
Partner
Membership No.124 619 F.R.N.: 008744N
Mar 31, 2014
We have audited the attached Balance Sheet of ISHAN DYES & CHEMICALS
LIMITED, as at March 31st, 2014, and the related 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. Management''s responsibility for the Financial Statement
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India Including
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956 ["the Act") read with the General Circular dated 13th
September,2013 of the Ministry of Company Affairs in respect to Section
133 of the Companies Act,2013 . This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
3. Auditors'' 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 misstatements. 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, die 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.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 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. 5. Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ["the
Order"] issued by the Centra J Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books,
(c) The Balance Sheet; the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account
(d) in our opinion, the Balance Sheet the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in section 211(3C) of the Companies Actl956 read with the
General Circular dated 13th September^013 of the Ministry of Company
Affairs in respect to Section 133 of the Companies Act,20l3;
(e) On the basis of the written representations received from the
directors as on March 31, 2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274(1] (g) of
the Act
Atmexure to the Auditors'' Report: Re: lshan Dyes & Chemicals Limited
Referred to in paragraph 3 of our Report of even date,
1. In respect of its fixed assets:
[a) The company has maintained proper records showing plant wise
particulars giving d eta Us and situation of fixed assets on the basis
of available information.
[h] As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. As explained to us, no material discrepancies
were noticed on such physical verification.
fc) In our opinion, the Company has not disposed of a substantial part
of Its fixed assets during the Year and the going concern status of the
Company is not affected
2. In respect of its inventories:
[a) The inventory has been physically verified during the Year by the
management. In our opinion, the frequency of verification is
reasonable.
[b) The procedures of Physical verification of Inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
[c) The company is maintaining proper records of inventories. As
explained to us, there was no material discrepancies noticed on
verification of Inventories as compared to the book records.
3. In respect of the loans, secured, or unsecured, granted or taken by
the company to / from companies, firms or other parties covered in the
registered maintained under section 301of the companies act, 1956:
(a) The Company has taken unsecured loans from parties covered in the
register maintained under section 301 of the companies Act* 1956.
Therefore, in respect of the said Loans, the maximum amounts
outstanding at any time during the year is Rs. 37.67 lacs and the year
ended balance is NIL.
[bj In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans taken by die Company or whether they are prima facie prejudicial
to die interest of die company.
(c) Since no unsecured loan is there as mentioned in point no. [a)
Above, there are no stipulations for payment of interest or repayment
of principal. Further, there is no question of outstanding of loan
taken as on 31" March, 2014; the question of overdue amount of loan
taken from parties listed in the register maintained under section 301
of die Companies Act, 1956 does not arise. Since the outstanding amount
as on 31st March, 2014 is NIL die requirements of clause (m) [d) of
paragraph 4 of die order are not applicable-
(dj The Company has given unsecured loans to parties covered in the
register maintained under section 301 of the companies Act, 1956. fn
respect of the said loans, the maximum amounts outstanding at any time
during the year are Rs. NIL and the year- end balance is NIL.
(ej The company has not taken any loan during the year from the
companies/firms or other parties covered under register maintained
under section 301 of the companies Act, 19S6.
(f) There are no stipulations for repayment of principal. There being
no outstanding of loan given as on 31s* March, 2014, the question of
overdue amount of loan given to parties Listed in the register
maintained under section 301 of the Companies Act 1956 does not arise.
Since the outstanding amount as on 31"'' March, 2014 is NIL the
requirements of clause (iii) (gj of paragraph 4 of the order are not
applicable.
4. In our opinion and according to the Information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control system.
5. In respect of the contracts or arrangements referred to in section
301 of the companies act, 19S6:
[a) In our opinion, and according to the information and explanations
given to us, the transaction made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
Sec.301 of the Companies Act, 1956 have been so entered.
(h) In our opinion, and according to the information and explanations
given to us, the transaction made in pursuance of contracts or
arrangements, entered in the register maintained under Sec.301 of the
Companies Act, 1956 and exceeding the value of Rs.5.00 lacs in respect
of each party during the Year have been made at prices which appear
reasonable as per information available with the company.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA of the Companies Act, 1956 and the Companies [Acceptance
of Deposits] Rules, 1975 with regard to the deposits accepted from the
public However, company has not accepted any term deposits from public.
Company has taken unsecured Loans from friends and relatives of
directors. All such loans have been repaid and outstanding amount as on
31£tMarch, 2014 is NIL.
