Mar 31, 2016
To the Members of JYOTI LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Jyoti Limited ("the companyâ), which comprise the Balance Sheet as at 31st March, 2016, 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.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Actâ) with respect to the preparation of these standalone Financial Statements that give a true and fair view of the financial position and financial performance of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the 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 internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Financial Statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards 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 auditorâs 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 Companyâs preparation of the Financial Statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Companyâs Directors, as well as evaluating the overall presentation of the 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, 2016, and its Loss and its cash flow for the year ended on that date.
Emphasis of Matters
a) Note No.26(17) & (18) in the financial statements which indicate that, the Net Worth of the Company had become negative since the financial year 2013-14, the Company, in compliance with the provisions of Section 15(1) of Sick Industrial Companies (Special Provisions) Act, 1985, made a reference to Board of Industrial and Financial Reconstruction ( BIFR). The Company has received the letter dated 17th October, 2014 from BIFR for registration under Section 15 (1) of SICA Act, 1985. The Hon. BIFR, in the hearing held on 05.10.2015, declared the Company a Sick Industrial Company in terms of Section 3 (1) (o) of the Sick Industrial Companies (Special Provisions) Act, 1985 and appointed the lead bank, Central Bank of India as Operating Agency (OA) under section 17(3) of the Act to examine the viability of the Company and for formulating a Draft Rehabilitation Scheme (DRS) for revival of the Company. As the DRS submitted is under consideration of the banks, no effect of the restructuring proposal is considered in the books of account.
In view of continued losses, total erosion of the Net Worth, Current Liabilities Exceeds Current Assets, Liquidity constraint and Inability to comply with the terms of loan agreements, there is an uncertainty about the Companyâs ability to continue as a going concern. However, the management is very positive about its viability, in lines with the DRS proposal and Techno Economic Viability Study (TEV) submitted to the lenders. The company is optimistic about its future and in view of the Companyâs ability to continue to execute its orders, despite adversities, it expects that Companyâs financials will show a marked improvement once the DRS proposal is accepted and implemented by the lenders and the Hon. BIFR. In view thereof, the Financial Statements have been prepared by the Management on a âGoing Concernâ basis. No adjustment is considered necessary by the Management to the recorded assets, recorded liabilities, contingent liabilities and other commitments for the reasons and perception of the Management.
b) Note No.26(12)(a)&(b) and 26(15) of the financial statements regarding recoverability of Trade Receivables, Advances and Impairment of Assets other than those provided for during the year, which has been considered good by the Management, in view of reasons stated therein.
Our opinion is not modified in respect of these matters.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 ("the Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act 2013, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the order.
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 Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d) in our opinion, the aforesaid standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) the matters described in sub-paragraph (a) & (b) under the Emphasis of Matters paragraphs above, in our opinion, may have an effect on the functioning of the Company;
f) on the basis of written representations received from the directors as on 31st March, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016, from being appointed as a director in terms of Section 164(2) of the Act;
g) the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial control over financial reporting were operating effectively as at 31st March, 2016, based on the internal control over financial reporting criteria established by the Company. Refer to our separate report in Annexure âBâ; and
h) with respect to the other matters included in the Auditorâs Report in accordance with the 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 note no 26 (3).
ii) the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivatives contracts.
iii) there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company except dividend under dispute amounting to Rs. 2 lakhs, which is subjudice.
iv) Share application money of Rs. 1980 lakhs, which is outstanding since financial year 2013-14. We have been given to understand by the Management that it will be converted into share capital on approval of appropriate authorities.
Annexure-A to Auditorsâ Report
Annexure Referred to in Independent Auditorsâ Report to the members of the Company on the standalone financial statements for the year ended 31st March 2016, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of Fixed Assets.
(b) Fixed Assets have been physically verified by the Management during the year as per the phased programme of physical verification of fixed assets. As informed to us, the programme is such that all the fixed assets will get physically verified in three years time. In our opinion the same 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) According to the information and explanation given to us and on the basis of our examination of the records of the company, the title deeds of immovable properties are held in the name of the Company.
(ii) As explained to us, the inventory (except those lying with contractors and at sites of the company) has been physically verified by the Management at the year end. According to the information and explanations given to us, there was no material discrepancies were noticed on such physical verification of inventory as compared to the book records.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Hence, provisions of sub clauses (iii) (a), (b) & (c) are not applicable to the Company.
(iv) According to information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respects of loans, investments, guarantees and security.
(v) According to the information and explanations given to us, The Company has not accepted any deposits from the public.
(vi) To the best of our Knowledge and explanations provided by the management, the maintenance of cost records has been prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013. Such accounts and records have been made and are maintained by the Company.
(vii) According to the information and explanations given to us in respect of statutory and other dues:
(a) The Company has been generally regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and any other material statutory dues to the appropriate authorities during the year. Based on our audit procedures and according to the information and explanation given to us, there are no arrears of statutory dues which has remained outstanding as at 31st March, 2016 for a period of more than six months from the date they became payable, except Sales Tax payable amounting to Rs. 266.53 lakhs and gratuity payable amounting to Rs. 151.80 lakhs.
(b) According to the information and explanations given to us and on the basis of the records produced before us by the Company, except for the cases stated below, there are no material dues payable in respect of income tax or sales tax or service tax or duty of customs or duty of excise and value added tax which have not been deposited on account of any dispute.
