Mar 31, 2018
Independent Auditorâs Report
To The Members of Kabra Extrusiontechnik Limited Report on the Standalone Financial Statements
We have audited the accompanying In AS financial statements of Kara Extrusiontechnik Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018 and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flow and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âthe In AS financial statementsâ).
Managementâs Responsibility for the In AS Financial Statement
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these In AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (In AS) prescribed under Section 133 of the Act.
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 In AS 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 In AS financial statements based on our audit.
In conducting 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 of the In AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the In AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the In AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the In AS 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 In AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the In AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the In AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid In AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018 and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe 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 âAnnexure Aâ, 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, based on our audit we report, to the extent applicable that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flow and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d. In our opinion, the aforesaid In AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act, read with relevant rule issued there under.
e. None of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
I. The Company has disclosed the impact of pending litigations on its financial position in its In AS financial statements - Refer Note 38 to In AS financial statements;
II. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
III. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure âAâ to the Independent Auditorâs Report
(Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
b) As explained to us, fixed assets are physically verified by the Management at reasonable intervals, in a phased verification program and the discrepancies found in the same are properly dealt with in the books of accounts. In our opinion, the verification program is reasonable having regard to the size of the Company and nature of its business.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) Physical verification of inventory has been conducted by the management at reasonable intervals and the discrepancies noticed during such physical verification were taken into account.
(iii) The Company has not granted any loans, secured or unsecured, to Companies, Firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013 hence sub clauses (a) to (c) of clause 3 (iii) 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 Section 186 of the Act in respect of investments made by it. The Company has not given loans or guarantees which are covered by the provisions of Section 185 of the Act.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public under Section 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under.
(vi) The Central Government has specified maintenance of cost records under Sub-Section (1) of Section 148 of the Act and we are of the opinion that prima facie such accounts and records are made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Value Added Tax, Duty of Customs, Duty of Excise, Service Tax, Goods & Service Tax, Employeesâ State Insurance, Cass and any other material statutory dues have been regularly deposited during the year by the Company with appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of statutory dues were in arrears as at 31st March, 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, the Service Tax dues aggregating to Rs. 10.82 lacs have not been deposited on account of dispute as listed below:
Sr. No. |
Name of the statute |
Nature of the dues |
Amount ('' in Lakhs) |
Period for which the amount relates |
Forum where the dispute is pending |
1 |
Finance Act, 1994 |
Service Tax |
10.82 |
Various years from 2006-07 to 2010-11 |
Commissioner of Central Excise (Appeals) |
(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 borrowings to financial institutions, banks and government and dues to debenture holders.
(ix) The Company did not raise any 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) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(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 section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the Ind AS financial statements as required by the applicable accounting standards.
(xiv) 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 paragraph 3(xiv) 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 its 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.
(Referred to in paragraph 2(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting 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 Kabra Extrusiontechnik Limited (âthe Companyâ) as of 31st March, 2018 in conjunction with our audit of the In AS 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 (the âGuidance Noteâ) 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India 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 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. In addition, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Kirtland & Pundit LLP
Chartered Accountants
Firm Reg. No. 105215W / W100057
Kishor B. Phadke
Partner
Membership No. 42296
Mumbai, 25th May, 2018
Mar 31, 2017
Independent Auditor''s Report
To The Members of Kabra Extrusiontechnik Ltd,
Report on the Financial Statements
We have audited the accompanying Standalone Financial Statements of Kabra Extrusiontechnik Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2017, 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
The Company''s Board of Directors is responsible for the matters in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these 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 relevant rules issued hereunder from time to time. 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 adequate 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s Board of Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2017, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in 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 far as appears from our examination of those books;
c. the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d. in our opinion, the aforesaid financial statements comply with the Accounting Standards referred to in Section 133 of the Act, read with relevant rules issued there under from time to time;
e. on the basis of written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164(2) of the Act.
f. with respect to the adequacy of the internal financial controls over the financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ;
g. with respect to the other matters to be included in the Auditor''s Report in accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial statements - Refer Note 23 to the financial statements;
ii) The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses;
iii) There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company;
iv) The Company has provided requisite disclosures in the financial statements as to holding as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. Based on audit procedures and relying on the management representation we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management - Refer Note - 37 to the financial statements.
The annexure referred to in paragraph 1 in Report on Other Legal and Regulatory Requirements of the Independent Auditor''s Report to the members of the Company on the financial statements for the year ended March 31, 2017, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) As explained to us, fixed assets are physically verified by the Management at reasonable intervals, in a phased verification programme and the discrepancies found in the same are properly dealt with in the books of accounts. In our opinion, the verification programme is reasonable having regard to the size of the Company and nature of its business.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The inventory has been physically verified at reasonable intervals by the Management and no material discrepancies were noticed on such verification.
