Mar 31, 2023
Kothari Petrochemicals Limited
STANDARDS (IND As) Financial Statement
1. We have audited the accompanying Ind AS financial statements of Kothari Petrochemicals Limited (âthe Companyâ), which comprise the balance sheet as at March 31, 2023, and the statement of profit and loss (including other comprehensive income), statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2023, and total comprehensive income (comprising of profit after tax and other comprehensive income), changes in equity and its cash flows for the year then ended.
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Ind AS Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Ind AS financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Ind AS financial statements of the current period. These matters were addressed in the context of our audit of the Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
S. No. |
Key Audit Matter |
principal Audit procedures |
1 |
Quantity of raw materials Significant portion of the material procurement is through pipelines and tankers which are accounted on weight basis. The procurement methodology also involves raw materials extraction from input feed and return of residues & effluents through the pipelines to the vendor. Hence, any variance in the ascertainment of the quantity purchased may have a significant impact on the cost of materials. |
our audit procedures included: > Assessment of internal controls over ascertaining the quantity of purchase for which payment is made. > Assessment of controls over calibration system of the weighing equipment. > Assessment of controls over periodical stock - take and the related procedures. |
2 |
Capital Work in progress The Company undertaking a De-Bottle Necking project for capacity augmentation. As of 31st March 2023, the Company has spent '' 3,579.24 lakhs towards the project and the same has been capitalized during the year. On account of the materiality of the capital outlay and the importance of the project to Company''s business we consider it to be a key audit matter for the year. |
our audit procedures included: > Assessment of key internal controls with reference to capital work in progress. > Performed substantive audit procedures on the transactions accounted under the capital work in progress and capitalized. > Verified that the assets meet the recognition criteria set out in Ind AS 16 - Property, Plant and Equipment and other material compliances as per the said accounting standard. |
other Information
5. The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Board''s Report together with the annexure thereto and Report on Corporate Governance but does not include the Ind AS financial statements and our auditor''s report thereon.
Our opinion on the Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Ind AS financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
with governance for the Ind AS Financial Statements
6. The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance, changes in equity 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. 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
7. In preparing the Ind AS financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
financial Statements
8. Our objectives are to obtain reasonable assurance about whether the Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Ind AS financial statements.
9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)
(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the Ind AS financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
10. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
11. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and
to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
12. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Ind AS financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
13. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure B, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
14. With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of Section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its Directors during the year is in accordance with the provisions of Section 197 of the Act.
15. 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 (including other comprehensive income), the Statement of Changes in Equity and Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian 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 and taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to financials statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls with reference to financial statements.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) There are no pending litigations against the Company. Consequently, disclosure of the same does not arise.
(ii) The Company did not have any long-term contracts including derivative contracts on which there were material foreseeable losses.
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
(iv) (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âintermediariesâ), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), with the
Place : Chennai Date : 26th May 2023
understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations as provided under (a) and (b) above, contain any material misstatement.
(v) The Company has paid interim dividend during the year ending 31st March 2023 in compliance with the provisions of section 123 of the Act. Final dividend proposed by the Board of Directors is subject to the approval of the members in the ensuing Annual General Meeting. The dividend so proposed is in accordance with Section 123 of the Act to the extent applicable.
(vi) As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only with effect from April 1, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is not applicable.
Chartered Accountants FRN: 000580S/S200066
Partner M. No.: 244016 UDIN: 23244016BGQPZM5725
Mar 31, 2021
S. No. |
Key Audit Matter |
principal Audit proceedures |
1 |
Quantity of raw materials Significant portion of the material procurement is through pipelines and tankers which are accounted on weight basis. The procurement methodology also involves raw materials extraction from input feed and return of residues & effluents through the pipelines to the vendor. Hence, any variance in the ascertainment of the quantity purchased may have a significant impact on the cost of materials. |
our audit procedures included: > Assessment of controls over ascertaining the quantity of purchase for which payment is made. > Assessment of controls over calibration system of the weighing equipment. > Assessment of controls over periodical stock - take and the related procedures. |
To the Members of Kothari Petrochemicals Limited
STANDARDS (IND AS) Financial Statement
1. We have audited the accompanying Ind AS Financial Statements of Kothari petrochemicals Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2021, and the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in equity and statement of Cash Flows for the year then ended, and notes to the Financial Statements, including a summary of significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2021, and total comprehensive income (Comprising of Profit and other Comprehensive Income), changes in Equity and its Cash Flows for the year then ended.
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Ind AS Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Ind AS financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Ind AS Financial Statements of the current period. These matters were addressed in the context of our audit of the Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
5. The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Board''s Report together with the annexure thereto and Report on Corporate Governance but does not include the Ind AS Financial Statements and our auditor''s report thereon.
Our opinion on the Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Ind AS Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Ind AS financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
6. The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Ind AS Financial Statements that give a true and fair view of the financial position, financial performance, changes in equity 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
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the Act. 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
7. In preparing the Ind AS Financial Statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s responsibilities for the audit of the Ind AS
Financial Statements
8. Our objectives are to obtain reasonable assurance about whether the Ind AS Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Ind AS Financial Statements.
9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit.
We also:
> Identify and assess the risks of material misstatement of the Ind AS Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
> Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our
opinion on whether the company has adequate internal financial controls with reference to Financial Statements in place and the operating effectiveness of such controls.
> Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
> Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
> Evaluate the overall presentation, structure and content of the Ind AS Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
10. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
11. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
12. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Ind AS Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
13. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure B, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
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14. With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of Section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its Directors during the year is in accordance with the provisions of Section 197 of the Act.
