Mar 31, 2015
We have audited the accompanying standalone financial statements of
KHANDELWAL EXTRACTIONS LIMITED ("the Company"), which comprise the
Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss
,the Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstance but not for the purpose of expressing
an opinion on whether the company has in place an adequate internal
financial control system over financial reporting and operating
effectiveness of such controls . An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its loss and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order ,2015 ("the
Order"), issued by the Central Government of India in terms of sub -
section (11) of section 143 of the Companies Act,2013, we give in the
Annexure a statement on the matters specified in paragraphs 3 and 4 of
the order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b. In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c. The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account.
d. In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
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 as at
March 31, 2015 on its financial position in its financial statements -
Refer Note 28 to the financial statements
(ii) The Company does not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
(iii) There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the company.
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31st March, 2015, We report that:
i. In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such verification.
ii. In respect of its Inventories:
(a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and discrepancies noticed on verification between physical
stocks and the book records were not material.
iii. In respect of loans, secured or unsecured, granted by the Company
to Companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act 2013, according to the
information and explanations given to us
(a) The Company has not granted any loan to Companies, firms or other
parties covered in the register maintained under section 189 of the
Companies Act, 2013.Therefore the provisions clause (iii) of the
Companies (Auditor's Report ) order, 2015, are not applicable to the
company.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control system 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. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system of the Company.
v. In our opinion and according to information and explanations given
to us, the company has complied with the provisions of sections 73 to
76 or any other provisions of the Companies Act and the rules framed
there under .
vi. In our opinion and according to the information and explanations
given to us , the Central Government has not prescribed maintenance of
cost records under sub- section (1) of section 148 the Companies Act,
2013 for the products of the company.
vii. According to the information and explanations given to us, in
respect of statutory and other dues:
(a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees' state insurance, income tax, sales tax, wealth tax, service
tax, duty of custom , duty of excise, value added tax , cess and any
other statutory dues applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident fund , Employees
State Insurance , Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty
of Custom, Duty of Excise, Value Added Tax, Cess and other Statutory
dues were in arrear as at 31st March, 2015 for a period more than six
months from the date they became payable.
(b) According to the information and explanations given to us , there
is no dues of income tax, sales tax, wealth tax, service tax, duty of
custom, duty of excise duty or value added tax and cess which have not
been deposited on account of any dispute.
(c) According to the information and explanations given to us there
were no amounts which were required to be transferred to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act , 1956 (1 of 1956) and rules made there
under.
viii. The Company does not have accumulated losses at the end of the
financial year. The company has incurred cash losses during the
financial year covered by our audit but has not incurred cash losses in
the immediately preceding financial year.
ix. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks .
x. According to the information and explanations given to us , the
company has not given any guarantee for loans taken by others from any
bank or financial institution.
xi. The company has not obtained any term loan during the year.
Therefore the provisions of clause (xi) of the Companies (Auditor's
Report) Order 2015 are not applicable to the company.
xii. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For P.L. TANDON &CO
Chartered Accountants
Registration Number: 000186C
GIRISH KUMAR MITTAL
(PARTNER)
Membership Number 511729
Place: KANPUR
Date:26.05.2015
Mar 31, 2014
We have audited the accompanying financial statements of Khandelwal
Extractions Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with the 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 the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) In the case of the statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d. in our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act,1956 read with the General Circular
15/2013 dated 13th September 2013 of Ministry of Corporate Affairs in
respect of section 133 of the Companies Act, 2013
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
Re : KHANDELWAL EXTRACTIONS LIMITED
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date
I. In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) In our opinion and according to the information and explanations
given to us, the company has not made any substantial disposal during
the year.
II. In respect of its Inventories :
(a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and discrepancies noticed on verification between physical
stocks and the book records were not material.
III. In respect of loans, secured or unsecured, granted or taken by the
Company to or from Companies, Firms or other Parties covered in the
register maintained under section 301 of the Companies Act, 1956,
according to the information and explanations given to us :-
(a) The Company has not granted any loan to companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956. As the Company has not granted any loans secured
or unsecured to parties listed in the register maintained under section
301 of the Companies Act, 1956, the paragraphs 4 (iii) (b), (c) and (d)
of the Companies (Auditor''s Report) Order, 2003 are therefore, not
applicable to the Company .
(e) Company had/has taken unsecured loans from twelve parties covered
in the Register maintained under section 301 of the Companies Act,1956.
The maximum balance involved during the year was Rs. 83.75lacs and the
year end, balance was Rs.80.25 lacs.
(f) The rate of interest and other terms and conditions on which loans
have been taken from 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.
(g) There is no overdue amount of such loans.
IV. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system of the Company.
V. In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956:
(a) According to the information and explanations given to us, we are
of the opinion that the particulars of all contracts or arrangements
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. five lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market price at the relevant
time.
VI. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of sections
58A and 58AA and other relevant provisions of the Companies Act, 1956
and the Companies (Acceptance of Deposits) Rules, 1975 with regard to
the deposits accepted.