Sr. no |
Name of the Statute & Nature of Dues |
Total Demand (Rs. lakhs) |
Period |
Forum where dispute is pending |
1 |
Income TaxAct, 1961 (Income Tax) |
3025.89 |
2012-13 |
Commissioner of Income Tax (Appeals) |
2 |
The Central Excise Act,1944 (Excise Duty) |
5.74 |
2006 To Jan, 11 |
Central Excise & Service Tax Appellate Tribunal - Aâ Bad. |
3.02 |
Feb 2011 To Dec, 2011 |
Central Excise & Service Tax Appellate Tribunal - Aâ Bad. |
||
3 |
The Finance Act,1994 ( Service Tax) |
1.60 |
Dec,04 To Nov,09 |
Central Excise & Service Tax Appellate Tribunal - Aâ Bad. |
0.58 |
May,10 To Feb,11 |
Central Excise & Service Tax Appellate Tribunal - Aâ Bad. |
||
0.67 |
Mar,11 To Jan, 12 |
Central Excise & Service Tax Appellate Tribunal -Aâ Bad. |
||
0.29 |
Feb,12 To Dec, 12 |
Central Excise & Service Tax Appellate Tribunal - Aâ Bad. |
||
0.09 |
Jan,13 To Sep,13 |
Central Excise & Service Tax Appellate Tribunal -Aâ Bad. |
||
0.10 |
Sep, 13 To June ,14 |
The Superintendent, Central Excise, Customs and Service Tax, Vadodara |
||
3.09 |
1/4/2005 To 31/3/2010 |
Central Excise & Service Tax Appellate Tribunal - Aâ Bad. |
||
4 |
Gujarat Value Added Tax,2003 |
10.38 |
Apr,10 To Mar,11 |
Deputy Commissioner (Appeal), Vadodara |
5 |
Karnataka Value Added Tax,2003 |
51.70 |
Apr,09 To Mar,10 |
Joint Commissioner of Commercial Taxes, Bangalore. |
(viii) (a) Based on our audit procedures and as per the information and explanations given by the Management, the Company has delayed in payment of interest on Term Loans, repayment of principal on Term Loans, letters of Credit to Banks and Technology Development Boardâs Loan. The following are the details of the delays:
Particulars |
Amt during the |
Period of Delays |
year (Rs. Lakhs) |
(in days) |
|
Various Bank - Interests on Term Loans |
4160.23 |
up to 90 days |
Various Bank - Letters of Credit |
4369.10 |
up to 90 days |
Various Bank - Installment of Term Loans |
2282.44 |
up to 90 days |
Technology Development Board - |
25.00 |
up to 90 days |
Loan Installments |
||
TOTAL AMOUNT |
10836.77 |
(b) The Company has overdue amount as on 31st March, 2016 on account of interest on various Term Loans, Working Capital Demand Loans, letters of Credit and Installment of Funded Interest Term Loan ofRs. 12379.19 lakhs.
_Rs. Lakhs
Particulars |
Period of Default (in days) |
Amt. during the year |
|
Up to 90 days |
Above 90 days |
||
Various Bank - Interests on Term Loans Various Bank - Letters of Credit Various Bank - Installment of Term Loans Technology Development Board â Installment |
2313.14 2222.71 1267.00 111.11 |
1136.02 3167.71 2053.50 108.00 |
3449.16 5390.42 3320.50 219.11 |
TOTAL AMOUNT |
5913.96 |
6465.23 |
12379.19 |
(ix) The Company did not raised money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
(x) As per information and explanations given to us, no material fraud by the Company or any fraud on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) The managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of sections 198, 269, 309 and 310 read with Schedule xiii to the Companies Act, 1956.
(xii) In our opinion and according to the information and explanation given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to information and explanation given to us, transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details of such transactions have been disclosed in the financial statements etc., as required by the applicable accounting standards.
(xiv) According to information and explanation given to us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
(xv) According to information and explanation given to us, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure - B to the Auditorsâ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Jyoti Limited ("the Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 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.
Emphasis of Matters
The accounts of Trade Receivables, Trade Payables and Advances are subject to reconciliation/ confirmation. The Management does not expect any material difference affecting the financial statements on reconciliation. In our opinion, this may have an effect on the functioning of the Company.
However, our opinion is not modified in respect of these matters.
For V. H. Gandhi & Co.
Chartered Accountants
Firm Reg. No. 103047W
Vijay H. Gandhi
Vadodara
Proprietor
30th May, 2016 M. No. 35581
Mar 31, 2015
We have audited the accompanying financial statements of JYOTI 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 significant accounting policies and
other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in
Section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial control, 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our
audit in accordance with the Standards on Auditing specified under
section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amount sand disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give true and fair view in
order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its loss and its cash flows for the year ended
on that date.
Emphasis of Matters
a) Note No.26(16) in the financial statements which indicates that,
since the Net Worth of the Company had become negative at the end of
previous year, the Company, in compliance with the provisions of
Section 15(1) of Sick Industrial Companies (Special Provisions) Act,
1985, made a reference to Board of Industrial and Financial
Reconstruction (BIFR). The Company has received the letter dated 17th
October, 2014 from BIFR for registration under Section 15 (1) of
SICAACT, 1985. The Company has already initiated the process of
declaring itself as a Sick Company.
In view of continued losses, total erosion of the Net Worth and
Liquidity constraint, there is an uncertainty about the Company's
ability to continue as a going concern. However, the Management
believes that considering the change in overall industrial outlook,
current performance and trends of the Company as well as efforts put in
forcost reduction and collection from receivables and measures
initiated by the Company for rehabilitation through BIFR, the
Management is optimistic of the future and therefore, the Financial
Statements have been prepared by the Management on a 'Going Concern'
basis. No adjustment is considered necessary by the Management to the
recorded assets, recorded liabilities, contingent liabilities and other
commitments for the reasons and perception of the Management.
b) Note No.26(17) and 26(12) (a)& (b) of the financial statements
regarding recoverability of Trade Receivables, Advances and Impairment
of Assets other than those provided for during the year, which has been
considered good by the Management, in view of reasons stated therein.
Our opinion is not qualified / modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
In the Annual General Meeting held on 22nd September, 2014, the
ordinary resolutions for adopting the financial statements for the year
ended on 31st March, 2014 and our re-appointment as Auditors of the
Company for the financial years ending 31st March, 2015 to 31st March,
2017, were not passed as votes cast against were more than votes cast
in favor of the resolutions. As per the provisions of Section 139(10)
of the Companies Act, 2013, present statutory auditors would continue
to be the auditors of the Company. Accounts of previous year are not
adopted in Annual General Meeting, which is adjourned sine die.