(iii) The Company has not granted any loans, secured or unsecured, to Companies, Firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act. Accordingly, paragraph 3(iii) of the Order is not applicable.
(iv) In our opinion and according to the information and explanations given to us, the Company has not given loans, made investments or given guarantees which are covered by the provisions of Section 185 and 186 of the Act.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public under Section 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under.
(vi) The Central Government has specified maintenance of cost records under Sub-Section (1) of Section 148 of the Act and we are of the opinion that prima facie such accounts and records are made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Value Added Tax, Duty of Customs, Duty of Excise and any other material statutory dues have been regularly deposited during the year by the Company with appropriate authorities. As explained to us, Employee State Insurance is not applicable to the Company.
According to the information and explanations given to us, no undisputed amounts payable in respect of statutory dues were in arrears as at March 31, 2017 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, the Service Tax dues aggregating to Rs. 36.14 lacs have not been deposited on account of dispute as listed below:
Sr. No |
Name of the statute |
Nature of the dues |
Amount (Rs. in lacs) |
Period for which the amount relates |
Forum where the dispute is pending |
1 |
Finance Act 1994 |
Service Tax |
36.14 |
Various years from 2006-07 to 2010-11 |
Commissioner of Central Excise (Appeals) |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to its banks and financial institutions. The Company did not have any loan or borrowings from government or any debentures outstanding during the year.
(ix) The Company did not raise any 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) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations given to us, the managerial remuneration is paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, all transactions with related parties are in compliance with sections 177 and 188 of the Act and the details, as required by the applicable accounting standards have been disclosed in the financial statements.
(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partially convertible debentures during the year.
(xv) According to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him during the year.
(xvi) In our opinion and according to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure-B to the Independent Auditor''s Report
The annexure referred to in paragraph 2(f) on Other Legal and Regulatory Requirements of the Independent Auditor''s Report to the members of the Company on the financial statements for the year ended March 31, 2017.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act
We have audited the internal financial controls over financial reporting of Kabra Extrusiontechnik Ltd (âthe Companyâ) as of March 31, 2017 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 Company''s management is responsible for establishing and maintaining internal financial controls based on the internal financial 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 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 Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit conducted in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, to the extent applicable to an audit of internal financial controls, 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 over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 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 expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Control 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, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Kirtane & Pandit LLP
Chartered Accountants
Firm Reg. No. 105215W/W100057
Kishor B Phadke
Partner
Membership No. 42296
Mumbai, May 16, 2017
Mar 31, 2015
We have audited the accompanying financial statements of KABRA
EXTRUSIONTECHNIK LIMITED, ("the company"), which comprises 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 stated
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
provisions 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 an adequate internal financial control system
over financial reporting in place 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:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March, 2015;
b. in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 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 paragraph 3 and 4
of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the Other Matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 23 to the
financial statements ;
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO AUDITORS' REPORT
The Annexure referred to in our report to the members of Kabra
Extrusiontechnik Limited, the Company for the year ended on 31st March
2015. We report that:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, fixed assets are physically verified by the
management at reasonable intervals, in a phased verification programme,
which, in our opinion, is reasonable, looking to the size of the
company and nature of its business.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable and adequate, considering the size of the company and the
nature of its business.
(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 is maintaining proper records of Inventory. The
discrepancies noticed on physical verification of inventory as compared
to the book records have been properly dealt with in the books of
accounts.
(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.
As the Company has not granted any loan, sub clauses (a) and (b) of
clause (iii) of the Companies Act are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an 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 and services. We have neither come across
nor have been informed of any major weaknesses in the internal control
system in aforesaid areas.
(v) According to the information and explanations given to us, and on
the basis of our examination, the Company has not accepted any deposits
from the public as informed and represented to us, 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 accordingly,
paragraph 3 (v) of the order is not applicable.
(vi) We have broadly reviewed the cost records maintained by the
company pursuant to the Companies (Cost Record and Audit) Rules, 2014
as amended and prescribed by Central Government under sub section (1)
of Section 148 of the Companies Act 2013,and are of the opinion that,
prima facie, the prescribed cost records have been made and maintained.
We have, however, not made a detailed examination of cost records with
a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us, in
respect of statutory dues:
The Company has been regular in depositing undisputed statutory dues,
including Provident Fund, Employees' State Insurance, Income tax,
Service Tax, Value Added Tax, Cess and other material statutory dues
applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees' State Insurance, Value Added Tax, Cess and other
material statutory dues in arrears as at March 31, 2015 for a period of
more than six months from the date they become payable, except Service
Tax dues aggregating RS. 124.47 lacs that have not been deposited on
account of disputed matters pending before appropriate authorities are
as under :
Sr. Name of the Nature of the Amount Period for which the
No statute dues (RS.in lacs) amount relates
1. Finance Act Service Tax 124.47 Various years from
1994 2006-07 to 2010-11
Sr.No Name of the statute Forum where the dispute is pending
1. Finance Act 1994 Commissioner of central excise (Appeals)
(c) The company has been generally regular in transferring amounts that
are due to the Investor Education and Protection Fund in accordance
with the relevant provisions of the Companies Act, 1956.(1 of 1956) and
Rules made thereunder within time.
