Home  »  Company  »  Kunststoffe Inds  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Kunststoffe Industries Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of KUNSTSTOFFE INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the 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 at rue and fair view of he financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India,including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions oft he Act for safeguarding oft he 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 at rue 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 oft he Act, the Accounting and Auditing Standards and matters which are required to be included in the audit report under the provisions oft he 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 oft he risks of material misstatement oft he financial statements, weathered to fraud or error. In making those risk assessments,the auditor considers internal financial control relevant tot he Company's preparation oft he financial statements that give at rue and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the 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 ab as is for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according tot he explanations given to us and subject to Note no.21 (IV)(B), (IV)(C), 22(I), (II), (III), (IV), (V), (VI),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 Loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

I. As required by 'the Companies (Auditor's Report) Order, 2015', issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (hereinafter referred to as the "Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

II. As required by Section 143 (3) of the Act, were port that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary fort he purposes of our audit.

(b) In our opinion,proper books of account as required bylaw have been kept by the Company so far as it appears from our examination oft hose 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) In our opinion, the company, based on the facts of its case and its background is a going concern.

(f) On the basis of the written representations received from the Directors as on 31st March, 2015 taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March, 2015 from being appointed as a Director in terms of Section 164 (2) of the Act.

(g) Since the central Government has not issued any notification as to the rate at which the cess is to be paid under Section 441 of the Act, nor has it issued any rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the company.

ANNEXURE REFERRED TO IN PARAGRAPH I OF OUR REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS OUR AUDITORS' REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2015 OF KUNSTSTOFFE INDUSTRIES LIMITED

On the basis of such checks as we considered appropriate and in terms of the information and explanations given to us, we state that: -

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets;

(b) The fixed assets are physically verified by the management according to a phased programme designed to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. According to the information and explanation 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, substantial part of the fixed assets has not been disposed off by the Company, during the year;

(ii) As the company has not purchased / sold goods during the year nor is there any opening stock, requirement of reporting on physical verification of stocks or maintenance of inventory records, in our opinion, does not arise;

(iii) The Company had neither taken nor granted any loans, secured or unsecured from / to Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act 1956. Hence, the question of reporting whether the rate of interest and other terms and conditions of such loans are prima facie prejudicial to the interest of the company, whether reasonable step for recovery / payment of the over dues of such loans are taken does not arise;

(iv) The company has an internal audit system commensurate with the size of the company and nature of its business

(v) The Company has not accepted any deposits from the public during the year, Therefore the provisions of clause 3 (v) of the Companies (Auditors Report) Order, 2015 are not applicable to the Company;

(vi) We are unable to offer any comment on the clause no. (vi) pertaining to maintenance of cost records as the cost auditor has not completed cost audit till date;

(vii) (a) According to the records of the Company, it has been generally regular in depositing, wherever applicable, undisputed statutory dues including Investor Education and Protection Fund, Wealth Tax, Custom Duty, Cess and other statutory dues with the appropriate authorities.

(b) No Un-disputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Custom Duty, Excise Duty and Cess were in arrears, as at 31st March, 2015, for a period of more than six months from the date they became payable;

(c) There are no dues of sales tax , income tax, custom tax , wealth tax, excise duty and Cess which have not been deposited on account of any dispute;

(viii) The accumulated losses of the company are more than 50% (Fifty Percent) of its Net Worth and hence the company has filed a reference with the BIFR, New Delhi Under the SICA 1985 which has been registered by the BIFR. the company registered under the Sick Unit vide BIFR's order dated 18.01.2007. The company has earned Cash Profit of Rs. 42,84,600/- in the current financial year and of Rs. 72,53,433/- in the immediate preceding financial year. In arriving at the accumulated loss and net worth, we have considered the qualifications which are quantifiable in the Audit Report of the year to which these losses pertain;

(ix) On the basis of records examined by us and the information and explanations given to us, the Company has not accepted any loans from any financial institution or banks or issued debentures. Therefore the provisions of clause 3 (ix) of the Companies (Auditors Report) Order, 2015 are not applicable to the Company ;

(x) According to the information and explanations given to us, and the representations made by the management, the Company has not given any guarantee for loans taken by others from banks or financial institutions;