VII. In our opinion, the company has an adequate internal audit system
commensurate with the size and nature of its business.
VIII. We have broadly reviewed the books of account maintained by the
Company, pursuant to the rules made by the Central Government, for
maintenance of cost records under section 209 (1)(d) of the Companies
Act,1956 and we are of the opinion that prima-facie the prescribed
accounts and records have been made and maintained.
IX. According to the information and explanations given to us, in
respect of statutory and other dues.
(a) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees'' state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid dues were in arrears
as at 31st March, 2014 for a period more than Six months from the date
they became payable.
(c) According to the information and explanations given to us, there
are no dues of Income tax, Sales Tax, Wealth Tax, Service Tax, Custom
duty, Excise Duty which have not been deposited on account of any
dispute.
X. The Company does not have accumulated losses at the end of the
financial year and 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
banks.
XII. As explained to us, the company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities.
XIII. The nature of Company''s business / activities during the year is
such that provision of Clause 4 (xiii) of Companies (Auditor''s Report)
Order, 2003 is not applicable to the Company.
XIV. In our opinion, the Company is not dealing in or trading in
shares, securities and debentures and other investments.
XV. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from any
banks or financial institutions.
XVI. The Company has not obtained 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 any preferential allotment of shares to parties
and Companies covered in the register maintained under section 301 of
the Companies Act, 1956 during the year.
XIX. As the Company has no debenture outstanding at any time during the
year, provision of Clause 4 (xix) of the Companies (Auditors Report)
Order, 2003 are therefore, not applicable to the Company.
XX. The Company has not raised any money by 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 our audit.
For P. L. TANDON & CO.
Chartered Accountants
Registration No. 000186C
(P. P. SINGH)
PLACE : KANPUR PARTNER
DATED : 27-05-2014 Membership No. 72754
Mar 31, 2012
1. We have audited the attached Balance Sheet of KHANDELWAL
EXTRACTIONS LIMITED as at 31st March, 2012, the Statement of Profit and
Loss and also the Cash Flow Statement of the Company for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the 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 statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we give in the Annexure a
statement on the matters specified in paragraph 4 & 5 of the said
order.
4. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of account as required by law, have
been kept by the company so far as appears from our examination of
those books;
c) The Balance Sheet, the Statement of Profit & Loss and the Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
d) In our opinion, the Balance Sheet, the Statement of Profit & Loss
and the 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. However liability for leave encashment has
been provided on the basis of actual liability determined by the
management as on 31.03.2012.
e) On the basis of written representations received from the directors,
as on 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2012 from being appointed as a director in terms of clauses (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
Accounting Policies and notes thereon give the information required by
the Companies Act, 1956 in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012.
(b) In the case of the Statement of Profit & 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.
ANNEXURE TO THE AUDITORS' REPORT
Re: KHANDELWAL EXTRACTIONS LIMITED
(Referred to in Paragraph (3) of our report of even date)
I. In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) In our opinion and according to the information and explanations
given to us, the company has not made any substantial disposal during
the year.
II. In respect of its Inventories :
(a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and discrepancies noticed on verification between physical
stocks and the book records were not material.
III. In respect of Loans, Secured or Unsecured, granted or taken by the
Company to or from Companies, Firms or other Parties covered in the
Register maintained under section 301 of the Companies Act, 1956,
according to the information and explanations given to us :-
(a) The Company has not granted any loan to companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956. As the Company has not granted any loans secured
or unsecured to parties listed in the register maintained under section
301 of the Companies Act, 1956, the paragraphs 4 (iii) (b), (c) and (d)
of the Companies (Auditor's Report) Order, 2003 are therefore, not
applicable to the Company.
(e) Company had/has taken unsecured loans from twelve parties covered
in the Register maintained under section 301 of the Companies Act,
1956. The maximum balance involved during the year was Rs. 95.25 Lacs
and the year end, balance was Rs. 79.40 Lacs.
(f) The rate of interest and other terms and conditions on which loans
have been taken from 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.
(g) There is no stipulation for the repayment in two cases and in ten
cases loans are not due for repayment during the year.
IV. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system of the Company.
V. In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956:
(a) According to the information and explanations given to us, we are
of the opinion that the particulars of all ' contracts or arrangements
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. five Lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market price at the relevant
time.
VI. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of sections
58A and 58AA and other relevant provisions of the Companies Act, 1956
and the Companies (Acceptance of Deposits) Rules, 1975 with regard to
the deposits accepted.
VII. In our opinion, the company has an adequate internal audit system
commensurate with the size and nature of its business.
VIII. The Central Government has not prescribed maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956 for the
products of the company.
IX. According to the information and explanations given to us, in
respect of statutory and other dues.
(a) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees' state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid dues were in arrears
as at 31st March, 2012 for a period more than six months from the date
they became payable. (c) According to the information and explanations
given to us, there are no dues of Income tax, Sales Tax, Wealth Tax,
Service Tax, Custom duty, Excise Duty which have not been deposited on
account of any dispute.