(viii) The Company does not have accumulated losses at the end of
Financial year nor has incurred any cash losses during the financial
year of our audit or in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanation
given to us, the Company has not defaulted in the repayment of dues to
financial institutions and banks.
(x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks or financial institutions.
(xi) In our opinion, and according to the information and explanations
given to us, the Company has neither accepted nor repaid any term loan
during the year.
(xii) During the course of our examination of the books and records of
the company and according to information and explanation given to us,
we have neither come across any instance of fraud on or by the company,
noticed or reported during the course of our audit, nor have we been
informed of such case by the management.
For Kirtane & Pandit LLP
Chartered Accountants
Firm Registration No. 105215W / W100057
Kishor B Phadke
Mumbai Partner
May 26, 2015 Membership No.: 42296
Mar 31, 2014
We have audited the accompanying Balance Sheet of KABRA
EXTRUSIONTECHNIK LIMITED ("the Company") as at March 31, 2014 the
Statement of Profit and Loss for the year ended annexed thereto and the
Cash Flow Statement for the year ended on that date, and 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 Standards notified under the Companies Act, 1956 (''the
Act'') read with (General Circular 15/2013 dated 13th September 2013 of
the Ministry of Corporate Affairs in respect of 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.
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 Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we plan and perform
the audit to obtain reasonable assurance whether the financial
statements are prepared, in all material respects, in accordance with
an identified financial reporting framework and are free of material
misstatement.
An audit involves performing procedures to obtain evidence supporting
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 preparation and
presentation 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 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 the Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March, 2014;
b. in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act. We give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. Further to our comments in the Annexure referred to in paragraph
(1) above, 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 such
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. so far as appears from our scrutiny of books of account and other
records, we are of the opinion that the Balance Sheet, the Statement of
Profit and Loss and Cash Flow Statement dealt with by this report
comply with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956; read with (General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013).
e. on the basis of the 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 the Auditors'' Report
Annexure referred to in our report on other Legal and Regulatory
requirements to the Members of Kabra Extrusiontechnik Ltd (''the
Company''), for the year ended March 31, 2014. We report that,
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets are physically verified by the
management at reasonable intervals, in a phased verification programme,
which, in our opinion, is reasonable, looking to the size of the
company and nature of its business.
(c) During the year, the Company has disposed some of its fixed assets.
In our opinion and according to the information and explanations given
to us, fixed assets disposed off were not substantial and therefore has
not affected the going concern assumption.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable and adequate, considering the size of the company and the
nature of its business.
(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 is maintaining proper records of Inventory. The
discrepancies noticed on physical verification of inventory as compared
to the book records have been properly dealt with in the books of
accounts.
(iii) (a) The Company has, during the year, granted Inter Corporate
Deposit to one Company, covered in the register maintained under
Section 301 of the Companies Act, 1956. Inter Corporate deposit granted
on various dates were Rs. 11 crores and the Maximum amount outstanding at
any time during the year were Rs. 10 crores and the year end balance is t
Nil
(b) In our opinion and according to information and explanations given
to us, the rate of interest and other terms and conditions of loan
given by the Company are not prima facie prejudicial to the interest of
the company.
(c) The payment of principal and interest are regular. .
(d) There is no repayment schedule specified and there is no overdue
amount in excess of Rs. one lac.
(e) During the previous year, the Company had accepted unsecured loan,
from one party covered in the register maintained under Section 301 of
the Companies Act, 1956. The maximum amount outstanding at any time
during the year and year-end balance is Rs. 25.75 lacs.
(f) In our opinion and according to information and explanations given
to us, the rate of interest and other terms and conditions of loan
accepted by the company, are not prima facie prejudicial to the
interest of the company.
(g) The principal & interest is repayable as per agreed terms. There
are no overdue amounts in respect of said loan and interest there on.
(iv) 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 purchase of inventory and fixed assets and for
the sale of goods and service. We have neither come across nor have
been informed of any major weaknesses in the internal control system in
the aforesaid areas.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
that are required to be entered in the register in pursuance of Section
301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956 and exceeding the value of Rs. Five lacs with any parties
during the year have been made at prices, which are reasonable having
regard to prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
Accordingly, paragraph 4(vi) of the Order (as amended) is not
applicable.
