Mar 31, 2018
Report on the Standalone Ind AS Financial Statements:
We have audited the accompanying standalone Ind AS financial statements of KRITI INDUSTRIES (INDIA) LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including other Comprehensive Income) , the Cash Flow Statement and the Statement for Changes in Equity for the year then ended , and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements:
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income , cash flows and statement of changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards ( IndAS ) prescribed under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone 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:
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting standards and standards on auditing 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 standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the Company has in place an adequate financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion:
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 accounting principles generally accepted in India including the Ind AS, of the financial position of the Company as at 31st March, 2018, and its financial performance including other comprehensive income , its cash flows and the statement of changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2) As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and the Statement of Changes in equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31st March, 2018 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 over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; 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 the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 34.3 to the standalone 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 was no amount required to be transferred to the Investor Education and Protection Fund by the Company during the year ended 31st March 2018.
âAnnexure Aâ to the Auditorâs Report
The Annexure referred to in paragraph 1 under âReport on other Legal and Regulatory Requirementsâ of our Independent Auditorâs Report of even date on the standalone Ind AS financial statements to the members of Kriti Industries (India) Limited for the year ended 31st March 2018, we further report that :
(i) a. As informed to us, the Company has maintained proper records, on yearly basis, showing full particulars, including quantitative details and situation of fixed assets.
b. As informed to us, the management of the Company has done physical verification of certain fixed assets at reasonable intervals in accordance with programme of verification, which in our opinion is reasonable, having regard to the size of the company and nature of its assets and no material discrepancies were noticed on such verification.
c. The title deeds of immovable properties are held in the name of the company except the title deeds of the land acquired pursuant to the scheme of demerger in earlier year which are pending for registration in the name of the company.
(ii) As informed to us, the inventory of the Company has been physically verified during the year by the management at reasonable intervals. Discrepancies noticed during the physical verification of stock were not material and have been properly dealt with in the books of accounts of the company.
(iii) As per information and explanation given to us, the Company has granted unsecured loan to one (1) company covered in the register maintained under section 189 of the Companies Act, 2013.
a. In respect of loan granted to the body corporate , the terms and conditions of the loans are prima facie not prejudicial to the interest of the company.
b. The terms of arrangement do not stipulate any repayment schedule and also the loan is repayable on demand. The borrower has been regular in the payment of interest as stipulated.
c. As there is no specified repayment schedule of the loan granted to the body corporate, the clause (iii) (c) of the order is not applicable to the company.
(iv) As per information and explanation given to us, the Company has complied all provisions in respect of loans, investment and guarantees covered under section 185 to section 186 of the Companies Act, 2013.
(v) In our opinion and according to the information and explanations given to us, the Company neither accepted nor invited any deposits from public within the provision of Section 73 to 76 of Companies Act, 2013 and rules made there under.
(vi) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government for the maintenance of the cost records under section 148 (1) of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made detailed examinations of the records with a view to determine whether they are accurate or complete.
(vii) a. According to the information and explanation given to us, the Company has been generally regular in depositing undisputed dues relating to Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Duties of Customs, Duties of Excise, Value Added Tax, Cess and other material statutory dues applicable to it with appropriate authorities. There are no undisputed statutory dues payable which are outstanding as at March 31, 2018 for a period of more than 6 months from the date they became payable.
b. According to the information and explanations given to us, following dues of Income Tax, Sales Tax, Service Tax, duties of Customs , duties of Excise or Value Added Tax has not been deposited on account of any dispute :-
Name of the Statute (Nature of the Dues) |
Forum where Matter is pending |
Period to which the amounts relates |
Amount (in Rs.) |
|
Central Sales Tax |
High Court Of MP |
2005-06 |
7238189 |
|
Central Sales Tax |
High Court Of MP |
2006-07 |
1335795 |
|
Entry Tax |
High Court Of MP |
2007-08 |
1355843 |
|
Central Sales Tax |
Appellate Board , Bhopal |
2008-09 |
114553 |
|
Central Excise |
Commissioner of Central Excise (Appeals) (Bhopal) |
2008-09 to 12-13 |
1688478 |
|
Central Excise |
Commissioner of Central Excise (Appeals) (Bhopal) |
2008-09 |
81000 |
|
Central Sales Tax |
Appellate Board , Bhopal |
2009-10 |
227206 |
|
M.P. Commercial Tax |
Appellate Board , Bhopal |
2009-10 |
741835 |
|
M.P. Commercial Tax |
Appellate Board , Bhopal |
2009-10 |
845026 |
|
Central Sales Tax |
Appellate Board , Bhopal |
2010-11 |
589001 |
|
M.P. Commercial Tax |
Appellate Board , Bhopal |
2010-11 |
3154351 |
|
Central Sales Tax |
Appellate Board , Bhopal |
2011-12 |
1587144 |
Central Excise |
Commissioner of Central Excise (Appeals) (Bhopal) |
2011-12 & 12-13 |
7474000 |
|
M.P. Commercial Tax |
Appellate Board , Bhopal |
2011-12 |
4405077 |
|
Central Excise |
Commissioner of Central Excise ( Appeal) |
2012-13 |
79417 |
|
Entry Tax |
Appellate Board , Bhopal |
2012-13 |
380439 |
|
M.P. Commercial Tax |
Appellate Board , Bhopal |
2012-13 |
892446 |
|
Central Excise |
Commissioner of Central Excise (Appeals) (Bhopal) |
2013-14 |
3216800 |
|
M.P. Commercial Tax |
Appellate Board , Bhopal |
2013-14 |
145746 |
|
Central Excise |
Commissioner of Central Excise (Appeals) , (Bhopal) |
2014-15 & 15-16 |
7517771 |
|
Central Sales Tax |
Deputy Commissioner, Indore |
2014-15 |
269734 |
|
M.P. Commercial Tax |
Additional Commissioner, Indore |
2014-15 |
49995 |
|
Central Sales Tax |
Additional Commissioner, Indore |
2015-16 |
846438 |
|
M.P. Commercial Tax |
Additional Commissioner, Indore |
2015-16 |
170987 |
(viii) According to information and explanations given to us by the management and according to the records of the company examined by us, we are of the opinion that the Company has not defaulted in repayment of any loan from Financial Institutions, Banks or debenture holders.
