Mar 31, 2018
INDEPENDENT AUDITORS'' REPORT
TO THE MEMBERS OF Mafatlal Industries Limited
Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
1. We have audited the accompanying standalone Ind AS financial statements of Mafatlal Industries Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2018 the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Ind AS Financial Statements
2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements to give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules made thereunder including the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
5. 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 and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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.
6. 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 auditors'' 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 Company''s 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. 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 standalone Ind AS financial statements.
7. 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
8. 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, of the state of affairs of the Company as at March 31, 2018, and its total comprehensive income (comprising of loss and other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matter
9. The comparative financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 01, 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory standalone financial statements for the years ended March 31, 2017 and March 31, 2016 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by the predecessor auditor who expressed an unmodified opinion vide reports dated May 5, 2017 and May 2, 2016 respectively. The adjustments to those standalone financial statements for the differences in accounting principles adopted by the Company on transition to the Ind AS have been audited by us. Our report is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditor''s Report) Order, 2016, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act ("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 B a statement on the matters specified in paragraphs 3 and 4 of the Order.
11. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and 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 specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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 Annexure A.
(g) With respect to the other matters to be included in the Auditors'' 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 belief and according to the information and explanations given to us:
(i) The Company has disclosed the impact, if any, of pending litigations as at March 31, 2018 on its financial position in its standalone Ind AS financial statements - Refer Note 42 and 49;
(ii) The Company has long-term contracts as at March 31, 2018 for which there were no material foreseeable losses. The Company did not have any long term derivative contracts as at March 31, 2018.
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018.
(iv) The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2018.
For Price Waterhouse Chartered Accountants LLP |
|
Firm Registration Number: 012754N/N-500016 |
|
Priyanshu Gundana |
|
Mumbai |
Partner |
Date: May 3, 2018 |
Membership Number: 109553 |
Annexure A to Independent Auditors'' Report
Referred to in paragraph 11 (f) of the Independent Auditors'' Report of even date to the members of Mafatlal Industries Limited on the standalone Ind AS financial statements for the year ended March 31, 2018
Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of the Act
1. We have audited the internal financial controls over financial reporting of Mafatlal Industries Limited ("the Company") 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.
Management''s Responsibility for Internal Financial Controls
2. 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 Act.
Auditors'' Responsibility
3. 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 the Standards on Auditing 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 the 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.
4. 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 judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
6. 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 authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised 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
7. 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
8. 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 Price Waterhouse Chartered Accountants LLP |
|
Firm Registration Number: 012754N/N-500016 |
|
Priyanshu Gundana |
|
Mumbai |
Partner |
Date: May 3, 2018 |
Membership Number: 109553 |
Annexure B to Independent Auditors'' Report
Referred to in paragraph 10 of the Independent Auditors'' Report of even date to the members of Mafatlal Industries Limited on the standalone Ind AS financial statements as of and for the year ended March 31, 2018
(a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of 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. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) The title deeds of immovable properties, other than self constructed properties, as disclosed in Note 3 and 4 on Property Plant and Equipment and Investment Properties respectively, to the standalone Ind AS financial statements, are held in the name of the Company, except for a lease hold land of gross and net book value of Rs. 0.08 Lakhs, where the Company is in process of getting expired lease term renewed.
The physical verification of inventory excluding stocks with third parties have been conducted at reasonable intervals by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
During the year the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii)(a), (iii)(b) and (iii)(c) of the said Order are not applicable to the Company.
In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made, and guarantees and security provided by it.
The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.
Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
(a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, except for dues in respect of interest on employees'' state insurance and duty of excise which has not been deposited with appropriate authorities, the Company is regular in depositing undisputed statutory dues, including provident fund, employees'' state insurance, income tax, sales tax, service tax, duty of customs, value added tax, goods and service tax with effect from July 1, 2017 and other material statutory dues, as applicable, with the appropriate authorities. The extent of the arrears of statutory dues outstanding as at March 31, 2018, for a period of more than six months from the date they became payable are as follows:
Name of the statute |
Nature of dues |
Amount (Rs.in lakhs) |
Period to which the amount relates |
Due date |
Date of Payment |
Employees'' State Insurance Act, 1948 |
Interest on ESIC |
40.85 |
2000-2007 and April 2008 to May 2010 |
2000 to 2007 and 2008 to 2010 |
Not paid |
Central Excise Act, 1944 |
Central Excise |
3.44 |
April 1986 to October 1986, May 1995 to December 1995 |
1986 and 1995 |
Not paid |
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of goods and service tax which have not been deposited on account of any dispute. The particulars of dues of income-tax, sales-tax, service-tax, duty of customs, duty of excise and value added tax as at March 31, 2018 which have not been deposited on account of a dispute, are as follows:
Name of the statute |
Nature of dues |
Amount under dispute not yet deposited (Rs. In lakhs) # |
Period to which the amount relates |
Forum where the dispute is pending |
Central Excise Act, 1944 |
Central Excise |
13.41 |
1998-2000,2002-03 |
Supreme Court |
Central Excise Act, 1944 |
Central Excise |
57.67 |
2003-04 |
High Court |
Central Excise Act, 1944 |
Central Excise |
196.72 |
1989-90 to 2003-04 |
Commissioner of Central Excise (Appeals) |
Central Excise Act, 1944 |
Central Excise |
8.11 |
1999-2000 |
Commissioner of Central Excise |
Central Excise Act, 1944 |
Central Excise |
2,820.83 |
1997-99, 2007-08 to 2009-10 |
Appellate Tribunal |
Central Excise Act, 1944 |
Central Excise |
1.41 |
2006-11 |
Assistant Commissioner of Central Excise |
Customs Act, 1944 |
Customs Duty |
4.79 |
1989-90 to 1999-2000 |
Joint Director General of Foreign Trade |
Maharashtra Value Added Tax |
Sales Tax |
23.22 |
1989-90 to 1999-2000 |
Joint Commissioner of Sales Tax (Appeals)- II |
Central Sales Tax Act, 1956 |
Sales Tax |
0.92 |
1989-90 to 1999-2000 |
Joint Commissioner of Sales Tax (Appeals)- II |
Finance Act, 1994 |
Service Tax |
0.70 |
1997-99 |
Appellate Tribunal |
Income Tax Act, 1961 |
Income Tax |
481.49 |
Assessment Years 2003-04, 2004-05, 2006-07, 2007-08 |
Income tax Appellate Tribunal |
Income Tax Act, 1961 |
Income Tax |
994.77 |
Assessment Years 1997-98, 2012-13 and 2015-16 |
Commissioner of Income Tax |
# Net of amounts paid under Protest
8. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government. The Company has not issued any debentures.
9. The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments) and term loans. Accordingly, the provisions of Clause 3(ix) of the Order are not applicable to the Company.
10. 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 material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
11. The Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
13. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the standalone Ind AS financial statements as required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosures specified under Section 133 of the Act.
14. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
15. The Company has not entered into any non-cash transactions with its directors or persons connected with him as prescribed under section 192 of the Act. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
16. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For Price Waterhouse Chartered Accountants LLP |
|
Firm Registration Number: 012754N/N-500016 |
|
Priyanshu Gundana |
|
Mumbai |
Partner |
Date: May 3, 2018 |
Membership Number: 109553 |
Mar 31, 2017
To The Members of Mafatlal Industries Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of MAFATLAL INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2017, 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, in which are incorporated the Returns for the year ended on that date audited by the branch auditors of the Company''s branches located at Ahmedabad and Nadiad.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the standalone 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 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 financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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 standalone financial statements.
We believe that the audit evidence obtained by us and the audit evidence obtained by the branch auditors in terms of their reports referred to in the Other Matter paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of the branch auditors on separate financial information of the branches referred to in the Other Matter paragraph below, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2017, and its loss and its cash flows for the year ended on that date.
Other Matter
We did not audit the financial information of two branches included in the standalone financial statements of the Company whose financial information reflect total assets of Rs. 31,342.78 lakhs as at 31st March, 2017 and total revenues of Rs. 33,508.94 lakhs for the year ended on that date, as considered in the standalone financial statements. The financial information of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches and our report in terms of subsection (3) of Section 143 of the Act, in so far as it relates to the aforesaid branches, is based solely on the report of such branch auditors.
Our opinion on the standalone financial statements and our report on Other Legal and Regulatory Requirements below is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, based on our audit and on the consideration of the reports of the branch auditors on the separate financial information of the branches, referred to in the Other Matter paragraph above we report, to the extent applicable 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 and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.
c) The reports on the accounts of the branch offices of the Company audited under Section 143(8) of the Act by the branch auditors have been sent to us and have been properly dealt with by us in preparing this report.
d) 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 and with the returns received from the branches not visited by us.
e) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards prescribed under section 133 of the Act.
f) On the basis of the written representations received from the directors as on 31st March, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.
r
g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and its branches and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
h) 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, as amended, 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 financial statements. Also refer Note no. 31.1 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.
iv. The Company has provided requisite disclosures in the standalone financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the 8th November, 2016 of the Ministry of Finance, during the period from 8th November, 2016 to 30th December, 2016; and such disclosures are in accordance with the books of accounts maintained by the Company.
2. As required by the Companies (Auditor''s Report) Order,
2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
(Referred to in paragraph 1(g) under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
ANNEXURE "A" TO THE INDEPENDENT AUDITOR''S REPORT ON THE FINANCIAL STATEMENTS OF MAFATLAL INDUSTRIES LIMITED
Report on the Internal Financial Controls Over Financial Reporting 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 Mafatlal Industries Limited ("the Company") as of March 31, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date which includes internal financial controls over financial reporting of the Company''s branches.
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. 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 respective 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.
Auditor''s 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") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 and the audit evidence obtained by the branch auditors of branches located in India, in terms of their reports referred to in the Other Matter paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the Company''s 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, to the best of our information and according to the explanations given to us and based on the consideration of the reports of the branch auditors on internal financial controls system over financial reporting of the branches referred to in the Other Matter paragraph below, 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 31st March, 2017, 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.
Other Matter
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting insofar as it relates to two branches located in India, is based on the corresponding reports of the branch auditors.
Our opinion is not modified in respect of this matter.
ANNEXURE "B" TO THE independent AUDITORS'' REPORT 0N THE FINANCIAL STATEMENTS OF MAFATLAL INDUSTRIES LIMITED
(Referred to in paragraph 2, under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) Some of the fixed assets were physically verified during the year by the Management in accordance with a programme of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.
(c) With respect to immovable properties of acquired land and buildings that are freehold and leasehold, according to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed / transfer deed / conveyance deed / lease deed / court orders approving schemes of arrangements / amalgamations provided to us, we report that, the title deeds of such immovable properties are held in the name of the Company as at the balance sheet date.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has granted loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013, in respect of which:
(a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Company''s interest.
(b) The schedule of repayment of principal and payment of interest has not been stipulated and in the absence of such schedule, we are unable to comment on the regularity of the repayments or receipts of principal amounts and interest.
(c) There is no overdue amount remaining outstanding as at the year-end.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended, prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including
Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Value Added Tax, Service Tax, Customs Duty, Excise Duty, cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees âState Insurance, Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues in arrears as at 31stMarch, 2017 for a period of more than six months from the date they became payable. As at the year end, the arrears of Statutory Dues outstanding for a period of more than six months aggregate to '' 49.02 lakhs in respect of interest on Employees State Insurance dues, Rs. 3.34 lakhs in respect of Excise Duty and Rs. 297.77 lakhs in respect of interest on water charges.
(c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, and Value Added Tax which have not been deposited as on 31st March, 2017 on account of disputes are given below:
Name of Statute |
Nature of Dues Forum where Dispute is period to which the Amount Amount pending Relates Involved (Rs. in lakhs) |
|||
Central Excise Act, 1944 |
Excise Duty |
Assistant Commissioner |
2006-07 to 2010-11 |
1.42 |
Central Excise Act, 1944 |
Excise Duty |
Commissioner |
1989-90 to 2003-04 |
74.58 |
Central Excise Act, 1944 |
Excise Duty |
CESTAT |
1989-90 to 2003-04 |
63.44 |
Central Excise Act, 1944 |
Excise Duty |
High Court |
1989-90 to 2003-04 |
14.99 |
Central Excise Act, 1944 |
Excise Duty |
Supreme Court |
1989-90 to 1999-2000 |
13.42 |
Central Excise Act, 1944 |
Excise Duty |
Assistant Commissioner |
1989-90 to 2003-04 |
182.11 |
Central Excise Act, 1944 |
Excise Duty |
Commissioner (Appeals) |
1989-90 to 2003-04 |
54.92 |
Central Excise Act, 1944 |
Excise Duty |
Commissioner of Central Excise |
2007-08 to 2009-10 |
2,960.55 |
Customs Act, 1944 |
Custom Duty |
Joint Director General of Foreign Trade |
1989-90 to 1999-00 |
4.79 |
Bombay Industrial Relations Act, 1946 |
Labour Dues |
Labour Court |
1993 to 2013 |
608.70 |
Maharashtra Value Added Tax |
Sales Tax |
Joint Commissioner of Sales Tax (Appeals) - II |
1989-90 to 1999-2000 |
3.22 |
Central Sales Tax Act, 1956 |
Sales Tax |
Joint Commissioner of Sales Tax (Appeals) - II |
1989-90 to 1999-2000 |
0.04 |
Mumbai Municipal Corporation Act, 1988 |
Property Tax [Refer Note No. 31.1(a) (viii)] |
Assessor and Collector (City), Assessment and Collection Department |
2000-05, 2004-07, 2008-10 |
3,489.44 |
Income Tax Act, 1961 |
Income Tax |
Dy. Commissioner of Income Tax |
Assessment Year 2012-13 |
9.48 |
Income Tax Act, 1961 |
Income Tax |
ITAT |
Assessment Years 2003-04, 2004-05, 2006-07, 2007-08 |
501.61 |
Income Tax Act, 1961 |
Income Tax |
Commissioner of Income Tax |
Assessment Years 1997-98, 1998-99, 2002-03, 2003-04, 2006-07, 2009-10, 2011-12 and 2012-13 |
1,925.44 |
Service Tax Rules |
Service Tax |
CESTAT, Ahmedabad |
1997-99 |
0.70 |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and government. The Company has not issued any debentures.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments). In our opinion and according to the information and explanations given to us, the Company has utilized the money raised by way of term loans during the year for the purposes for which they were raised.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in excess of the limits and approvals prescribed under section 197 read with Schedule V to the Companies Act, 2013 to the following managerial personnel:
Managerial Position |
Excess amount of remuneration paid/ provided (Rs. in lakhs) |
Financial year ending |
Treatment of the excess remuneration in the respective year financial statements |
Steps taken by the Company for securing refund |
Managing Director |
228.84 |
31st March, 2017 |
Charged to the Statement of Profit and Loss |
Special Resolution will be passed at the ensuing Annual General Meeting. |
Executive Director |
27.56 |
31st March, 2017 |
Charged to the Statement of Profit and Loss |
Special Resolution will be passed at the ensuing Annual General Meeting. |
Director |
149.86 |
31st March, 2017 |
Charged to the Statement of Profit and Loss |
Special Resolution will be passed at the ensuing Annual General Meeting. |
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 is not applicable.