(vii) On the basis of internal audit reports broadly reviewed by us, we
are of the opinion that, the company has an adequate internal audit
system commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1 )(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(ix) (a) According to records of the company, undisputed statutory dues
including provident fund, Investors Education and Protection Fund,
Employees'' State Insurance, Income-Tax, Sales tax, Wealth tax, Service
tax, Customs Duty, Cess and other statutory dues have been generally
regularly deposited with the appropriate authorities. According to the
information and explanation given to us, no undisputed amounts payable
in respect of aforesaid dues were outstanding as at March 31, 2014 for
the period of more than six months from the date of becoming payable.
(b) The disputed statutory dues aggregating Rs. 124.47 lacs that have not
been deposited on account of disputed matters pending before
appropriate authorities are as under
Sr. Name of Nature of Amount Period for
which the Forum where the
dispute
No the statute the dues (Rs. in
lacs) amount
relates is
pending
1. Finance Service
Tax 124.47 Various years
from 2006- Commissioner of
central
Act 1994 07 to
2010-11 excise
(Appeals)
(x) The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in immediately
preceding financial year. (xi) In our opinion and according to the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank. (xii)
According to the information and explanations given to us and based on
the documents and records produced to us, the Company has not granted
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities. Accordingly, the provision of clause
4
(xii) of the Order (as amended) is not applicable.
(xiii) In out opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi mutual benefit
fund / society. Therefore, the provisions of clause 4
(xiii) of the Order (as amended) are not applicable.
(xiv) In our opinion and according to the information and explanations
given to us, 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 (as amended) are not applicable.
(xv) In our opinion and according to the information and explanations
given to us, the Company has not given guarantees for loans taken by
others from banks or financial institutions.
(xvi) The Company has not availed any term loan during the year.
(xvii) According to the information and explanations given to us,
and on an overall examination of the Balance Sheet of the Company,
we report that no funds raised on short-term basis have been used
for long-term investment.
(xviii) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956. Accordingly, paragraph 4 (xviii) of the Order (as
amended) is not applicable.
(xix) According to the information and explanations given to us, during
the year, the company has not issued debentures. Accordingly, paragraph
4(xix) of the Order (as amended) is not applicable.
(xx) As the Company has not raised any money by way of public issue,
disclosur requirement of the end use of money raised by public issue
does not apply to the Company.
(xxi) During the course of our examination of the books and records of
the Company and according to the information and explanations given to
us, we have neither come across any instance of fraud on or by the
Company, noticed or reported during the course of our audit, nor we
have been informed of such case by the Management
For Kirtane & Pandit
Chartered Accountants
(Firm Registration
Number: 105215W)
Kishor B Phadke
Partner
Mumbai, May 21, 2014 Membership No: 42296
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying Balance Sheet of KABRA
EXTRUSION TECHNIK LIMITED ("the Company") as at March 31, 2013, the
Statement of Proft and Loss for the year ended annexed thereto and the
Cash Flow Statement for the year ended on that date and summary of
signifcant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these fnancial
statements that give a true and fair view of the fnancial position,
fnancial performance and cash fows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of Section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the fnancial 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 fnancial
statements based on our audit. We conducted our audit in accordance
with Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we plan and perform
the audit to obtain reasonable assurance whether the fnancial
statements are prepared, in all material respects, in accordance with
an identifed fnancial reporting framework and are free of material
misstatement.
An audit involves performing procedures to obtain evidence supporting
the amounts and disclosures in the fnancial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the fnancial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company, preparation and
presentation of the fnancial 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
accounting policies used and the reasonableness of the accounting
estimates made by the Management, as well as evaluating the overall
presentation of the fnancial statements.
We believe that the audit evidence we have obtained is suffcient 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 fnancial 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 31 March, 2013;
b. in the case of the Statement of Proft and Loss, of the proft for
the year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash fows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956 and on the basis of such
checks as we considered appropriate and according to the information
and explanations given to us, we give in the Annexure a statement on
the matters specifed in paragraphs 4 and 5 of the Order.
2. Further to our comments in the Annexure referred to in paragraph
(1) above, 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 such
books;
c) the Balance Sheet, the Statement of Proft and Loss and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) so far as appears from our scrutiny of books of account and other
records, we are of the opinion that the Balance Sheet, the Statement of
Proft and Loss and Cash Flow Statement dealt with by this report comply
with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956;
e) on the basis of the 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 disqualifed 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;
f) Since the Central Government has not issued any notifcation as to
the rate at which the cess is to be paid under section 441A of the
Companies Act,1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure to the Auditors'' Report
Annexure referred to in our report to the Members of Kabra
Extrusiontechnik Ltd (Âthe Company''), for the year ended March 31,
2013. We report that,
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fxed
assets.
(b) As explained to us, fxed assets are physically verifed by the
management at reasonable intervals, in a phased verifcation programme,
which, in our opinion, is reasonable, looking to the size of the
company and nature of its business.
(c) During the year, the Company has disposed some of its fxed assets.
In our opinion and according to the information and explanations given
to us, fxed assets disposed off were not substantial and therefore has
not affected the going concern assumption.