15. 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 (including other comprehensive income), the Statement of Changes in Equity and Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian 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 and taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to financials statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls with reference to financial statements.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. There are no pending litigations against the Company. Consequently, disclosure of the same does not arise.
ii. The Company did not have any long-term contracts including derivative contracts on which there were material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Chartered Accountants
Partner M. No.: 244016 UDIN: 21244016AAAACQ5108
Mar 31, 2018
REPORT ON THE IND AS FINANCIAL STATEMENTS
1. We have audited the accompanying Ind AS financial statements of Kothari Petrochemicals Limited, (âthe Companyâ), which comprises the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss(including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs responsibility for the ind as financial statements
2. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act,2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash lows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 ofthe Act and the Rules made thereunder.
3. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safe guarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design,implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
AUDITORâS RESPONSIBILITY
4. Our responsibility is to express an opinion on these Ind AS financial statements based on our audit. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing as specified under Section143(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 Ind AS financial statements are free from material misstatement.
5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments,the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used, and there reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
6. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
OPINION
7. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Ind AS and accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2018, and its profit, total comprehensive income, its cash lows and the changes in equity for the year ended on that date.
OTHER MATTERS
8. The comparative financial information of the Company for the year ended 31st March 2017 and the transition date opening balance sheet as at 1st April 2016 included in these Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by another firm of Chartered Accountants and their reports for the year ended 31st March 2017 and 31st March 2016 dated 29th May 2017 and 30th May 2016 respectively, expressing an unmodified opinion on those financial statements and have been restated to comply with Ind AS. Adjustments made to the previously issued said statutory financial information for the differences in the accounting principles adopted by the Company on transition to the Ind AS have been audited by us. Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) and 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, a statement on the matters specified in paragraphs 3 and 4 of the said Order, to the extent applicable.
10. 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 (including Other Comprehensive Income), the Cash Flow Statement and Statement of Changes in Equity dealt with by this report are in agreement with the books of account;
(d) i n our opinion, the aforesaid Ind AS financial statements, comply with the Indian Accounting Standards prescribed under Section 133 of the Act and the Rules made thereunder;
(e) on the basis of written representations received from the Directors as on 31st March 2018, and taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March 2018, from being appointed as a Director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls with reference to financial statements and the operating effectiveness of such controls, refer to our separate report in Annexure B; and
(g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to explanations given to us:
(i) the Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note No. 38 to the Ind AS financial statements;
(ii) the Company did not have any long-term contracts, including derivative contracts for which there were any material foreseeable losses.
(iii) there were no amounts required to be transferred to the Investor Education and Protection Fund by the Company during the year.
Annexure âAâ to Independent Auditorsâ Report - 31st March 2018
(Referred to in our report of even date)
(i) a) The Company has mainted proper records showing full particulars, including quantitative details and situation of fixed assets;
b) As explained to us, these fixed assets have been physically verified by the Management at regular intervals; as informed to us no material discrepancies were noticed on such verification.
c) The title deeds of immovable properties are held in the name of the Company.
(ii) The Management has conducted physical verification of inventory at reasonable intervals and no material discrepancies were noticed.
(iii) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not provided any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013
(iv) The Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of investments made by the Company. The Company has not provided any loans or guarantee or security to any company covered under Section 185 of the Companies Act, 2013
(v) The Company has not accepted any deposits from the public.
(vi) On the basis of the records produced to us, we are of the opinion that, prima facie, the cost records prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013 have been maintained. However, we have not carried out any detailed examination of such records.
(vii) According to the information and explanations given to us in respect of Statutory dues:
a) the Company is regular in depositing with the appropriate authorities the undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Service Tax, Sales Tax, Customs Duty, Excise Duty and Cess. To the best of our knowledge and according to the information and explanations given to us, there are no arrears of outstanding statutory dues as at 31st March 2018 for a period of more than six months from the date they become payable.
b) Details of dues of Excise Duty not deposited as on 31st March 2018 on account of disputes are given below:
Name of the Statute |
Nature of Dues |
Amount Rs. in lakhs |
Forum where the dispute is pending |
Period to which the dues belong to |
Central Excise Act, 1944 |
Excise Duty |
25.41 |
CESTAT |
2007-08 |
(viii) On the basis of verification of records and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders.
(ix) In our opinion and according to the information and explanations given to us, the Company has not raised monies by way of initial public offer or further public offer (including debt instruments) during the year. The term loans availed were applied for the purposes for which they were raised.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given to us by the Management, no fraud by the Company and no fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, managerial remuneration paid or provided has been in accordance with the requisite approvals mandated by the provisions of Section 197, read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence compliance with the provisions of the Nidhi Rules is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, all transactions with related parties are in compliance with Sections 177 and 188 of the Companies Act, 2013 where applicable and the details have been disclosed in the financial statements, as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him which will come under the purview of Section 192 of the Companies Act, 2013.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Annexure - B to the Independent Auditorsâ Report - 31st March 2018
(Referred to in our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
1. We have audited the internal financial controls with reference to the financial statements of Kothari Petrochemicals Limited (âthe Companyâ) as of 31st March 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date..
Managementâs Responsibility for Internal Financial Controls
2. The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on the Companyâs internal financial controls with reference to the financial statements, based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (âthe Guidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements were in place and if such controls were operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls with reference to financial statements.