(ix) To the best of our knowledge and belief and according to the information and explanations given to us and based on documents provided to us, the company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. However, term loan availed by the Company were, prima-facie, applied by the Company for the purposes for which the loans were obtained.
(x) During the course of our examination of the books of accounts 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 neither come across any instance of material fraud on the company by its officers/employees or by the Company, noticed or reported during the year, nor have we been informed of any such case by the Management.
(xi) According to the information and explanation given to us, and based on documents provided to us, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act, 2013.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanation given to us, and based on document provided to us, all transactions with the related parties are in compliance with section 188 & section 177 of the Companies Act, 2013 where applicable and details of such transactions to the extent required has been disclosed in the standalone Ind AS financial statements as required by applicable accounting standards.
(xiv) According to the information and explanation given to us, the Company has not made any preferential allotment/ private placement of shares or fully or partly convertible debenture during the year.
(xv) According to the information and explanation given to us, the Company has not entered into any non-cash transactions with Directors or Persons connected with him.
(xvi) In our opinion and according to explanations given to us, the company is not required to get registered under section 45-IA of the Reserve Bank of India Act, 1934.
âAnnexure Bâ to the Auditorâs Report
The Annexure referred to in paragraph 2(f) under âReport on other Legal and Regulatory Requirementsâ of our Independent Auditorâs Report of even date on the standalone Ind AS financial statements to the members of Kriti Industries (India) Limited for the year ended 31st March 2018.
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 Kriti Industries (India) Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date. Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting 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 Standards on Auditing, and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls , both applicable to an audit of Internal Financial Controls and , both issued by ICAI . 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 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 standalone Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that :
1. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
2. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
3. provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 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 RAKESH KUMAR & ASSOCIATES
Chartered Accountants
Firm Reg. No. : 002150C
CA. RAKESH KUMAR GUPTA
Partner
Membership No. : 070906
Place : Indore
Date : 16th, May, 2018
Mar 31, 2016
To,
The Members,
Kriti Industries (India) Limited
34, Siyaganj, Indore (M.P.)
Report on the Financial Statements:
We have audited the accompanying financial statements of Kriti Industries (India) Limited ("the Company"), which comprise the Balance Sheet as at March 31,2016, and the Statement of Profit and Loss and Cash Flow Statement for the year ended March 31,2016, and a summary of significant accounting policies and other explanatory information. Management''s Responsibility for the Financial Statements:
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133oftheAct, read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility:
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the Company has in place an adequate financial controls system over financial reporting and the operating effectiveness of such controls.
An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion:
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements:
1) As required by the Companies (Auditor''s Report) Order, 2016 ("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" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2) As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and 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 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164(2) of the Act.
(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 "Annexure B".
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements- Refer Note 27.3 to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Kriti Industries (India) Limited
"Annexure A" to the Auditor''s Report
The Annexure referred to in paragraph 1 under "Report on other Legal and Regulatory Requirements" of our Independent
Auditor''s Report of even date on the standalone financial statements to the members of Kriti Industries (India) Limited for the year ended 31- March 2016, we further report that:
(I) a. As informed to us, the Company has maintained proper records, on yearly basis, showing full particulars, including quantitative details and situation of fixed assets.
b. As informed to us, the management of the Company has done physical verification of certain fixed assets at reasonable intervals in accordance with programme of verification, which in our opinion is reasonable, having regard to the size of the company and nature of its assets and no material discrepancies were noticed on such verification.
c. The title deeds of immovable properties are held in the name of the company except the title deeds of the land acquired pursuant to the scheme of demerger in earlier year which are pending for registration in the name of the company.
(ii) As informed to us, the inventory of the Company has been physically verified during the year by the management at reasonable intervals. Discrepancies noticed during the physical verification of stock were not material and have been properly dealt with in the books of accounts of the company.
(iii) As per information and explanation given to us, the Company has granted unsecured loan to one (1) company covered in the register maintained under section 189 of the Companies Act, 2013.
a. In respect of loan granted to the body corporate , the terms and conditions of the loans are prima facie not prejudicial to the interest of the company.
b. The terms of arrangement do not stipulate any repayment schedule and also the loan is repayable on demand. The borrower has been regular in the payment of interest as stipulated.
c. As there is no specified repayment schedule of the loan granted to the body corporate, the clause (iii) (c) of the order is not applicable to the company.
(iv) As per information and explanation given to us, the Company has complied all provisions in respect of loans, investment and guarantees covered under section 185 to section 186 of the Companies Act, 2013.