7. In our opinion, the Company has internal audit system commensurate
with size and nature of its business.
8. We have broadly reviewed cost records maintained by the Company
pursuant to Companies (Cost Accounting) Records, Rules 2011 prescribed
by the Central Government u/s 209(1 )(d) of the Companies Act, 1956 and
are of the opinion that prima facie the prescribed cost records have
been maintained. We have, however, not made the detailed examination of
the Cost Records with a view to determine whether they are accurate or
complete.
9, In respect of statutory dues:
(a) According to records of the company, undisputed statutory dues
including Provident Fund, Income-tax, VAT, CSTj Service tax, custom
duty, excise duty, cess, and other material statutory dues have been
generally regularly deposited with the appropriate authorities.
According information and explanation given to us, no undisputed
amounts payable in respect of the aforesaid dues were outstanding as at
March 31, 2014 for a period of more than 6 months from the date of
becoming payable.
(b) According to information and explanation given to us, old
outstanding statutory undisputed dues are nil.
(c) The disputed statutory dues on account of disputed matters pending
before appropriate authorities as under:
Period to
Sr. Name of the Nature of Amount which the
No Statue the dues amount
relates
1 Income Tax Act Penalty u/s Not AY 2011-12
271 [11 [b] determined
Name of the Statute Forum where dispute is
pending
Income Tax Act DC1T, Circle-3, Baroda
10. The company has made profits during the period covered by our audit
and in the immediately preceding the financial year. The Company has
not incurred cash losses during the financial year covered by the audit
and In the immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and banks.
During the previous year, in case of Term Loans from C.N.S. Bank
Limited, the Company received a settlement order dated 16/07/12 under
"one time settlement scheme'' determining Liability of Rs.495.4l Lacs
[as against book liability of Rs. 143-62 Lacs] to be settled by
July''13. The Company has discharged the entire liability during the
year under review. The Company has also received No Due Certificate
from CNS.Bank dated Sth April, 2014.
12. In our opinion and according to the explanation given to us and
based on the information available, the company has not granted any
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. The company is not a chit hind or a nidhi/mutual benefit
fund/society. Therefore, the provisions of Clause 4 (xiiQ of paragraph
4 of the order are not applicable.
14. The company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause 4
[xiv) of paragraph 4 of the order are not applicable.
15. The company has not given any guarantee for loans taken by others
from banks or financial institutions.
16. The company has not obtained term loans during the year.
17. According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we are of the
opinion that there are no funds raised on short term basis that have
been used for long term investment
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Act during the Year.
19. According to the information and explanations given to us. the
Company had not issued any Secured Debentures during the year.
20. The Company has not raised any money hy way of public issues during
the year.
21. According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the year.
Place: Ahmedabad
Date: 30th May, 2014
For GS MATHUR & CO
Chartered Accountants
Bhargav Vaghela
Partner
Membership No .12 4 619
F.R.N.: 008744N
Mar 31, 2012
1. We have audited the attached Balance Sheet of ISHAN DYES &
CHEMICALS LIMITED, as at March 31st, 2012, and the related 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 test basis evidence supporting the amounts and
disclosure in the financial statement presentation. An audit also
includes assessing the accounting principles used and significant
estimate 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 issued
by the Central Government of India in terms of Sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure, a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
4. Further to our opinion in the Annexure referred to above, we
reported that :
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion the Profit & Loss account and Balance Sheet of the
Company dealt with by this report are in compliance with the accounting
standards referred to in Section 211 (3C) of the Companies Act, 1956 to
the extent applicable.
e) On the basis of written representation received from the Directors,
as on 31th March, 2012 and taken on record by the Board of Directors,
we reported that none of the Directors is disqualified as on 31th
March, 2012 from being appointed as a Director in terms of clause (g)
of Sub- section (1) of Section 274 of the Companies Act, 1956;
f) 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 Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31th March, 2012.
ii. In the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
iii. In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors'' Report:
Re: Ishan Dyes & Chemicals Limited
Referred to in paragraph 3 of our Report of even date,
1. In respect of its fixed assets:
(a) The company has maintained proper records showing plant wise
particulars giving details and situation of fixed assets on the basis
of available information.
(b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. As explained to us, no material discrepancies
were noticed on such physical verification.
