Mar 31, 2015
We have audited the accompanying financial statements of Konark
Synthetic Limited ('the Company'), which comprise the Balance Sheet as
at 31st March 2015, the statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
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 and presentation of the financial statements that
give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on the 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 circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
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 31 March 2015 and its profit and its cash flows for the year ended
on that date.
Emphasis of Matter:
We would like to draw the attention on the Company's policy of
providing for gratuity as and when paid and not on the
basis of actuarial valuation as per AS 15. The same has been stated in
Note 27 of Notes to Accounts.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government
of India in terms of sub-section (11) of section 143 of the Act, we
give in the Annexure a statement on the matters
specified in the 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 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; and
(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 does not have any pending litigations and therefore no
impact or disclosure in relation to the same has been made in the
financial statement;
(ii) the Company does not see any foreseeable losses on long-term
contracts as on the balance sheet date and the Company has not entered
into any derivative contracts, therefore no provision has been made in
relation to the same;
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year.
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial
statements for the year ended 31 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) The Company has a programme of physical verification of its fixed
assets by which fixed assets are verified. In accordance with this
programme, fixed assets were verified during the year and no material
discrepancies were noticed on such verification. In our opinion, the
periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.
(ii) In respect of its inventories:
a) The inventories have 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 inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventories. As per the
information and explanation given to us, no material discrepancies were
noticed on physical verification
(iii) According to the information and explanations given to us, the
Company has granted unsecured loan to companies covered in the register
maintained under section 189 of the Companies Act and thus, paragraph 3
(iii) of the Order is not applicable.
a) According to the information and explanations given to us and on the
basis of our examination of the books of account, the Company has
granted unsecured loans to its subsidiaries/step down subsidiaries,
with or without interest, during the year of which details are as
follows.
(Rs,in Lac)
No. of Parties Loan Given* Maximum Balance Closing Balance
5 253.86 1443.83 1415.57
* includes interest amount.
b) In our opinion, interest, whenever charged and other terms and
conditions of loans given by the company are not prima facie
prejudicial to the interest of the company.
c) In absence of any stipulated time period we are unable to comment on
the repayment of the principal amounts and interest whether paid in
time or not.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets.
(v) The Company has not accepted any deposits from the public and thus,
paragraph 3(v) of the Order is not applicable.
(vi) The Central Government has prescribed the maintenance of cost
records under section 148(1) of the Companies Act, 2013. The company
has maintained such cost records which we have broadly reviewed.
However no detailed analysis of such records has been done by us.
(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 such as provident fund, income tax, and others as
applicable, have been regularly deposited during the year by the Company
with the appropriate authorities.
b) According to the records of the Company, and information and
explanations given to us there are no dues of Income tax / Sales Tax /
Wealth Tax / Service Tax/ Custom Duty/ Excise Duty/ Cess which has not
been deposited on account of disputes.
c) According to the audit carried by us and the information and
explanations given to us, the company having no amount of unpaid
dividend which is required to be transferred to the Investor Education
and Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(ix) As per the information and explanations given to us and based on
our audit, the Company has not defaulted in repayment of dues to
financial institution or bank.
(x) In our opinion and according to the information and the
explanations given to us, the Company has given any guarantee of
Rs.5960/- Lac (P.Y-Rs.3190/- Lac) for loans taken by its subsidiaries
and step down subsidiaries. In our opinion guarantee given by the
company are prima facie not prejudicial to the interest of the company.
(xi) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, term loans
availed by the Company were, prima facie, applied by the Company during
the year for the purposes for which the loans were obtained.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For Bhuwania & Agrawal Associates
Chartered Accountants
Firm's registration number: 101483W
Niranjankumar Agrawal
Partner
Membership No. 34659
Place: Mumbai
Date : 30th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Konark
Synthetic Limited, which comprise the Balance Sheet as at 31st March,
2014, and the Statement of Profit and Loss and Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
accounting principles generally accepted in India, including the
Accounting Standards referred to in sub-section (3C) of Section 211 of
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 Section133 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; except as dealt under Emphasis of Matter
below:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter :
We would like to draw the attention on the Company''s policy of
providing for gratuity as and when paid and not on the basis of
actuarial valuation as per AS 15. The same has been stated in Note 26
of Notes to Accounts.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards notified under
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, except as stated under Emphasis of Matter;
(e) On the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of Section 274 of the Act.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in Paragraph 1 under "Report on Other Legal and Regulatory
Requirements" of our report of even date to the members of Konark
Synthetic Limited, we report that:
i. In respect of the Fixed Assets:
(a) The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) As per the information and explanations given to us, physical
verification of fixed assets has been carried out by the Company and no
material discrepancies were noticed on such verification. In our
opinion, the frequency of verification is reasonable, having regard to
the size of the Company and nature of its business.