(v) In our opinion and according to the information and explanations given to us, the Company neither accepted nor invited any deposits from public within the provision of Section 73 to 76 of Companies Act, 2013 and rules made there under.
(vi) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government for the maintenance of the cost records under section 148 (1) of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made detailed examinations of the records with a view to determine whether they are accurate or complete.
(vii) a. According to the information and explanation given to us, the Company has been generally regular in depositing undisputed dues relating to Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Duties of Customs, Duties of Excise, Value Added Tax, Cess and other material statutory dues applicable to it with appropriate authorities. There are no undisputed statutory dues payable which are outstanding as at March 31, 2016 for a period of more than 6 months from the date they became payable.
b. According to the information and explanations given to us, following dues of Income Tax, Sales Tax, Service Tax, duties of Customs, duties of Excise or Value Added Tax has not been deposited on account of any dispute:-
Name of the Statute (Nature of the Dues) |
Forum where Matter is pending |
Period to which the amounts relates |
Amount (in Rs.) |
Central Excise |
CESTAT , Delhi |
2006-07 |
97000 |
Central Sales Tax |
High Court |
2005-06 |
7238189 |
Central Sales Tax |
High Court |
2006-07 |
1335795 |
Entry Tax |
Appellate Board , Bhopal |
2007-08 |
1808843 |
Central Excise |
CESTAT , Delhi |
2007-08, 2008-09 |
1825043 |
Central Sales Tax |
Appellate Board , Bhopal |
2008-09 |
114553 |
Central Excise |
Commissioner of Central Excise (Appeals) |
2008-09 to 2012-13 |
1688478 |
Central Excise |
Commissioner of Central Excise (Appeals) |
2008-09 |
81000 |
Central Excise |
Commissioner of Central Excise (Appeals) |
2008-09 to 2012-13 |
2712850 |
Central Excise |
CESTAT , Delhi |
2008-09, 2009-10, 2010-11 |
7188000 |
Central Sales Tax |
Appellate Board , Bhopal |
2009-10 |
227206 |
Income Tax |
Commissioner of Income Tax (Appeals) |
2009-10 |
5830530 |
Central Excise |
CESTAT , Delhi |
2008-09, 2009-10 |
6779192 |
Service Tax |
Commissioner of Central Excise (Appeals) |
2009-10, 2010-11 |
1572709 |
M.P. Commercial Tax |
Appellate Board , Bhopal |
2009-10 |
741835 |
M.P. Commercial Tax |
Appellate Board , Bhopal |
2009-10 |
845026 |
Central Sales Tax |
Appellate Board , Bhopal |
2010-11 |
589001 |
M.P. Commercial Tax |
Appellate Board , Bhopal |
2010-11 |
3154351 |
Central Excise |
CESTAT , Delhi |
2010-11, 2011-12 |
472172 |
Central Sales Tax |
Appellate Board , Bhopal |
2011-12 |
1587144 |
Central Excise |
Commissioner of Central Excise (Appeals) |
2011-12, 2012-13 |
7474000 |
M.P. Commercial Tax |
Appellate Board , Bhopal |
2011-12 |
4405077 |
Income Tax |
Commissioner of Income Tax (Appeals) |
2011-12 |
9933710 |
Entry Tax |
Deputy Commissioner |
2012-13 |
380439 |
Central Excise |
Commissioner of Central Excise (Appeals) |
2012-13 |
2114692 |
M.P. Commercial Tax |
Deputy Commissioner |
2012-13 |
764646 |
Income Tax |
Commissioner of Income Tax (Appeals) |
2012-13 |
2827610 |
Central Excise |
Commissioner of Central Excise (Appeals) |
2013-14 |
3216800 |
M.P. Commercial Tax |
Deputy Commissioner |
2013-14 |
245924 |
Central Sales Tax |
Deputy Commissioner |
2013-14 |
980894 |
Central Excise |
Commissioner of Central Excise (Appeals) |
2014-15 , 2015-16 |
7517771 |
(viii) According to information and explanations given to us by the management and according to the records of the company examined by us, we are of the opinion that the Company has not defaulted in repayment of any loan from Financial Institutions, Banks or debenture holders.
(ix) To the best of our knowledge and belief and according to the information and explanations given to us and based on documents provided to us, the company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. However, term loan availed by the Company were, prima-facie, applied by the Company for the purposes for which the loans were obtained.
(x) During the course of our examination of the books of accounts 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 neither come across any instance of material fraud on the company by its officers/employees or by the Company, noticed or reported during the year, nor have we been informed of any such case by the Management.
(xi) According to the information and explanation given to us, and based on documents provided to us, the managerial remuneration has been paid /provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act, 2013.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanation given to us, and based on document provided to us, all transactions with the related parties are in compliance with section 188 & section 177 of the Companies Act, 2013 where applicable and details of such transactions to the extent required has been disclosed in the financial statements as required by applicable accounting standards.
(xiv)According to the information and explanation given to us, the Company has not made any preferential allotment/private placement of shares or fully or partly convertible debenture during the year.
(xv) According to the information and explanation given to us, the Company has not entered into any non-cash transactions with Directors or Persons connected with him.
(xvi) In our opinion and according to explanations given to us, the company is not required to get registered under section 45-IA of the Reserve Bank of India Act, 1934.