(ii) (a) The inventory has been physically verifed during the year by
the management. In our opinion, the frequency of verifcation is
reasonable and adequate, considering the size of the company and the
nature of its business.
(b) The procedures of physical verifcation 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 is maintaining proper records of Inventory. The
discrepancies noticed on physical verifcation of inventory as compared
to the book records have been properly dealt with in the books of
accounts.
(iii) (a) The Company has, during the year, granted Inter Corporate
Deposit to one Company, covered in the register maintained under
Section 301 of the Companies Act, 1956. The Maximum amount involved is
Rs. 3,00,00,000/- and the year end balance is Rs. 3,00,18,082/- (including
interest)
(b) In our opinion and according to information and explanations given
to us, the rate of interest and other terms and conditions of loan
given by the Company are not prima facie prejudicial to the interest of
the company.
(c) The above referred Inter Corporate Deposit and interest thereon has
not fallen due as on March 31, 2013.
(d) There is no repayment schedule specifed and there is no overdue
amount in excess of Rs. One Lac.
(e) The Company has accepted unsecured loan, from 2 parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount outstanding at any time during the year was Rs.
2,23,50,000/- & year-end balance is Rs. 23,50,000/- (f) In our opinion
and according to information and explanations given to us, the rate of
interest and other terms and conditions of loan accepted by the
company, are not prima facie prejudicial to the interest of the
company.
(g) The principal & interest is repayable as per agreed terms and there
are no overdue amounts in respect of said loans and interest there on.
(iv) 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 purchase of inventory and fxed assets and for
the sale of goods and service. We have neither come across nor have
been informed of any major weaknesses in the internal control system in
the aforesaid areas.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
that are required to be entered in the register in pursuance of Section
301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956 and exceeding the value of Rs.Five Lacs with any parties during
the year have been made at prices, which are reasonable having regard
to prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
Accordingly, paragraph 4(vi) of the Order (as amended) is not
applicable.
(vii) On the basis of internal audit reports broadly reviewed by us, we
are of the opinion that, the company has an adequate internal audit
system commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(ix) (a) According to records of the company, undisputed statutory dues
including provident fund, Investors Education and Protection Fund,
Employees'' State Insurance, Income-Tax, Sales tax, Wealth tax, Service
tax, Customs Duty, Cess and other statutory dues have been generally
regularly deposited with the appropriate authorities. According to the
information and explanation given to us, no undisputed amounts payable
in respect of aforesaid dues were outstanding as at March 31, 2013 for
the period of more than six months from the date of becoming payable.
(x) The Company has no accumulated losses and has not incurred any cash
losses during the fnancial year covered by our audit or in immediately
preceding fnancial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
fnancial institution or bank.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities. Accordingly, the provision of
clause 4(xii) of the Order (as amended) is not applicable.
(xiii) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi mutual beneft
fund / society. Therefore, the provisions of clause 4 (xiii) of the
Order (as amended) are not applicable.
(xiv) In our opinion and according to the information and explanations
given to us, 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 (as amended) is not
applicable.
(xv) In our opinion and according to the information and explanations
given to us, the Company has not given guarantees for loans taken by
others from banks or fnancial institutions.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us, and
on an overall examination of the Balance Sheet of the Company, we
report that no funds raised on short-term basis have been used for
long-term investment.
(xviii) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956. Accordingly, paragraph 4(xviii) of the Order (as
amended) is not applicable.
(xix) According to the information and explanations given to us, during
the year, the company has not issued debentures. Accordingly, paragraph
4(xix) of the Order (as amended) is not applicable.
(xx) As the Company has not raised any money by way of public issue,
disclosure requirement of the end use of money raised by public issue
does not apply to the Company.
(xxi) During the course of our examination of the books and records of
the Company and according to the information and explanations given to
us, we have neither come across any instance of fraud on or by the
Company, noticed or reported during the course of our audit, nor we
have been informed of such case by the Management
For Kirtane & Pandit
Chartered Accountants
(Firm Registration Number: 105215W)
Kishor B Phadke
Partner
Membership No: 42296
Mumbai, May 29, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of Kabra Extrusiontechnik
Ltd ("the Company") as at 31st March, 2012, the Statement of Profit and
Loss for the year ended on that date annexed thereto and the Cash Flow
Statement for the year ended on that date, which we have signed under
reference to this report. 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.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956 and on the basis of such
checks as we considered appropriate and according to the information
and explanations given to us, we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the Order.