(xi) On the basis of the records examined by us, we have to state that, the Company has not obtained any term loans during the year;

(xii) According to the information and explanations given to us, and to the best of our knowledge and belief, no fraud on or by the Company, has been noticed or reported by the Company during the year;

For P.M.Turakhia & Associates For A.V. Jobanputra & Co. Chartered Accountants Chartered Accountants Firm Registration No: 111086W Firm Registration No: 104314W

M.D.Turakhia A.V.Jobanputra Partner Proprietor Membership No. 017399 Membership No. 016352

Place : Mumbai

Date : 30.05.2015


Mar 31, 2014

We have audited the accompanying financial statements of KUNSTSTOFFE INDUSTRIES LIMITED, ("the Company"), which comprise the Balance Sheet as at 31st 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 and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") read with the general circular 15/2013 dated 13th September,2013 of the ministry of corporate affairs in the respect of section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with 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. 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 and subject to Note 21(VI)(C), 22(I), (II), (III), (IV), (V), (VI), the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 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 the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by Section 227(3) of the Act, we report that:

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 company does not have any Branch office and accordingly this clause is not applicable to the company;

(d) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;

(e) In our opinion, the Balance Sheet, Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Act.

(f) On the basis of the written representations received from the directors as on 31st March, 2014 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2014 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act.

(g) Since the central Government has not issued any notification as to the rate at which the cess is to be paid under Section 441 of the Act, nor has it issued any rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the company.

ANNEXURE TO THE AUDITOR''S REPORT

The Annexure referred to in our report to the members of KUNSTSTOFFE INDUSTRIES LIMITED for the year ended 31 March, 2014. We report that:-

i) (a) The Company has maintained proper records showing full particulars, including quantitative details & situation of fixed assets;

(b) All the Assets have not been physically verified by the Management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its Fixed Assets. No material discrepancies were noticed on such verification;

(c) During the year, the Company has not disposed off a major or substantial part of fixed assets so as to affect the going concern status of the Company;

ii) As the company has not purchased/sold goods during the year nor is there any opening stock, requirement of reporting on physical verification of stocks or maintenance of inventory records, in our opinion, does not arise;

iii) The Company had neither taken nor granted any loans, secured or unsecured from/to Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act 1956. Hence, the question of reporting whether the rate of interest and other terms and conditions of such loans are prima facie prejudicial to the interest of the company, whether reasonable step for recovery/payment of the over dues of such loans are taken does not arise;

iv) There is adequate inventory control procedure commensurate with the size of the company and nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. There is no continuing failure to correct major weaknesses in internal control;

v) Based on the audit procedures applied by us and the information and explanations provided by the management, we are of the opinion that there were no transactions during the year that need to be entered in the register maintained under section 301 of the Companies Act, 1956;

vi) Based on our scrutiny of the company''s records and according to the information and explanations provided by the management, in our opinion, the company has not accepted any public deposits so far upto 31st March, 2014;

vii) The company has an internal audit system commensurate with the size of the company and nature of its business;

viii) We are unable to offer any comment on the clause no. (viii) pertaining to maintenance of cost records as the cost auditor has not completed cost audit till date;

ix) (a) The company is 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, and Cess any other material statutory dues applicable to it;

(b) No Un-disputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty and Cess were in arrears, as at 31st March, 2014, for a period of more than six months from the date they became payable;

(c) There are no dues of sales tax, income tax, custom tax, wealth tax, service tax, excise duty and Cess which have not been deposited on account of any dispute;

x) The accumulated losses of the company exceeds 50% (fifty percent) of its Net Worth and hence the Company has filed a reference with BIFR,New Delhi under the SICA 1985 which has been registered by the BIFR vide ordered passed dated 18/01/2007. The Company has incurred Cash Profit of Rs. 72,53,433/- in the Current Financial Year and a Cash Profit of Rs. 38,69,925/- in the immediately preceding financial Year. In arriving at the accumulated loss and net worth, we have considered the qualifications, which are quantifiable in the Audit Reports of the year to which these losses pertain;

xi) The Company has not granted any Loans & Advances on the basis of Security by way Pledge of Shares, Debentures and other securities. Hence, the provisions as to whether the adequate documents and records are maintained and to point out the deficiencies, if any in this regard are not applicable;