(c) In our opinion, the Company has not disposed of a substantial part
of its fixed assets during the Year and the going concern status of the
Company is not affected
2. In respect of its inventories:
(a) The inventory has been physically verified during the Year by the
management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of Physical verification of Inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The company is maintaining proper records of inventories. As
explained to us, there was no material discrepancies noticed on
verification of inventories as compared to the book records.
3. In respect of the loans, secured, or unsecured, granted or taken by
the company to / from companies, firms or other parties covered in the
registered maintained under section 301of the companies act, 1956:
(a) The Company has taken unsecured loans from parties covered in the
register maintained under section 301 of the companies Act, 1956. In
respect of the said loans, the maximum amounts outstanding at any time
during the year is Rs. NIL lacs and the year ended balance is NIL.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans taken by the Company, are not prima facie prejudicial to the
interest of the company.
(c) There are no stipulations for payment of interest or repayment of
principal. There being no outstanding of loan taken as on 31st March,
2012, the question of overdue amount of loan taken from parties listed
in the register maintained under section 301 of the Companies Act, 1956
does not arise. Since the outstanding amount as on 31st March, 2012 is
NIL the requirements of clause
(iii) (d) of paragraph 4 of the order are not applicable.
(d) The Company has given unsecured loans to parties covered in the
register maintained under section 301 of the companies Act, 1956. In
respect of the said loans, the maximum amounts outstanding at any time
during the year are Rs. 29.40 Lacs and the year-end balance is NIL.
(e) The company has not taken any loan during the year from the
companies/firms or other parties covered under register maintained
under section 301 of the companies Act, 1956.
(f) There are no stipulations for repayment of principal. There being
no outstanding of loan given as on 31st March, 2012, the question of
overdue amount of loan given to parties listed in the register
maintained under section 301 of the Companies Act, 1956 does not arise.
Since the outstanding amount as on 31st March, 2012 is NIL the
requirements of clause (iii) (g) of paragraph 4 of the order are not
applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control system.
5. In respect of the contracts or arrangements referred to in section
301 of the companies act, 1956:
(a) In our opinion, and according to the information and explanations
given to us, the transaction made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
Sec.301 of the Companies Act, 1956 have been so entered.
(b) In our opinion, and according to the information and explanations
given to us, the transaction made in pursuance of contracts or
arrangements, entered in the register maintained under Sec.301 of the
Companies Act, 1956 and exceeding the value of Rs.5.00 lacs in respect
of each party during the Year have been made at prices which appear
reasonable as per information available with the company.
6. In our opinion and according to the information and explanations
given to us, the Company has not complied with the provisions of
Sections 58A and 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public. However, company has not accepted any term
deposits from public. Company has taken unsecured loans from friends
and relatives of directors. All such loans have been repaid and
outstanding amount as on 31st March, 2012 is NIL.
7. In our opinion, the Company has internal audit system commensurate
with size and nature of its business.
8. We have broadly reviewed cost records maintained by the Company
pursuant to Companies (Cost Accounting) Records, Rules 2011 prescribed
by the Central Government u/s 209(1)(d) of the Companies Act,1956 and
are of the opinion that prima facie the prescribed cost records have
been maintained. We have ,however, not made the detained examination of
the Cost Records with a view to determine whether they are accurate of
complete.
9. In respect of statutory dues:
(a) According to records of the company, undisputed statutory dues
including Provident Fund, Income-tax, VAT, CST, Service tax, custom
duty, excise duty, cess, and other material statutory dues have been
generally regularly deposited with the appropriate authorities.
According information and explanation given to us, no undisputed
amounts payable in respect of the aforesaid dues were outstanding as at
March 31, 2012 for a period of more than 6 months from the date of
becoming payable.
(b) According to information and explanation given to us, old
outstanding statutory undisputed dues are nil.
(c) The disputed statutory dues aggregating Rs.1.95 Lacs that have been
deposited on account of disputed matters pending before appropriate
authorities as under :
Sr
No Name of the Nature of Amount Period to Forum where
Statue the dues (Rs. in which the dispute is
Lacs) amount pending
relates
1 Income Tax Regular 1.95 AY 2006-07 CIT (Appeal),
Act Demand Baroda
u/s 115 JB
10. The company has accumulated losses at Year ending 31st March''
2012. However, the company has made profits during the period covered
by our audit and in the immediately preceding the financial year.