(xiii)In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv)During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi)The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For Deloitte Haskins & Sells
Chartered Accountants
(Firm''s Registration Number 117364W)
(Ketan Vora)
Place: Mumbai (Partner)
Date: 5th May, 2017 (Membership Number 100459)
Mar 31, 2014
We have audited the accompanying financial statements of MAFATLAL
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, in which are
incorporated the Returns for the year ended on that date audited by the
branch auditors of the Company''s branches at Ahmedabad and Nadiad.
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 notified under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. 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
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 control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of the 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 qualified audit opinion.
Basis for Qualified Opinion
Attention is invited to Note no.30.5, regarding non  accounting of
income from rent and other charges aggregating to Rs. 83.61 lacs upto
31st March, 2014 (Rs. 186.29 lacs upto 31st March, 2013) for the reasons
stated therein which constitutes a departure from the Accounting
Standard (AS)-1 ''Disclosure of Accounting Policies'' and Accounting
Standard (AS)-9 ''Revenue Recognition'' referred to in Section 211(3C) of
the Act; if the same is considered, rental income from investment
property would be higher by aggregate amount of Rs. 83.61 lacs (aggregate
upto 31st March 2013, Rs. 186.29 lacs), income tax, net profit and
shareholder''s funds would have been increased by Rs. 17.53 lacs, Rs. 66.08
lacs and by Rs. 66.08 lacs respectively (previous year ended 31st March
2013: increased by Rs. 60.45 lacs, Rs. 125.84 lacs and by Rs. 125.84 lacs
respectively). This matter was also qualified in our report on the
financial statements for the year ended 31st March 2013.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph above, the
aforesaid financial statements give the information required by the Act
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 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.
Emphasis of Matter
We draw attention to Note no.30.13 to the financial statements
regarding managerial remuneration for which the Central Government''s
approval is required.
Our opinion is not qualified in respect of this matter.
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 in terms of Section 227(4A) 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) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above, 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 and proper returns adequate
for the purposes of our audit have been received from the branches not
visited by us.
(c) The reports on the accounts of the Ahmedabad and Nadiad branches
audited by the branch auditors appointed under Section 228 of the Act
have been forwarded to us and have been properly dealt with by us in
preparing this report.
(d) 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 and with the returns received from the branches not
visited by us.
(e) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above, in our opinion, the Balance Sheet,
Statement of Profit and Loss and Cash Flow Statement comply with the
Accounting Standards notified under the Act (which continue to be
applicable in respect of Section 133 of the Companies Act, 2013 in
terms of General Circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs).
(f) On the basis of 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 Section 274(1)(g) of the Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
(i) Having regard to the nature of the Company''s business/
activities/results during the year, clauses (xiii), (xiv), (xviii),
(xix) and (xx) of paragraph 4 of the Order are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) In respect of its inventories:
(a) As explained to us, the 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.
(iv) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956.
In respect of loans, secured or unsecured, granted by the Company to
companies, firms or other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956, according to the
information and explanations given to us:
(a) The Company has granted loans aggregating Rs. 25.00 lacs to one party
during the year. At the year-end, the outstanding balances of such
loans granted aggregated Rs. 1,113.08 lacs (five parties) and the maximum
amount involved during the year was Rs. 1,187.46 lacs (six parties).
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interest of the
Company.
(c) The receipts of principal amounts and interest have been as per
stipulation.
(v) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
(vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction (excluding loans reported under
paragraph (iv) above),is in excess of Rs. 5 lacs in respect of any party,
having regard to our comments in paragraph (v) above, the transactions
have been made at prices which are prima facie reasonable having regard
to the prevailing market prices at the relevant time, other than
certain purchases which are of a special nature for which comparable
quotations are not available and in respect of which we are, therefore,
unable to comment if the transactions have been carried out at prices
having regard to the prevailing market prices at the relevant time.
(vii) According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year.
(viii) In our opinion, the internal audit functions carried out during
the year by a firm of Chartered Accountants appointed by the Management
have been commensurate with the size of the Company and the nature of
its business.
(ix) 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 and are being made up. We
have, however, not made a detailed examination of the cost records with
a view to determine whether they are accurate or complete.
(x) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Investor Education and Protection Fund,
Income Tax, Wealth Tax, Customs Duty, Cess and other material
statutory dues applicable to it with the appropriate authorities and
has not been regular in depositing interest on Provident Fund, interest
on Employees'' State Insurance, Value Added Tax, Excise Duty, Gratuity,
Interest on Water charges and Service Tax.
(b) There were no undisputed amounts payable in respect of Investor
Education and Protection Fund, Income Tax, Wealth Tax, Customs Duty,
Cess and other material statutory dues in arrears as at 31st March,
2014 for a period of more than six months from the date they became
payable. As at the year end, the arrears of statutory dues outstanding
for a period of more than six months aggregate to Rs. 68.29 lacs in
respect of interest on Provident Fund, Rs. 85.66 lacs in respect of
interest on Employees'' State Insurance Dues, Rs. 0.36 lacs in respect of
Value Added Tax (including interest), Rs. 3.34 lacs in respect of Excise
Duty, Rs. 731.34 lacs in respect of Gratuity and Rs. 769.02 lacs in respect
of interest on Water Charges.
