Mar 31, 2023
MAHARASHTRA SEAMLESS LIMITED Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying financial statements of MAHARASHTRA SEAMLESS LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss, including the Statement of Other Comprehensive Income, the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information (herein after referred to as "Standalone Financial Statements")
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 ("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 31,2023, its profit including other comprehensive income its cash flows and the change in equity for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the financial year ended March 31,2023.These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Sr. No |
Key Audit Matter |
How our audit addressed the key audit matter |
1 |
Accuracy and completeness of disclosure of related party transactions and compliance with the provisions of Companies Act 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (''SEBI (LODR) 2015'') (Refer note no. 2.37 of the standalone financial statements) We identified the accuracy and completeness of disclosure of related party transactions as set out in respective notes to the standalone financial statements as a key audit matter due to: > the significance of transactions with related parties during the year ended March 31, 2023. > Related party transactions are subject to the compliance requirement under the Companies Act 2013 and SEBI (LODR) 2015. |
Our audit procedures in relation to the disclosure of related party transactions included the following: > We obtained an understanding of the Company''s policies and procedures in respect of the capturing of related party transactions and how management ensures all transactions and balances with related parties have been disclosed in the standalone financial statements. > We obtained an understanding of the Company''s policies and procedures in respect of evaluating arms-length pricing and approvalprocess by the audit committee and the board of directors. > We agreed the amounts disclosed with underlying documentation and read relevant agreements, evaluation of arms-length by management, on a sample basis, as part of our evaluation of the disclosure. > We assessed management evaluation of compliance with the provisions of Section 177 and Section 188 of the companies Act 2013 and SEBI (LODR) 2015. > We evaluated the disclosures through reading of statutory information, books and records and other documents obtained during the course of our audit. |
Sr. No |
Key Audit Matter |
How our audit addressed the key audit matter |
2 |
Contingent Labilities relating to Income Tax Demand Pursuant to MCA notification dated 30.03.2019 amending the Accounting Standard Ind AS 12 -Income Tax the company reviewed the disputed income tax demand of Rs 5063.58 Lakhs, hitherto, disclosed under contingent liabilities. This involves significant management judgment to determine the possible outcome of the uncertain tax position, consequently having an impact on related accounting and disclosures in the standalone financial statements. Refer Note 2.27 (e) to the standalone financial statements. |
Our audit procedures include the following substantive procedures: Obtained understanding of key uncertain tax positions; and We along with our internal tax experts - Read and analyzed selected key correspondences including appeal papers and assessment orders, externalopinions obtained by the Company. We also held discussions with the Company''s tax advocate appropriate senior management and evaluated management''s underlying key assumptions in estimating the tax provisions; and Assessed management''s estimate of the possible outcome of the disputed cases. the accounting estimates and disclosures made in accordance with the Accounting Standards Ind AS 12 and Ind AS 8. |
Litigation, arbitrations, and claims As described in note 2.27 ( g) of the standalone Ind AS financial statements) As of March 31,2023, the Company''s discloser relating to legal claims, arbitration and litigation exposures have been identified as a key audit matter due to the large number of complex legalclaims across the Company. Due to complexity of cases, timescales for resolution and need to negotiate with various authorities, there is significant judgement required by management in assessing the exposure of each case and thus a risk that such cases may not be adequately provided for or disclosed in the standalone Ind AS financial statements. Accordingly, claims litigations, and arbitrations was determined to be a key audit matter in our audit of the standalone Ind AS financial statement. |
Our audit procedures included the following: ⢠Gained an understanding of the process of identification of claims, litigation, and arbitrations, and evaluated the design and tested the operating effectiveness of key controls. ⢠Obtained the Company''s legalcases summary and critically assessed management''s position through discussions with the legal head and Company management, on both the probability of success in significant cases, and the magnitude of any potential loss. ⢠Obtained confirmation, where appropriate, from relevant legalcounseland conducted discussions with them regarding materialcases. Evaluated the objectivity, independence, competence, and relevant experience of legal counsel. ⢠Inspected external legal opinions, where appropriate and other evidence to corroborate management''s assessment of the risk profile in respect of legal claims. ⢠Checked the adequacy of the disclosures with regard to facts and circumstances of the legaland litigation matters. |
Other Information
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis; Board''s Report including Annexures to Board Report, Business Responsibility Report, Corporate Governance and Shareholders'' Information but does not include the standalone financial statements and our auditor''s report thereon. The aforesaid documents are expected to be made available to us after the date of this auditor''s report.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the aforesaid documents, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Management''s Responsibilities 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 financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of the management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements for the financial year ended March 31,2023 and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
Other Matter
The financial Statement of the Company for the year ended 31 March 2022, include in these Financial Statements audited by the predecessor auditors whose report dated 27th May 2022, expressed an un-qualified opinion on those financial statements.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of sub -section (11) of section 143 of the Act, we give in the "Annexure-A", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income) and the standalone cash flow statement, 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 financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2023 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company with reference to these standalone financial statements and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
(g) In our opinion, the managerial remuneration for the year ended March 31, 2023 has been paid / provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;
(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:
a. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 2.27 (d,e and f) of the standalone financial statements.
b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
c. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
d. (i) The management has represented that, to the best of its knowledge and belief, as disclosed in the note 2.47 (E)
(ii) of the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
⢠directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company, or
⢠provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ii) The management has represented, that, to the best of its knowledge and belief, as disclosed in the note 2.47 (E) (ii) of the standalone financial statements, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall:
⢠directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or
⢠provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries
(iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (d) (i) and (d) (ii) contain any material misstatement.
e. The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
The Company has neither declared nor paid any interim dividend during the year.