11. In case of Term Loans from C.N.S. Bank Limited, the Bank had
recalled the entire Term Loan for repayment and had filed Civil Suite
for recovery of Rs.541.32 Lacs. As explained to us and records produced
before us, the suit for recovery is dismissed by lower Authority and
the matters are pending before Tribunal.
In case of term loan of C.N.S. Bank Ltd., It has been informed to us
that Government of Gujarat has notified scheme for one time settlement
of outstanding loans vide notification number NSB/12/2005/M97/C DT.
19/5/2010. It is affirmed by the Board that the company is eligible
under the scheme and has filed necessary application as per the scheme.
12. In our opinion and according to the explanation given to us and
based on the information available, the company has not granted any
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. The company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of Clause 4 (xiii) of
paragraph 4 of the order are not applicable.
14. The company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause 4
(xiv) of paragraph 4 of the order are not applicable.
15. The company has not given any guarantee for loans taken by others
from banks or financial institutions.
16. The company has not obtained term loans during the year.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we are of
the opinion that there are no funds raised on short term basis that
have been used for long term investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Act during the Year.
19. According to the information and explanations given to us, the
Company had not issued any Secured Debentures during the year.
20. The Company has not raised any money by way of public issues
during the year.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
Place: Ahmedabad
Date: 29th May, 2012
For A R Pandhi & Associates
Chartered Accountants
Bhargav Vaghela
Partner
Membership No.124 619
F.R.N.: 118057W
Mar 31, 2011
1. We have audited the attached Balance Sheet of ISHAN DYES &
CHEMICALS LIMITED, as at March 31, 2011, and the related 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 test basis evidence supporting the amounts and
disclosure in the financial statement presentation. An audit also
includes assessing the accounting principles used and significant
estimate 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 issued
by the Central Government of India in terms of Sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure, a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
- Further to our opinion in the Annexure referred to above, we reported
that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion the Profit & Loss account and Balance Sheet of the
Company dealt with by this report are in compliance with the accounting
standards referred to in Section 211 (3C) of the Companies Act, 1956 to
the extent applicable.
e) On the basis of written representation received from the Directors,
as on 31st March, 2011 and taken on record by the Board of Directors,
we reported 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 Companies Act, 1956;
f) 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 Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011.
ii. In the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
iii. In the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to the Auditors' Report:
Re: Ishan Dyes & Chemicals Limited
Referred to in paragraph 3 of our Report of even date,
1. In respect of its fixed assets:
(a) The company has maintained proper records showing plant wise
particulars giving details and situation of fixed assets on the basis
of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. As explained to us, no material discrepancies
were noticed on such physical verification.
c) In our opinion, the Company has not disposed of a substantial part
of its fixed assets ' during the year and the going concern status of
the Company is not affected
2. in respect of its inventories:
(a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of Physical verification of Inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) The company is maintaining proper records of inventories. As
explained to us, there were no material discrepancies noticed on
verification of inventories as compared to the book records.
(3) In respect of the loans, secured, or unsecured, granted or taken by
the company to / from companies, firms or other parties covered in the
registered maintained under section 301 of the companies act, 1956:
(a) The Company has taken unsecured loans from parties covered in the
register maintained under section 301 of the companies Act, 1956. In
respect of the said loans, the maximum amounts outstanding at any time
during the year is Rs.56.74 lacs and the year end balance is NIL.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans taken by the Company, are not prima pacie prejudicial to the
interest of the company.
(c) There are no stipulations for payment of interest or repayment of
principal. There being no outstanding of loan taken as on 31st March
2011, the question of overdue amount of loan taken from parties listed
in the register maintained under section 301 of the Companies Act 1956
does not arise. Since the outstanding amount as on 31st March 2011 is
NIL the requirements of clause (iii) d of paragraph of the order are
not applicable.
(d) The Company has given unsecured loans to parties covered in the
register maintained under section 301 of the companies Act, 1956. In
respect of the said loans, the maximum amounts outstanding at any time
during the year is Rs.103.72 lacs and the year end balance is NIL.
(e) The loans given to parties covered in the register maintained under
section 301 of the companies Act, 1956 were given free of interest.
(f) There are no stipulations for repayment of principal. There being
no outstanding of loan given as on 31st March 2011, the question of
overdue amount of loan given to parties listed in the register
maintained under section 301 of the Companies Act, 1956 does not arise.