"Annexure B" to the Auditor''s Report
The Annexure referred to in paragraph 2(f) under "Report on other Legal and Regulatory Requirements" of our Independent Auditor''s Report of even date on the standalone financial statements to the members of Kriti Industries (India) Limited for the year ended 31- March 2016.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Kriti Industries (India) Limited ("the Company") as of March 31,2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s 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 ("ICAI"). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and Standards on Auditing, and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and , both issued by ICAI. 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 auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that:
1. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
2. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
3. provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31,2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Rakesh Kumar & Associates
Chartered Accountants
FRN: 002150C
Rakesh KumarGupta
Partner M. No: 070906
Indore
May 12th, 2016
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Kriti Industries (India) Ltd. ("the Company"), which comprise the
Balance Sheet as at 31 March, 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 explanatoryinformation.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified u/s 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
ofthefinancial statementsthatgivea true and fair view tofraud or error.
Auditor's Responsibility
Ourresponsibility isto express an opinion on thesefinancial statements
based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are
requiredtobeincludedintheauditreportunder the provisions of the Actand
the Rules madethereunder. We conducted our audit in accordance with
the Standards on Auditing specified u/s 143(10) of the Act. Those
Standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonableassuranceabout whetherthe
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risk of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditors considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place on adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation ofthefinancial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion onthefinancial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditor's Report) Order, 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 knowledgeand beliefwere necessary for the
purposesofouraudit.
(b) In our opinion, proper books of accounts and required by law have
been kept by the Companyso far as itappears from ourexamination ofthose
books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this report areinagreementwiththebooks of
account.
(d) In our opinion the aforesaid standalone financial statements comply
with the Accounting Standards specified u/s 133 ofthe Act, read with
the standalone Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none ofthe directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of section 164(2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our knowledge and
accordingto the information and explanationsgiveto us:
(i) The Company has disclosed the impact of pending litigations as at
31st March, 2015 on its financial position in its financial statements.
(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended 31st March, 2015.
Referred to in paragraph 1 under the heading "Report on other Legal and
Regulatory Requirements" of our report of even date on the standalone
financial statements as of and forthe year ended31st March, 2015.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation offixed
assets.
(b) The Company has physically verified certain assets during the year
in accordance with a programme of verification, which in our opinion
provides for physical verification of the fixed assets at reasonable
intervals. According to the information and explanations given to us no
material discrepancies were noticed on such verification.
(ii) (a) As explained to us, inventories were physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) (a) The company has granted unsecured loans to 1 company covered
in the register maintained under Section 189 ofthe Act.
(b) In the case of loan granted to the body corporate listed in the
register maintained u/s 189 of the Act, the borrower has been regular
in the payment ofinterest as stipulated.
(c) The terms of arrangement do not stipulate any repayment schedule
and the loan is repayable on demand. Accordingly clause 'C for
repayment is not applicable.
(d) There is no overdue amount of more than Rs. 1 lac in respect of the
loan granted to the bodies corporate as listed in the
registermaintained u/s 189 oftheAct.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to acquisition of properties, fixed assets and
with regard to the sale of properties and services. During the course
of our audit, we have not observed any continuing failure to correct
major weaknesses in internal controls.
(v) The Company has not accepted any deposits from the public within
the meaning of section 73 and 74 of the Actand the rules framed there
under tothe extent notified.
(vi) We have broadly reviewed the cost records maintained by the
company pursuant to the Companies Cost Record & Audit Rule, 2014,
prescribed by the Central Government under section 148(1) ofthe Act and
we are ofthe opinion that prima facie the prescribed cost records have
been maintained. We have however not made detailed examination ofthe
cost records with a view to determine whether they are adequate
andcomplete.
(vii) (a) According to the information and explanations given to us and
the records ofthe Company examined by us, the particulars of dues of
sales tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax and othermaterial statutory dues, as applicable, with
the appropriate authorities.
(b) According to the information and explanations given to us,
following amounts have not been deposited as on 31st March, 2015 on
account ofany dispute:
Nature of dues Related period Forum where the Amount
dispute is pend
ing
Central Sales Tax 2005-06 High Court 7238189
Central Sales Tax 2006-07 High Court 1335795
Entry Tax 2007-08 Appellate Board,
Bhopal 1808843
Central Sales Tax 2008-09 Appellate Board,
Bhopal 114553
Central Sales Tax 2009-10 Appellate Board,
Bhopal 227206
M.P. Commercial Tax 2009-10 Appellate Board,
Bhopal 741835
M.P. Commercial Tax 2009-10 Appellate Board,
Bhopal 901426
Central Sales Tax 2010-11 Appellate Board,
Bhopal 634351
M.P. Commercial Tax 2010-11 Appellate Board,
Bhopal 3326751
Central Sales Tax 2011-12 Appellate Board,
Bhopal 1692994
M.P. Commercial Tax 2011-12 Appellate Board,
Bhopal 4698777
Central Sales Tax 2012-13 Deputy Commissioner 1165146
Entry Tax 2012-13 Deputy Commissioner 475639
M.P. Commercial Tax 2012-13 Deputy Commissioner 1227546
Income Tax 2011-12 Commissioner of
Income Tax (Appeals) 7806890
Income Tax 2012-13 Commissioner of
Income Tax (Appeals) 17640910
(c) According to the information and explanations given to us, the
amount 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 madethereunder has been transferred to such
fund withintime.
(viii) The Company neither has any accumulated losses nor has incurred
any cash losses during the financial yearcovered byourauditandthe
immediately precedingfinancial year.