(c) Details of dues of Excise Duty, Customs Duty, Labour dues, Sales
Tax, Property Tax, Income Tax, Service Tax and Cess which have not been
deposited as on 31st March, 2014 on account of disputes are given
below:
Name of Statute Nature of Dues Forum where Dispute
is pending
Central Excise Act, 1944 Excise Duty Assistant Commissioner
Central Excise Act, 1944 Excise Duty Assistant Commissioner
Central Excise Act, 1944 Excise Duty Commissioner
Central Excise Act, 1944 Excise Duty Commissioner (Appeals)
Central Excise Act, 1944 Excise Duty CESTAT
Central Excise Act, 1944 Excise Duty High Court
Central Excise Act, 1944 Excise Duty Supreme Court
Central Excise Act, 1944 Excise Duty Commissioner of Central Excise
Customs Act, 1962 Custom Duty Joint Director General
of Foreign Trade
Bombay Industrial Labour Dues Labour Court
Relations Act, 1946
Maharashtra Value Sales Tax Joint Commissioner of
Added Tax (including Sales Tax (Appeals) - II
Interest of
Rs 70.55 lacs)
Central Sales Tax Sales Tax Joint Commissioner of
Act 1956 (including Sales Tax (Appeals) - II
Interest of
Rs 15.35 lacs)
Mumbai Municipal Property Tax Assessor and Collecto
Corporation Act, 1988 (Refer Note no. (City), Assessment and
30.1(a)(ix)) Collection Departmen
The Income Tax Act,1961 Income Tax Commissioner of
Income Tax
The Income Tax Act,1961 Income Tax Income Tax
Appellate Tribunal
Service Tax Rules Service Tax CESTAT (Ahmedabad)
Name of Statute Period to which the Amount involved
amount Relates (Rs in lacs)
Central Excise Act, 1944 1989-90 to 2003-04 251.80
Central Excise Act, 1944 2006-07 to 2010-11 1.42
Central Excise Act, 1944 1989-90 to 2003-04 2,224.25
Central Excise Act, 1944 1989-90 to 2003-04 54.92
Central Excise Act, 1944 1989-90 to 2003-04 54.10
Central Excise Act, 1944 1989-90 to 2003-04 14.99
Central Excise Act, 1944 1989-90 to 2003-04 13.42
Central Excise Act, 1944 2007-08 to 2009-10 2,960.55
Customs Act 1962 1989-90 to 1999-00 4.79
Bombay Industrial Relation 1993 to 2008 1,172.08
Act 1946
Maharashtra Value Added tax 1999-2000 90.94
Central Sales Tax Act 1956 1999-2000 21.74
Mumbai Municipal 2009-2014 4,266.34
Corporation Act 1988
The Income Tax Act 1961 Assessment Years 458.11
1997-98 to 1998-99,
2002-03 to 2004-05,
2006-07, 2009-10 and
2011 -12
The Income Tax Act 1961 Assessment Year 177.46
2003-04, 2006-07 and
2007-08
Service Tax Rules 1997-99 0.70
(xi) The Company does not have accumulated losses at the end of the
financial year and the Company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions and banks. The Company has not issued any
debentures.
(xiii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiv) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not, prima facie, prejudicial to the interests of the Company.
(Refer Note no. 30.1(b) on guarantee given for a subsidiary).
(xv) In our opinion and according to the information and explanations
given to us, the term loans have been
applied by the Company during the year for the purposes for which they
were obtained.
(xvi) In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that funds raised on short-term basis have, prima
facie, not been used during the year for long-term investment.
(xvii) To the best of our knowledge and according to the information
and explanations given to us, no fraud by the Company and no material
fraud on the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm''s Registration No. 117364W)
(R. Salivati)
(Partner)
(Membership No. 34004)
MUMBAI, 30th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of MAFATLAL
INDUSTRIES LIMITED ("the CompanyÂ) which comprise the Balance Sheet as
at 31st March, 2013, 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, in which are
incorporated the Returns for the year ended on that date audited by the
branch auditors of the Company''s branches at Ahmedabad and Nadiad Units
/ Branches audited by other auditors.
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 Section 211(3C) of the
Companies Act, 1956 ("the ActÂ) and in accordance with the accounting
principles generally accepted in India. 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
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 judgement, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of the 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 qualified audit opinion.
Basis for Qualified Opinion
1. Attention is invited to Note no. 30.8 which was also the subject
matter of our report similarly qualified in the previous period,
regarding non - accounting of rent/ recovery of expenses for the
reasons stated therein which constitutes a departure from the
Accounting Standard (AS) 1 ''Disclosure of Accounting Policies'' and
Accounting Standard (AS) 9 ''Revenue Recognition'' referred to in Section
211(3C) of the Act; if the same is considered, rental income from
investment property would be higher by aggregate amount of Rs. 186.29
lacs (aggregate upto 31st March 2012 Rs. 754.11 lacs), income tax, net
profit and shareholder''s funds would have been increased by Rs. 60.45
lacs, Rs. 125.84 lacs and by Rs. 125.84 lacs respectively (previous
period ended 31st March 2012: increased by Rs. 244.71 lacs, Rs. 509.40
lacs and Rs. 509.40 lacs respectively).
2. Attention is invited to Note no. 32.1(a) to the financial
statement, in the earlier year, the erstwhile Mafatlal Denim Limited
(the Amalgamating Company) had made representation to the ministry of
Corporate Affairs against the rejection of application under sections
269, 198, 309 and 310 of the Act, relating to re-appointment and
payment of remuneration with effect from 1st April 2011 for two
whole-time directors. Total remuneration of Rs. 281.85 lacs was paid to
the said directors during the period 1st April, 2011 to 31st March,
2013. The said approval is pending from the Ministry Of Corporate
Affairs and accordingly, we are unable to comment on the impact, if any
arising out of the same in these financial statements.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effect of the matter described
in para 1 of the Basis for Qualified Opinion paragraph above and
possible effect of the matter described in para 2 of the Basis for
Qualified Opinion paragraph above, and based on the consideration of
the report of the other auditors on the financial statements of an
amalgamating company referred to below in the Other Matter paragraph,
the aforesaid financial statements give the information required by the
Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(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.
Emphasis of Matter
We draw attention to the Note no. 30.3 (1e) to the financial statements
regarding the write-off of Goodwill of Rs. 3,931.71 lacs arising on
amalgamation of Mishapar Investments Ltd. with the Company and
adjustment thereof from the Securities Premium Account, in accordance
with the approved Scheme of Amalgamation as no specific accounting
treatment has been prescribed in the Accounting Standards (AS) notified
pursuant to the Companies (Accounting Standards) Rules, 2006 as per
Section 211(3C) of the Companies Act, 1956.
Our opinion is not qualified in respect of this matter.
Other Matter
We did not audit the financial statement of erstwhile Mafatlal Denim
Limited ("the amalgamating companyÂ), which reflect total assets of Rs.
21,946.56 lacs as at 31st March 2013, total revenue of Rs. 29,679.11
lacs and net profit before tax of Rs. 3,919.52 lacs for the year ended
on that date, as considered in the financial statements pursuant to
amalgamation with the Company (refer Note no. 30.3). These financial
statements and other financial information have been audited by other
auditors whose report has been furnished to us by the Management and
our opinion, in so far as it relates to the amounts and disclosures
included in respect of this amalgamating company, is solely based on
the reports of other auditors.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
OrderÂ) issued by the Central Government in terms of Section 227(4A) 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 under provisions of 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) Except for the effects of the matter described in sub- para 1 of
the Basis for Qualified Opinion paragraph, 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 and audited returns
adequate for the purposes of our audit have been received from the
branches audited by the branch auditors.