(c) No substantial part of fixed asset has been disposed off during the
year.
ii. In respect of its Inventories:
(a) As per the information furnished, the inventories have been
physically verified during the year by the management. In our opinion,
having regard to the nature and location of stocks, the frequency of
the physical verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the company and nature of its business.
(c) The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company and the same
have been properly dealt with in the books of account.
iii. In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956, we
report
a) According to the information and explanations given to us and on the
basis of our examination of the books of account, the Company has
granted unsecured loans to its subsidiaries / step down subsidiaries,
with or without interest, during the year of which details are as
follows.
(Rs. in Lac)
No. of Parties Loan Given* Maximum Balance Closing Balance
5 515.23 2016.18 1312.98
* includes interest amount.
b) In our opinion, interest, whenever charged and other terms and
conditions of loans given by the company are not prima facie
prejudicial to the interest of the company.
c) The Principal amounts are repayable on demand, while the interest is
payable annually or stipulated if any at the discretion of Company.
d) In respect of said loan and interest thereon, there are no overdue
amounts of more than Rs. One Lakh as informed to us as by the
Management;
e) According to the information and explanations given to us and on the
basis of our examination of the books of account, the Company has taken
interest free unsecured loans from one of such companies listed in the
register maintained under Section 301 of the Companies Act, 1956.
(Rs. in Lac)
No. of Parties Loan Taken Maximum Balance Closing Balance
1 1.35 3960.31 2991.89
f) In our opinion and according to the information and explanations
given to us other terms and conditions of above loan taken are not
prima facie prejudicial to the interest of the company.
g) In absence of any stipulated term for repayment of principal amount
we are unable to comment on whether the principal amount is due for
repayment.
iv. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, we
have not observed any continuing failure to correct any weaknesses in
the internal controls system.
v. In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section;
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act does not exceed five lacs rupees in a financial year and
therefore requirement of reasonableness of transactions as to be
reported under this clause does not arises;
vi. According to the information and explanations given to us, the
Company has not accepted any deposits during the year from the public,
within the meaning of the provisions of Section 58A and 58AA of the
Companies Act, 1956 and rules made there under. Therefore, the
provisions of Clause (vi) of paragraph 4 of the said Order are not
applicable to the company.
vii. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and the nature of its
business.
viii. We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rule, 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. In respect of statutory dues:
(a) According to the records of the company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2014 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there
are no amounts payable in respect of Income Tax, Wealth Tax, Service
Tax, Sales Tax, Customs Duty and Excise Duty which have not been
deposited on account of any disputes.
x. The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
xi. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
xii. In our opinion and 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
(xiii) of paragraph 4 of the Companies (Auditor''s Report) Order, 2003
are not applicable to the Company.
xiv. According to information and explanations given to us, the Company
is trading in Shares, Mutual funds & other Investments. Proper records
& timely entries have been maintained in this regard & further
investments specified are held in their own name.
xv. According to the information and explanations given to us, the
Company has given Corporate Guarantee to the banks towards the loans
taken by one of its subsidiary, amounting to Rs. 3190 Lac. In our
opinion and as per the information and explanation given, terms and
conditions of those corporate guarantees are not prejudicial to the
interest of the company.
xvi. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any new term
loans during the year. The term loan outstanding at the beginning of
the year, have been applied for the purposes for which they were
raised.
xvii. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we are of the opinion that there are no funds raised on
short-term basis have been used for long-term investment by the
Company.
xviii. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year to
parties and companies covered in the Register maintained under Section
301 of the Companies Act, 1956.
xix. The Company has not issued any debentures. Therefore, the
provisions of Clause (xix) of paragraph 4 of the said Order are not
applicable to the Company.
xx. The Company has not raised any money by public issue during the
year covered by our report. Therefore, the provisions of clause (xx) of
paragraph 4 of the said Order are not applicable to the Company.