(ix) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues tobanksor debentures
holders.
(x) To the best of our knowledge and belief and according to the
information and explanations given to us, the Companyhasnotgivenany
guarantee for loanstaken by othersfrom bankorfinancial institutions.
(xi) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, the terms
loans obtained during the year were, prima facie, applied by the
Company for the purpose for whichtheywere obtained.
(xii) 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 neither come across any instance of
matrial fraud on or by the Company, noticed or reported during theyear,
nor havewe been informed ofany such case bythe Management.
For R. D. Asawa & Co.
Chartered Accountants (FRN 001164C)
Place: Indore. (CA. R. D. Asawa)
Dated : 20th May, 2015. Proprietor (M.No.016562)
Mar 31, 2014
We have audited the accompanying financial Statements of Kriti
Industries (India) Limited ("the Company"), which comprise the Balance
Sheet as at 3lst March, 2014, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance of the Company in accordance with the
Accounting Standards referred to in sub-section 3(C) of section 211 of
the Companies Act, 1956 read with General Circular 15/2013 dated
13.09.2013 issued by the Ministry of Corporate Affairs, in respect of
section 133 of the Companies Act, 2013 ("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 and 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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the 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 bu not for the purpose of expressing an opinion on
effectiveness of the entity''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India.
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 3lst March, 2014,
(b) In the case of the Statement of Profit and Loss, of the profit of
the Company 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
l. 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 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 appear from our examination of
those books.
(c) The Balance sheet, Statement of Profit and Loss and Cash Flow
Statement, dealt with by this Report are in agreement with the books of
accounts.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting standards referred to in
the Companies Act, 1956 read with General Circular 15/2013 dated
13.09.2013 issued by the Ministry of Corporate Affairs, in respect of
section 133 of the Companies Act, 2013
(e) On the basis of the written representations received from the
directors as on 3lst March, 2014, taken on record by the Board of
Directors, none of the directors is disqualified as on 3lst March,2014
from being appointed as a director in terms of clause (g) of
sub-section(l) of Section 274 of the Act.
Annexure to the Independent Auditor''s Report Referred to in Paragraph 1
under the Heading of "Report on other legal and regulatory
requirements" of our report of even date
1. In respect of Company''s fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The Company has physically verified certain assets during the year
in accordance with a programme of verification, which in our opinion
provides for physical verification of the fixed assets at reasonable
intervals. According to the information and explanations given to us
no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the company during the year.
2. In respect of Company''s inventories:
(a) As explained to us, inventories were physically verified during the
year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
3. In respect of the loans, secured or unsecured, granted or taken by
the company to / from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
(a) In respect Company has granted unsecured loans to 2 party, covered
in the register maintained U/S 301 of the Act, and amount involved is
Rs. 2332.00 lacs.
(b) Rate of interest and other terms and conditions of loan given are
not primafacie prejudicial to the interest of company.
(c) In our opinion receipt of principal and interest is regular as
stipulated.
(d) In our opinion there is no overdue of interest or principal.
(e) Company has taken unsecured loan from 3 parties covered in the
register maintained U/S 301 of the Act, and amount involved is Rs. 640
lacs.
(f) Rate of Interest and other terms and conditions of loan taken are
primafacie not prejudicial to the interest of the company.
(g) Company is regular in repaying principle amount and interest as
stipulated.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services Further, the basis of our examination of the books and records
of the company and according to the information and explanations given
to us, we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in the aforesaid
internal control system.
5. (a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act that need to be entered into the register
maintained under that Section, have been so entered.
(b) According to the information and explanations given to us, there
are transaction for purchase of DEPB Licenses etc, in excess of
Rs.5lacs in respect of each party covered u/s 301 of the Act. There is
no similar transaction available for comparison and therefore
reasonableness of price/value of transaction could not be ascertained.
However there are no other transaction for sale/purchase of services
etc.
6. The Company has not accepted any deposits from the public within the
meaning of Sections 58A and 58AA of the Act and the rules framed there
under and therefore clause is not applicable to the company.
7. In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the Companies (Cost Accounting Records) rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however not made
a detailed examination of the cost records with a view to determine
whether they are accurate or complete.
9. (a) According to the information and explanation given to us and the
records of the Company examined by us, in our opinion, the Company has
been generally regular in depositing undisputed statutory dues,
including Provident Fund, Investor Education and Protection Fund,
Employees State insurance, Income-tax, Sales-tax, Wealth Tax, Custom
Duty, Excise Duty, Cess and any other statutory dues as applicable with
the appropriate authorities during the year.
(b) The disputed statutory dues that have not been deposited on account
of disputed matters pending before appropriate authorities are as
under:
Nature of dues Related Forum where dispute is Amount(Rs.>
pending
Central Sales Tax 2004-05 High Court 1836995
Central Sales Tax 2005-06 High Court 7238189
Central Sales Tax 2006-07 High Court 1335795
Entry Tax 2007-08 Appellate Board BHOPAL 1808843
Central Excise Tax 2007-08 Deputy Commissioner 947051
Central Sales Tax 2008-09 Appellate Board BHOPAL 114553
Central Excise Tax 2010-11 Comm. Appeal(1), Indore 2662714
Central Sales Tax 2009-10 Appellate Board BHOPAL 227206
Central Sales Tax 2010-11 Appellate Board BHOPAL 724979
M.P. Commercial Tax 2009-10 Appellate Board BHOPAL 741835
M.P. Commercial Tax 2010-11 Appellate Board BHOPAL 3802001
Income Tax 2011-12 CIT (A), Indore 13306890
10. The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses during the current and the
immediately preceding financial year.