(c) The reports on the accounts of the Ahmedabad and Nadiad branches
audited by branch auditors appointed under section 228 have been
forwarded to us and have been properly dealt with by us in preparing
this report.
(d) 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 and with the returns from the branches audited by the
branch auditors.
(e) Except for the effect of the matter described in sub- para 1 of the
Basis for Qualified Opinion paragraph above, in our opinion, the
Balance Sheet, Statement of Profit and Loss and Cash Flow Statement
comply with the Accounting Standards referred to in Section 211(3C) of
the Act.
(f) On the basis of written representations received from the directors
as on 31st March, 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2013 from being
appointed as a director in terms of Section 274(1)(g) of the Act.
(i) Having regard to the nature of the Company''s business/activities/
results during the year, clauses (xiii), (xiv), (xviii), (xix) and
(xx)of paragraph 4 of the Order are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) In respect of its inventories:
(a) As explained to us, the 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.
(iv) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956.
In respect of loans, secured or unsecured, granted by the Company to
companies, firms or other parties covered in the Register maintained
under Section 301 of the Companies Act,1956, according to the
information and explanations given to us:
(a) The Company has granted loans aggregating Rs. 330.00 lacs to one
party during the year. Including balances transferred from the
amalgamating companies,at the year-end, the outstanding balances of
such loans granted aggregated Rs. 1,096.00 lacs (seven parties) and the
maximum amount involved during the year was Rs. 1207.29 lacs (seven
parties).
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interest of the
Company.
(c) The receipts of principal amounts and interest have been as per
stipulations.
(v) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
(vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 lacs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time, other than certain purchases which are of
a special nature for which comparable quotations are not available and
in respect of which we are, therefore, unable to comment.
(vii) According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year in
terms of the provisions of Sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956.
(viii) In our opinion, the internal audit functions carried out during
the year by a firm of Chartered Accountants appointed by the Management
have been commensurate with the size of the Company and the nature of
its business.
(ix) 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 and are being made up. We
have, however, not made a detailed examination of the cost records with
a view to determine whether they are accurate or complete.
(x) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Investor Education and Protection Fund,
Income-tax,Wealth Tax, Customs Duty, Cess and other material statutory
dues applicable to it with the appropriate authorities and has not been
regular in depositing interest on Provident Fund, interest on
Employees'' State Insurance, Sales Tax, Value Added Tax, Excise Duty,
Gratuity, Interest on Electricity charges, Interest on Water charges
and Service Tax.
(b) There were no undisputed amounts payable in respect of Investor
Education and Protection Fund, Income-tax, Wealth Tax, Customs Duty,
Cess and other material statutory dues in arrears as at 31st March,
2013 for a period of more than six months from the date they became
payable. As at the year end, the arrears of statutory dues outstanding
for a period of more than six months aggregate to Rs. 486.92 lacs in
respect of interest on Provident Fund, Rs. 85.66 lacs in respect of
interest on Employees'' State Insurance Dues, Rs. 12.46 lacs in respect
of Sales Tax (inclusive of Interest), Rs. 0.33 lacs in respect of Value
Added Tax, Rs. 9.90 lacs in respect of Excise Duty, Rs. 555.69 lacs in
respect of Gratuity, Rs. 296.88 lacs in respect of Interest on
Electricity Charges, Rs. 758.06 lacs in respect of Interest on Water
Charges and Rs. 0.02 lacs in respect of Service Tax.
(xi) The Company does not have accumulated losses at the end of the
financial year and the Company has not incurred any cash loss during
the current financial year but has incurred cash loss during the
preceeding period.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions and banks except that there were delays upto 48
months in repayment of dues of term loans and interest thereon to a
financial institution to the extent of Rs. 2,775.50 lacs and Rs.
1,338.55 lacs respectively by an amalgamating company. The duration of
delay spanned from period prior to amalgamation on 1st April 2012 to
July 2012. The Company has not issued debentures.
(xiii) In our opinion, the Company has maintained adequate documents
and records where it has granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
No such secured loans and advances are outstanding as at the year end.
(xiv) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not, prima facie, prejudicial to the interests of the Company.
(Refer Note no. 30.1(b) on guarantee given for a subsidiary).
(xv) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained, other than
temporary deployment pending application.
(xvi) In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that funds raised on short-term basis have, prima
facie, not been used during the year for long-term investment.
(xvii) To the best of our knowledge and according to the information
and explanations given to us, no fraud by the Company and no material
fraud on the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm Registration No.117364W)
R.SALIVATI
Partner
(Membership No. 34004)
MUMBAI, 30th May, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of MAFATLAL INDUSTRIES
LIMITED ("the Company") as at 31st March, 2012, the Statement of Profit
and Loss and the Cash Flow Statement of the Company for the period from
1st July, 2011 to 31st March, 2012 both annexed thereto, in which are
incorporated the Returns from Ahmedabad and Nadiad Units / Branches
audited by other auditors. These financial statements are the
responsibility of the Company's Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (CARO)
issued by the Central Government of India in terms of Section 227(4A)
of the Companies Act, 1956, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Attention is invited to sub-note 9 of Note 29, which was also the
subject matter of our report similarly qualified in the previous
period, regarding non-accounting of rent/ recovery of expenses for the
reasons stated therein; if the same is considered including the
revision awarded by the Hon'ble Small Causes court, rental income from
investment property would be higher by Rs. 754.11 lacs (aggregate to
30th June, 2011 Rs. 178.65 lacs),
We further report that had the observation made by us above been
considered, in the current period there would have been a loss of Rs
4,431.88 lacs, as against the reported loss of Rs. 5,185.99 lacs
(previous period, profit would have been Rs. 38,234.65 lacs, as against
the reported profit of Rs. 38,056.00 lacs), reserves and surplus would
have been Rs. 30,300.07 lacs, as against the reported figure of Rs.
29,545.96 lacs (as at 36th June, 2011, F;,. 34,900.60 lacs, as against
the reported figure of Rs.34,731.Rs.5 lacs), trade receivables (net of
provision) would have been Rs. 5,936.10 lacs, as against the reported
figure of Rs. 5181.99 lacs (as at 30th June, 2011, Rs. 6,270.35 lacs, as
against the reported figure of Rs. 6,091.70 lacs).
5. Further to our comments in the Annexure referred to in paragraph 3
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, subject to our comment in para (4) above, proper
books of account as required by law have been kept by the Company so
far as appears from our examination of those books and proper returns
adequate for the purposes of our audit have been received from the
Ahmedabad and Nadiad Units / Branches audited by other auditors;
(iii) the reports on the accounts of the Ahmedabad and Nadiad Units /
Branches audited by other auditors have been forwarded to us and have
been dealt with by us in preparing this report;
(iv) 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 and the audited Branch Returns; '
(v) in our opinion, subject to our comment in para (4) above, the
Balance Sheet, Statement of Profit and Loss and the Cash Flow Statement
dealt with by this report are in compliance with the Accounting
Standards referred to in Section 211(3C) of the Companies Act, 1956;
(vi) Subject to our comment in para (4) above, 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 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 31s< March, 2012;
(b) in the case of the Statement of Profit and Loss, of the loss of the
Company for the period from 1st July, 2011 to 31st March, 2012 and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the period from 1sl July, 2011 to 31st March, 2012.