Meaning of Internal Financial Controls with reference to Financial Statements
6. A companyâs internal financial controls with reference to financial statements are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial controls with reference to financial statements includes those policies and procedures that
a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and
c) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companyâs assets that could have a material effect on the financial statements
Inherent Limitations of Internal Financial Controls with reference to Financial Statements
7. Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibilityof collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects,adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at 31st March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For P. CHANDRASEKAR, LLP
Chartered Accountants
FRN : 000580S/S200066
Place : Chennai S. Sriram
Date : 25th May, 2018 Partner
M. No.: 205496
Mar 31, 2016
To the Members of Kothari Petrochemicals Limited
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying Standalone Financial Statements of Kothari Petrochemicals Limited (the Company) which comprise the Balance Sheet as at 31st March 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report.
MANAGEMENTâS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companyâs Management and Board of Directors are responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
AUDITORâS RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2016;
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 (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Sub-section (11) of Section 143 of the Act, we give in the Annexure âAâ a statement on the matters specified in the 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 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 31 March 2016 and taken on record by the Board of Directors, none of the Directors is disqualified as on 31 March 2016 from being appointed as a Director in terms of Section 164(2) of the Act;
f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) the Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note No.28 of the financial statements;
(ii) the Company did not have any long-term contracts, including derivative contracts; and
(iii) there has been no amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure âAâ to the Independent Auditorsâ Report of even date on the Financial Statements of Kothari Petrochemicals Limited
The Annexure referred to in Paragraph 1 under the heading âReport on Other Legal and Regulatory Requirementsâ of our Report of even date:
(i) a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
b) These fixed assets have been physically verified by the Management at reasonable intervals and no material discrepancies were noticed on such verification.
c) The title deeds of immovable properties are held in the name of the Company.
(ii) The Management has conducted physical verification of inventory at reasonable intervals and no material discrepancies were noticed.
(iii) The Company has not granted any loans to any party covered in the register maintained under section 189 of the Companies Act, 2013.
(iv) The Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013, in respect of, investments, made by the Company. The company has not provided any loans or guarantee or security to any company covered under Section 185.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has prescribed maintenance of Cost Records under Sub-section (1) of Section 148 of the Companies Act, 2013 and such accounts and records have been made and maintained. We are of the opinion that prima facie, the prescribed accounts and records have been maintained. However, we have not made a detailed examination of the records.
(vii) According to the information and explanations given to us in respect of Statutory dues:
a) The Company is regular in depositing undisputed statutory dues, including Provident Fund, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other Statutory Dues to the appropriate authorities and there were no undisputed amounts payable which were in arrears as at 31st March 2016 for a period of more than six months from the date they became payable.
b) Details of dues of Duty of Excise, which have not been deposited as on 31st March 2016 on account of disputes are given below:
Name of the Statute |
Nature of dues |
Amount Rs. in lakhs |
Forum where the dispute is pending |
Period to which the dues belong |
Central Excise Act, 1944 |
Excise Duty |
129.31 |
Joint Asst Comm. Central Excise |
2004-05 to 2010-11 |
Central Excise Act, 1944 |
Excise Duty |
25.41 |
CESTAT |
2007-08 |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans to financial institutions, banks, Government or dues to debenture holders. The Company has not availed any term loans from Banks during the year.
(ix) In our opinion and according to the information and explanations given to us, the Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year.
(x) In our opinion and according to the information and explanations given to us no fraud by the Company or any fraud on the Company by its Officers or employees has been noticed or reported during the year.
(xi) Managerial remuneration has been paid in accordance with provisions of section 197, read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence complying with the provisions of the Nidhi Rules, 2014 does not arise.
(xiii) In our opinion and according to the information and explanations given to us, all the transactions with the related parties are in compliance with Sections 177 and 188 of Companies Act, 2013, where applicable and the details have been disclosed in the Financial Statements, etc., as required by the applicable Accounting Standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
(xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with Directors or persons connected with him.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Annexure - âB âto the Auditorsâ Report of even date on the Standalone Financial Statement of Kothari Petrochemicals Limited.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Kothari Petrochemicals Limited as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that:
1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For R.Subramanian and Company
Chartered Accountants
Firmâs No. 004137 S
Place : Chennai N. Krishnamurthy
Date : May 30, 2016 Partner
M.No: 019339
Mar 31, 2015
We have audited the accompanying financial statements of Kothari
Petrochemicals Limited ("the Company"), which comprise the Balance
Sheet as at March 31,2015, and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Management and Board of Directors of the Company are responsible
for the matters stated in Section 134(5) of the Companies Act, 2013
('the act') with respect to the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards Specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes 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 these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the act, and the rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the
Company's preparation of the financial statements that give a true
and fair view in order to design audit procedures that are appropriate
to the circumstances, but not for the purpose of expressing an opinion
on whether the company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the company's directors, as well as
evaluating the overall presentation of the financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015
("the Order") issued by the Central Government of India in terms of
Sub section (11) of Section 143 of the Act, we give in the Annexure, a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations,
which to the best of our knowledge and belief were necessary for the
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 and Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the aforesaid financial statements comply with the
Accounting Standards Specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representations received from the directors
as on 31st March 2015 and taken on record by the Board of Directors,
none of the directors are 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 Auditors
report in accordance with Rule 11 of the Companies (Audits and
Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:-
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements.
(ii) There was no amount which was required to be transferred to the
Investor Education and Protection Fund.
(iii) The company did not have any contracts including long term
derivative contracts for which there were any material foreseeable
losses.