As stated in Note 2.11 to the standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
f. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11 (g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31,2023.
For Kanodia Sanyal & Associates
Chartered Accountants Firm Registration No : 008396N
(R. K. Kanodia)
Place : New Delhi Partner
Date : 26th May, 2023 Membership No. 016121
UDIN: 23016121BHAMQD3867
Mar 31, 2022
Opinion
1. We have audited the accompanying financial statements of MAHARASHTRA SEAMLESS LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2022, the Statement of Profit and Loss, including the Statement of Other Comprehensive Income, the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information (herein after referred to as "Standalone Financial Statements")
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 ("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, 2022, its profit including other comprehensive income its cash flows and the change in equity for the year ended on that date.
Basis for Opinion
2. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Emphasis of Matters
3. We draw attention to Note no. 2.39 (ii) that the Company has not recognized interest income on loan granted to one of its Indian subsidiary Company. This is not in accordance with the provisions of section 186(7) of the Companies Act 2013 and consequently, the standalone profits for the year ended March 31,2022 is understated.
Our opinion is not modified in respect of this matter
Key Audit Matters
4. Key Audit Matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the financial year ended March 31,2022.These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Sr. No |
Key Audit Matter |
How our audit addressed the key audit matter |
1 |
Accuracy and completeness of disclosure of related party transactions and compliance with the provisions of Companies Act 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (''SEBI (LODR) 2015'') (Refer note no. 2.38 of the standalone financial statements) We identified the accuracy and completeness of disclosure of related party transactions as set out in respective notes to the standalone financial statements as a key audit matter due to: > the significance of transactions with related parties during the year ended March 31, 2022. > Related party transactions are subject to the compliance requirement under the Companies Act 2013 and SEBI (LODR) 2015. |
Our audit procedures in relation to the disclosure of related party transactions included the following: > We obtained an understanding of the Company''s policies and procedures in respect of the capturing of related party transactions and how management ensures all transactions and balances with related parties have been disclosed in the standalone financial statements. > We obtained an understanding of the Company''s policies and procedures in respect of evaluating arms-length pricing and approval process by the audit committee and the board of directors. > We agreed the amounts disclosed with underlying documentation and read relevant agreements, evaluation of arms-length by management, on a sample basis, as part of our evaluation of the disclosure. > We assessed management evaluation of compliance with the provisions of Section 177 and Section 188 of the companies Act 2013 and SEBI (LODR) 2015. > We evaluated the disclosures through reading of statutory information, books and records and other documents obtained during the course of our audit. |
5. The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis; Board''s Report including Annexures to Board Report, Business Responsibility Report, Corporate Governance and Shareholders'' Information but does not include the standalone financial statements and our auditor''s report thereon. The aforesaid documents are expected to be made available to us after the date of this auditor''s report.
6. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
7. In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
8. When we read the aforesaid documents, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Management''s Responsibilities for the Standalone Financial Statements
9. The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
10. In preparing the standalone financial statements, the management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
11. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
12. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
13. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of the management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
14. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
15. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
16. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements for the financial year ended March 31, 2022 and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
17. Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
Report on Other Legal and Regulatory Requirements
18. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of sub -section (11) of section 143 of the Act, we give in the "Annexure-A", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
19. 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 standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income) and the standalone cash flow statement, 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 financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on March 31,2022 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2022 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 with reference to these standalone financial statements and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
(g) In our opinion, the managerial remuneration for the year ended March 31, 2022 has been paid / provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;
(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:
a. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 2.27 (d,e and f) of the standalone financial statements.
b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
c. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
d. (i) The management has represented that, to the best of its knowledge and belief, as disclosed in the note 2.52 (E) (ii) of the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
⢠directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company, or
⢠provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ii) The management has represented, that, to the best of its knowledge and belief, as disclosed in the note 2.52 (E) (ii) of the standalone financial statements, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall:
⢠directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or
⢠provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries
(iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (d) (i) and (d) (ii) contain any material misstatement.
e. The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
The Company has neither declared nor paid any interim dividend during the year.
As stated in Note 2.11 to the standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
Chartered Accountants Firm Registration No : 301088E
Place : Mumbai Partner
Date : 27th May, 2022 Membership No. 301880
UDIN: 22301880AJRYRP2852
Mar 31, 2018
INDEPENDENT AUDITORSâ REPORT
To the Members of Maharashtra Seamless Limited 1) Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Maharashtra Seamless Limited ("the Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, signed by us under reference to this report and a summary of the significant accounting policies and other explanatory information (herein after referred to as "Standalone Ind AS Financial Statementsâ).
2) Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (hereinafter referred to as "the Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (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 (Ind AS) prescribed under section 133 of the Act , read with Rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3) Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
4) Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
5) Emphasis of Matter
(a) We draw attention to note no. 2.37 (a) to the financial statements regarding of the factors considered in the Company''s assessment that the carrying amounts of the investments and the loans and advances to certain subsidiaries, associates and a joint venture are recoverable and that no loss allowance is required against the financial guarantees of ''150,297.25 Lakhs.