6. On the basis of written representations received from the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of Section
274(1 )(g) of the Companies Act, 1956.
ANNEXURETO THE AUDITORS'REPORT
(Referred to in paragraph 3 of our report of even date)
(i) Having regard to the nature of the Company's
business/activities/result, clauses (vi), (xiii), (xiv),
(xviii), (xix) and (xx) of CARO are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
* including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the period by the
Management, in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
(c) The fixed assets disposed off during the period, in our opinion,
do not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during
the period by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanation
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.
(iv) (a) The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
under Section 301. of the Companies Act, 1956. (b) In respect of
loans, secured or unsecured, taken by the Company, from companies,
firms or other parties listed in the Register maintained under Section
301 of the Companies Act, 1956, according to the information and
explanation given to us: (i) The Company has taken loans aggregating
Nil frorn parties during the period. At the period end, the
outstanding balance of such loan from a party was Nil and 'the maximum
amount involved during the period was Rs. 3,443.73 lacs. (ii) The rate
of interest and other terms and conditions of such loan are, in our
opinion, prima facie not prejudicial to the interests of the Company.
(iii) The payment of principal amount and interest in respect of such
loan is as per stipulations. (v) In our opinion and according to the
information and explanations given to us, having regard to the
explanations that some of the items purchased are of special nature and
suitable alternative sources are not readily available for obtaining
comparable quotations, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and fixed assets and the
sale of goods and services. During the course of our audit, we have not
observed any major weakness in such internal control system. (vi) In
respect of contracts or arrangements entered in the Register maintained
in pursuance of Section 301 of the Companies Act, 1956, to the best of
our knowledge and belief and according to the information . and
explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 lacs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time except in respect of certain purchases for
which comparable quotations are not available and in respect of which
we are unable to comment.
(vii) In our opinion, the internal audit functions carried out during
the period by firm of Chartered Accountants appointed by the Management
have been commensurate with the size of the Company and the nature of
its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) 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 and are being reconciled
with the financial statements for the period. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(ix) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has been generally regular in depositing undisputed
dues, including Investor Education and Protection Fund, Income- tax,
Wealth Tax, Service Tax, Custom Duty, Cess and other material statutory
dues applicable to it with the appropriate authorities and has not been
regular in depositing interest on Provident Fund, interest on
Employees' State Insurance, Sales Tax and Excise duty.
(b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Cess and other material statutory dues in
arrears as at 31st March, 2012, for a period of more than six months
from the date they became payable. As at the period end, the arrears of
statutory dues outstanding for a period of more than six months
aggregate to Rs. 187.28 lacs in respect of interest on Provident Fund,
Rs. 16.80 lacs in respect of interest on Employees State Insurance
dues, Rs. 9.42 lacs in respect of Sales tax, Rs. 51.90 lacs in respect
of Gratuity, Rs. 280.25 lacs in respect of Excise duty, Rs. 232.27 lacs
in respect of Municipal Water Charges and Rs. 129.61 lacs in respect of
interest on Electricity duty.
(c) Details of dues of Excise duty, Customs duty and Labour dues which
have not been deposited as on 31st March, 2012 on account of disputes
are given below:
Statute Nature of
Dues Forum where Period to which Amount
involved
Dispute is
pending the amount
relates (Rs. in
lacs)
Central
Excise Excise
Duty Assistant 1989-90 to
2003-04 254.29
Act, 1944 Commissioner
Central
Excise Excise
Duty Assistant 2006-07 to
2010-11 1.42
Act, 1944 Commissioner
Central
Excise Excise
Duty Commissioner 1989-90 to
2003-04 2,224.25
Act, 1944
Central
Excise Excise
Duty Commissioner
(A) 1989-90 to
2003-04 133.90
Act, 1944
Central
Excise Excise
Duty CESTAT 1989-90 to
2003-01 54.95
Act, 1944
Central
Excise Excise
Duty High Court 1989-90 to
2003-04 14.99
Act, 1944
Central
Excise Excise
Duty Supreme Court 1989-90 to
2003-04 13.42
Act, 1944
Customs Act, Customs
Duty Joint Director 1989-90 to
1999-00 4.79
1962 General of
Foreign
Trade
Bombay
Indus- Labour Dues Labour Court From 1993 to
2008 1,163.29
trial
Relations
Act, 1946
(x) The Company does not have accumulated losses at the end of the
financial period. The Company has incurred cash losses in the financial
period and the Company did not incur cash losses in the immediately
preceding financial period.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to.
bank.
(xii) In our opinion, the Company has maintained adequate records where
it has granted loans and advances on the basis of security by way of
pledge of shares.
(xiii) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantee given by the
Company for loans taken by other from banks and financial institutions
are not prima facie prejudicial to the interests of the Company. [Refer
note 1(a) of Note 29 on guarantee given for a subsidiary].
(xiv) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
(xv) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the period for long- term investment.
(xvi) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the period.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 117364W)
R. SALIVATI
Partner
MUMBAI,
10th October, 2012 (Membership No. 34004)
Jun 30, 2011
1. We have audited the attached Balance Sheet of MAFATLAL INDUSTRIES
LIMITED ("the Company") as at 30th June, 2011, the Profit and Loss
account and the Cash Flow Statement of the Company for the period from
1st June 2011 to 30th June 2011 both annexed thereto, in which are
incorporated the Returns from Ahmedabad and Nadiad Units / Branches
audited by other auditors. These financial statements are the
responsibility of the Company's Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (CARO)
issued by the Central Government of India in terms of Section 227(4A)
of the Companies Act, 1956, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. We invite attention to note 18 of schedule 18, which was also the
subject matter of our report similarly qualified in the previous
period, regarding non- accounting of rent/ recovery of expenses of Rs.
4.72 lacs; aggregate to date, Rs. 178.65 lacs (previous period, Rs.
7.63 lacs; aggregate to date as at 31st May, 2010, Rs. 173.93 lacs).
We further report that had the observation made by us above, been
considered, in the current period there would have been a profit of Rs.
38,234.65 lacs, as against the reported profit of Rs. 38,056.00 lacs
(previous period, profit would have been Rs. 5,350.23 lacs, as against
the reported profit of Rs. 5,176.30 lacs), reserves and surplus would
have been Rs. 34,910.60 lacs, as against the reported figure of Rs.
34,731.95 lacs (as at 31st May, 2010, accumulated losses would have
been Rs. 25,927.80 lacs, as against the reported figure of Rs.26,101.73
lacs), sundry debtors (net of provision) would have been Rs. 6,270.35
lacs, as against the reported figure of Rs. 6,091.70 lacs (as at 31st
May, 2010, Rs.5,196.75 lacs, as against the reported figure of
Rs.5,022.82 lacs).