X. The Company does not have accumulated losses at the end of the
financial year and 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
banks.
XII. As explained to us, the company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities.
XIII. The nature of Company's business/activities during the year is
such that provision of Clause 4 (xiii) of Companies (Auditor's Report)
Order, 2003 is not applicable to the Company.
XIV. In our opinion, the Company is not dealing in or trading in
shares, securities and debentures and other investments.
XV. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from any
banks or financial institutions.
XVI. The Company has not obtained 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 any preferential allotment of shares to parties
and Companies covered in the register maintained under section 301 of
the Companies Act, 1956 during the year.
XIX. As the Company has no debenture outstanding at any time during
the year, provision of Clause 4 (xix) of the Companies (Auditors
Report) Order, 2003 are therefore, not applicable to the Company.
XX. The Company has not raised any money by 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 our audit.
For P. L. TANDON & CO.
Chartered Accountants
Registration No. 000186C
(P. P. SINGH)
PARTNER
Membership No. 72754
Place : Kanpur
Date : 30-05-2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of KHANDELWAL
EXTRACTIONS LIMITED as at31st March, 2010,- Profit and Loss Account and
also the Cash Flow Statement of the Company for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the 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 statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we give in the Annexure a
statement on the matters specified in paragraph 4 & 5 of the said
order.
4. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of account as required by law, have
been kept by the company so far as appears from our examination of
those books;
c) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
d) In our opinion, the Balance Sheet, the Profit & Loss Account and the
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. However liability for leave encashment has
been provided on the basis of actual liability determined by the
management as on 31.03.2010.
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 clauses (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 with notes on
accounts give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010.
(b) in the case of the Profit & Loss Account 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.
ANNEXURE TO THE AUDITORS REPORT
I. In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) In our opinion and according to the information and explanations
given to us, the company has not made any substantial disposal during
the year.
II. In respect of its Inventories :
(a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its inventor
-ies and discrepancies noticed on verification between physical stocks
and the book records were not material.
II.In respect of Loans, Secured or Unsecured, granted or taken by the
Company to or from Companies, Firms or other Parties covered in the
Register maintained under section 301 of the Companies Act, 1956, according
to the information and explanations given to us :-
(a) The Company has not granted any loan to companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956. As the Company has not granted any loans secured or
unsecured to parties listed in the register maintained under section 301
of the Companies Act, 1956, the paragraphs 4 (iii) (b), (c) and (d) of the
Companies (Auditors Report) Order, 2003 are therefore, not applicable to
the Company .
(e) Company had/has taken unsecured loans from thirteen parties covered
in the Register maintained under section 301 of the Companies Act,
1956. The maximum balance involved during the year was Rs.64.70 Lacs
and the year end balance was Rs. 49.20 Lacs.
(f) The rate of interest and other terms and conditions on which loans
have been taken from 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.
(g) There is no stipulation for the repayment in two cases and in
twelve cases loans are not due for repayment during the year.
IV In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system of the Company.
V In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956:
(a) According to the information and explanations given to us, we are
of the opinion that the particulars of all contracts or arrangements
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, no transactions exceeding the value of Rs. five Lacs has
been made in pursuance of contracts or arrangements required to be
entered in the register maintained under section 301 of the Companies
Act, 1956.
VI In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of sections
58A and 58AA and other relevant provisions of the Companies Act, 1956
and the Companies (Acceptance of Deposits) Rules, 1975 with regard to
the deposits accepted from other than Public.
VII In our opinion, the company has an adequate internal audit system
commensurate with the size and nature of its business.
VIII The Central Government has not prescribed maintenance of cost
records under section 209 (i) (d) of the Companies Act, 1956 for the
products of the company.
IX According to the information and explanations given to us, in
respect of statutory and other dues.
(a) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid dues were in arrears
as at 31st March, 2010 for a period more than Six months from the date
they became payable.
(c) According to the information and explanations given to us, there
are no dues of Income tax, Sales Tax, Wealth Tax, Service Tax, Custom
duty, Excise Duty which have not been deposited on account of any
dispute.
X The Company does not have accumulated losses at the end of the
financial year and 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
banks.
XII As explained to us, the company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities.
XIII The nature of Companys business/ activities during the year is
such that provision of Clause 4 (xiii) of Companies (Auditors Report)
Order, 2003 is not applicable to the Company .
XIV In our opinion, the Company is not dealing in or trading in shares,
securities and debentures and other investments.
XV According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from any
banks or financial institutions.
XVI The Company has not obtained 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 any preferential allotment of shares to parties
and Companies covered in the register maintained under section 301 of
the Companies Act, 1956 during the year.
XIX As the Company has no debenture outstanding at any time during the
year, provision of Clause 4(xix) of the Companies (Auditors Report)
Order, 2003 are therefore, not applicable to the Company.
XX The Company has not raised any money by 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 our audit.
For P.L. TANDON&CO.
Chartered Accountants
Registration No. O00186C
Place : Kanpur (RAJENDRAGUPTA)
Date: 29-05-2010 PARTNER
Membership No. 73250