11. Based on our audit procedures and as per the information and
explanation given by the management, we are of the opinion that the
company has not defaulted in the repayment of dues to financial
institutions, banks or debenture holders.
12. According to the information and explanations given to us and based
on the documents and records produced before us, the Company has not
given any loans and advances on the basis of security by way of pledge
of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund /
nidhi /mutual benefit fund / societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. Company has not given any guarantees for loans taken by others from
banks or institutions, and therefore commenting over terms and
conditions does not arise.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were, prima facie, applied by the Company for the purposes for
which the loans were obtained.
17. According to the cash flow statement and other records examined by
us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have, prima facie, not been
used during the year for long term investment.
18. The Company has not made preferential allotment of shares to the
parties and companies covered under section 301 of the Act.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issue during the
year, and therefore question of end use does not arise.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or detected during the year.
Place : Indore For R. D. Asawa & Co. ,
Chartered Accountants
Dated : 29th May, 2014 (FRN 001164C)
R. D. Asawa,
Proprietor,
Membership No.16562
Mar 31, 2012
1) We have audited the attached Balance Sheet of Kriti Industries
(India) Limited as at 31st March, 2012 and also the Statement of Profit
and Loss and the Cash Flow statement of the Company for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2) We conducted our audit in accordance with 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) Further to our comments in Annexure referred to above, we report
that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of such
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 dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
e) On the basis of the written representations received from the
directors as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of 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 with significant
accounting policies and other notes thereon, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012. ii) In the case of Statement of Profit
and Loss, of the profit for the year ended on that date, and iii) In
the case of Cash Flow Statement, of the cash flows for the year ended
on that date
4. As required by the Companies (Auditor's Report) Order, 2003 as
amended by Companies (Auditors Report) (Amendment) order, 2004 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956 and according to information &
explanation given to us on our enquiries and on the basis of such
checks we considered appropriate, we further state that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets. (b) The Company has physically verified certain assets during
the year in accordance with a programme of verification, which in our
opinion provides for physical verification of the fixed assets at
reasonable intervals. According to the information and explanations
given to us no material discrepancies were noticed on such
verification.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the company during the year. (ii) (a) As explained to us,
inventories were physically verified during the year by the management
at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) (a) Company has granted unsecured loans to 1 party, covered in
the register maintained U/S 301 of the Companies Act, 1956. Outstanding
of loan given at the year end Rs.90 lacs and maximum outstanding during
the year 668.25 lacs.
(b) Rate of interest and other terms and conditions of loan given are
not prima-facie prejudicial to the interest of company.
(c) In our opinion receipt of principal and interest is regular as
stipulated.
(d) In our opinion there is no overdue of interest or principal.
(e) Company has taken unsecured loan from 2 parties covered in the
register maintained U/S 301 of the Companies Act, 1956 amount involved
Nil, maximum Outstanding during the year 941.67 lacs .
(f) Rate of interest and other terms and conditions of loan taken are
not prima-facie prejudicial to the interest of the company.
(g) Payment of principal and interest is regular as stipulated.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, the basis of our examination of the books and
records of the company and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) (a) In our opinion 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 that need to be
entered into the register maintained under that Section, have been so
entered.
(b) According to the information and explanations given to us, there
are transaction for purchase of DEPB Licenses etc, in excess of Rs.5
lacs in respect of each party. There is no similar transaction
available for comparison and therefore reasonableness of price/value of
transaction could not be ascertained. However there are no other
transaction for sale/purchase of services etc.
vi) The Company has not accepted any deposits from
the public within the meaning of Sections 58A and 58AA of the
Companies Act, 1956 and the rules framed there under and therefore
clause is not applicable to the company.
vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
viii) The Company is not required to maintain cost records in terms of
Sec 209(1) (d) of the Companies Act, 1956.
ix) (a) According to the information and explanation given to us and
the records of the Company examined by us, in our opinion, the Company
has been generally regular in depositing undisputed statutory dues,
including Provident Fund, Investor Education and Protection Fund,
Employees State insurance, Income-tax, Sales-tax, Wealth Tax, Custom
Duty, Excise Duty, Cess and any other statutory dues as applicable with
the appropriate authorities during the year.
(b) According to the records of the Company, the disputed dues in
respect of Sales Tax, Entry Tax and Central Excise Tax are as under:
S.no. Nature of dues Related Period Amount
(Rs.)
1 Central Sales Tax 2004-05 1836995
2 Central Sales Tax 2005-06 7238189
3 Central Sales Tax 2006-07 1335795
4 VAT Tax 2007-08 3947024
5 Entry Tax 2007-08 1808843
6 Entry Tax 2007-08 425618
7 Central Excise Tax 2007-08 947051
8 Central Sales Tax 2008-09 114553
9 Central Excise Tax 2010-11 2662714
10 VAT Tax 2011-12 118750
11 Entry Tax 2011-12 23750
S.no. Forum where dispute is pending
1 High Court
2 High Court
3 High Court
4 Appellate Board BHOPAL
5 Appellate Board BHOPAL
6 Appellate Board BHOPAL
7 Deputy commissioner
8 Appellate Board BHOPAL
9 Comm. Appeal(1), Indore
10 Deputy commissioner
11 Deputy commissioner
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses during the current and the
immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanation given by the management, we are of the
opinion that the company has not defaulted in the repayment of dues to
financial institutions, banks or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced before us, the Company has
not given any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company.