Audited closing balances of the previous year accounts are taken as
opening balance for the current year. Please refer Note no. 26 (21 &
22) of the financial statements.
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 Companies Act 2013, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the said Order to the extent applicable to the Company.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) The matters described in sub-paragraph (a) &(b) under the Emphasis
of Matters paragraph above, in our opinion, may have an effect on the
functioning of the Company.
f) On the basis of written representations received from the directors
as on 31st March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
g) With respect to the other matters included in the Auditor's Report
in accordance with the rule 11 of the Companies (Audit and Auditors)
Rules, 2014 in our opinion and to 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 note no
26 (3).
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any an
das required on long term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by
theCompany except dividend under dispute amounting to Rs, 2 lakhs,
which is sub juice.
iv. Share Application Money of Rs, 1980 lakhs outstanding as at the end
of previous accounting year. We have been given to understand by the
Management that such application money will be allotted, subject to
approval of shareholders and appropriate authorities.
Annexure to Independent Auditors' Report -
Re : Jyoti Limited
referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory
Requirements" of our report of even date, We state that :-
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of Fixed
Assets.
(b) Fixed Assets have been physically verified by the Management during
the year as per the phased programmed of physical verification of fixed
assets. As informed to us, the programmed is such that all the fixed
assets will get physically verified in three years time. In our opinion
the same is reasonable having regard to the size of the Company and the
nature of its business. No material discrepancies were noticed on such
verification.
(ii) (a) The inventory (except those lying with contractors and at
Sites) has been physically verified during the year by the Management
at reasonable intervals.
(b) The procedures of physical verification of inventory followed by
the Management are generally 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. No material
discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
189 of the Companies Act, 2013. Therefore, the requirements of sub
clauses (a) & (b) of (iii) are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is inadequate 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. There is no continuing failure to correct major weaknesses
in internal control system.
(v) In our opinion and as per information and explanations given to us,
the directives issued by the Reserve Bank of India and the provisions
of Sections 73 to 76 or any other relevant provisions of the Companies
Act, 2013 and the rules framed there under, where applicable, have been
duly complied by the Company. We are informed by the Management that,
no order has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any Other
Tribunal.
(vi) Central Government has specified the maintenance of cost records
under sub-section (1) of Section 148 of the Companies Act, 2013. Such
accounts and records have been made and maintained by the Company.
(vii) (a) According to the records of the Company, it is generally
regular in depositing with appropriate authorities, undisputed
statutory dues including Provident Fund, Employee' State Insurance,
Income tax, Sales tax, Wealth tax, Service tax, Custom Duty, Excise
Duty, Value Added Tax, Cess and any other statutory dues applicable to
it. We are informed that there are no undisputed statutory dues as at
the year end, outstanding for a period of more than six months from the
date they became payable, except Sales Tax payable amounting to Rs,
165.57 lakhs.
(b) According to the Records of the Company, the following disputed
dues of income tax or sales tax or wealth tax or service tax or customs
duty or excise duty or value added tax or cess have not been deposited
as under.
Sr. Name of the
Statute Total Demand Period Forum where dispute is
pending
no &Nature of
Dues (Rs,lakhs)
1 Income TaxAct,
1961 *22.18 2000-01 Income Tax Appellate
Tribunal
(Income Tax)
2 Income Tax Act,
1961 *10.13 2001-02 Income Tax Appellate
Tribunal
(Income Tax)
3 Income Tax Act,
1961 * 4.50 2002-03 Income Tax Appellate
Tribunal
(Income Tax)
4 Income Tax Act,
1961 *7.83 2004-05 Income Tax Appellate
Tribunal
(Income Tax)
5 Income Tax Act,
1961 * 20.96 2006-07 Income Tax Appellate
Tribunal
(Income Tax)
6 Income Tax Act,
1961 * 20.90 2008-09 Income Tax Appellate
Tribunal
(Income Tax)
7 Income Tax Act,
1961 * 5.21 2010-11 Commissioner of
Income Tax
(Income Tax) (Appeals)
8 The Central
Excise 5.74 2006To Central Excise Service
Tax Act,1944
(Excise Duty) Jan,11 Appellate Tribunal-
A'Bad.
3.02 Feb,11To Central Excise& Service
Tax
Dec,11 Appellate Tribunal
- Abad.
9 The Finance Act,
1994 0.58 May,10To Central Excise Service
Tax
(Service Tax) Feb,11 Appellate Tribunal
-Abad.
1.60 Dec,04To Central Excise& Service
Tax
Nov,09 Appellate Tribunal
- Abad.
Sr.
No Name of the
Statute Total Demand Period Forum where dispute is
pending no
& Nature
of Dues (Rs.lakhs)
3.09 Apr,05To Central Excise &
Service Tax
Mar,10 Appellate
Tribunal-A'Bad.
0.67 Mar, 11 To Central Excise &
Service Tax
Jan,12 Appellate
Tribunal-A'Bad.
0.29 Feb,12 To Central Excise &
Service Tax
Dec,12 Appellate
Tribunal-A'Bad.
0.09 Jan,13 To Central Excise &
Service Tax
Sep,13 Appellate
Tribunal-A'Bad.
0.10 Sept,13 To The Superintendent,
Central Excise
Jun,14 Customs & Service
Tax- Vadodara
- Note :-Amount deposited.
(c) There has been no delay in transferring amounts required to be
transferred, to the Investor Education and Protection Fund by the
Company except dividend amounting to " 2.00 lakhs, which is sub juice.
(viii) The Company's accumulated losses at the end of the financial
year have eroded its entire net worth. The Company has incurred cash
losses during the current and preceding financial year. (Refer Note
No. 26(16)).