Annexure referred to in Paragraph 1 under the heading "Report on
other legal and regulatory requirements "of our Report of even date
to the members of Kothari Petrochemicals Limited on the accounts of the
company for the year ended 31st March, 2015:
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets ;
(b) As explained to us, these fixed assets have been physically
verified by the management at regular intervals; as informed to us no
material discrepancies were noticed on such verification;
(ii) (a) Inventories have been physically verified by the Management.
In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records have been properly dealt with in the books of accounts
and were not material.
(iii) The company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company and according to the information and
explanations given to us, no major weakness has been noticed or
reported.
(v) The Company has not accepted any deposits from the public covered
under Section 73 to 76 of the Companies Act, 2013.
(vi) On the basis of records produced to us, we are of the opinion
that, prima facie, the cost records prescribed by the Central
Government under sub-section (1) of Section 148 of the Act have been
made and maintained. However, we are not required to and have not
carried out any detailed examination of such records.
(vii) (a) According to the information and explanations given to us and
based on the records of the company examined by us, the company is
regular in depositing the undisputed statutory dues, including Provident
Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Value Added Tax and other
material statutory dues, as applicable, with the appropriate
authorities in India. No undisputed amounts payable in respect of the
above statutory dues were in arrears as 31st March 2015 for a period of
more than six months from the date they become pabable.
(b) According to the information and explanations given to us and based
on the records of the company examined by us, there are no dues of
Income Tax, Wealth Tax, Sales Tax, Service Tax, Customs Duty, and Value
Added Tax which have not been deposited on account of disputes. Dues of
Excise Duty as on 31st March 2015 which have not been deposited on
account of disputes are given below:
Name of the Statute Nature of Dues Amount Forum where the
dispute is pending
Central Excise Act, 1944 Excise Duty 123.31 Joint Ass cont
Central Excise
Central Excise Act, 1944 Excise Duty 25.41 CESTAT
Name of the Statute Period of dispute (Financial Year )
Central Excise Act, 1944 2004-05 to 2010-11
Central Excise Act, 1944 2007-08
(c) There were no amount which was required to be transferred to
Investor Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made
thereunder.
(viii) The company has no accumulated loss as at 31st March 2015. The
company has not incurred cash loss in the financial year under report
and in the immediately preceding financial year.
(ix) The company has not defaulted in repayment of dues to banks.
(x) The company has not given guarantees for loans taken by others from
banks or financial institutions.
(xi) The company has not taken and Term loans and hence the question on
its application will not arise.
(xii) During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have we been informed of any such instance by the
Management.
For R.Subramanian and Company
Chartered Accountants
Firm's No. 004137 S
Place : Chennai R.Rajaram
Date: May 28, 2015 Partner
Mar 31, 2014
We have audited the accompanying financial statements of Kothari
Petrochemicals Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 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
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 but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control.. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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, 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
subsection (3C) of section 211 of the Companies Act, 1956;
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 REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE.
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
2. Some of the fixed assets were physically verified during the year by
the management in accordance with a programme of verification, which in
our opinion provides for physical verification of all the fixed assets
at reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
3. No major asset has been disposed off during the year and hence the
concept of going concern is not affected.
4. Inventories were physically verified during the year by the
management at reasonable intervals.
5. In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management was reasonable and adequate in relation to
the size of the Company and the nature of its business.
6. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
7. The company has not granted any loan secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act 1956.
8. The company has taken an unsecured loan from a company covered in
the register maintained under Section 301 of the Companies Act 1956.
The maximum amount involved during the year was Rs.600 lacs and the
year-end balance of loan taken was Rs.600.00 lacs.
In our opinion, interest and other terms and conditions on which loan
has been taken are not prima facie prejudicial to the interest of the
company.
9. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and there was no continuing failure to correct any major
weakness.
10. In our opinion and according to the explanations given to us, the
transactions that have been made in pursuance of contracts or
arrangements requiring entry in the registers maintained under Section
301 of the Companies Act, 1956 have been so entered.
11. According to the information and explanation given to us, the
transactions that have been made in pursuance of such contracts or
arrangements made by the company have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
12. According to the information and explanation given to us, the
company has not accepted deposits from the public. Therefore,
provisions of Section 58 and 58 AA or any other relevant provisions are
not applicable to the company.
13. The Internal Audit function has been carried out by a firm of
Chartered Accountants and is commensurate with the size of the company
and the nature of its business.
14. We have broadly reviewed the cost records and accounts relating to
materials, labour and other items of cost maintained by the Company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956. We are of the opinion that prima facie the prescribed
accounts and records have been made and maintained from the period
under audit. We have however not made a detailed examination of the
said records with a view to determine whether they are accurate or
complete.
15. According to the information and explanations given to us, the
Company has been regular in depositing undisputed statutory dues,
including Income Tax, Sales Tax and any other statutory dues with the
appropriate authorities during the year. The company has no dues
towards Provident Fund, Investor Education and Protection Fund, Wealth
Tax, Service Tax, Customs Duty, Excise Duty.
16. According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and other
material statutory dues were in arrears as at 31st March 2014 for a
period of more than six months from the date they became payable.
17. According to the information and explanations given to us, there
are no dues of Sales Tax, Income Tax, Wealth Tax, Service Tax, Custom
Duty, and Excise Duty, which have not been deposited on account of any
dispute. According to the information and explanations given to us, the
following dues of Excise Duty have not been deposited by the Company on
account of disputes:
Sl. Nature Amount Rs. Period Forum where
No. Name of Statute of dues in Lakhs dispute is
pending
(i) Central Excise Excise 129.30 2005-06 Commissioner
Act Duty to 2009 Chennai
-10 and
April to
October
2010
(ii) Central Excise Differe 25.41 April to Commissioner
Act -ntial November Chennai
Excise 2007 and
Duty April 2008
and May
2008.