xii) The Company is not a Chit Fund or Nidhi/Mutual Benefit Fund/Society. Hence, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company;

xiii) The Company is not dealing in or trading in Shares, Securities, Debentures and other investments. Hence, the provisions of Clause 4 (xiv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company;

xiv) The company has not given any guarantee for loans taken by others from Bank or Financial Institution. Accordingly, the provisions as to whether the terms & conditions in respect thereof are prejudicial to the interest of the Company are not applicable to the company;

xv) The company has not recorded, obtained any terms loans. Hence, comments under the clause are not called for the provisions as to whether the price at which shares have been issued is prejudicial to the interest of the company are not applicable;

xvi) No funds raised on short term basis have been used for the long term investment by the company;

xvii) The company has not made any preferential allotment of shares to parties and Companies covered in the Register maintained under section 301 of the Companies Act, 1956. Hence the provisions as to whether the price at which shares have been issued is prejudicial to the interest of the company are not applicable;

xviii) According to the records of the company, the company has not issued any Debentures;

xix) The company has not raised any money by public issue. Hence the provisions as to whether the management has disclosed on the end use of money raised by public issue and the same has been verified are not applicable;

xx) No fraud on or by the company has been noticed or reported during the course of our Audit;

For P.M. Turakhia & Associates Chartered Accountants Firm Registration No: 111086W

M.D. Turakhia Partner Membership No: 017399

Place: Mumbai Date: 30.05.2014


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying fnancial statements of KUNSTSTOFFE INDUSTRIES LTD (''the Company’) which comprise the Balance Sheet as at 31st March, 2013, the Statement of Proft and Loss and the Cash Flow Statement for the year then ended, and a summary of the signifcant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Management is responsible for the preparation of these fnancial statements that give a true and fair view of the fnancial position, fnancial performance and cash fows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the fnancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these fnancial statements based on our audit. We conducted our audit in accordance with 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 fnancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the fnancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the fnancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control relevant to the Company’s preparation and fair presentation of the fnancial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the fnancial statements.

We believe that the audit evidence we have obtained is suffcient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us and subject to Notes B.2, B.3, B.4, B.5 and B.6, the fnancial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2013;

(b) in the case of the Statement of Proft and Loss, of the proft of the Company for the year ended on that date, and

(c) in the case of the Cash Flow Statement, of the cash fows of the Company for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2003("the Order"), as amended, 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 specifed 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 appears from our examination of those books.

(c) The Balance Sheet, Statement of Proft and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the Balance Sheet, Statement of Proft and Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Act.

(e) On the basis of the written representations received from the directors as on 31st March, 2013 taken on record by the Board of Directors, none of the directors is disqualifed as on 31st March, 2013 from being appointed as a director in terms of clause (g) of sub- section (1) of section 274 of the Act.

ANNEXURE TO THE AUDITOR’S REPORT

The Annexure referred to in our report to the members of Kunststoffe Industries Ltd (''the Company’) for the year ended 31 March 2013. We report that: -

i) (a) The Company has maintained proper records showing full particulars, including quantitative details & situation of fxed assets.

(b) All the Assets have not been physically verifed by the management during the year but there is a regular program of verifcation which, in our opinion, is reasonable having regard to the size of the Company and nature of its Fixed Assets. No material discrepancies were noticed on such verifcation.

(c) During the year, the Company has not disposed off major or substantial parts of fxed assets so as to affect the going concern status of the Company.

ii) As the company has not purchased / sold goods during the year nor is there any opening stocks, requirement of reporting on physical verifcation of stocks or maintenance of inventory records, in our opinion, does not arise.

iii) The Company had neither taken nor granted any loans, secured or unsecured from / to Companies, frms or other parties covered in the register maintained under section 301 of the Companies Act 1956. Hence, the question of reporting whether the rate of interest and other terms and conditions of such loans are prima facie prejudicial to the interest of the company, whether reasonable step for recovery / payment of the overdues of such loans are taken does not arise.

iv) There is adequate inventory control procedure commensurate with the size of the company and nature of its business, for the purchase of inventory and fxed assets and for the sale of goods. There is no continuing failure to correct major weaknesses in internal control.

v) Based on the audit procedures applied by us and the information and explanations provided by the management, we are of the opinion that there were no transactions during the year that need to be entered in the register maintained under section 301 of the Companies Act,1956.

vi) Based on our scrutiny of the company’s records and according to the information and explanations provided by the management, in our opinion, the company has not accepted any public deposits so far upto 31st March, 2013.

vii) The company has an internal audit system commensurate with the size of the company and nature of its business.

viii) We are unable to offer any comment on the clause no. (viii) pertaining to maintenance of cost records as the cost auditor has not completed cost audit till date.

ix) (a) The company is regular in depositing with appropriate authority 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 applicable to it.