(ix) (a) Based on our audit procedures and as per the information and
explanations given by the Management, the Company has delayed payment
of interest and repayment of principal dues and Letters of Credit to
Banks. The following are the details of the delays:
Particulars Amt during the Period of Delays
year (" Lakhs) (in days)
Various Bank -
Interests on
Term Loans 1,524.06 up to 90 days
Various Bank -
Letters of
Credit 478.33 up to 90 days
Various Bank-
Installment of
Term Loans 525.00 upto 90 days
TOTAL AMOUNT 2,527.39
(b) The Company has overdue amount as on 31st March, 2015 on account of
interest on various Term Loans, Working Capital Demand Loans, Letters
of Credit and Installment of Funded Interest Term Loan of" 1853.48
lakhs (since paid " 1282.46 lakhs). The Company has not taken any Loan
from a financial institution or debenture holders.
(x) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xi) In our opinion and based on information and explanations given to
us by the Management, the term loans were applied for the purpose for
which they were obtained.
(xii) As per information and explanations given to us, no fraud on or
by the Company has been noticed or reported during the year.
For V. H. Gandhi & Co.
Chartered Accountants
Firm Reg. No. 103047W
Vijay H. Gandhi
Vadodara Proprietor
30th May, 2015 M.No. 35581
Mar 31, 2014
We have audited the accompanying financial statements of Jyoti Limited
("the Company"), which comprise the Balance Sheet as at March 31, 2014,
the Statement of Profit and Loss and Cash Flow Statement for the year
then ended, and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India including
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act") read with the general circular
15/2013 dt:-13-09-2013 of the Ministry of Corporate Affairs in respect
of section 133 of the Company''s 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.
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 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 entity''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 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 Loss 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.
Emphasis of Matters
Without qualifying our opinion, we draw attention to :
1. Note No. 26(17) to the Financial Statements in respect to material
uncertainty about the Company''s ability to continue as a going concern
in view of continued losses and total erosion of the net worth as at
the year end. The Financial Statements have been prepared by the
Management on a ''Going Concern'' basis. No adjustment is considered
necessary by the Management to the recorded assets, recorded
liabilities, contingent liabilities and other commitments for the
reasons and perception of the Management stated therein. Please also
refer Note No. 26(15).
2. Note No. 26(18) regarding recoverability of trade receivables and
advances, other than those provided for during the year, which has been
considered good by the Management in view of reasons stated therein.
Please also refer Note No.26(13) in this regard.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, 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
notified under the Companies Act, 1956 read with the general circular
15/2013 dt: 13-09-2013 of the Ministry of Corporate Affairs in respect
of section 133 of the Company''s Act, 2013;
e. On the basis of written representations received from the Directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the Directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to Independent Auditors'' Report  referred to in Paragraph 1
under the heading of "Report on Other Legal and Regulatory
Requirements" of our report of even date, We state that :-
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of Fixed
Assets.
(b) Fixed Assets have been physically verified by the Management during
the year as per the phased programme of physical verification of fixed
assets. As informed to us, the programme is such that all the fixed
assets will get physically verified in three years time. In our
opinion the same is reasonable having regard to the size of the Company
and the nature of its fixed assets. No material discrepancies were
noticed on such verification.
(c) No substantial part of fixed assets has been disposed off during
the year.
(ii) (a) The inventory (except those lying with contractor and at
sites) has been physically verified during the year by the Management
at reasonable intervals.
(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. No material
discrepancies have been noticed on physical verification of stocks.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Hence, provisions of sub
clauses 4 (iii) (b), (c) & (d) are not applicable to the Company.
(b) According to the 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 Companies Act, 1956. Hence, provision of sub clauses 4 (iii)
(f) & (g) are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods and
services and there is no continuing failure to correct major weaknesses
in internal control system.
(v) (a) The particulars of contracts or arrangements referred to in
Section 301 of the Companies Act, 1956 have been so entered in the
register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rs. 5.00 lakhs have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
(vi) In our opinion and as per information and explanations given to
us, the directives issued by the Reserve Bank of India and the
provisions of Sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed thereunder, where
applicable, have been duly complied by the Company. 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. However,
there is a scope for increasing the coverage so as to be commensurate
with its size and nature of its business.
(viii) We have broadly reviewed the books of account and records
maintained by the Company relating to manufacture of Electric Motors &
Generators and Power Driven Pumps, Generating Sets, Switchgears and
Relays pursuant to the order made by the Central Government for the
maintenance of cost records under clause (d) of sub-section (1) of
Section 209 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, however, not made a detail examination of the
records with a view of determining whether they are accurate or
complete. To the best of our knowledge and according to information and
explanations given to us, the Central Government has not prescribed the
maintenance of cost records for any other product of the Company.
(ix) (a) According to the records of the Company, it is generally
regular in depositing with appropriate authorities, undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employee'' State Insurance, Income Tax, Sales Tax,
Service Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and any other
statutory dues applicable to it. We are informed that there are no
undisputed statutory dues as at the year end, outstanding for a period
of more than six months from the date they became payable, except Sales
Tax payable amounting to Rs. 495.73 lakhs, since paid Rs. 254.95 lakhs.
(b) According to the records of the Company the following disputed dues
of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service Tax, Excise
Duty, Cess have not been deposited as under:-
(Rs. lakhs)
Sr. Name of the Statute Total Demand Period Forum where dispute is
pending
no
& Nature of Dues (Rs. lakhs)
1 Income Tax Act, 1961 * 22.18 2000-01 Income Tax Appellate
Tribunal
(Income Tax)
2 Income Tax Act, 1961 * 10.13 2001-02 Income Tax Appellate
Tribunal
(Income Tax)
3 Income Tax Act, 1961 * 4.50 2002-03 Income Tax Appellate
Tribunal
(Income Tax)
4 Income Tax Act, 1961 * 7.83 2004-05 Commissioner of Income
(Income Tax) Tax (Appeals)
5 Income Tax Act, 1961 * 0.76 2007-08 Commissioner of Income
(Income Tax) Tax (Appeals)
6 Income Tax Act, 1961 5.21 2010-11 Commissioner of Income
(Income Tax) Tax (Appeals)
7 The Central Excise 5.74 2006 To Chief Commissioner,
Customs,
Act,1944
(Excise Duty) Jan,11 Excise & Service
Tax Appellate
Tribunal - A''Bad.