(Appeals),
18. The Company does not have accumulated losses at the end of the
year. The Company has not incurred any cash loss during the financial
year and in the immediately preceding financial year.
19. The Company has not defaulted in the repayment of dues to the
Banks. There were no dues to Financial Institutions and Debenture
Holders.
20. The Company has not granted any loan or advance on the basis of
security by way of pledge of shares, debentures and other securities.
21. The Company is not a chit fund or a nidhi / mutual benefit fund /
society.
22. In our opinion and according to the information and explanations
given to us the Company is not a dealer or trader in shares, securities
and debentures. The Company has maintained proper records of
transactions and contracts in respect of shares, securities, debentures
and other investments and timely entries have been made therein. All
shares, securities, debentures and other investments have been held by
the company in its own name.
23. In our opinion and according to the information and explanations
given to us the Company has not given any guarantee for any loans taken
by others from banks and financial institutions during the financial
year.
24. The Company has not any raised any new term loan and hence the
question on the application of loan would not arise.
25. According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment.
26. In our opinion and according to the information and explanations
given to us the Company has not made preferential allotment of shares
to companies, firms covered in the register maintained under Section
301 of the Companies Act, 1956.
27. The company has not made any public issue of shares during the year
and hence the question of verifying the end use of the funds does not
arise.
28. According to the information and explanations given to us and the
records examined by us, no debentures have been issued during the year.
29. 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
was noticed or reported during the financial year.
for R.Subramanian and Company
Chartered Accountants
Firm No. 004137S
R. Rajaram
Place: Chennai Partner
Date: May 27, 2014 M.No.25210
Mar 31, 2013
Report on Financial Statements
We have audited the accompanying financial statements of KOTHARI
PETROCHEMICALS LIMITED (the company) which comprise the Balance Sheet
as at 31st March 2013, Statement of Profit & 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 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 referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("theAct"). The responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
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:
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 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, and on the basis of such checks of the books and records of the
Company as we considered appropriate and according to the information
and explanations given to us, we give in the annexure a statement on
the matters specified in the paragraphs 4 and 5 of the said Order.
2. As required by section 227(3) of the Act, we report that:
(a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
(e) On the basis of written representations received from the directors
as on 31st March 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 st March 2013from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE.
1. (a) The Company has maintained records showing full particulars
including quantitative details and situation of Fixed Assets.
(b) Some of the fixed assets vere physically verified during the year
by the management in accordance with a programme of verification, which
in our opinion provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(c) No major asset has been disposed off during the year and hence the
concept of going concern is not affected.
2. (a) The inventories have been physically verified by the management
during the year at reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) On the basis of the records examined by us and relying on the
information provided to us, in our opinion, the Company is maintaining
proper records of inventories and no material discrepancies were
noticed on physical verification.
3. (a) The Company has not granted any loans secured or unsecured to
companies, firms or other parties listed in the register maintained
undesection 301 of the Companies Act, 1956.
(b) The company has not taken any loan secured or unsecured from
companies firms or other parties listed in the register maintained
under section 301 of the Companies Act 1956.
4. In our opinion and according to the information and explanations
given to us, the internal control system are commensurate with the size
of the Company and the nature of its business for purchase of
inventory, fixed assets, sale of goods and services. During the course
of audit, we have not observed any continuing failure to correct major
weaknesses in the internal control system.
5. (a) Based on the audit procedures applied by us, to the best of our
knowledge and according to the information and explanations given to
us, the particulars Of contracts or arrangements referred to in Section
301 of the Companies Act, 1956 have been entered in the register
maintained under that section.
(b) According to the information and explanation given to us, the
transactions that have been made in pursuance of such contracts or
arrangements by the company have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
Therefore the provisions of Sections 58A and 58AA or any other relevant
provisions are not applicable to the company.
7. The Company has an internal audit system commensurate with the size
of the Company and the nature of its business.
8. We have broadly reviewed the cost records and accounts maintained
by the company relating to the materials, labour and other items of
cost pursuant to the rules made by the Central government for the
maintenance of cost records under Section 209(1) (d) of the Companies
Act 1956 and we are of the opinion that prima-faciethe prescribed
accounts and records have been made and maintained forthe period under
audit. We have not made a detailed examination of the records with a
view to determining whether they are accurate or complete.
9. a. According to the information and explanations given to us. the
Company has been generally regular in depositing undisputed statutory
dues, including Provident Fund, Employees'' State Insurance, Income-tax,
Sales-tax, Service Tax, Custom Duty, Excise Duty, cess and any other
statutory dues with the appropriate authorities during the year. The
company has no dues towards Investor Education and Protection Fund and
Wealth Tax, Service tax, Customs Duty, Excise Duty.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, Investor
Education and Protection Fund, Wealth Tax, Employees''State Insurance,
Income-tax, Sales-tax, Service Tax, Custom Duty, Excise Duty and other
material statutory dues were in arrears as at 31st March 2013 for a
period of more than sx months from the date they became payable.
c. According to the information and explanations given to us and on
the basis of examination of records of the Company there are no dues of
income tax, service tax, wealth tax. customs duty etc as at 31st March
2013, except for the following dues which have not been deposited on
account of dispute:
Sl Name of Statute Nature Amounnt Rs.