(b) We draw attention to note no.2.37 (b) to the financial statements regarding due to non-availability of financial statements of Gondkhari Coal Mining Ltd. ( J V Entity) in previous years and its impaired ability to continue as Joint Venture due to cancellation of coal block by Hon''able Supreme Court Judgement, we had made provision for diminishing in Investment.
(c) We draw attention to note no. 2.33 to the financial statements regarding dividend income on perpetual preference shares have not been considered as dividend is not declared.
6) Other Matters
The comparative financial information of the Company for the year ended 31st March, 2017 prepared in accordance with Indian Accounting Standards, included in these Standalone Financial Statements, have been audited by the predecessor auditor. The report of the predecessor auditor on the comparative financial information dated 26th May, 2017 expressed an unmodified opinion.
7) Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order, 2016 ("the Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 prescribed under section 133 of the Act, read with Rule 3 of Companies (Indian Accounting Standards) Rules, 2015, as amended.
(e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure Bâ.
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer notes no. 2.28 of the standalone Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
âANNEXURE Aâ TO THE INDEPENDENT AUDITORâS REPORT
To the Members of Maharashtra Seamless Limited
1) (a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this program, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company
2) The inventory has been physically verified by the management during the year. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.
3) In respect of loans, secured or unsecured, granted by the Company to the other parties covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ).
(a) The Company has granted loans to five companies. The maximum amount involved during the year was '' 26,449.86 Lakhs. The year-end balance of loan granted to such companies was '' 25,156.55 Lakhs.
(b) In respect of loans granted by the company the interest payment are regular except refer note no. 2.42 to the financial statement and the principal amounts are being received/renewed on due dates.
(c) There are no overdue amounts in respect of the loan granted to a body corporate listed in the register maintained under Section 189 of the Act.
4) According to the information and explanations given to us and the records of the Company examined by us, in respect of loans, investments, guarantees and security provisions of section 185 and 186 of the companies Act 2013, have been complied with.
5) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the rules framed there under.
6) We have broadly reviewed the books of accounts maintained by the Company pursuant to the order made by the Central Government for the maintenance of cost records under section 148(1) of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, carried out any detailed examination of such records and accounts.
7) (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident
Fund, Employeesâ State Insurance, Income Tax, Sales-Tax, Goods and Services Tax, Service Tax, Duty of Custom, Duty of Excise, Value Added Tax, Cess and Other Statutory dues applicable to it.
(b) According to the information and explanations provided to us, no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income-Tax, Service Tax, Sales-Tax, Goods and Services Tax, Duty of Custom, Duty of Excise, Value Added Tax, Cess and Other Statutory Dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues of Income-Tax, Sales-Tax, Service Tax, Duty of Custom, Duty of Excise, Value Added Tax and Cess which have not been deposited on March 31st, 2018 on account of any dispute, are as follows:
Name of the Statue |
Nature of Dues |
Amount (? in lakhs) |
Period to which the amount relates |
Forum where Dispute is pending |
Income Tax Act,l96l |
Demand for Income Tax |
4.92 |
AY 2011-12 |
Income Tax Appellate Tribunal |
155.64 |
Assessment years from AY 2012-13 to 2015-16 |
Commissioner of Income-Tax (Appeals) |
||
Central |
Excise Duty and |
7.71 |
FY 2005-06 & 2006-07 |
High Court |
Excise Act, l944 |
Service Tax |
278.87 |
Various Years from FY 2004-05 to 2013-14 |
Central Excise and Service Tax Appellate Tribunal |
23.35 |
Various years from FY 1998-99 to 2014-15 |
Commissioner of Central Excise (Appeals) |
||
Sales Tax Act |
Sales Tax |
4.65 |
FY 2001-02 |
Maharashtra Sales Tax Authority (Appellate Tribunal) |
8) According to the information and explanation given to us and the records of the Company examined by us, the Company has not defaulted in repayment of dues of any of loans or borrowings to any banks.
The Company has neither taken any loan from financial institutions or Government nor issued any debentures.
9) In our opinion, and according to the information and explanation given to us, on an overall basis, the money raised by Company during the year by way of term loan have been applied for the purpose for which they were obtained.
The Company has not raised any money by way of initial public offer or further public offer (including debt instruments).
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 fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.
11) According to the information and explanation given to us and based on our examination of the records of the company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provision of section 197, read with Schedule V to the Act.
12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3(xii) of the Order are not applicable to the Company and hence not commented upon.
13) According to the information and explanations given to us and the records of the Company examined by us, the Company has complied with the requirements of sections 177 and 188 of the Act with respect to its transactions with the related parties. Pursuant to the requirement of the applicable Accounting Standard, details of the related party transactions have been disclosed in Notes of the financial statements for the year under audit.
14) According to the information and explanations provided to us and on an overall examination of the balance sheet, the Company has neither made any preferential allotment of shares nor fully or partly convertible debentures during the year under audit.
15) According to the information and explanations given to us and the records of the Company examined by us, the Company has not entered into any non-cash transactions, with any director of the Company and the holding company or persons connected with them, involving acquisition of assets by or from them for consideration other than cash.