5. Further to our comments in the Annexure referred to in paragraph 3
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, subject to our comment in para (4) above, proper
books of account as required by law have been kept by the Company so
far as appears from our examination of those books and proper returns
adequate for the purposes of our audit have been received from the
Ahmedabad and Nadiad Units / Branches audited by other auditors;
(iii) the reports on the accounts of the Ahmedabad and Nadiad Units /
Branches audited by other auditors have been forwarded to us and have
been dealt with by us in preparing this report;
(iv) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account and the audited Branch Returns;
(v) in our opinion, subject to our comment in para (4) above, the
Balance Sheet, the Profit and Loss Account and the Cash Flow Statement
dealt with by this report are in compliance with the Accounting
Standards referred to in Section 211(3C) of the Companies Act, 1956;
(vi) Subject to our comment in para (4) above, 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 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 30th June 2011;
(b) in the case of the Profit and Loss Account, of the profit of the
Company for the period from 1st June 2010 to 30th June 2011 and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the period from 1st June 2010 to 30th June 2011.
6. On the basis of written representations received from the Directors,
as on 30th June, 2011 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 30th June, 2011
from being appointed as a director in terms of Section 274(1)(g) of the
Companies Act, 1956.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 of our report of even date)
(i) Having regard to the nature of the Company's
business/activities/result, clauses (vi), (xiii), (x), (xiv), (xviii),
(xix) and (xx) of CARO are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the period by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
(c) The fixed assets disposed off during the period, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during
the period by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanation
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.
(iv) (a) The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956.
(b) In respect of loans, secured or unsecured, taken by the Company,
from companies, firms or other parties listed in the Register
maintained under Section 301 of the Companies Act, 1956, according to
the information and explanation given to us:
(i) The Company has taken loans aggregating Nil from parties during the
period. At the period end, the outstanding balance of such loan from a
party was Rs. 3,420.97 lacs (including interest accrued and due) and
the maximum amount involved during the period was Rs.3,420.97 lacs.
(ii) The rate of interest and other terms and conditions of such loan
are, in our opinion, prima facie not prejudicial to the interests of
the Company.
(iii) The payment of principal amount and interest in respect of such
loan is as per stipulations.
(v) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
(vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs.5 lacs in respect
of any party, the transactions have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time except in respect of certain purchases for which
comparable quotations are not available and in respect of which we are
unable to comment.
(vii) In our opinion, the internal audit functions carried out during
the period by firm of Chartered Accountants appointed by the Management
have been commensurate with the size of the Company and the nature of
its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956 in respect of Textiles and we are of the opinion that prima
facie the prescribed accounts and records have been made and
maintained. The prescribed cost statements are in the process of being
compiled for the period. We have, however, not made a detailed
examination of the records with a view to determining whether they are
accurate or complete. To the best of our knowledge and according to the
information and explanations given to us, the Central Government has
not prescribed the maintenance of cost records for any other product of
the Company.
(ix) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has not been regular in depositing undisputed dues
including Provident Fund, Employees' State Insurance dues, Income Tax,
Sales Tax, Custom Duty, Excise Duty, Gratuity, Property Tax, Municipal
Water Charges and Electricity Duty with the appropriate authorities. In
respect of Investor Education & Protection Fund, Wealth Tax, Service
Tax, Cess and other material statutory dues, it has generally been
regular in depositing undisputed statutory dues with the appropriate
authorities.
(b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Cess and other material statutory dues in
arrears as at 30th June, 2011, for a period of more than six months
from the date they became payable. As at the period end, the arrears of
statutory dues outstanding for a period of more than six months
aggregate to Rs. 502.32 lacs in respect of Provident Fund (including
interest), Rs. 50.49 lacs in respect of Employees State Insurance dues
(including interest), Rs. 9.41 lacs in respect of Sales tax, Rs.
2,572.52 lacs in respect of Gratuity, Rs. 280.25 lacs in respect of
excise duty, Rs. 232.27 lacs in respect of Municipal Water Charges and
Rs. 1,345.08 lacs in respect of Electricity duty.
(c) Details of dues of Excise duty, Customs duty and Labour dues which
have not been deposited as on 30th June, 2011 on account of disputes
are given below:
Statute Nature of Forum where Period to Amount
Dues Dispute is which the involved
pending amount
relates (Rs. in lacs)
Central Excise Excise Duty Assistant 1989-90 to 254.29
Act, 1944 Commissioner 2003-04
Central Excise Excise Duty Assistant 2006-07 to 1.42
Act, 1944 Commissioner 2010-11
Central Excise Excise Duty Commissioner 1989-90 to 2,224.25
Act, 1944 2003-04
Central Excise Excise Duty Commissioner 1989-90 to 133.90
Act, 1944 (A) 2003-04
Central Excise Excise Duty CESTAT 1989-90 to 54.95
Act, 1944 2003-04
Central Excise Excise Duty High Court 1989-90 to 14.99
Act, 1944 2003-04
Central Excise Excise Duty Supreme Court 1989-90 to 13.42
Act, 1944 2003-04
Customs Act, Customs Joint Director 1989-90 to 311.56
1962 Duty General of 1999-00
Foreign Trade
Bombay Labour Labour Court From 1993 to 1,101.12
Industrial Dues 2008
Relations Act,
1946
(x) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
bank.
(xi) In our opinion, the Company has maintained adequate records where
it has granted loans and advances on the basis of security by way of
pledge of shares.
(xii) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantee given by the
Company for loans taken by other from banks and financial institutions
are not prima facie prejudicial to the interests of the Company [Refer
note 2(i) of Schedule 18].
(xiii) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
(xiv) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the period for long- term investment.
(xv) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the period.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No.117364W)
R. SALIVATI
Partner
(Membership No.34004)
MUMBAI,
8th August, 2011
May 31, 2010
1. We have audited the attached Balance Sheet of MAFATLAL INDUSTRIES
LIMITED ("the Company") as at 31st May, 2010, the Profit and Loss
account and the Cash Row Statement of the Company for the period from
1st April 2009 to 31st May 2010 both annexed thereto, in which are
incorporated the Returns from Ahmedabad and Nadiad Units/ branches
audited by other auditors. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. We invite attention to note 6 of Schedule 18 regarding accounts of
the Company being prepared on a going concern basis; this was also
drawn attention to in our report of the previous year.
5. In respect of the following issues, our report was qualified in the
previous year, but which are no longer relevant for the current period:
(a) Non-provisior for diminution in the value of certain unquoted
investments as the same has been provided during the period [Refer Note
11 of Schedule 18];
(b) Non-provision for overdue debts, loans and advances in view of
security created [Refer Note 12 of Schedule 18].
6. We invite attention to note 18 of schedule 18, which was also the
subject matter of our report similarly qualified in the previous year,
regarding non- accounting of rent/ recovery of expenses of Rs. 7.63
lacs; aggregate to date, Rs.173.93 lacs (previous year, Rs.9.46 lacs;
aggregate to date as at 31" March, 2009, Rs. 180.30 lacs).