2. Further to our comments in the Annexure referred to in paragraph
(1) 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 purpose of our
audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of such
books;
c) the Balance Sheet, Statement of Profit and Loss and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) so far as it appears from our scrutiny of books of account and other
records, we are of the opinion that the Balance Sheet, Statement of
Profit and Loss and Cash Flow Statement dealt with by this report
comply with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956;
e) on the basis of the written representations received from the
directors as on March 31, 2012 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2012
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, read together with the
notes thereon 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 the affairs of the
Company as at 31st March, 2012;
ii) in the case of the Statement of Profit and Loss, of the profit 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 1 of our report of even date
addressed to the Members of Kabra ExtrusionTechnik Ltd, on the
financial statements for the year ended March 31,2012.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets are physically verified by the
management at reasonable intervals, in a phased verification programme,
which, in our opinion, is reasonable, looking at the size of the
company and nature of its business.
(c) During the year, the Company has disposed some of its fixed assets.
In our opinion and according to the information and explanations given
to us, fixed assets disposed off were not substantial and therefore has
not affected the going concern assumption.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable and adequate, considering the size of the company and the
nature of its business.
(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 is maintaining proper records of Inventory. The
discrepancies noticed on physical verification of inventory as compared
to the book records have been properly dealt with in the books of
accounts.
(iii) (a) The Company has not granted any loan, secured or unsecured,
to Companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) As the Company has not granted any loan, clauses (b) to (d) of
paragraph 4 (iii) are not applicable.
(c) The Company has accepted unsecured loan, from 3 parties covered in
the register maintained under Section 301 of the Companies Act. 1956.
The Maximum amount outstanding at any time during the year was Rs.
4,11,50,000/- and the year-end Balance is Rs. 23,66,274/- (including
interest).
(d) In our opinion and according to information and explanations given
to us, the rate of interest and other terms and conditions of loan
accepted by the company, are not prima facie prejudicial to the
interest of the company.
(e) The principle & interest is repayable as per agreed terms and there
are no overdue amounts in respect of said loans and interest there on.
(iv) 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 purchase of inventory and fixed assets and for
the sale of goods and service. We have neither come across nor have
been informed of any major weaknesses in the internal control system in
the aforesaid areas.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
that are required to be entered in the register in pursuance of Section
301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956 and exceeding the value of Rs. Five Lacs with any parties
during the year have been made at prices, which are reasonable having
regard to prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
Accordingly, paragraph 4(vi) of the Order (as amended) is not
applicable.
(vii) On the basis of internal audit reports broadly reviewed by us, we
are of the opinion that, the company has an adequate internal audit
system commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1 )(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(ix) (a) According to records of the company undisputed statutory dues
including provident fund, Investors Education and Protection Fund,
Employees' State insurance, Income-Tax, Sales tax, Wealth tax, Service
tax, Customs Duty, Cess and other statutory dues have been generally
regularly deposited with the appropriate authorities. According to the
information and explanation given to us, no undisputed amounts payable
in respect of aforesaid dues were outstanding as at March 31, 2012 for
the period of more than six months from the date of becoming payable.
(b) The disputed statutory dues aggregating Rs. 142.37 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 for Forum where
No. Statute the dues (Rs. in which the the dispute
lacs) amount is pending
relates
1. Finance Act Service Tax 142.37 Various Commissioner
1994 years from of Central
2006-07 to excise
2010-11 (appeals)
(x) The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in immediately
preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution or bank.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities. Accordingly, the provision of
clause 4(xii) of the Order (as amended) is not applicable.
(xiii) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi mutual benefit
fund / society. Therefore, the provisions of clause 4 (xiii) of the
Order (as amended) are not applicable.
(xiv) In our opinion and according to the information and explanations
given to us, 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 (as amended) is not
applicable.
(xv) In our opinion and according to the information and explanations
given to us, the Company has not given guarantees for loans taken by
others from banks or financial institutions.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us, and
on an overall examination of the Balance Sheet of the Company, we
report that no funds raised on short-term basis have been used for
long-term investment.
(xviii) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956. Accordingly, paragraph 4(xviii) of the Order (as
amended) is not applicable.
(xix) According to the information and explanations given to us, during
the year, the company has not issued debentures. Accordingly,
paragraph 4(xix) of the Order (as amended) is not applicable.
(xx) As the Company has not raised any money by way of public issue,
disclosure requirement of the end use of money raised by public issue
does not apply to the Company.
(xxi) During the course of our examination of the books and records of
the Company and according to the information and explanations given to
us, we have neither come across any instance of fraud on or by the
Company, noticed or reported during the course of our audit, nor we
have been informed of such case by the Management
FOR KIRTANE & PANDIT
Chartered Accountants
(FRN-105215W)
PARAG P. PANSARE
Partner
Membership No.: 117309
Place : Mumbai
Date :29th May, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of Kabra Extrusiontechnik
Ltd ("the Company") as at 31st March, 2011, the Profit and Loss Account
for the year ended on that date annexed thereto and the Cash Flow
Statement for the year ended on that date, which we have signed under
reference to this report. 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.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956 and on the basis of such
checks as we considered appropriate and according to the information
and explanations given to us, we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the Order.