(b) No un-disputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Custom Duty, Excise Duty and Cess were in arrears, as at 31st March, 2013 for a period of more than six months from the date they became payable.

(c) There are no dues of sales tax / income tax / custom tax / wealth tax / excise duty / Cess which have not been deposited on account of any dispute.

x) The accumulated losses of the company exceeds 50% (ffty percent) of its Net Worth and hence the Company has fled a reference with BIFR,New Delhi under the SICA 1985 which has been registered by the BIFR vide ordered passed dated 18/01/2007. The Company has incurred Cash Proft of Rs.38,69,925/- in the Current Financial Year and a Cash Proft of Rs.3,80,105 /- in the immediately preceding Financial Year. In arriving at the accumulated loss and net worth, we have considered the qualifcations, which are quantifable in the Audit Reports of the year to which these losses pertain.

xi) Based on the audit procedures and on the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to a fnancial institution, bank or debenture holders.

(xii) The Company has not granted any Loans & Advances on the basis of Security by way Pledge of Shares, Debentures and other securities. Hence, the provisions as to whether the adequate documents and records are maintained and to point out the defciencies, if any in this regard are not applicable.

xiii) The Company is not a Chit Fund or Nidhi / Mutual Beneft Fund/Society. Hence the provisions of clause 4(xiii) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the Company.

xiv) The Company is not dealing in or trading in Shares, Securities, Debentures and other investments. Hence, the provisions of Clause 4 (xiv) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the Company.

xv) The company has not given any guarantee for loans taken by others from Bank or Financial Institution. Accordingly, the provisions as to whether the terms & conditions in respect thereof are prejudicial to the interest of the Company are not applicable.

xvi) According to the record of the company, the company has not obtained any term loans. Hence, comments under the clause are not called for.

xvii) On an overall examination of the Balance Sheet of the Company, we report that, no funds raised on short-term basis have been used for long-term investment.

xviii) The company has not made any preferential allotment of shares to parties and Companies covered in the Register maintained under section 301 of the Companies Act.1956. Hence the question whether the price at which shares have been issued is prejudicial to the interest of the company are not applicable.

xix) As the Company has not issued any Debentures, the provisions as to whether securities or charge have been created in respect of Debentures issued are not applicable.

xx) The company has not raised any money by public issue. Hence the provisions as to whether the management has disclosed on the end use of money raised by public issue and the same has been verifed are not applicable.

xxi) No fraud on or by the company has been noticed or reported during the course of our Audit.

FOR P.M. TURAKHIA &ASSOCIATES

Firm Registration No: 111086w

Place: MUMBAI (M.D. TURAKHIA)

Date : 30.05.2013 Membership No: 017399


Mar 31, 2012

1) We have audited the attached Balance Sheet of KUNSTSTOFFE INDUSTRIES LTD., as at 31st March 2012 and also the Profit and Loss Account for the year ended on that date annexed thereto. These Financial Statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these Financial Statements based on our Audit.

2) We conducted our Audit in accordance with the Auditing Standards generally accepted in India. These 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 includes assessing the Accounting Principles used and significant estimates made by management, as well as evaluating the overall Financial Statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3) As required by the companies (Auditors' Report) Order, 2003 issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure a Statement on the matters specified in Paragraph 4 and 5 of the said Order.

4) Further to our comments, in the Annexure referred to above, we report that :

(i)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;

(ii) In our opinion, proper Books of Account as required by law have been kept by the Company, so far as appears from our examination of those books.

(iii) The Balance Sheet, Profit & Loss Account dealt with by this Report are in agreement with the Books of Account.