xxi. Based on our audit procedures performed for the purpose of
reporting the true and fair view of financial statements and as per the
information and explanations given to us by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For BHUWANIA & AGRAWAL ASSOCIATES
Chartered Accountants
Firm Registration No. 101483W
ABHISHEK JAIN
Partner
Membership No. 509839
Place: Mumbai
Date : 30th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Konark
Synthetic Limited, which comprise the Balance Sheet as at 31st March,
2013, and the Statement of Profit and Loss and Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
accounting principles generally accepted in India, including the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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 except non provision of Gratuity as prescribed by (AS-15) exact
quantum are unascertained refer Note Number 26:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of
India in terms of sub-section (4A) of Section 227 of the Act, we give
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956 to the
extent applicable except for the non provision of Gratuity as referred
in Note No. 26 of the Notes on Account;
(e) On the basis of written representations received from the directors
as on 31st March, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2013, from
being appointed as a director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" of our report of even date, we report
that:
1. In respect of its Fixed Assets:
(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 have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. 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 on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a) According to the information and explanations given to us and on the
basis of our examination of the books of account, the Company has
granted unsecured loans to its subsidiaries with or without interest
during the year of which details are as follows.
* includes interest amount.
b) In our opinion, interest where charged and other terms and
conditions of loans given by the companies are prima facie not
prejudicial to the interest of the Company.
c) The Principal amounts are repayable over a period of three to five
years, while the interest is payable annually or stipulated if any at
the discretion of Company.
d) In respect of said loan and interest thereon, there are no over due
amounts.
e) According to the information and explanations given to us and on the
basis of our examination of the books of account, the Company has taken
interest free unsecured loans from ssociate Company listed in the
register maintained under Section 301 of the Companies Act, 1956.
f) In our opinion and according to the information and explanations
given to us other terms and conditions of above loan taken is prima
facie not prejudicial to the interest of the Company.
g) In absence of any stipulated term for repayment of principal amount
we are unable to comment on whether the principal amount is due for
repayment.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, we
have not observed any continuing failure to correct any weaknesses in
the internal controls system.
5. In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in Section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information and explanations given to us and in our opinion,
the transaction entered into by the Company with parties covered u/s
301 of the Act does not exceeds five lacs rupees in a financial year
therefore requirement of reasonableness of transactions does not
arises.
6. The Company has not accepted any deposits from the public covered
under Section 58A and 58AA of the Companies Act, 1956.
7. As per information and explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rule, 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.
9. In respect of statutory dues:
(a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2013 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of Income Tax, Wealth Tax, Service Tax,
Sales Tax, Customs Duty and Excise Duty which have not been deposited
on account of any disputes.
10. The Company does not have any accumulated loss and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. 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.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is trading in Shares, Mutual funds & other Investments. Proper records
& timely entries have been maintained in this regard & further
investments specified are held in their own name.
15. According to the information and explanations given to us, the
Company has given Corporate Guarantee to the banks towards the loans
taken by one of its subsidiary, amounting to Rs. 2706.00 Lac. In our
opinion and as per the information and explanation given, terms and
conditions of those corporate guarantees are not prejudicial to the
interest of the Company.
16. Based on our audit procedures and on the information given by the
management, we report that the Company has not raised any new term
loans during the year except vehicles and property loans. The term loan
outstanding at the beginning of the year, have been applied for the
purposes for which they were raised.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2013, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year to
parties and companies covered in the Register maintained under Section
301 of the Companies Act, 1956.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any monies by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For BHUWANIA & AGRAWAL ASSOCIATES
Chartered Accountants
Firm Registration No. 101483W
N. K. AGRAWAL
Partner
Membership No. 34659
Place: Mumbai
Date : 30th May, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Konark Synthetic
Limited ("the Company") as at 31st March, 2012, and the related
Statement Profit and Loss and Cash Flow Statement of the Company for
the year ended on that date annexed thereto, 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003
(CARO), and as amended by the Companies (Auditors' Report)
(Amendment) Order, 2004 (together the "Order"), 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 hereto a statement on the
matters specified in paragraphs 4 & 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
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
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 attached Balance Sheet, Statement of Profit and
Loss dealt with by this report are in compliance with the Accounting
Standards referred to in Section 211(3C) ofthe Companies Act, 1956 to
the extent applicable except for the non provision of Gratuity as
referred in note no. 26 of notes on account.