16) In our opinion, and according to the information and explanations given to us, not being a non-banking financial company, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
To the Members of Maharashtra Seamless Limited 1) Report on the Internal Financial Control under Clause (i) of Sub - Sections 3 of Section 143 of the Companies Act, 2013(âthe Actâ)
We have audited the internal financial controls over financial reporting of Maharashtra Seamless Limited ("the Companyâ) as of 31st March, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
2) Managementâs Responsibility for Internal Financial Control
The Companyâs management is responsible for establishing and maintaining internal financial control 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 (the "Guidance Noteâ) 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 companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
3) Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the "Guidance Noteâ and the Standard on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013, to the extent applicable. 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 includes obtaining an understanding of internal financial control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal controls based on the assessed risk. The procedure selected depends on the auditorâs judgment, including the assessment of the risk of material misstatement of the financial statement, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
4) Meaning of Internal Financial Control over Financial Reporting
A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companyâs internal financial control over financial reporting includes those policies and procedures that
1) pertain to the maintenance of the records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company,
2) provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statement in accordance with generally accepted accounting principles, and that receipts and expenditure of the company are being made only in accordance with authorization of management and directors of company and
3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statement.
5) Inherent Limitations of Internal Financial Control over Financial Reporting
Because of inherent limitation of internal financial control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to errors or fraud may occur and not be detected. Also, projections of any evaluations of the internal financial control 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.
6) Opinion
In our opinion, the Company has, in all material respect, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on the internal control over financial reporting criteria established by the company considering, the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Control Over Financial Reporting, issued by the Institute of Chartered Accountants of India.
For L B Jha & Co,
Chartered Accountants
Registration No: 30I088E
Satyabrata Pati
Place : Gurugram Partner
Date : 24th May, 2018 Membership No: 095080
Mar 31, 2017
1) Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Maharashtra Seamless Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2017, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âstandalone Ind AS financial statementsâ).
2) Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issued thereunder.
This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of 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.
3) Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the Auditorsâ judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
4) Emphasis of Matter
We draw attention to note no. 2.36 (a) to the financial statements regarding of the factors considered in the Companyâs assessment that the carrying amounts of the investments, the loans and advances to certain subsidiaries, associates and a joint venture are recoverable and that no loss allowance/provisions is required against the financial guarantees of Rs.196,973.86 lakhs in financial statements and note no. 2.36(b) regarding due to non-availability of financial statements of Gondkhari Coal Mining Ltd. (J V Entity) in previous years and its impaired ability to continue as Joint Venture due to cancellation of coal block by Honâable Supreme Court Judgement, we had made provision for diminishing in Investment and the company has not considered M/s Gondkhari Coal Mining Limited for the purpose of consolidation, further we draw attention note no. 2.32 to the financial statement during the year the company had converted loan given to subsidiary companies & joint venture company in to 4% perpetual cumulative preference shares.
5) Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the financial position of the Company as at 31 March, 2017, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
6) Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorsâ Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that :
a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. the Balance Sheet, the Statement of Profit and Loss, the Statement of Cash Flows 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 Accounting Standards specified under Section 133 of the Act read with relevant rule issued thereunder;
e. on the basis of the written representations received from the directors as on 31 March 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2017 from being appointed as a director in terms of Section 164 (2) of the Act;
f. with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
7) With respect to the other matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us :
i. the Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements. Refer to Note 2.27 to the standalone Ind AS financial statements;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
iv. the Company has provided requisite disclosures in its standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November, 2016 to 30 December, 2016 and these are in accordance with the books of accounts maintained by the Company. Refer to Note 2.49 to the standalone Ind AS financial statements.
ââAnnexure Aâ to the Auditorsâ Report
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the Standalone Ind AS Financial Statements for the year ended 31 March 2017, we report that :
1) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this program, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
2) a) The management has conducted the physical verification of inventory at reasonable intervals.
b) The discrepancies noticed on physical verification of the inventory as compared to books records which has been properly dealt with in the books of account were not material.
3) In respect of loans, secured or unsecured, granted by the Company to the other parties covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ).
(a) The Company has granted loans to eight companies. The maximum amount involved during the year was Rs.51181.08 Lakhs the year end balance of loan granted to such companies was Rs.22316.26 Lakhs.
(b) In respect of loans granted by the company the interest payment are regular except refer note no. 2.41 (ii & iii) to the financial statement and the principal amounts are being received/renewed on due dates.
(c) There are no overdue amounts in respect of the loan granted to a body corporate listed in the register maintained under Section 189 of the Act.
4) 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 Act, with respect to the loans and investments made, providing guarantee and security.
5) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable
6) We have broadly reviewed the cost records maintained by the company pursuant to the order made by the Central Government for the maintenance of cost records, u/s 148(1) of the Companies Act, 2013 and are of opinion that prima -facie the prescribed records and accounts have been maintained by the company. However, we have not made a detailed examination of these records to verify whether they are accurate or complete.
7) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues have been generally regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of employeesâ state insurance and duty of excise. According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31 March 2017 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of duty of customs which have not been deposited with the appropriate authorities on account of any dispute. However, according to information and explanations given to us, the following dues of income tax, sales tax, duty of excise, service tax and value added tax have not been deposited by the Company on account of disputes :
Nature of the Statute |
Nature of the Dues |
Amount Disputed (Rs. in Lakhs) |
Forum where dispute is pending |
1. Income Tax Act |
Demand for Income Tax |
4.53 |
Commissioner Appeal A.Y 2009-2010 |
4.92 |
Commissioner Appeal A.Y 2010-11 |
||
428.93 |
ITAT A.Y 2009-10 |
||
2. Excise Duty |
Demand for Excise Duty |
0.37 |
CESTST F.Y 2002-03 |
138.75 |
CESTST F.Y 2005-08 |
||
28.12 |
CESTST F.Y 2007-09 |
||
11.22 |
CESTST F.Y 2005-07 |
||
17.81 |
CESTST F.Y 2006-07 |
||
11.68 |
CESTST F.Y 2006-07 |
||
36.49 |
CESTST F.Y 2004-08 |
||
2.18 |
CESTST F.Y 2007-08 |
||
4.32 |
CESTST F.Y 2007-08 |
||
1.31 |
CESTST F.Y 2007-08 |
||
34.35 |
CESTST F.Y 2008-09 |
||
5.71 |
COMM(A) F.Y 1999-00 |
||
0.06 |
COMM(A) F.Y 2009-10 |
||
12.99 |
COMM(A) F.Y 1998-00 |
||
3.46 |
High Court F.Y.2005-07 |
||
4.25 |
High Court F.Y.2006-07 |
||
3. Sales Tax Act |
Demand for Sales Tax |
4.65 |
Maharashtra Sales Tax Authority |
(Appellate Tribunal) 2001-2002 |
8) 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. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.
9) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
10) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11) According to the information and explanations given to us and based on our examination of the records of the Company, 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) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting standards.
14) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
16) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934.
For Kanodia Sanyal & Associates
Chartered Accountants
FRN:008396N
(R.K.Kanodia)
Place: New Delhi Partner
Date: 26th May, 2017 Membership no.: 016121
Mar 31, 2016
To the Members of Maharashtra Seamless Limited
1) Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of Maharashtra Seamless Limited ("the Companyâ) which comprise the Balance Sheet as at March 3Ist, 20I6, the Statement of Profit and Loss, Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
2) Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section I34(5) of the Companies Act, 20I3 ("the Actâ) 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 specified under Section I33 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 20I4. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3) Auditorâs Responsibility
Our responsibility is to express an opinion on these Standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under, and the order under section 143(11) of the Act.
We conducted our audit of the Standalone Financial Statement in accordance with the Standards on Auditing specified under Section I43(I0) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give 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 Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone financial statements
4) Emphasis of Matter
We draw attention to note no. 2.4I(ii &iii) to the Financial Statements, relating to Company has given interest free loan to Jindal Premium Connection Pvt. Limited, Gondkhari Coal Mining Limited and Maharashtra Seamless Ltd Employees Welfare Trust which had been formed with the sole objective of employee welfare respectively, Further, we draw attention to note no. 2.35 regarding non-availability of financial statements of M/s Gondkhari Coal Mining Limited (a JV entity) for F.Y 20I5-I6 and impaired ability to continue as Joint Venture due to cancellation of coal block by Supreme Court Judgment, we are unable to report information as per requirement of Accounting Standard - 27.â
5) Opinion
In our opinion and to the best of our information and according to the explanations given to us, 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 March 3Ist, 20I6, and its Profit and its Cash Flow for the year ended on that date.
6) Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 201 6 ("the Orderâ), as amended, issued by the Central Government of India in terms of sub-section (II) of section I43 of the Act, we give in the "Annexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section I43 (3) of the Act, we report that:
a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account
d. in our opinion, the aforesaid (Standalone) financial statements comply with the Accounting Standards specified under section I33 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 20I4.
e. On the basis of written representations received from the directors as on March 3Ist, 20I6 taken on record by the Board of Directors, none of the directors is disqualified as on March 3Ist, 20I6 from being appointed as a director in terms of Section I64 (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 Bâ.
7) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule II of the Companies (Audit and Auditors) Rules, 20I4, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements.;
ii. The Company did not have any long - term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
1) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The Fixed Assets have been physically verified by the management in a phased manner, 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 nature of its business. Pursuant to the program, a portion of the fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and the physical fixed assets have been noticed.
(c) The title deeds of immovable properties are held in the name of the company.
2) (a) The management has conducted the physical verification of inventory at reasonable intervals.
b) The discrepancies noticed on physical verification of the inventory as compared to books records which has been properly dealt with in the books of account were not material.
3) In respect of loans, secured or unsecured, granted by the Company to the other parties covered in the register maintained under section I89 of the Companies Act, 20I3:
(a) The Company has granted loans to eight companies. The maximum amount involved during the year was Rs, 42,4I9 lakhs the year-end balance of loan granted to such companies was Rs, 3I,675 lakhs.
(b) In respect of loans granted by the company the interest payments are regular except refer note no. 2.4I(ii &iii) to the financial statements and the principal amounts are being received/renewed on the due dates.
(c) There is no overdue amount in respect of the above loans.
4) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section I85 and I86 of the Companies Act, 20I3 In respect of grant of loans, making investments, provide guarantees and security.
5) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 20I5 with regard to the deposits are not applicable to the Company.
6) We have broadly reviewed the cost records maintained by the company pursuant to the order made by the Central Government for the maintenance of cost records, u/s I48(I) of the Companies Act, 20I3 and are of opinion that prima facie the prescribed records and accounts have been maintained by the company. However, we have not made a detailed examination of these records to verify whether they are accurate or complete.