3.02 Feb,11 To Chief Commissioner,
Customs,
Dec,11 Excise & Service Tax
Appellate
Tribunal - A''Bad.
The Finance Act, 1994 0.58 May,10 To Chief Commissioner,
Customs,
(Service Tax) Feb,11 Excise & Service Tax
Appellate
Tribunal - A''Bad.
1.60 Dec,04 To Chief Commissioner,
Customs,
Nov,09 Excise & Service Tax
Appellate
Tribunal - A''Bad.
3.09 Apr,05 To Chief Commissioner,
Customs, Mar,10
Excise & Service Tax
Appellate Tribunal -
A''Bad.
0.67 Mar,11 To Chief Commissioner,
Customs,
Jan,12 Excise & Service Tax
Appellate Tribunal -
A''Bad.
0.86 May,10 To Dy.Commissioner of
Central Excise,
Oct,12 Service Tax &
Customs  Baroda.
0.29 Feb,12 To Dy.Commissioner of
Central Excise,
Dec,12 Service Tax & Customs
 Baroda.
0.09 Jan,13 To Dy.Commissioner of
Central Excise,
Sep,13 Service Tax & Customs
 Baroda.
* Note :- Amount deposited.
(x) The Company''s accumulated losses at the end of the financial year
have eroded its entire net worth. The Company has incurred cash losses
during the current and preceding financial year. (Refer note no.26(17))
(xi) Based on our audit procedures and as per the information and
explanations given by the Management, the Company could not make
repayment of dues in time to Banks in respect of Letter of Credits /
Buyer''s Credit.
The following are the details of the delays:
Particulars Amt during the Period of Delays
year (Rs. Lakhs) (in days)
Various LCs / Buyers''
Credit Devolved 12722.88 upto 90 days
(including Interest of
Rs. 453.72 lakhs)
The Company does not have any dues out of above as on 31st March, 2014.
The Company has not taken any Loan from a financial institution or
debenture holders.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) The Company is not a Chit Fund or a Nidhi/Mutual Benefit
Fund/Society. Therefore, the provision of Clauses 4(xiii) of the
Companies (Auditor''s Report) Order, 2003 (as amended) 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 Companies (Auditor''s Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) The Company has not given any guarantee for loans taken by others,
from bank or financial institutions.
(xvi) In our opinion and based on information and explanations given to
us by the Management, the term loans have been applied for the purpose
of which they were raised.
(xvii) According to the information and explanations given to us, and
on an overall examination of the Financial Statements of the Company,
we report that funds raised on short-term basis have not been used for
long-term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956. (Refer note no.26(16))
(xix) The Company has not issued debentures during the year.
(xx) The Company has not raised any funds through Public issue during
the year.
(xxi) As per information and explanations given to us, no fraud on or
by the Company has been noticed or reported during the course of our
audit.
For V. H. Gandhi & Co.
Chartered Accountants
Firm Reg. No. 103047W
Vijay H. Gandhi
Vadodara Proprietor
27th May, 2014 M.No. 35581
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Jyoti Limited
("the Company"), which comprise the Balance Sheet as at March 31, 2013,
and the Statement of Profit and Loss and Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India including
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) In the case of the Profit and Loss Account, of the loss 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.
Emphasis of Matters :-
During the year ended on 31/03/2013, the company has incurred Cash Loss
of Rs. 2766.41 lakhs. We also draw attention to Notes to Financial
Statements, Note No.26(15), indicating liabilities to banks for
Buyer''s Credit aggregating to Rs. 3703.37 lakhs, which remained unpaid on
31/03/2013. The Management has already taken various actions to improve
the Company''s future cash flow to meet these obligations. It has also
proposed to the banks to restructure loan repayments and to provide
other supportive measures, preferably under Corporate Debt
Restructuring (CDR) mechanism so that the Company can have further
flexibility to manage its future cash flow in much better manner.
Accordingly, these financial statements have been prepared on a Going
Concern basis and no adjustments are considered necessary. Our opinion
is not qualified in this regard.
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;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to Independent Auditors'' Report  referred to in Paragraph 1
under the heading of "Report on Other Legal and Regulatory
Requirements" of our report of even date, We state that :-
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of Fixed
Assets.
(b) Fixed Assets have been physically verified by the management during
the year as per the phased programme of physical verification of fixed
assets. As informed to us, the programme is such that all the fixed
assets will get physically verified in three years time. In our opinion
the same is reasonable having regard to the size of the Company and the
nature of its fixed assets. No material discrepancies were noticed on
such verification.
(c) No substantial part of fixed assets has been disposed off during
the year.
(ii) (a) The inventory (except those lying with contractor and at Site)
has been physically verified during the year by the management at
reasonable intervals.
(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. No material
discrepancies have been noticed on physical verification of stocks.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Hence, provisions of sub
clauses 4 (iii) (b), (c) & (d) are not applicable to the Company.
(b) According to the 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 Companies Act, 1956. Hence, provision of sub clauses 4 (iii)
(f) & (g) are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods and
services and there is no continuing failure to correct major weaknesses
in internal control system.
(v) (a) The particulars of contracts or arrangements referred to in
Section 301 of the Companies Act, 1956 have been so entered in the
register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rs. 5.00 lakhs have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
(vi) In our opinion and as per information and explanations given to
us, the directives issued by the Reserve Bank of India and the
provisions of Sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under, where
applicable, have been duly complied by the Company. 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. However,
there is a scope for increasing the coverage so as to be commensurate
with its size and nature of its business.