(xiv) In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) Company has not given any guarantees for loans taken by others
from banks or institutions, and therefore commenting over terms and
conditions does not arise.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were, prima-facie, applied by the Company for the purposes for
which the loans were obtained.
(xvii) According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have, prima-facie, not been
used during the year for long term investment.
(xviii) The Company has not made preferential allotment of shares to
the parties and companies covered under section 301 of the Companies
Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by public issue during the
year, and therefore question of end use does not arise. (xxi) 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
detected during the year.
For R.D Asawa & Co.
Chartered Accountants
(FRN O1164C)
(R.D. ASAWA)
Proprietor
M.No. 16562
PLACE : Indore
DATED : 26th May, 2012
Mar 31, 2011
1) We have audited the attached Balance Sheet of Kriti Industries
(India) Limited as at 31st March, 2011 and also the Profit and Loss
Account and the Cash Flow statement of the Company for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2) We conducted our audit in accordance with 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) Further to our comments in Annexure referred to above, we report
that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of such
books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.
e) On the basis of the written representations received from the
directors as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2011 from being appointed as a director in terms of clause
(g) of sub section (1) of section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with significant
accounting policies and other notes thereon, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011.
ii) in the case of Profit and Loss Account, of the profit for the year
ended on that date, and
iii) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date
4. As required by the Companies (Auditor's Report) Order, 2003 as
amended by Companies (Auditors Report) (Amendment) order, 2004 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956 and according to information &
explanation given to us on our enquiries and in consideration of the
scheme of arrangement as per note No 17 to the notes on accounts and on
the basis of such checks we considered appropriate, we further state
that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has physically verified certain assets during the year
in accordance with a programme of verification, which in our opinion
provides for physical verification of the fixed assets at reasonable
intervals. According to the information and explanations given to us
no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the company during the year.
(ii) (a) As explained to us, inventories were physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) (a) Company has granted unsecured loans to 2 company, covered in
the register maintained U/S 301 of the Act. outstanding of loan given
at the year end Rs. 50 lacs and maximum outstanding during the year Rs.
1779.40 lacs.
(b) Rate of interest and other terms and conditions of loan given are
not prima-facie not prejudicial to the interest of company.
(c) In our opinion receipt of principal and interest is regular as
stipulated
(d) In our opinion there is no overdue of interest or principal.
(e) Company has taken unsecured loan from a company covered in the
register maintained u/s 301 of the Act, amount involved Nil, maximum
Outstanding during the year Rs. 496.96 lacs
(f) Rate of interest and other terms and conditions of loan taken are
not prima-facie prejudicial to the interest of the company.
(g) Payment of principal and interest is regular as stipulated
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services further, the basis of our examination of the books and records
of the company and according to the information and explanations given
to us, we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in the aforesaid
internal control system.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Act that need to be entered into the
register maintained under that Section, have been so entered.
(b) According to the information and explanations given to us, there
are transaction for purchase of DEPB Licenses etc, in excess of Rs.5
lacs in respect of each party. There is no similar transaction
available for comparison and therefore reasonableness of price/value of
transaction could not be ascertained. However there are no other
transaction for sale/purchase of services etc.
vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under and therefore clause is not applicable to the company.
vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
viii) The Company is not required to maintain cost records in terms of
Sec 209(1) (d) of the Companies Act, 1956.
ix) (a) According to the information and explanation given to us and
the records of the Company examined by us, in our opinion, the Company
has been generally regular in depositing undisputed statutory dues,
including Provident Fund, Investor Education and Protection Fund,
Employees State insurance, Income-tax, Sales-tax, Wealth Tax, Custom
Duty, Excise Duty, Cess and any other statutory dues as applicable with
the appropriate authorities during the year.
(b) According to the records of the Company, the disputed dues in
respect of Sales Tax, Entry Tax and Income Tax are as under:
S.no. Nature of dues Related Amount(Rs.) Forum where
Period dispute is
pending
1 Central Sales 2004-05 1836995 Appellate Board
Tax
2 Central Sales 2005-06 7238189 Deputy
Tax commissioner
3 Central Sales 2006-07 1335795 Deputy
Tax commissioner
4 VAT Tax 2007-08 4934024 Deputy
commissioner
5 Entry Tax 2007-08 1808843 Appellate Board
6 Central Excise 2007-08 947051 Deputy
Duty commissioner
7 Entry tax 2007-08 532118 Deputy
commissioner
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses during the current and the
immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanation given by the management, we are of the opinion that the
company has not defaulted in the repayment of dues to financial
institutions, banks or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced before us, the Company has
not given any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) The provisions of any special statute applicable to chit fund /
nidhi /mutual benefit fund / societies are not applicable to the
Company.
(xiv) In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) Company has not given any guarantees for loans taken by others
from banks or institutions, and therefore commenting over terms and
conditions does not arise.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were, prima-facie, applied by the Company for the purposes for
which the loans were obtained.
(xvii) According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have, prima-facie, not been
used during the year for long term investment (fixed assets, etc).