e) On the basis of written representations received from the Directors,
as on 31stMarch, 2012 and taken on record by Board of Directors, none
ofthe Directors are disqualified as on 31st March, 2012from being
appointed as Directors in term of clause (g) of sub-section (1) of
Section 274 ofthe Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true & fair view in conformity with the accounting principle
generally accepted in India:
i. In the case of Balance Sheet ofthe state of affairs ofthe Company
as at 31st March, 2012;
ii. In the case of the Statement of Profit and Loss of the Profits for
the year ended on that date and
Hi. In the case ofthe Cash Flow Statement, ofthe cash flows ofthe
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 of our report of even date to the members
of Konark Synthetic Limited on the accounts for the year ended 31st
March, 2012)
i. In respect of the Fixed Assets,
a) The company has maintained proper records showing full particulars,
including quantitative details and situations of fixed assets.
b) As per the information and explanations given to us, physical
verification of fixed assets has been carried out by the Company and no
material discrepancies were noticed on such verification. In our
opinion, the frequency of verification is reasonable, having regard to
the size of the Company and nature of its business.
c) No substantial part of fixed assets has been disposed off during the
year under review, which could affect the going concern status of the
company.
ii. In respect of the inventories:
a) As per the information furnished, the inventories have been
physically verified during the year by the management. In our opinion,
having regard to the nature and location of stocks, the frequency of
the physical verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the company and nature of its business.
c) The company has maintained proper records of inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company and the same
have been properly dealt with in the books of account.
iii. a) In respect of loans granted, secured or unsecured, to the
companies, firms or other parties, which are its subsidiaries, covered
in the Register maintained under section 301 of the Companies Act,
1956, we report as per the information and explanations provided to us,
that, there are three parties to whom interest free unsecured loans
have been given and total amount of such loan given was Rs. 1389.81 Lacs
during the year. Details of the same are provided as under:
(Rs. in Lac)
No. of Parties Relationship
with Company Loan Given Closing Balance
3 Subsidiaries 1389.80 1172.69
b) In our opinion, other terms and conditions of loans given by the
companies are prima facie not prejudicial to the interest of the
company.
c) In the absence of any stipulated term for repayment of principal
amount we are unable to comment on whether the payment of the principal
amount is regular.
d) As stated above in the absence of any stipulated term for repayment
of principal amount, we are unable to comment on whether there has been
any overdue amount of Rs. One Lac for more than one year.
e) In respect of loans taken, secured or unsecured, from the companies,
firms or other parties covered in Register maintained under Section 301
of Companies Act, 1956, we report as per the information and
explanations provided to us, that, there is one party from whom
interest free unsecured loans has been taken, details of the which has
been given below:
(Rs. in Lac)
No.of Parties Relationship
with Company Loan Given Closing Balance
1 Associate Concern 1068.37 2108.71
f) In our opinion and according to the information and explanations
given to us other terms and conditions of above loan taken is prima
facie not prejudicial to the interest of the company.
g) In absence of any stipulated term for repayment of principal amount
we are unable to comment on whether the principal amount is due for
repayment.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size ofthe Company and the nature of its business with regard
to purchase of fixed assets. The Company has not started its operations
and therefore internal control in respect of purchase of inventory and
sale of goods and services does not arise. During the course of our
audit, we have not come across any continuing failure to correct major
weaknesses in internal control system.
v. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we report that
the transactions that need to be entered into a register in pursuance
of section 301 of the Act, have been so entered.
b) In our opinion and according to the information and explanations
give to us, the transactions made in pursuance of contracts or
arrangements entered in the Register maintained under Section 301 and
exceeding the value of five lacs rupees in respect of any party during
the year, have been made at prices which are reasonable having regard
to prevailing market prices at the relevant time.
vi. According to the information and explanations given to us, the
Company has not accepted any deposits during the year from the public,
within the meaning of the provisions of Sections 58A and 58AA of the
Companies Act, 1956 and rules made there under. Therefore, the
provisions of clause (vi) of paragraph 4 ofthe said Order are not
applicable to the Company.
vii. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and the nature of its
business.
viii. The Central Government has prescribed maintenance of the cost
records under section 209(1)(d) of the Companies Act, 1956 in respect
of textile manufacturing activity of the company. We have broadly
reviewed the books of accounts and records maintained by the Company in
this connection and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination ofthe records with a view to
determining whether they are accurate or complete.
ix. a) According to the information and explanations given to us and
the records examined by us, the company has been regular in depositing
with appropriate authorities undisputed statutory dues including Income
Tax, Provident Fund, Sales Tax and any other statutory dues wherever
applicable. According to the information and explanations given to us,
no undisputed arrears of statutory dues were outstanding as at 31st
March, 2012 for a period of more than six months from the date they
became payable.