(viii) We have broadly reviewed the books of account and records
maintained by the Company relating to manufacture of Electric Motors &
Generators and Power Driven Pumps, Generating Sets, Switchgears and
Relays pursuant to the order made by the Central Government for the
maintenance of cost records under clause (d) of sub-section (1) of
Section 209 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, however, not made a detail examination of the
records with a view of determining whether they are accurate or
complete. To the best of our knowledge and according to information and
explanations given to us, the Central Government has not prescribed the
maintenance of cost records for any other product of the Company.
(ix) (a) According to the records of the Company, it is generally
regular in depositing with appropriate authorities, undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employee'' State Insurance, Income tax, Sales tax,
Service tax, Wealth tax, Custom Duty, Excise Duty, Cess and any other
statutory dues applicable to it. We are informed that there are no
undisputed statutory dues as at the year end, outstanding for a period
of more than six months from the date they became payable.
(b) According to the records of the Company the following disputed dues
of Sales tax, Income tax, Custom Duty, Wealth tax, Service tax, Excise
Duty, Cess have not been deposited as under.
(Rs. lakhs)
Sr. Name of the Statute Total Demand Period Forum where dispute is
pending
no & Nature of Dues (Rs. lakhs)
1 Income Tax Act, 1961 * 22.18 2000-01 Income Tax Appellate
Tribunal
(Income Tax )
2 Income Tax Act, 1961 * 10.13 2001-02 Commissioner of Income
(Income Tax) Tax(Appeals)
3 Income Tax Act, 1961 * 4.50 2002-03 Commissioner of Income
(Income Tax ) Tax(Appeals)
4 Income Tax Act, 1961 * 0.60 2003-04 Commissioner of Income
(Income Tax ) Tax(Appeals)
5 Income Tax Act, 1961 * 0.70 2004-05 Commissioner of Income
(Income Tax ) Tax(Appeals)
6 Income Tax Act, 1961 * 1.32 2005-06 Commissioner of Income
(Income Tax ) Tax(Appeals)
7 Income Tax Act, 1961 * 0.95 2006-07 Commissioner of Income
(Income Tax ) Tax(Appeals)
8 Income Tax Act, 1961 * 20.96 2006-07 Commissioner of Income
(Income Tax ) Tax(Appeals)
9 Income Tax Act, 1961 *7.83 2004-05 Commissioner of Income
(Income Tax ) Tax(Appeals)
10 Income Tax Act, 1961 * 0.76 2007-08 Commissioner of Income
(Income Tax ) Tax(Appeals)
11 Income Tax Act, 1961 * 41.18 2006-07 Commissioner of Income
(Income Tax ) Tax(Appeals)
12 The Finance Act, 0.58 May,10 To Commissioner of Central
Excise
1994 (Service Tax) Feb,11 & Customs (Appeals),
Baroda
1.60 Dec,04 To Commissioner of Central
Excise
Nov,09 & Customs (Appeals),
Baroda
3.09 Apr,05 To Customs, Excise &
Service Tax
Mar,10 Appellate Tribunal,
A''bad.
5.74 2006 To Customs, Excise &
Service Tax
Jan,11 Appellate Tribunal,
A''bad.
3.02 Feb,11 To Commissioner of
Central Excise
Dec,11 & Customs (Appeals),
Baroda
0.67 Mar,11 To Commissioner of
Central Excise
Jan,12 & Customs (Appeals),
Baroda
0.86 May,10 To Dy.Commissioner of
Central Excise,
Oct,12 Service Tax & Customs
__ Baroda.
* Note :- Amount deposited.
(x) The Company does not have any accumulated losses as per The
Financial Statement as at the end of the financial year. The Company
has incurred cash losses of Rs. 2766.41 lakhs during the financial year
covered by our audit and not incurred cash losses in the immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by management, the Company has delayed repayment of
dues to Banks in respect of Buyer''s Credit / Letter of Credits.
The following are the details of the delays:
Particulars Amt as on 31-03-2013 (Rs. Lakhs) Period of Delays (in days)
Buyer''s
Credits 3703.37 20 to 40 days
(xii) The Company has not taken any Loan from a financial institution
or debenture holders.The Company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
(xiii) The Company is not a Chit Fund or a Nidhi/Mutual Benefit
Fund/Society. Therefore, the provision of Clauses 4(xiii) of the
Companies (Auditor''s Report) Order, 2003 (as amended) 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 Companies (Auditor''s Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xvi) In our opinion and based on information and explanations given to
us by the management, the term loans have been applied for the purpose
of which they were raised.
(xvii) According to the information and explanations given to us, and
on an overall examination of The Financial Statement of the Company, we
report that funds raised on short-term basis have not been used for
long-term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956.
(xix) The Company has not issued debentures during the year.
(xx) The Company has not raised any funds through Public issue during
the year.
(xxi) As per information and explanations given to us, no fraud on or
by the Company has been noticed or reported during the course of our
audit.
For V. H. Gandhi & Co.
Chartered Accountants
Firm Reg. No.: 103047W
Vijay H. Gandhi
Vadodara Proprietor
30th May, 2013 M.No. 35581
Mar 31, 2012
1. We have audited the attached Balance Sheet of Jyoti Limited, as at
31st March, 2012, the Statement of Profit and Loss of the Company for
the year ended on that date and also 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together the 'Order'), issued by the Central Government of India
in terms of Section 227(4A) of the Companies Act, 1956, we give 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 :
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply 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 representations received from the directors
of the Company as at 31st March, 2012 and taken on record by the Board
of Directors of the Company, we report that none of the directors is
disqualified as at 31st March, 2012 from being appointed as 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 explanation given to us, they said accounts, read together with the
notes thereon, give the information required by the Companies Act,
1956, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
ii) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Annexure referred to in Paragraph 3 of our Auditors' Report of even
date on the Financial Statements for the year ended on 31st March, 2012
of Jyoti Limited.