7) (a) According to information and explanations given to us and on the basis of our examination of the books of account, and
records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 3Ist, 20I6 for a period of more than six months from the date on when they become payable.
b) According to the information and explanations given to us, details of dues of income tax, Sales tax, Custom Duty, Wealth Tax, Excise Duty and Cess which have not been deposited as on March 3Ist, 20I6 on account of any dispute are given below:
Name of |
Nature of Dues |
Forum where Dispute |
Period to which the |
Amount |
the Statue |
is pending |
amount relates |
(Rs, in lakhs) |
|
Sales Tax |
Demand for Sales Tax |
Maharashtra Sales Tax Authority |
200I-2002 |
4.65 |
(Appellate Tribunal) |
||||
Excise Duty |
Demand For Excise Duty |
CESTAT |
2002-03 |
0.37 |
CESTAT |
2005-08 |
I 38.75 |
||
CESTAT |
2007-09 |
28.12 |
||
CESTAT |
2005-07 |
I 1.22 |
||
CESTAT |
2006-07 |
I 1.68 |
||
CESTAT |
2004-08 |
36.49 |
||
CESTAT |
2007-08 |
2.18 |
||
CESTAT |
2007-08 |
4.32 |
||
CESTAT |
2007-08 |
1.31 |
||
CESTAT |
2008-09 |
34.35 |
||
COMM (A) |
I999-00 |
5.7I |
||
COMM (A) |
2009-I0 |
0.06 |
||
COMM (A) |
I998-00 |
I2.99 |
||
High Court |
2005-07 |
3.46 |
||
High Court |
2006-07 |
4.25 |
||
Income Tax |
Demand for Income Tax |
Commissioner Appeal |
2009-20I0 |
4.53 |
2010-201 I |
4.92 |
|||
428.93 |
8) 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. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.
9) Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or 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) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
11) Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section I97 read with Schedule V to the Companies Act;
12) The Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
13) In our opinion, all transactions with the related parties are in compliance with section I77 and I88 of Companies Act, 20I3 and the details have been disclosed in the Standalone Financial Statements as required by the applicable accounting standards.
14) In our opinion and according to information and explanations available to us, 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) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or directors of its holding, subsidiary or associate company or persons connected with them. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company.
16) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, I934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company.
1) Referred to in paragraph 2(f) under âReport on Other Legal and Regulatory Requirementsâ of our report of even date:
We have audited the internal financial controls over financial reporting of Maharashtra Seamless Limited ("the Companyâ) as of March 3Ist, 20I6 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
2) Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 20I3.
3) Auditorsâ 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 Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 20I3, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
4) 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 (I) 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.
5) 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.
6) Opinion
In our opinion, the Company has certain areas wherein an adequate internal financial controls system over financial reporting can be improvised and on the basis of our evaluation we have identified following observation in Internal Financial Control over financial reporting as per 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 :-
Non availability of Audited Financials of Subsidiary, JV & Associates for consolidating financials.
Further, the above mentioned issue may cause deficiency but does not have any impact on true and fair view of current financial statement as the same has been rectified in current financial year.
For Kanodia Sanyal & Associates
Chartered Accountants
FRN: 008396N
R.K.Kanodia
Place : Delhi Partner
Date : 26th May, 20I6 Membership no.: 0I6I2I
Mar 31, 2015
We have audited the accompanying Standalone Financial Statements of
Maharashtra Seamless Limited ("the Company"), which comprises the
Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss
and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
2) Management''s Responsibility for the Financial Statements
The Company''s Board of Directors are responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (''the act'') with respect
to the preparation and presentation of these financial statements that
give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
rule 7 of Companies (Accounts) Rules, 2014. This responsibility
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; design,
implementation and maintenance of adequate internal financial controls,
that are operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
3) Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4) An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements, that give a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
5) We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
6) Opinion
In our opinion and to the best of our information and according to the
explanations given to us, 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 2015 and its profit and its cash flows for the year ended
on that date.
7) Emphasis of Matter
We draw attention to note no 2.42 (ii) to the Financial Statements,
relating to the company has given interest free loan to the Jindal
Premium Connections Pvt. Ltd. (formerly known as Hydril Jindal
international Pvt. Ltd.), Gondkhari Coal Mining Ltd. and Maharashtra
Seamless Ltd. Employee Welfare Trust respectively.
8) Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order
to the extent applicable.
9) As required by section 143(3) of the Act, we further report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d. In our opinion, the aforesaid standalone financial statements
comply with the applicable Accounting Standards specified under Section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules
2014;
e. On the basis of written representations received from the directors
as on 31st March, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2015, from
being appointed as a director in terms of Section 164(2) of the Act;
10) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, In our opinion and to the best of our information and
according to the explanation given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in note
no. 2.25 to the financial statements.
(ii) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any
and as required on long term forward contracts, refer note no. 2.38 to
the financial statements.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investors Education and Protection Fund by the
Company.
Annexure to the Independent Auditor''s Report on Financial Statements
Referred to in paragraph 1 of the section on "Report on Other Legal and
Regulatory Requirements" of the Auditors'' Report
1. 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 company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As explained to us,
the management during the year has physically verified all the fixed
assets of the Company and no material discrepancies between the book
records and the physical verification were noticed on such
verification.