b) According to the records ofthe Company, and information and
explanations given to us there are no dues of Income tax / Sales Tax/
Wealth Tax/ Service Tax/ Custom Duty/ Excise Duty/ Cess which has not
been deposited on account of disputes.
x. There are no accumulated losses ofthe Company as on 31st March,
2012. The Company has not incurred any cash losses during the financial
year covered by our audit and the immediately preceding financial year.
xi. As per the information and explanations given to us and based on
our audit, the Company has not defaulted in repayment of dues to
financial institution or bank.
xii. Based on our examination of the records and the information given
to us, the Company has not granted any loans and/or advances on the
basis of security byway of pledge of shares, debentures and other
securities. Therefore, the provisions of clause (xii) of paragraph 4
ofthe said Order are not applicable to the Company.
xiii. In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
(xiii) of paragraph 4 ofthe said Order are not applicable to the
Company.
xiv. Based on our examination ofthe records and the information given
to us, the Company has not dealt or traded in shares, securities,
debentures and other investments. Therefore, the provisions of clause
(xiv) of paragraph 4 ofthe said Order are not applicable to the
Company.
xv. According to the information and explanations given to us, the
Company has given corporate guarantees to the banks for loans taken by
one of its subsidiary, amounting to Rs. 2706.00 Lac. In our opinion and
as per the information and explanations given, terms and conditions of
these corporate guarantees are not prejudicial to the interest ofthe
Company.
xvi. The company has not taken any term loans during the year.
Therefore, the provisions of clause (xvi) of paragraph 4 ofthe said
Order are not applicable to the Company.
xvii. In our opinion and according to information and explanations
made available to us, no short term funds have been utilized for long
term purposes during the year.
xviii. During the year, the Company has not made any preferential
allotment of shares to the parties and companies covered in the
Register maintained under Section 301 ofthe Companies Act, 1956.
xix. The Company has not issued any debentures. Therefore, the
provisions of clause (xix) of paragraph 4 of the said Order are not
applicable to the Company.
xx. The Company has not raised any money by public issues during the
year covered by our report. Therefore, the provisions of clause (xx) of
paragraph 4 ofthe said Order are not applicable to the Company.
xxi. Based on our audit procedures performed for the purpose of
reporting the true and fair view of financial statements and as per the
information and explanations given to us by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For Bhuwania & Agrawal Associates
Chartered Accountants
(Firm Registration No. 101483W)
Abhishek Jain
Place: Mumbai Partner
Date : 30th May 2012 Membership No. 509839
Mar 31, 2010
1. We have audited the attached Balance Sheet of KONARK SYNTHETIC
LIMITED as at 31st March 2010 the Profit & Loss Account and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with 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 presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub section (4A) of
section 227 of the Companies Act, 1956. We enclose in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
4. M/s India Denim Limited a subsidiary company of the Company has
been audited separately by the Auditors appointed by the subsidiary
company and their report of the same has been considered by us for the
consolidated Balance Sheet and Profit & loss Account forthe year ended
as on 31st March 2010.
5. 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 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 appears from my examination of the
books.
c. The Balance Sheet, the Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with Books of Account.
d. In our opinion the attached Balance Sheet, Profit & Loss Account and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956 to the extent applicable except non provision of Gratuity as
referred in Note No. 2 of Schedule 17.
e. On the basis of written representations received from the Directors,
as on March 31st, 2010 and taken on record by the Board of Directors,
we report that none of the Directors are disqualified as on March 31s1,
2010 from being appointing as Directors in term of Clause (g) of
Sub-Section (1) of Section 274 of the Companies Act, 1956.
6. In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read together with
significant accounting policies and along with Note No. 2 of the Notes
on Accounts regarding non provision of Gratuity as the exact amount of
such provision is not ascertainable due to unavailability of
information required and other notes thereon give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India.
i. in case of Balance Sheet of the state of affairs of the Company as
at 31st March 2010;
ii. in the case of Profit & 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 Flow for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in paragraph (3) of the Auditors Report of even
date to the Members of KONARK SYNTHETIC LIMITED on the accounts forthe
year ended 31 "March 2010.