On the basis of such checks as we considered appropriate and in terms
of the information and explanations given to us, we state that :-
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of Fixed
Assets.
(b) Fixed Assets have been physically verified by the management during
the year as per the phased programme of physical verification of fixed
assets. As informed to us, the programme is such that all the fixed
assets will get physically verified in three years time. In our opinion
the same is reasonable having regard to the size of the Company and the
nature of its fixed assets. No material discrepancies were noticed on
such verification.
(c) No substantial part of fixed assets has been disposed off during
the year.
(ii) (a) The inventory (except those lying with contractor and at Site)
has been physically verified during the year by the management at
reasonable intervals.
(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. No material
discrepancies have been noticed on physical verification of stocks.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Hence, provisions of sub
clauses 4 (iii) (b), (c) & (d) are not applicable to the Company.
(b) According to the 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 Companies Act, 1956. Hence, provision of sub clauses 4 (iii)
(f) & (g) are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods and
services and there is no continuing failure to correct major weaknesses
in internal control system.
(v) (a) The particulars of contracts or arrangements referred to in
Section 301 of the Companies Act, 1956 have been so entered in the
register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rs. 5,00,000 have been made at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
(vi) In our opinion and as per information and explanations given to
us, the directives issued by the Reserve Bank of India and the
provisions of Sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under, where
applicable, have been duly complied by the Company. 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. However,
there is a scope for increasing the coverage so as to be commensurate
with its size and nature of its business.
(viii) We have broadly reviewed the books of account and records
maintained by the Company relating to manufacture of Electric Motors &
Generators and Power Driven Pumps, Generating Sets, Switchgears and
Relays pursuant to the order made by the Central Government for the
maintenance of cost records under clause (d) of sub-section (1) of
Section 209 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, however, not made a detail examination of the
records with a view of determining whether they are accurate or
complete. To the best of our knowledge and according to information and
explanations given to us, the Central Government has not prescribed the
maintenance of cost records for any other product of the Company.
(ix) (a) According to the records of the Company, it is generally
regular in depositing with appropriate authorities, undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees' State Insurance, Income tax, Sales tax,
Service tax, Wealth tax, Custom Duty, Excise Duty, Cess and any other
statutory dues applicable to it. We are informed that there are no
undisputed statutory dues as at the year end, outstanding for a period
of more than six months from the date they became payable.
(b) According to the records of the Company the following dues of Sales
tax, Income tax, Custom Duty, Wealth tax, Service tax, Excise Duty,
Cess have been deposited as under.
(Rs. lakhs)
Sr. Name of the Statute Total Demand Period Forum where
dispute is
pending
no & Nature of Dues (Rs. lakhs)
1 Income Tax Act, 1961 * 12.53 1995-96 Income Tax
Appellate Tribunal
(Income Tax )
2 Income Tax Act, 1961 * 20.00 1996-97 Income Tax
Appellate Tribunal
(Income Tax )
3 Income Tax Act, 1961 * 22.18 2000-01 Income Tax
Appellate Tribunal
(Income Tax )
4 Income Tax Act, 1961 * 10.13 2001-02 Commissioner of
Income
(Income Tax) Tax (Appeals)
5 Income Tax Act, 1961 * 4.50 2002-03 Commissioner of
Income
(Income Tax ) Tax (Appeals)
6 Income Tax Act, 1961 * 0.60 2003-04 Commissioner of
Income
(Income Tax ) Tax (Appeals)
7 Income Tax Act, 1961 * 0.70 2004-05 Commissioner of
Income
(Income Tax ) Tax (Appeals)
8 Income Tax Act, 1961 * 1.32 2005-06 Commissioner of
Income
(Income Tax ) Tax (Appeals)
9 Income Tax Act, 1961 * 0.95 2006-07 Commissioner of
Income
(Income Tax ) Tax (Appeals)
10 Income Tax Act, 1961 * 16.60 2005-06 Commissioner of
Income
(Income Tax ) Tax (Appeals)
11 Income Tax Act, 1961 * 20.96 2006-07 Commissioner of
Income
(Income Tax ) Tax (Appeals)
12 Income Tax Act, 1961 * 31.21 2008-09 Commissioner of
Income
(Income Tax ) Tax (Appeals)
13 The Finance Act, 0.58 May,10 To Commissioner
of Central Excise
1994 (Service Tax) Feb,11 & Customs (Appeals)
1.60 Dec,04 To Commissioner
of Central Excise
Nov,09 & Customs
(Appeals) Baroda
Sr. Name of the Statute Total Demand Period Forum where
dispute is
pending
no & Nature of Dues_ (Rs. Lakhs)
3.09 Apr,05 To Commissioner
of Central Excise
Mar,10 & Customs
(Appeals)
Baroda_
5.74 2006 To Commissioner
of Central Excise
Jan,11 & Customs
(Appeals) Baroda
3.02 Feb,11 To Assistant
Commissioner of
Dec,11 Central Excise &
Customs.
0.67 Mar,11 To Assistant Commis
sioner of
Jan,12 Central Excise
& Customs.
* Note :- Amount deposited.
(x) The Company does not have any accumulated losses as per The
Financial Statement as at the end of the financial year. The Company
has not incurred cash losses during the financial year covered by our
audit and in the immediately preceding financial year.
(xi) The Company has not defaulted in repayment of dues to any
financial institution, bank or debenture holders (Refer Note no-17(19)
of financial statement).
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) The Company is not a Chit Fund or a Nidhi/Mutual Benefit
Fund/Society. Therefore, the provision of Clauses 4(xiii) of the
Companies (Auditor's Report) Order, 2003 (as amended) 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 Companies (Auditor's Report)
Order, 2003 (as amended) are not applicable to the Company.
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xvi) In our opinion and based on information and explanations given to
us by the management the term loans have been applied for the purpose
of which they were raised.
(xvii) According to the information and explanations given to us, and
on an overall examination of The Financial Statement of the Company, we
report that funds raised on short-term basis have not been used for
long-term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956.