2. Further to our comments in the Annexure referred to in paragraph
(1) 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 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 such
books;
c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) so far as appears from our scrutiny of books of account and other
records, we are of the opinion that the Balance Sheet, Profit and Loss
Account and Cash Flow Statement dealt with by this report comply with
the Accounting Standards referred to in sub-section (3C) of Section 211
of the Companies Act, 1956;
e) on the basis of the written representations received from the
directors as on March 31, 2011 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 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) The financial statements relating to financial year ended March 31,
2010 were audited by other auditors and we have verified opening
balances relating to current year on the basis of accounts finalized by
them and opening grouping and schedule as confirmed by the management.
g) in our opinion and to the best of our information and according to
the explanations given to us the said accounts, read together with the
notes thereon 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 the 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 the Cash Flow Statement, of the cash flows for the year ended
on that date.
Annexure referred to in paragraph 1 of our report of even date
addressed to the Members of Kabra ExtrusionTechnik Ltd., on the
financial statements for the year ended March 31,2011.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets, are physically verified by the
management at reasonable intervals, in a phased verification programme,
which, in our opinion, is reasonable, looking at the size of the
company and nature of its business.
(c) During the year, the Company has disposed some of its fixed assets.
In our opinion and according to the information and explanations given
to us, fixed assets disposed off were not substantial and therefore has
not affected the going concern assumption.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable and adequate, considering the size of the company and the
nature of its business.
(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 is maintaining proper records of Inventory. The
discrepancies noticed on physical verification of inventory as compared
to the book records have been properly dealt with in the books of
accounts.
(iii) (a) The Company has not granted any loan, secured or unsecured,
to Companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) As the Company has not granted any loan, clauses (b) to (d) of
paragraph 4 (iii) are not applicable.
(c) The Company has not accepted any loan, secured or unsecured, from
Companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(d) As the Company has not accepted any loan, clauses (f) & (g) of
paragraph 4 (iii) are not applicable.
(iv) 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 purchase of inventory and fixed assets and for
the sale of goods and service. We have neither come across nor have
been informed of any major weaknesses in the internal control system in
the aforesaid areas.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
that are required to be entered in the register in pursuance of Section
301 of the Companies Act, 1956 nave been so entered. (b) In our
opinion and according to information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act, 1956
and exceeding the value of Rs.Five lakhs with any parties during the
year have been made at prices, which are reasonable having regard to
prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
Accordingly, paragraph 4(vi) of the Order (as amended) is not
applicable.
(vii) On the basis of internal audit reports broadly reviewed by us, we
are of the opinion that, the company has an adequate internal audit
system commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records under
clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956
for any of the products and services rendered of the Company.
Accordingly, paragraph 4(viii) of the Order (as amended) is not
applicable.
(ix) (a) In our opinion, the Company is generally regular in depositing
undisputed statutory dues including provident fund, investor education
and protection fund, employees' state insurance, income tax, sales tax,
wealth tax, service tax, customs duty, excise duty, cess and any other
material statutory dues, as may be applicable, with the appropriate
authorities as observed by us during the course of our examination of
the books of account carried out in accordance with generally accepted
auditing practices in India.
(b) In our opinion and according to the information and explanations
given to us, no undisputed amounts payable in respect of provident
fund, investor education and protection fund, employees' state
insurance, income tax, sales tax, wealth tax, customs duty, excise
duty, cess and any other material statutory dues, as may be applicable,
were in arrears, as at March 31,2011 for a period of more than six
months from the date they became payable.
(c) As set out in Note No. 3 of Schedule 18 - Notes to Accounts dues of
Service Tax have not been deposited on account of dispute.
(x) The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in immediately
preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution or bank.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities. Accordingly, the provision of
clause 4(xii) of the Order (as amended) is not applicable.
(xiii) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi mutual benefit
fund / society. Therefore, the provisions of clause 4 (xiii) of the
Order (as amended) are not applicable.
(xiv) In our opinion and according to the information and explanations
given to us, 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 (as amended) is not
applicable.
(xv) In our opinion and according to the information and explanations
given to us, the Company has not given guarantees for loans taken by
others from banks or financial institutions.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us, and
on an overall examination of the Balance Sheet of the Company, we
report that no funds raised on short-term basis have been used for
long-term investment.
(xviii) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956. Accordingly, paragraph 4(xviii) of the Order (as
amended) is not applicable.
(xix) According to the information and explanations given to us, during
the year, the company has not issued debentures. Accordingly, paragraph
4(xix) of the Order (as amended) is not applicable.
(xx) As the Company has not raised any money by way of public issue,
disclosure requirement of the end use of money raised by public issue
does not apply to the Company.
(xxi) During the course of our examination of the books and records of
the Company and according to the information and explanations given to
us, we have neither come across any instance of fraud on or by the
Company, noticed or reported during the course of our audit, nor we
have been informed of such case by the Management.