No of dues in lakhs
(0 Central Sales Tax Act Sales tax 3.17
(ii) Central Excise Act Excise Duty 129.30
(iii)Central Excise Act Differential 25.41
Excise Duty
Forum where
Period dispute is pending
2007-08 Appellate Deputy
Commissioner, Thanjavur.
2005-06 to 2009-10 Commissioner,
and up to Oct 2010 Chennai
April 2007 to Commissioner
November 2007 and (Appeals) Chennai
April & May 2008
* (Rs.0.79 lakhs paid under protest)
10. The Company does not have any accumulated losses at the end of the
year. The Company has not incurred any cash loss during the year and in
the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, there is no default in the repayment of dues to the
Financial Institutions/Banks.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The provisions of clause 4 (xiii) of the Order relating to Chit
Funds are not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities and debentures. The company has maintained proper records of
the transactions and contracts in respect of shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the company in its own name.
15. According to the information and explanations given to us, the
Company has not given any guarantee for any loan taken by others from
any Bank or Financial Institution.
16. According to the information and explanations given to us and the
basis of examination of records, the Company has not availed any fresh
term loans during the year.
17. According to the information and explanations given to us, based
on an overall examination of the Balance Sheet of the Company, related
information made available to us and as represented to us by the
Management, funds raised on short term basis have not been applied for
long term investment during the year.
18. According to the information and explanations given to us, during
the year 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.
19. The Company has not issued debentures during the year and
therefore the question of creating security or charge in respect
thereof does not arise.
20. The Company has not made public issue of securities during the
year and therefore the question of disclosing the end-use of money
raised by way of public issue does not arise.
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have not come across any instance of
material fraud on or by the company was noticed or reported during the
year.
for R.Subramanian and Company
Chartered Accountants
Firm No. 004137S
C.Ramarnurthy
Place: Chennai Partner
Date: May 30, 2013 M.No. 205113
Mar 31, 2012
1. We have audited the accompanying financial statements of Kothari
Petrochemicals Limited which comprise the Balance Sheet at 31st March
2012 and the Statement of Profit and Loss and Cash Flow Statement for
the year ended and a summary of significant accounting policies and
other explanatory information. 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 financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Company Law Board in terms of Section 227(4A) of the Companies
Act, 1956, we enclose in the annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order to the extent they
are applicable to the company.
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 purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the company, so far as it appears from our examination of such
books.
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement referred to in this report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
e) On the basis of the written representations received from directors
and taken on record by the Board of Directors, we report that none of
the director is disqualified as on 31st March 2012 from being appointed
as a director in terms of clause (g) of sub-section (1) of Section 274
of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant 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:
i) in so far it relates to the Balance Sheet, the state of affairs of
the company as at 31st March 2012,
ii) in so far it relates to the Statement of Profit and Loss, of the
profit for the year ended on that date, and
iii) in so far it relates to the Cash Flow Statement, of the Cash Flow
for the year ended on that date.
PETROCHEMICALS
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
2. Some of the fixed assets were physically verified during the year
by the management in accordance with a programme of verification, which
in our opinion provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
3. No major asset has been disposed off during the year and hence the
concept of going concern is not affected.
4. Inventories were physically verified during the year by the
management at reasonable intervals.
5. In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management was reasonable and adequate in relation to
the size of the Company and the nature of its business.
6. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
7. The company has not granted any loan secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act 1956.
8. The company has not taken any loan secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act 1956.
9. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services and there was no continuing failure to
correct any major weakness.
10. In our opinion and according to the explanations given to us,
there are no transactions made in pursuance of contracts or
arrangements requiring entry in the registers maintained under Section
301 of the Companies Act, 1956.
11. According to the information and explanation given to us, the
company has not accepted deposits from the public. Therefore,
provisions of Section 58 and 58 AA or any other relevant provisions are
not applicable to the company.
12. The Internal Audit function has been carried out by a firm of
Chartered Accountants and is commensurate with the size of the company
and the nature of its business.
13. We have broadly reviewed the cost records and accounts relating to
materials, labour and other items of cost maintained by the Company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956. We are of the opinion that prima facie the prescribed
accounts and records have been made and maintained from April, 1st
2011. We have however not made a detailed examination of the said
records with a view to determine whether they are accurate or complete.
14. According to the information and explanations given to us, the
Company has been regular in depositing undisputed statutory dues,
including Income Tax, Sales Tax and any other statutory dues with the
appropriate authorities during the year. The company has no dues
towards Provident Fund, Investor Education and Protection Fund, Wealth
Tax, Service Tax, Customs Duty, Excise Duty.
15. According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employees' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and other
material statutory dues were in arrears as at 31st March 2012 for a
period of more than six months from the date they became payable.
16. According to the information and explanations given to us, there
are no dues of Sales Tax, Income Tax, Wealth Tax, Service Tax, Custom
Duty, and Excise Duty, which have not been deposited on account of any
dispute. According to the information and explanations given to us,
the following dues of Sales Tax and Excise Duty have not been deposited
by the Company on account of disputes:
Name of the Amount in Forum where the dispute
Sl. Name of the Nature of Dues Amount in Period
No. Statute lacs
(i) Central Sales Tax Rs.3.17 2007-08
Sales Tax (Rs.0.79 lacs
paid under
protest)
(ii) Central Excise Duty Rs.129.30 2005-06 to
Excise 2009-10 and
Act period upto
Oct. 2010
(iii) Central Differential Rs.25.41 April 2007 to
Excise Excise Duty November 2007
Act and April 2008
to May 2008.