As required by the Companies (Auditors Report) Order 2003, issued by
the Company Law Board in terms of Section 227 (4A) of the Companies
Act, 1956 and on the basis of such checks as consider appropriate and
as per the information and explanations given to us during the course
of the audit.
1 i) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
ii) As per the information and explanations given to us, physical
verification of fixed assets has been carried out by the Company and no
material discrepancies were noticed on such verification. In our
opinion, the frequency of verification is reasonable and adequate in
relation to the size of the Company and nature of its business.
iii) In our opinion and according to the information & explanation
given to us, the Company has not dfeposed off substantial part of fixed
assets during the year and the going concern status of the Company is
not affected.
2 i) As per the information furnished, the inventories have been
physically verified during the year by the management. Incur opinion,
having regard to the nature and location of stocks, the frequency of the
physical verification is reasonable.
ii) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the company and nature of its business.
iii) The company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company and the same
have been properly dealt with in the books of account.
3. a) As informed to us, during the year the Company has not given any
secured / unsecured loans to the persons covered in the register maintained
u/s 301 of the Companies Act 1956. Hence othersub-clause (b), (c) and
(d) are not applicable for the year under reivew.
b) As per information furnished, during the year the company has taken
interest free unsecured loans from companies under same management and
the parties covered in the register maintained u/s 301 of The Companies
Act, 1956. Details are as follows:
(Amt. in Lac)
No. of Accounts Amount of Loan Taken Maximum Outstanding CI. Balance
2 403.00 202.75 2.00
c) Otherterms & conditions of the loans taken are prima facie not
prejudicial to the interest of the company.
d) The company is regular in repayments of principal dues if any.
e) There was no overdue amount of Rs. 1.00 Lac more than one year as
stipulated if any.
4. In ouropinion 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
forthe sale of goods. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
controls.
5. In respect of transaction entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956:
i) To the best of our knowledge & belief and according to the
information and explanations given to us, transactions that need to be
entered in the Register have been so entered.
ii) According to the information and explanations given to us, these
contracts or transactions have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. According to the information and explanation given to us, the
company has not accepted any deposits during the year from the public
within the meaning of the provision of the Section 58 A and Section 58
AA of the Companies Act, 1956 and the rules framed there under. Hence
clause 4(vi) of the Orderis not applicable.
7. In our opinion, the company has an internal audit system
commensurate with the size of the Company and the nature of its
business.
8. The Central Government has prescribed maintenance of the cost
records under section 209(1 )(d) of the Companies Act, 1956 in respect
of textile manufacturing activity of the company. We have broadly
reviewed the books of accounts and records maintained by the Company in
this connection and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination of the records with a view to
determining whether they are accurate or complete.
9. According to the information & explanation given to us in respect
of statutory and other dues:
i) The company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education &
Protection Fund, and Employees State Insurance, Income Tax, Sales Tax,
Custom Duty, Excise Duty, Cess and any other statutory dues with the
appropriate authorities during the year.
ii) According to the information and explanations given to us, no
undisputed amount payable in respect of the aforesaid dues were
outstanding as at 31s March 2010 for a period of more than six months
from the date they became payable except C.S.T. amounting to Rs.
10800/-which was paid by company on 29.04.2010.
iii) According to the information and explanation given to us, that
there is no disputed statutory dues outstanding as on 31st March 2010.
10. The Company does not have any accumulated losses at the end of the
financial year. The company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
11. Based on our audit procedures and on the information and
explanation given by the Management, we are of the opinion that the
Company has not defaulted in the repayment of dues to financial
institutions, banks and debenture holders during the year.
12. In our opinion and according to the explanation given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or nidhi / mutual
benefit fund / societies. Therefore clause 4 (xiii) of the Companies
(Auditor report) order, 2003 is not applicable to the Company.
14. During the year the company has not made any dealing or trading in
shares, securities, debentures and other investment.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institution.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, the term loan
raised during the year were prima facie been either used for the
purpose for which they were raised
17. According to the information and explanation given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that there are no funds raised on short term basis that have
been used for long term investment.
18. During the year the Company has not made any preferential
allotment of equity shares.
19. During the year covered by our audit report, the company has not
issued any secured debentures.
20. The Company has not raised any money by public issues during the
year covered by our report.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the year.
For, BHUWANIA & AGRAWAL ASSOCIATES
Chartered Accountants
(Firm Registration No. 101483W)
PLACE: MUMBAI. (N.K.AGRAWAL)
DATE : 29th May 2010. Partner
M. NO. 34659