(c) Fixed assets disposed off during the year, were not substantial
and, therefore, it does not affect the going concern assumption.
2. In respect of its inventories:
(a) As explained to us, the inventories of finished goods,
semi-finished goods, stores, spare parts and raw materials except raw
material in transit, lying with the third parties, have been physically
verified by the management during the year. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans, secured or unsecured, granted by the company
to companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013:
(a) The company has granted loans to seven companies. The maximum
amount involved during the year was Rs. 42,440 lacs the year-end balance
of loan granted to such companies was Rs. 29,598.29 lacs.
(b) In respect of loans granted by the company the interest payments
are regular except refer note no. 2.42 (ii) to the financial statements
and the principal amounts are being received / renewed on the due
dates.
(c) There is no overdue amount in respect of the above loans.
4. In our opinion, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business for the purchase of stores, raw material including components,
plant and machinery, equipment and other assets, and for the sale of
goods. Further, on the basis of our examination of the books and
records of the company in accordance with the generally accepted
auditing practices, we have neither come across, nor have we been
informed the existence of major weakness in the internal control
procedures and systems.
5. According to the information and explanations given to us, the
company has not accepted any deposits during the year from the public
within the provisions of Section 73 to 76 of the Companies Act, 2013
and the rules framed there under.
6. We have broadly reviewed the cost records maintained by the company
pursuant to the Companies (Cost Records and Audit) Rules 2014 as
amended and the u/s 148(1) of the Companies Act, 2013 and are of
opinion that prima Âfacie the prescribed records and accounts have been
maintained by the company. However, we have not made a detailed
examination of these records to verify whether they are accurate or
complete.
7. (a) The company is generally regular in depositing the undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income-Tax, Sales Tax,
Wealth-tax, Custom Duty, Excise Duty, Cess and other statutory dues
with the appropriate authorities during the year. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March,
2015 for a period of more than six months from the date of becoming
payable.
(b) According to the information and explanations given to us, details
of dues of income tax, Sales tax, Custom Duty, Wealth Tax, Excise Duty
and Cess which have not been deposited as on 31st March, 2015 on
account of any dispute are given below:
Name of Nature of Dues Forum where
the Statue Dispute is pending
Sales Tax Demand for Sales Tax Maharashtra Sales Tax
Authority (Appellate
Tribunal)
Excise Duty Demand for Excise
Duty Commissioner Appeal
CESTAT
CESTAT
CESTAT
HIGH COURT
CESTAT
CESTAT
Income Tax Demand for Income Tax Commissioner Appeal
Name of the State Period to which the Amount
amount relates (Rs,in Lacs)
Sales Tax 2001-2002 4.65
Excise Duty Jan.1998- 18.70
June 1999
Oct.2002 0.37
2005-2006 3.58
2006-2007 199.45
2006-2007 54.73
2005-2006 75.04
2007-2008 148.42
Income Tax 2009-2010 4.53
2010-2011 4.92
c) The Company has been regular in transferring amounts to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 and rules made there under within
time.
8. There are no accumulated losses at the end of the year. There are
no cash losses during the financial year and in the immediately
preceding financial year.
9. According to the information and explanations given to us and as
per the books of account examined by us, the company has not defaulted
in repayment of dues to banks. The company does not have any borrowings
from any financial institution nor has the Company issued any
debentures during the financial year.
10. In our opinion and according to the information and explanations
given to us, the terms and conditions of the corporate guarantees given
by the company for loan taken by other company from banks are not prima
facie prejudicial to the interest of the company.
11. According to the information and explanations given to us by the
management, term loans were applied for the purpose, for which the loans
were obtained.
12. During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have we been informed of any such instance by the
Management.
For Kanodia Sanyal & Associates
Chartered Accountants
FRN: 008396N
R.K.Kanodia
Place: Delhi Partner
Date: 26th May, 2015 Membership no.: 016121
Mar 31, 2013
1) Report on the Financial Statements
We have audited the accompanying financial statements of Maharashtra
Seamless Limited (the "Company"), which comprise the Balance Sheet
as at March 31,2013, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information, which we have
signed under reference to this report.
2) Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of Section 211 of ''the Companies Act, 1956'' of India (the
"Act"). This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
3) 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.
4) An audit involves performing procedures to obtain audit evidence,
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors'' 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 auditors consider internal control relevant to the
Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by Management, as well as evaluating the
overall presentation of the financial statements.
5) We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
6) Opinion
In our opinion, and to the best of our information and according to the
explanations given to us, the accompanying 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:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
ii) In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
7) Emphasis of Matter
We draw attention to Note No 2.33 to the Financial Statements, relating
to the company has given interest free loan of Rs. 11.60 crores during
the year (Previous Year Rs. 48 Crores) to Maharashtra Seamless Limited
Employee Welfare Trust which had been formed with the sole objective of
employee welfare. Our opinion is not qualified in this regard.
8) Report on Other Legal and Regulatory Requirements
As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order,
2004'', issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act (hereinafter referred to as
the "Order"), and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
9) As required by Section 227(3) of the Act, 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 purpose of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
iv) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Act;
v) the basis of written representations received from the directors as
on March 31, 2013, and taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (I) of
Section 274 of the Act.