(xviii) The Company has not made preferential allotment of shares to
the parties and companies covered under section 301 of the Act.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by public issue during the
year, and therefore question of end use does not arise.
(xxi) 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 detected during the year.
For SUBHASH DESHPANDE & CO.
CHARTERED ACCOUNTANTS
F.R.N. 000476C
(R.D. ASAWA)
PARTNER
M.No. 16562
PLACE : INDORE
DATED: 21st May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Kriti Industries
(India) Limited as at 31st March, 2010 and also the Profit and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with 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. Further to our comments in Annexure referred to above, we report
that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of such
books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.
e) On the basis of the written representations received from the
directors as on 31st March 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2010 from being appointed as a director in terms of clause
(g) of sub section (1) of section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with significant
accounting policies and other notes thereon, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010. ii) In the case of Profit and Loss
Account, of the profit for the year ended on that date, and iii) In the
case of Cash Flow Statement, of the cash flows for the year ended on
that date
4. As required by the Companies (Auditors Report) Order, 2003 as
amended by Companies (Auditors Report) (Amendment) Order, 2004 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956 and according to information &
explanation given to us on our enquiries and in consideration of the
scheme of arrangement as per note No 17 to the notes on accounts and on
the basis of such checks we considered appropriate, we further state
that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has physically verified certain assets during the year
in accordance with a programme of verification, which in our opinion
provides for physical verification of the fixed assets at reasonable
intervals. According to the information and explanations given to us
no material discrepancies were noticed on such verification.
(c) On the demerger of the companys solvent division with Kriti
Nutrients Ltd, and hived off of engineering and moulding division with
Kriti Auto & Engineering Plastic Pvt. Ltd. as Per note no. 17 to the
Notes on Accounts, Companys going concern concept is not effected
since pipe division is independent and still with company.
(ii) (a) As explained to us, inventories were physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) (a) Company has granted unsecured loans to a subsidiary company,
Maximum amount outstanding during the year Rs. 16.39 lacs, however
closing balance was Rs.1.25 lacs.
(b) Rate of interest and other terms and conditions of loan given are
not prima-facie prejudicial to the interest of company.
(c) Receipt of principal and interest are regular as stipulated.
(d) Since receipt of principal and interest is regular as stipulated
and therefore question of overdue does not arise.
(e) Company has taken unsecured loan from a company covered in the
register maintained U/S 301 of the Act, amount involved 368.04lacs,
maximum outstanding during the year 1031.30 lacs.
(f) Rate of interest and other terms and conditions of loan taken are
not prima-facie prejudicial to the interest of the company.
(g) Payment of principal and interest is regular as stipulated.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, the basis of our examination of the books and
records of the company and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) (a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to in
Section 301 of the Act that need to be entered into the register
maintained under that Section, have been so entered.
(b) According to the information and explanations given to us, there is
no transaction in excess of Rs; 5 lakhs in respect of any party and
hence the question of reasonable prices in respect of such transactions
regards to the prevailing market prices does not arise.
vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58 A and 58 AA of the Act and the rules framed
there under and therefore clause is not applicable to the company.
vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
viii) The Company is not required to maintain cost records in terms of
Sec 209(1) (d) of the Companies Act, 1956.
ix) (a) According to the information and explanation given to us and the
records of the Company examined by us, in our opinion, the Company has
been generally regular in depositing,undisputed statutory dues,
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income-Tax, Sales-Tax, Wealth Tax, Custom
Duty, Excise Duty, Cess and any other statutory dues as applicable with
the appropriate authorities during the year. (b) According to the
records of the Company, the disputed dues in respect of Sales Tax,
Entry Tax and Income Tax are as under:
S.No. Nature of dues Related Period Amount (Rs.) Forum where
dispute is
pending
1 Central Sales Tax 2004-05 1836995 Appellate Board
2 Central Sales Tax 2005-06 7238189 Deputy
commissioner
3 Central Sales Tax 2006-07 1335795 Deputy
commissioner
4 Entry Tax 2006-07 63822 Deputy
commissioner
5 Entry Tax 2007-08 1808843 Appellate Board
6 Central Excise Duty 2004-05 775000 CESTAT
7 Central Excise Duty 2004-05 1700000 CESTAT
8 Central Excise Duty 2006-07 2329153 CESTAT
9 Central Excise Duty 2007-08 520544 CESTAT
10 Central Excise Duty 2008-09 1825043 CESTAT
11 Central Excise Duty 2008-09 165657 CESTAT
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses during the current
and the immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanation given by the management, we are of the opinion that the
company has not defaulted in the repayment of dues to financial
institutions, banks or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced before us, the Company has
not given any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) The provisions of any special statute applicable to chit fund /
nidhi /mutual benefit fund / societies are not applicable to the
Company.
(xiv) In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) Company has not given any guarantees for loans taken by others
from banks or institutions, and therefore commenting over terms and
conditions does not arise.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by
the Company were, prima-facie, applied by the Company for the purposes
for which the loans were obtained.
(xvii)According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have prima-facie, not been used
during the year for long term investment (fixed, assets, etc).
(xviii)The Company has not made preferential allotment of shares to the
parties and companies covered under section 301 of the Act.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by public issue during the
year, and therefore question of end use does not arise. (xxi) 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
detected during the year.
For Subhash Deshpandc & Co.
Chartered Accountants
(FRN-000476c)
(R.D. Asawa)
Place : Indore Partner
Date : 19th May 2010 M.No. 16562