FOR KIRTANE & PANDIT
Chartered Accountants
FRN 105215W
KISHOR B. PHADKE
Place: Mumbai Partner
Date : 30th May, 2011 Membership No.: 42296
Mar 31, 2010
We have audited the attached Balance Sheet of Kabra Extrusiontechnik
Limited, Mumbai- 400 053 as at 31st March, 2010 and also the Profit and
Loss Account of the Company for the year ended on that date annexed
thereto and also Cash Flow Statement for the year ended on that date.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by Companies (Auditors Report) Order 2003, issued by
the Central Government in terms of section 227(4A) of the Companies
Act, 1956, we enclose in the annexure a statement on the matters
specified in the para 4 & 5 of the said order.
2. Further to our comments in the annexure referred to in para 1
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 purpose of our
audit.
b. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as it appears from our examination of
the Books of the Company.
c. The Balance Sheet and the Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the Books of
Accounts.
d. In our opinion, the Profit & Loss Account and Balance Sheet and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the Directors
as on 31st March, 2010, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2010 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956 and
f. In our opinion and to the best of our information and according to
explanations given to us, the said accounts read together with notes
thereon give the information required under the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2010; ii) In the case of the Profit & 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 as on that
date.
ANNEXURE TO THE AUDITORS REPORT
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management
during the year. No material discrepancies were noticed on such
verification. In our opinion the frequency of physical verification of
fixed Assets is reasonable.
(c) During the year, the company has not disposed off a major part of
the fixed assets.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us the procedures of physical verification of inventory
followed by the management are reasonable and adequate, considering the
size of the company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between physical stocks & book
stocks were not material & the same have been properly dealt with in
books of accounts.
(iii) (a) The company has taken loan from the one party covered in the
register maintained under section 301 of the Companies Act, 1956. The
amount involved during the year was Rs.2,45,00,000/- and the year-end
balance was Rs. NIL. The maximum balance outstanding was Rs.
2,46,19,315/- to a company covered in the register maintained under
section 301 of Co mpanies Act, 1956. The company has granted inter
corporate deposit. The amount involved during the year was
Rs.4,00,00,0007- and the year-end balance was Rs. 4,00,00,000/-. The
maximum balance outstanding was Rs.4,00,00,000/-.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans/inter corporate deposits have been taken from/granted to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956 are not, prima facie,
prejudicial to the interest of the company.
(c) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest. The parties
have repaid the principal amounts as stipulated and have been regular
in the payment of interest.
(d) There is no overdue amount of loans taken from or granted to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(iv) 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 purchase of inventory, fixed asset 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 controls. (v) (a) According to the information and
explanations given to us we are of the opinion that the transactions
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been so entered. (b) In our opinion
and according to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act, 1956
and exceeding the value of Rs. 5,00,000/- in respect of each party
during the year are either been made at prices which are reasonable
having regard to prevailing market prices at the relevant time or the
prices at which transactions for similar goods or services have been
made with other parties or as compared to the prices quoted by others,
or such comparisons could not be made since there are no other
suppliers of similar items. (vi) The Company has not accepted any
deposit from the public. (vii) In our opinion and according to the
information and explanations given to us, the company has an internal
audit system commensurate with its size and nature of its business.
(viii) The Central Government has not prescribed for maintenance of
cost records under section 209(1) (d) of the Companies Act, 1956 for
any of the products of the company.
(ix) (a) According to the records of the company ,the company is
regular in depositing with appropriate authorities undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax / VAT, Wealth Tax,
Custom Duty, Cess and other material statutory dues applicable to it.
According to the information and explanations given to us, there are no
arrears of statutory dues which have remained outstanding as at 31st
March 2010 for a period of more than six months from the date they
became payable. (b) As set out in note no. 6(b) of schedule 18, dues
of Service Tax & Excise Duty have not been deposited on account of
various disputes.
(x) There are no accumulated losses of the company. The Company has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/
mutual benefit fund/society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditors Report) Order, 2003 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 (Auditors Report) Order,
2003 are not applicable to the company.
(xv) According to the information and explanation given to us, the
company has not given guarantees for loans taken by others from banks
or financial institutions.
(xvi) According to the information & explanation given to us, term
loans were applied for the purpose for which loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term Investment and vice versa
(xviii) According to the information and explanations given to us, the
company has not made preferential allotrfient of shares to the parties
and companies covered in the register maintained under section 301 of
the Act.
(xix) According to the information and explanations given to us during
the period covered by audit report, the compa, .y had not issued
debentures.
(xx) The company has not made public issue during the year.
(xxi) 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 audit.
FOR A.G. OGALE &CO.
Chartered Accountants
A.G.OGALE
Date: 26th May, 2010 Partner
Place: Mumbai Membership No. 034540