(xix) The Company has not issued debentures during the year.
(xx) The Company has not raised any funds through Public issue during
the year.
(xxi) As per information and explanations given to us, no fraud on or
by the Company has been noticed or reported during the course of our
audit.
For V. H. Gandhi & Co.
Chartered Accountants
Firm Reg. No.: 103047W
Vijay H. Gandhi
Vadodara Proprietor
24th May, 2012 M.No. 35581
Mar 31, 2010
1. We have audited the attached Balance Sheet of Jyoti Limited, as at
31st March, 2010, the Profit and Loss Account of the Company for the
year ended on that date and also 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement, presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
(together the Order), issued by the Central Government of India in
terms of Section 227(4A) of the Companies Act, 1956, we give 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 :
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) 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 Section 211 (3C) of the Companies Act, 1956,
to the extent applicable.
e) On the basis of written representations received from the directors
of the Company as at 31st March, 2010 and taken on record by the Board
of Directors of the Company, we report that none of the director is
disqualified as at 31st March, 2010 from being appointed as 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 explanation given to us, the said Accounts, read together with the
notes thereon, give the information required by the Companies Act,
1956, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India.
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
ii) in the case of the Profit and Loss Account, of the profit of the
Company 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 Referred to in Paragraph 3 of our Auditors Report of even
date on the Financial Statements for the year ended 31st March, 2010 of
Jyoti Limited.
On the basis of such checks as we considered appropriate and in terms
of the information and explanations given to us, we state that :-
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of Fixed
Assets.
(b) Fixed Assets other than furniture, fixtures and fixed assets lying
at branches have been physically verified by the management during the
year as per the phased programme of physical verification of fixed
assets. As informed to us, the programme is such that all the fixed
assets will get physically verified in two years time. In our opinion
the same is reasonable having regard to the size of the company and the
nature of its fixed assets. No material discrepancies were noticed on
such verification.
(c) No substantial part of fixed assets have been disposed off during
the year.
(ii) (a) The inventory (except those lying with contractor and at Site)
has been physically verified during the year by the management at
reasonable intervals.
(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. No material
discrepancies have been noticed on physical verification of stocks.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Hence, provisions of sub clauses 4 (iii)
(b), (c) & (d) are not applicable to the Company.
(b) According to the 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 Companies Act, 1956. Hence, provision of sub clauses 4 (iii)
(f) & (g) are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods and services
and there is no continuing failure to correct major weaknesses in
internal control system.
(v) (a) The particulars of contracts or arrangements referred to in
Section 301 of the Companies Act, 1556 have been so entered in the register
required to be maintained under that section.
(b) According to information and explanation given to us and excluding
certain transactions of purchase of goods and material of special nature
for which alternate quotations are not available, the transactions
referred to in above clause v (a) have been made at prices,
which are reasonable, having regard to the prevailing market prices at
the relevant time.
(vi) In our opinion and as per information and explanations given to
us, the directives issued by the Reserve Bank of India and the provisions
of Sections 58A and 58AA or any other relevant provisions of the Companies
Act, 1956 and the rules framed thereunder, where applicable,
have been duly complied by the Company.
(vii) In our opinion the Company has an internal audit system. However,
there is a scope for increasing the coverage so as to be commensurate with
its size and nature of its business.
(viii) We have broadly reviewed the books of account and records maintained
by the Company relating to manufacture of Electric Motors & Generators and
Power Driven Pumps, pursuant to the order made by the Central Government
for the maintenance of cost records under clause (d) of sub-section (1) of
Section 209 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, however, not made a detail examination of the records with a view
of determining whether they are accurate or complete. To the best of our
knowledge and according to information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records for
any other product of the company.
(ix) (a) According to the records of the Company, the Company is
generally regular in depositing with appropriate authorities,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income tax, Sales tax,
Service tax, Wealth tax, Custom Duty, Excise Duty, Cess and any other
statutory dues applicable to it. There is no statutory dues outstanding
as at the year end for a period of more than six months from the date
they become payable. (b) According to the records of the Company the
following dues of Sales tax, Income tax; Custom Duty, Wealth tax,
Service tax, Excise Duty, Cess have been fully deposited on account of
dispute, or are deposited under protest:
(Rs. Lacs)
Nature of Dues Demand Amount Forum where dispute is pending
(Rs.) Paid (Rs.)
Income Tax* 146.84 146.84 Commissioner of Income Tax
(Appeals)
42.18 42.18 Income Tax Appellate
Tribunal
Wealth Tax * 4.01 4.01 Commissioner of Income Tax
(Appeals)
2.43 2.43 Income Tax Appellate Tribunal
* Refer Note No. 5 of Schedule 17.
(x) The Company does not have any accumulated losses as per Balance
Sheet as at the end of the financial year. The Company has not incurred
cash losses during the financial year covered by our audit and in the
immediately preceding financial year.
(xi) The Company has not defaulted in repayment of dues to a financial
institution, banks or debenture holders.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other securities.
(xiii) The provisions of any Specified Statute applicable to Chit fund
or a Nidhi / Mutual Benefit Fund / Societies are not applicable to the
Company under clause 4(xiii) of the said Order.
(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) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xvi) In our opinion and based on information and explanations given to
us by the management the term loans have been applied for the purpose of
which they were raised.
(xvii) According to the information and explanations given to us, and
on an overall examination of Balance Sheet of the Company, we report
that funds raised on short-term basis have not been used for long-term
investment.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of Shares during the year.
(xix) The Company has not issued debentures during the year.
(xx) The Company has not raised any funds through Public Issue during
the year.
(xxi) As per information and explanations given to us, no fraud on or by
the Company has been noticed or reported during the course of our audit.
For V. H. Gandhi & Co.
Chartered Accountants
Vijay H. Gandhi
Vadodara Proprietor
ICT June, 2010 M.No. 35581
Firm Reg. No.: 103047W