Sl. Name of the Forum where the dispute
No. Statute is pending
(i) Central Appellate Deputy
Sales Tax Commissioner, Thanjavur
(ii) Central Commissioner, Chennai
Excise
Act
(iii) Central Commissioner (Appeals
Excise
Act
17. The Company does not have accumulated losses at the end of the
year. The Company has not incurred any cash loss during the financial
year and the immediately preceding financial year.
18. The Company has not defaulted in the repayment of dues to the
Banks. There were no dues to Financial Institutions and Debenture
Holders.
19. The Company has not granted any loan or advance on the basis of
security by way of pledge of shares, debentures and other securities.
20. The Company is not a chit fund or a nidhi/mutual benefit fund/
society.
21. In our opinion and according to the information and explanations
given to us the Company is not a dealer or trader in shares, securities
and debentures. The Company has maintained proper records of
transactions and contracts in respect of shares, securities, debentures
and other investments and timely entries have been made therein. All
shares, securities, debentures and other investments have been held by
the company in its own name.
22. In our opinion and according to the information and explanations
given to us the Company has not given any guarantee for any loans taken
by others from banks and financial institutions during the financial
year.
23. The Company has raised new term loan. The term loan taken by the
Company has been applied for the purpose for which they were raised.
24. The Company has availed a short term loan from the bank during the
year. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that the funds raised on short term basis during the year
and short term borrowings outstanding at the beginning of the year have
not been used for long term investment.
25. In our opinion and according to the information and explanations
given to us the Company has not made preferential allotment of shares
to companies, firms covered in the register maintained under Section
301 of the Companies Act, 1956.
26. The company has not made any public issue of shares during the
year and hence the question of verifying the end use of the funds does
not arise.
27. According to the information and explanations given to us and the
records examined by us, no debentures have been issued during the year.
28. 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
was noticed or reported during the financial year.
for R. Subramanian and Company
Chartered Accountants
Firm No.004137S
N.R.Kuppuswamy
Partner
M.No.203307
Place : Chennai
Date : August 02, 2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of Kothari
Petrochemicals Limited as at 31st March 2010 and the Profit and Loss
Account and Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
CompanyÃs 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 financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Company Law Board in terms of Section 227(4A) of the Companies
Act, 1956, we enclose in the annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order to the extent they
are applicable to the company.
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 purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the company, so far as it appears from our examination of such
books.
c) The Balance Sheet, Profit and Loss account and Cash Flow Statement
referred to in this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss account and Cash
Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
e) On the basis of the written representations received from Directors
and taken on record by the Board of Directors, we report that none of
the Director is disqualified as on March 31, 2010 from being appointed
as a Director in terms of Clause (g) of sub-section (1) of Section 274
of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon and schedules attached thereto, 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 so far it relates to the Balance Sheet, the state of affairs of
the company as at March 31, 2010.
ii) in so far it relates to the Profit and Loss account, of the profit
for the year ended on that date, and
iii) in so far it relates to the Cash Flow Statement, of the Cash Flow
for the year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
2. Some of the fixed assets were physically verified during the year
by the management in accordance with a programme of verification, which
in our opinion provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
3. No major asset has been disposed off during the year and hence the
concept of going concern is not affected.
4. Inventories were physically verified during the year by the
management at reasonable intervals.
5. In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management was reasonable and adequate in relation to
the size of the Company and the nature of its business.
6. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
7. The company has not granted any loan secured or unsecured to the
companies, firms are other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
8. The company has not taken any loan secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act 1956.
9. According to the information and explanations given to us the
advances carry no interest terms and condition of the advances availed
during earlier years are not prima-facie prejudicial to the interest of
the Company. These advances have no period specified for repayment.
10. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services and there was no continuing failure to
correct any major weakness.
11. In our opinion and according to the explanations given to us,
there are no transactions made in pursuance of contracts or
arrangements requiring entry in the registers maintained under Section
301 of the Companies Act, 1956.
12. The company has no fixed deposits requiring compliance of
provisions of Section 58 and 58 AA or any other relevant provisions of
the Act.
13. The Internal Audit function has been carried out by a firm of
Chartered Accountants and is commensurate with the size of the company
and the nature of its business.
14. To the best of our knowledge and according to the information and
explanations given to us the companyÃs present business does not
require the maintenance of cost records under Section 209(1) (d) of the
Companies Act, 1956.
15. According to the information and explanations given to us, the
Company has been regular in depositing undisputed statutory dues,
including Income Tax, Sales Tax and any other statutory dues with the
appropriate authorities during the year. The company has no dues
towards Provident Fund, Investor Education and Protection Fund, Wealth
Tax, Service Tax, Custom Duty, Excise Duty and Cess.
16. According to the information and explanations given to us, there
is no undisputed amount payable towards Sales Tax or Income Tax.
17. According to the information and explanations given to us, there
are no dues of Sales Tax, Income Tax, Wealth Tax, Service Tax, Custom
Duty, and Excise Duty, which have not been deposited on account of any
dispute.
18. The accumulated losses of the Company have not exceeded fifty per
cent of net worth at the end of the year. The Company has not incurred
any cash loss during the financial year and the immediately preceding
financial year.
19. The Company has no dues to financial institutions, banks and
debenture holders during the year.
20. The Company has not granted any loan or advance on the basis of
security by way of pledge of shares, debentures and other securities.
21. In our opinion and according to the information and explanations
given to us the Company is dealing in, trading in shares, debentures
and other investments and proper records have been maintained of the
transactions and contracts and timely entries have been made there in.