Since the outstanding amount as on 31st March 2011 is NIL the
requirements of clause (iii) (g) of paragraph 4 of the order are not
applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control system.
5. In respect of the contracts or arrangements referred to in section
301 of the companies act,
(a) In our opinion, and according to the information and explanations
given to us, the Transaction made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
Sec.301 of the Companies Act, 1956 have been so entered.
(b) In our opinion, and according to the information and explanations
given to us, the transaction made in pursuance of contracts or
arrangements, entered in the register maintained under Sec.301 of the
Companies Act, 1956 and exceeding the value of Rs.5.00 lacs in respect
of each party during the year have been made at prices which appear
reasonable as per information available with the company.
6. In cur opinion and according to the information and explanations
given to us, the Company has not complied with the provisions of
Sections 58A and 58AA of the Companies Act, 1956 and :he Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public. However, company has not accepted any term
deposits from public. Company has taken unsecured loans from friends
and relatives of directors. All such loans have been repaid and
outstanding amount as on 31st March 2011 is NIL.
7. In our opinion, the Company has internal audit system commensurate
with size and nature of us business.
8. As per the Rules made by the Central Government for the maintenance
of cost records under r-.-;::;n 209(1) (d) of the Companies Act, 1956
in respect of certain manufacturing activities of the company, the
products of the company are not covered under the rules and hence the
company is not required to maintain the books and other items of cost.
However, company has maintained records for consumption of raw
materials and production of finished goods. we have broadly reviewed
such records and have not carried out detailed examination of such
records.
9. In respect of statutory dues:
(a) According to records of the company, undisputed statutory dues
including Provident Fund, Income-tax, VAT, CST, Service tax, custom
duty, excise duty, cess, and other material statutory dues have been
generally regularly deposited with the appropriate authorities.
According information and explanation given to us, no undisputed
amounts payable in respect of the aforesaid dues were outstanding as at
March 31, 2011 for a period of more than 6 months from the date of
becoming payable.
(b) According to information and explanation given to us, old
outstanding statutory undisputed dues are nil.
C) The disputed statutory dues aggregating Rs.1.95 Lacs that have not
been deposited on account of disputed matters pending before
appropriate authorities are as under:
Sr. Name of the Nature of Amount Period to which Forum where
No. Statute the Dues (Rs in Lacs) the amount dispute is
relates pending
1. Income Tax Regular 1.95 A.Y.2006-07 CIT
Act demand (Appeal),
U/s 115JB Baroda.
10.The company has accumulated losses at the end of the financial year.
However, the company has made profits during the financial year
covered by our audit and in the immediately preceding the financial
year.
11. In case of term loan from C.N.S. Bank Ltd., the bank had recalled
the entire term loan for repayment and had filled civil suite for
recovery of Rs.541.32 lacks. As explained to us and as per records
presented before us, the suit for recovery is dismissed by lower
authority and me maters are pending before Tribunal.
In case of term loan of C.N.S. Bank Ltd., It has been informed to us
that Government of Gujarat has notified scheme for one time settlement
of outstanding loans vide notification -umber NSB/12/2005/M97/C DT.
19/5/2010. It is affirmed by the Board that the company is eligible
under the scheme and has filled necessary application as per the
scheme. It is further affirmed by the management, that the amount
payable to the said bank as per the verified scheme shall not be more
than the amount outstanding and appearing on the books of the
company on the balance sheet date. Since the bank is under liquidation,
no further details are available with the company.
12.In our opinion and according to the explanation given to us and
based on the information ma liable, the company has not granted any
loans and advances on the basis of security by pledge of shares,
debentures and other securities.
13. The company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of Clause 4 (xiii) of
paragraph 4 of the order are not applicable.
14. The company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, the provisions or clause
4 (iv) of paragraph 4 of the order are not applicable.
15. The company has not given any guarantee for loans taken by others
from banks or financial institutions.
16. The company has not obtained term loans during the year.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we are of
the opinion that there are no funds raised on short term basis that
have been used for long term investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Act during the year.
19. According to the information and explanations given to us, the
Company had not issued any Secured Debentures during the year.
20. The Company has not raised any money by way of public issues
during the year.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
Place : Borsad For K.G. Patel & Co.
Date : 30th May, 2011 Chartered Accountants
Kamlesh Parikh
Partner
Membership No.34529
F.R.N.: 107717W