(iv) In our opinion, the Balance Sheet & Profit & Loss Account dealt with by this Report complies with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

(v) 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 Section 274 (1) (g) of the Companies Act, 1956.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said Accounts give the information required by the Companies Act, 1956 in the manner so required and subject to notes on accounts in general and in particular Note B.2,B.3,B.4 & B.5 of Notes forming part of the accounts for the year ended 31.3.2012 give a True and Fair view in conformity with the generally accepted Accounting Principles in India.

a) In the case of the Balance Sheet, of the State of Affairs of the Company as at 31st March 2012.

b) In the case of the Profit and Loss Account, of the loss for the year ended on that date.

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS' REPORT OF EVEN DATE TO THE MEMBERS OF "M/S KUNSTSTOFFE INDUSTRIES LTD." ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2012.

On the basis of the presentations received from the management and according to the explanation given, information furnished to us and on the basis of scrutiny of books & records, we are of the opinion that: -

i) (a) The Company has maintained proper records showing full particulars, including quantitative details & situation of fixed assets.

(b) All the Assets have not been physically verified by the management during the year but there is a regular program of verification which, in our opinion, is reasonable having regard to the size of the Company and nature of its Fixed Assets. No material discrepancies were noticed on such verification.

(c) During the year, the Company has not disposed off major or substantia] parts of fixed assets so as to affect the going concern status of the Company

ii) As the company has not purchased / sold goods during the year nor is there any opening stocks, requirement of reporting on physical verification of stocks or maintenance of inventory records, in our opinion, does not arise.

iii) The Company had neither taken nor granted any loans, secured or unsecured from / to Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act 1956.Hence, the question of reporting whether the rate of interest and other terms and conditions of such loans are prima facie prejudicial to the interest of the company, whether reasonable step for recovery / payment of the overdues of such loans are taken does not arise.

iv) There is adequate inventory control procedure commensurate with the size of the company and nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. There is no continuing failure to correct major weaknesses in internal control.

v) Based on the audit procedures applied by us and the information and explanations provided by the management, we are of the opinion that there were no transactions during the year that need to be entered in the register maintained under section 301 of the Companies Act, 1956.

vi) Based on our scrutiny of the company's records and according to the information and explanations provided by the management, in our opinion, the company has not accepted any public deposits so far upto 31st March,2012.

vii) The company has an internal audit system commensurate with the size of the company and nature of its business.

(viii) We are unable to offer any comment on the clause no.

(viii) pertaining to maintenance of cost records as the cost auditor has not completed cost audit till date.

ix) (a) The company is regular in depositing with appropriate authority 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 applicable to it.

(b) No un-disputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Custom Duty, Excise Duty and Cess were in arrears, as at 31 st March, 2009 for a period of more than six months from the date they became payable.

(c) There are no dues of sales tax / income tax / custom tax / wealth tax / excise duty / Cess which have not been deposited on account of any dispute.

x) The accumulated losses of the company exceeds 50% (fifty percent) of its Net Worth and hence the Company has filed a reference with BIFR,New Delhi under the SICA 1985 which has been registered by the BIFR vide ordered passed dated 18/01/2007. The Company has incurred Cash Profit of Rs.3,80,105/- in the Current Financial Year and a Cash Profit of Rs.68,47,398 /- in the immediately preceding Financial Year. In arriving at the accumulated loss and net worth, we have considered the qualifications, which are quantifiable in the Audit Reports of the year to which these losses pertain.

xi) Based on the audit procedures and on the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

(xii) The Company has not granted any Loans & Advances on the basis of Security by way pledge of Shares, Debentures and other securities. Hence, the provisions as to whether the adequate documents and records are maintained and to point out the deficiencies, if any in this regard are not applicable.

xiii) The Company is not a Chit Fund or Nidhi/Mutual Benefit Fund/Society. Hence the provisions of clause 4(xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

xiv) The Company is not dealing in or trading in Shares, Securities, Debentures and

other investments. Hence, the provisions of Clause 4 (xiv) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

xv) The company has not given any guarantee for loans taken by others from Bank or Financial Institution. Accordingly, the provisions as to whether the terms & conditions in respect thereof are prejudicial to the interest of the Company are not applicable.

xvi) According to the record of the company, the company has not obtained any term loans. Hence, comments under the clause are not called for.

xvii) On an overall examination of the Balance Sheet of the Company, we report that, no funds raised on short-term basis have been used for long-term investment.