These shares, debentures and other securities have been held by the
company.
22. In our opinion and according to the information and explanations
given to us the Company has not given any guarantee for any loans taken
by others from banks and financial institutions during the financial
year.
23. To the best of our knowledge and belief and according to the
information and explanations given to us, no term loan was availed by
the Company during the year.
24. In our opinion and according to the information and explanations
given to us the Company has not made preferential allotment of shares
during the year to companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
25. The Company has not made any public issue of shares during the
year and hence the question of verifying the end use of the funds does
not arise.
26. According to the information and explanations given to us and the
records examined by us, no debentures have been issued during the year.
27. 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
was noticed or reported during the financial year.
for R. Subramanian and Company
Chartered Accountants
Firm No. 004137S
Place : Chennai R. Rajaram
Date : August 12, 2010 Partner
M.No.:25210
Mar 31, 2000
We have audited the attached Balance Sheet of Kothari Petrochemicals
Limited as at March 31, 2000 and the Profit and Loss Account for the
year ended on that date annexed thereto and report that:
1. As required by the Manufacturing and Other Companies (Auditors
Report) Order 1988 issued by the company Law Board in terms of Section
227 (4A) of the Companies Act, 1956, we enclose in the Annexure A, a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
2. Further to our comments in the annexure referred to in paragraph 1
above, we state that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company, so far as appears from our examination of such
books.
c) The Balance Sheet and Profit and Loss Account referred to in this
report are in agreement with the books of account.
d) In our opinion the Profit and Loss Account & Balance Sheet comply
with Accounting Standards referred to in Subsection (3C) of Section 211
of the Companies Act, 1956.
e) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and the Profit and
Loss Account read together with the notes thereon give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view:
i) in so far as it relates to the Balance Sheet, of the State of
Affairs of the Company as at March 31, 2000 and
ii) in so far as it relates to the Profit and Loss Account, of the Loss
for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
ANNEXURE A (Referred to in paragraphs 1 of our report of even date)
1. The company is maintaining proper records to show full particulars
including quantitative details and situation of fixed assets. The fixed
assets of the company have been verified by the Management during the
year and no discrepancies between the book records and physical
inventories were noticed on such verification.
2. The Fixed Assets of the Company have not been revalued during the
year.
3. The stocks of Finished goods, Raw materials, Stores and Spare Parts
have been physically verified by the Management at the end of the year.
4. The procedures of physical verification followed by the Management
are reasonable and adequate in relation to the size of the Company and
the nature of its business.
5. The discrepancies noticed on verification between the physical
stocks and the book records were not material and have been properly
dealt with in the books of account.
6. On the basis of our examination of stock records, we are of the
opinion that the valuation of stocks is fair and proper in accordance
with the normally accepted accounting principles and is on the same
basis as in the previous year, but for the inclusion of excise duty on
closing stock which, however has no impact on the loss for the year.
7. According to the information and explanations given to us, the
Company has not taken any loans from firms, Companies or other parties
in which the Directors are interested as listed in the Register
maintained under Section 301 and from Companies under the same
management as defined under Section 370 (1B) of the Companies Act,
1956.
8. According to the information and explanations given to us, the
Company has not granted any loans secured or unsecured to Companies
listed in the Register maintained under Section 301 and to Companies
under the same management, as defined under Section 370(1B) of the
Companies Act, 1956.
9. In respect of Loans and Advances in the nature of loans given to
employees, they are generally repaying the principal amounts and
interest where applicable, as stipulated.
10. In our opinion and according to the information and explanations
given to us during the course of our audit, the internal control
procedures for the purchase of raw materials, stores, plant and
machinery, equipment and other assets and for the sale of goods, are
generally adequate considering the size of the Company and the nature
of its business.
11. According to the information and explanations given to us, there
were no transactions during the year between the Company and other
Companies wherein the Directors are interested under Section 299,
requiring entry in the Register maintained under Section 301 of the
Companies Act, 1956.
12. According to the information and explanations given to us, the
Company has no unserviceable or damaged stores, raw materials and
finished goods held at the end of the year.
13. The Company has not accepted deposits from the Public.
14. In our opinion, reasonable records have been maintained by the
Company for the sale and disposal of realisable by-products and scrap.
15. The Internal Audit is carried out by an external firm of Chartered
Accountants and is generally commensurate with the size of the Company
and nature of its business.
16. We have broadly reviewed without carrying out a detailed audit of
the Books of Account maintained by the Company pursuant to the order
made by the Central Government for the maintenance of Cost records
under Section 209 (1) (d) of the Companies Act, 1956 and are of the
opinion that prima facie the prescribed accounts and records have been
maintained on yearly basis and not on monthly or quarterly basis.
17. The company has been regular in remitting Provident Fund Dues with
the appropriate authorities. As explained to us the provisions of
Employees State Insurance Act are not applicable to the Company.
18. According to the information and explanations given to us, there
are no undisputed amounts payable in respect of Income-Tax, Sales-Tax,
Customs Duty and Excise Duty outstanding as at March 31, 2000 for a
period of more than six months from the date they became payable.
19. According to the information and explanations given to us, no
personal expenses of employees or Directors have been charged to
revenue account other than those payable under contractual obligations
or in accordance with generally accepted business practice.
20. The Company is not a sick industrial company within the meaning of
Clause (o) of subsection (1) of Section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1985.
For Fraser & Ross
K.N.RAMASUBRAMANIAN
Partner
Chartered Accountants
Place : Chennai
Date : 28th June 2000