We further report that had the observation made by us above, been
considered, (without considering items (a) and (b) of para 5 above in
case of the previous year, the effect of which on the financial
statements for the year ended 31* Match, 2009 could not be determined)
in the current period there would have been a profit of Rs.5,350.23
lacs, as against the reported profit- of Rs.5,176.30 lacs (previous
year, profit would have been Rs.33,931.02 lacs, as against the reported
profit of Rs.33,750.72 lacs), the accumulated losses would have been
Rs.25,927.80 lacs, as against the reported figure of Rs.26,101.73 lacs
(at 31st March, 2009, Rs.31,097.73 lacs, as against the reported figure
of Rs.31,278.03 lacs), sundry debtors (net of provision) would have been
Rs.5,196.75 lacs, as against the reported figure of Rs.5,022.82 lacs
(as at 31st March, 2009, Rs.5,453.98 lacs, as against the reported figure
of Rs.5,273.68 lacs).
7. Further to our comments in the annexure referred to in para (3)
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, subject to our comment in para (6) above, proper
books of account as required by law have been kept by the Company so
far as appears from our examination of those books and proper returns
adequate for the purposes of our audit have been received from the
Ahmedabad and Nadiad Branches audited by other auditors;
(iii) the Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this, report are in agreement with the books of
account and with the audited returns from the branches;
(iv) in our opinion, subject to our comment in para (6) above, 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;
(v) Subject to our comment in para (6) above (paras 5 & 6 in case of
previous year), 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 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 May, 2010;
(b) in the case of the Profit and Loss account, of the Profit for the
period from 1sl April, 2009 to 31" May, 2010; and
(c) in the case of the Cash Flow Statement, of the Cash Flows for the
period from 1s1 April, 2009 to 31" May, 2010.
8. On the basis of written representations received from the
directors, as on 31st May, 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st May, 2010 from being appointed as a director in terms of Section
274(1 )(g) of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our
report of even date)
(I) Having regard to the nature of the Companys business/activities/
result, clauses (vi), (xii), (xiii), (xiv), (xix) and (xx) of Companies
Auditors Report Order, 2003 are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) Some of the fixed assets were physically verified during the period
by the Management in accordance with a regular programme of
verification which, in our opinion, provides for physical
verification of all for the fixed assets at reasonable intervals.
According to the information and explanation given to us, no material
discrepancies were noticed on such verification.
(c) The fixed assets disposed off during the period, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during
the period by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanation
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 oh physical
verification.
(iv) (a) The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) In respect of loans, secured or unsecured, taken by the Company,
from companies, firms or other parties listed in the Register
maintained under Section 301 of the Companies Act, 1956, according to
the Information and explanation given to us:
(i) The Company has not taken loans from such parties during the
period. At the period end, the outstanding balance of such Interest
free loan from a party was fis.3,108.96 lacs and the maximum amount
involved during the period was Rs.3,108.96 lacs.
(II) The rate of interest and other terms and conditions of such loan
are, in our opinion, prima facie, not prejudicial to the interests of
the Company.
(iii) The payments of principal amounts in respect of such loan is as
per stipulations.
(v) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
(vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs.5 lacs in respect
of any party, the transactions have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time.
(vij) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1 )(d) of the Companies
Act, 1956 in respect of Textiles and we are of the opinion that prima
facie the prescribed accounts and records have been made and
maintained. The prescribed cost statements are in the process of being
compiled for the period. We have, however, not made a detailed
examination of the records with a view to determining whether they are
accurate or complete. To the best of our knowledge and according to the
information and explanations given to us, the Central Government has
not prescribed the maintenance of cost records for any other product of
the Company.
(ix) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has not been regular in depositing undisputed dues
including Provident Fund, Employees State Insurance dues, Sales. Tax,
Excise Duty, Customs Duty, Gratuity, Property Tax, Municipal Water
Charges & electricity duty with the appropriate authorities. In respect
of Investor Education & Protection Fund, Wealth Tax, Income Tax,
Service Tax, Cess and other material statutory dues, it has generally
been regular in depositing undisputed statutory dues with the
appropriate authorities.
(b) There were no undisputed amounts payable in respect of Income- tax,
Wealth Tax, Custom Duty, Cess and other material statutory dues in
arrears as at 31st May, 2010, for a period of more than six months from
the date they became payable. As at the period end, the arrears of
statutory dues outstanding for a period of more than six months aggregate
to Rs.728.58 lacs in respect of Provident Fund, Rs.66.26 lacs in respect
of Employees State Insurance dues, Rs.9.41 lacs in respect of Sales
tax, Rs.2,325.19 lacs in respect of Gratuity, Rs.280.25 lacs in respect
of excise duty, Rs.68.40 lacs in respect of Property Tax, Rs.254.60 lacs
in respect of Municipal Water Charges and Rs.1,960.08 lacs In respect of
Electricity duty.
(c) Details of dues of Excise duty, Customs duty and Stamps duty which
have not been deposited as on 31" May, 2010 on account of disputes are
given below:
Statute Nature of Forum where Period to
which Amount
Dues Dispute is the amount Involved
pending relates (Rs. In lacs)
Central
Excise Excise Assistant 1989-90 to 69.73
Act, 1944 Duty Commissioner 2003-04
Central
Excise Excise Deputy 1989-90 to 15.28
Act, 1944 Duty Commissioner 2003-04
Central
Excise Excise Joint 1989-90 to 10.70
Act, 1944 Duty Commissioner 2003-04
Central
Excise Excise Additional 1989-90 to 8.11
Act,
1944 Duty Commissioner 2003-04
Central
Excise Excise Commissioner 1989-90 to 2,149.67
Act, 1944
Duty 2003-04
Central
Excise Excise Commissioner 1989-90 to 295.62
Act, 1944
Duty 2003-04
Central
Excise Excise CESTAT 1989-90 to 54.25
Act,
1944 Duty 2003-04
Customs Act, Customs Director 1989-90 to 384.97
1962 Duty General of 1999-00
Foreign Trade
Bombay Labour Labour Court From 1993 to 1,116.95
Industrial Dues 2008
Relations Act,
1946
Bombay Stamp Superintendent 1996-97 1,229.47
Stamps Act, Duty of Stamps
1958
(x) The accumulated losses of the Company at the end of the financial
period are more than fifty percent of its net worth and the Company has
not incurred cash losses in the financial year and in the immediately
preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks.
(xii) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantee given by the
Company for loans taken by other from banks and financial institutions
are not prima facie prejudicial to the interests of the Company [Refer
note 2(i) of Schedule 18].
(xiii) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
(xiv) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on Short-term basis have not been used during
the period for long- term investment.
(xv) According to the information and explanations given to us, the
Company has made preferential allotment of shares to parties covered in
the Register maintained under Section 301 of the Companies Act, 1956 at
a price which is prima facie not prejudicial to the interests of the
Company.
(xvi) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the period.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 117364W)
R. Salivati
Partner
(Membership No.34004)
MUMBAI, Dated, 28th June, 2010