xviii) The company has not made any preferential allotment of shares to parties and Companies covered in the Register maintained under section 301 of the Companies Act. 1956. Hence the question whether the price at which shares have been issued is prejudicial to the interest of the company are not applicable.

xix) As the Company has not issued any Debentures, the provisions as to whether securities or charge have been created in respect of Debentures issued are not applicable.

xx) The company has not raised any money by public issue. Hence the provisions as to whether the management has disclosed on the end use of money raised by public issue and the same has been verified are not applicable.

xxi) No fraud on or by the company has been noticed or reported during the course of our Audit.

FOR P. M. TURAKHTA & ASSOCIATES

Chartered Accountants

(PRAGNA PATEL)

Partner

PLACE: Mumbai DATE: 30.07.2012


Mar 31, 2010

1) We have audited the attached Balance Sheet of KUNSTSTOFFE INDUSTRIES LTD., as at 31st March 2010 and also the Profit and Loss Account for the year ended on that date annexed thereto. These Financial Statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these Financial Statements based on our Audit.

2) We conducted our Audit in accordance with the Auditing Standards generally accepted in India. These 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 includes assessing the Accounting Principles used and significant estimates made by management, as well as evaluating the overall Financial Statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3) As required by the companies (Auditors Report) Order, 2003 issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure a Statement on the matters specified in Paragraph 4 and 5 of the said Order.

4) Further to our comments, in the Annexure referred to above, we report that :

(i) 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;

(ii) In our opinion, proper Books of Account as required by law have been kept by the Company, so far as appears from our examination of those books.

(iii) The Balance Sheet, Profit & Loss Account dealt with by this Report are in agreement with the Books of Account.

(iv) In our opinion, the Balance Sheet & Profit & Loss Account dealt with by this Report complies with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

(v) 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 31sl March 2010 from being appointed as a director in terms of Section 274 (1) (g) of the Companies Act, 1956.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said Accounts give the information required by the Companies Act, 1956 in the manner so required and subject to notes on accounts in general and in particular Note "A" point No.2 and Note "C" point No.3 of Schedule 18 give a True and Fair view in conformity with the generally accepted Accounting Principles in India.

a) In the case of the Balance Sheet, of the State of Affairs of the Company as at 31s1 March 2010.

b) In the case of the Profit and Loss Account, of the loss for the year ended on that date.



ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS REPORT OF EVEN DATE TO THE MEMBERS OF "M/S KUNSTSTOFFE INDUSTRIES LTD." ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2010.



On the basis of the presentations received from the management and according to the explanation given, information furnished to us and on the basis of scrutiny of books & records, we are of the opinion that:

i) (a) The Company has maintained proper records showing full particulars, including quantitative details & situation of fixed assets.

(b) All the Assets have not been physically verified by the management during the year but there is a regular program of verification which, in our opinion, is reasonable having regard to the size of the Company and nature of its Fixed Assets. No material discrepancies were noticed on such verification.

(c) During the year, the Company has not disposed off major or substantial parts of fixed assets so as to affect the going concern status of the Company.

ii) (a) The Inventory has been physically verified during the year by the management. The frequency of verification is reasonable.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The Company has maintained proper records of inventory. The material discrepancies noticed on physical verification have been properly dealt with in the books of accounts.

iii) (a) The Company had not granted any loans, secured or unsecured to Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act 1956.

(b) Hence the provisions as to whether the rate of interest and other terms and conditions of loans given or taken by the company, secured or unsecured, are prima facie prejudicial to the interest of the company are not applicable.

(c) So also the provisions as to whether the receipt/ payment of principal and interest are also regular are not applicable.

(d) Similarly the provisions as to whether reasonable step have been taken by the Company for recovery / payment of the principal and interest, if the overdue amount is more than one lakh are not applicable.

(e) The Company has not taken any Loans, secured or unsecured from the Companies, firm or other parties covered in the register maintained under section 301 of the Act.

(f) Hence the provision as to whether the rate of interest and other terms and conditions of loans taken by the Company, secured or unsecured are prima facie Prejudicial to the interest of the Company are not applicable.

(g) So also the provisions as to whether the payment of the Principal amount and interest are also regular are not applicable.

iv) There is adequate inventory control procedure commensurate with the size of the company and nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. There is no continuing failure to correct major weaknesses in internal control.

v) (a) No transactions need to be entered in to a register in pursuance of section 301 of the Companies act 1956.

(b) The provisions that each of these transactions in pursuance of such Contracts or Arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time are not applicable.

vi) As the company has not accepted deposits from the public. The provision as to whether the directives issued by Reserve Bank of India and provision of section 58A and 58AA or any other relevant provisions of the act and rules framed there under, where applicable, have been complied with and in case of non-compliance, stating of nature of contraventions and whether the company has complied with the order of the Company Law board or National Company law Tribunal or Reserve Bank of India or any Court or any other Tribunal are not applicable.

vii) The company has an internal audit system commensurate with the size of the company and nature of its business.

viii) No maintenance of Cost Records has been prescribed by the Central Government under section 209 (1) (d) of the Companies Act 1956. Hence the provision as to whether such Accounts and Records have been made and maintained is not applicable.

ix) (a) The company is regular in depositing with appropriate authority 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 applicable to it.

(b) No un-disputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Custom Duty, Excise Duty and Cess were in arrears, as at 31st March, 2010 for a period of more than six months from the date they became payable.

(c) There are no dues of sales tax / income tax / custom tax / wealth tax / excise duty / Cess which have not been deposited on account of any dispute.

x) The accumulated losses of the company exceeds 50% (fifty percent) of its Net Worth and hence the Company has filed a reference with BIFR,New Delhi under the SICA 1985 which has been registered by the BIFR vide ordered passed dated 18/01/2007. The Company has incurred Cash Profit of Rs.50,88,504/- in the Current Financial Year a Cash Profit of Rs.23,78,398 /- in the immediately preceding Financial Year. In arriving at the accumulated loss and net worth, we have considered the qualifications, which are quantifiable in the Audit Reports of the year to which these losses pertain.

xi) The Company has defaulted in repayment of dues to the following financial Institution/s and /or Bank/s and / or Debenture holders in respect of the following amounts and the period mentioned there against :

Sr. No. Name of the Financial Principal Interest Period Institution / Banks Amount Amount

1. Bank of Baroda 2,54,55,888 - 14 Years

2. Gayatri Pipes & Fittings 28,74,50,443 - -

The Company has approached for one time settlement and has also submitted scheme for rehabilitation as per BIFR Order. BIFR has declared the company as Sick Company and as there is no default at present. Bank Of Baroda has assigned the debt to International Asset Reconstruction Co. Pvt. Ltd.

(xii) The Company has not granted any Loans & Advances on the basis of Security by way Pledge of Shares, Debentures and other securities. Hence, the provisions as to whether the adequate documents and records are maintained and to point out the deficiencies, if any in this regard are not applicable.

xiii) The Company is not a Chit Fund or Nidhi/Mutual Benefit Fund/Society. Hence, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

xiv) The Company is not dealing in or trading in Shares, Securities, Debentures and other investments. Hence, the provisions of Clause 4 (xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

xv) The company has not given any guarantee for loans taken by others from Bank or Financial Institution. Accordingly, the provisions as to whether the terms & conditions in respect thereof are prejudicial to the interest of the Company are not applicable.

xvi) The Term Loans have been applied for the purpose for which they were obtained /raised.

xvii) On an overall examination of the Balance Sheet of the Company, We report that, no funds raised on short-term basis have been used for long-term investment.

xviii) The company has not made any preferential allotment of shares to parties and Companies covered in the Register maintained under section 301 of the Companies Act.1956. Hence the question whether the price at which shares have been issued is prejudicial to the interest of the company are not applicable.

xix) As the Company has not issued any Debentures, the provisions as to whether securities or charge have been created in respect of Debentures issued are not applicable.

xx) The company has not raised any money by public issue. Hence the provisions as to whether the management has disclosed on the end use of money raised by public issue and the same has been verified are not applicable.

xxi) No fraud on or by the company has been noticed or reported during the course of our Audit.

For P.M. TURAKHIA & COMPANY

Chartered Accountants

M.D. TURAKHIA

Proprietor

Place : Daman

Date : 30th July, 2010

 
Subscribe now to get personal finance updates in your inbox!