ANNEXURE TO AUDITORS'' REPORT OF MAHARASHTRA SEAMLESS LIMITED (Annexure
referred to in our report of even date)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As explained to us,
the management during the year has physically verified all the fixed
assets of the Company and no material discrepancies between the book
records and the physical verification were noticed on such
verification.
(c) Fixed assets disposed off during the year, were not substantial
and, therefore, it does not affect the going concern assumption.
2. (a) As explained to us, the inventories of finished goods, semi
finished goods, stores,spare parts and raw materials except raw
material in transit, lying with the third parties, have been physically
verified by the management during the year. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
company to / from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
(a) The company has granted loans to five companies during the year.
The maximum amount involved during the year was Rs. 16039.95 lacs the
year end balance of loan granted to such companies was Rs. 8342.27
lacs. The company has taken loan during the year from one company. The
maximum amount involved during the year was Rs. 132.54 lacs, the
yearend balance of loan taken from such company was Rs.111.60 lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions are
not prima facie prejudicial to the interest of the company
(c) In respect of loans granted by the company the interest payments
are regular and the principal amounts are being received /renewed on
the due dates. In respect of loans taken by the company, the interest
payments are regular and the principal amount is repayable on demand.
(d) There is no overdue amount in respect of the above loans.
4. In our opinion, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business for the purchase of stores, raw material including components,
plant and machinery, equipment and other assets, and for the sale of
goods. Further, on the basis of our examination of the books and
records of the company in accordance with the generally accepted
auditing practices, we have neither come across, nor have we been
informed the existence of major weakness in the internal control
procedures and systems.
5. (a) As per the audit procedures applied by us, and according to the
information and explanations given to us by the management, the
transactions which are required to be entered in the register
maintained under section 301 of the Act have been so entered.
(b) As per the audit procedures applied by us and as per the
information and explanations given to us, with respect to the
transactions as entered in the register maintained under section 301,
with any party during the financial year, the prices at which these
have been made are reasonable having regard to the prevailing, market
prices at that time.
6. According to the information and explanations given to us, the
company has not accepted any deposits during the year from the public
within the provisions of Section 58A & 58AA of the Companies Act, 1956
and the Companies (Acceptance of Deposit) rules 1975 have been complied
with.
7. In our opinion the company has an internal audit system
commensurate with the nature and size of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the order made by the Central Government for the
maintenance of cost records, u/s 209(I)(d) of the Companies Act, 1956
and are of opinion that prima -facie the prescribed records and
accounts have been maintained by the company. However, we have not made
a detailed examination of these records to verify whether they are
accurate or complete.
9. (a) The company is generally regular in depositing the undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income-Tax, Sales Tax,
Wealth-tax, Custom Duty, Excise Duty, Cess and other statutory dues
with the appropriate authorities during the year. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 3Ist March 20I3
for a period of more than six months from the date of becoming payable.
(b) According to the information and explanations given to us, details
of dues of income tax, Sales tax, Custom Duty, Wealth Tax, Excise Duty
and Cess which have not been deposited as on 3Ist March, 20I3 on
account of any dispute are given below:
Name of Nature of Dues Forum where
the Statue Dispute is pending
Sales Tax Demand for Sales Tax Maharashtra Sales Tax
Authority
(Appellate Tribunal)
Excise Duty Demand for Excise Duty CESTAT
CESTAT
Commissioner Appeal
CESTAT
CESTAT
CESTAT
CESTAT
CESTAT
Commissioner Appeal
Additional Commissioner
Commissioner Appeal
Income Tax Demand for Income Tax Commissioner
Name of the Statute Period to which the Amount
amount relates (Rs.in Lacs)
Sales Tax 2001-2002 4.65
Excise Duty Jan.I998-June I999 18.70
May 1998-Feb. 1999 6.73
Feb.I999-March I999 0.84
Dec. 1999 2.42
April 2000-July 2000 5.03
May 2000-Aug. 2001 3.74
Oct.2002 0.37
2001-2002 3.58
2002-2003 12.12
2005-2006 3.46
2006-2007 199.45
2006-2007 54.73
2007-2008 315.22
2008-2009 580.66
2009-2010 676.77
2009-2010 19.44
Income Tax 2009-2010 4.53
10. There are no accumulated losses at the end of the year. There are
no cash losses during the financial year and in the immediately
preceding financial year.
11. According to the information and explanations given to us and as
per the books of accounts examined by us, the company has not defaulted
in the repayment of dues to the financial institutions / banks.
12. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. In our opinion, the company is not a Chit Fund/Nidhi/Mutual Fund/
Society. Therefore, clause 4(xiii) of the Companies (Auditor''s
Report) Order 2003 are not applicable to the company.
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
15. In our opinion and according to the information and explanations
given to us, the terms and conditions of the corporate guarantees given
by the company for loan taken by other company from banks are not prima
facie prejudicial to the interest of the company.
16. According to the information and explanations given to us, the
company has not obtained any term loan during the year; accordingly
clauses (xvi) of paragraph 4 of the Order are not applicable to the
Company.
17. According to the information and explanations given to us and as
per the books and records examined by us, as on the date of balance
sheet, the funds raised by the Company on short-term basis have not
been applied for long-term investments and vice versa.
18. According to the information and explanations given to us, during
the year, the company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 30I of the Companies Act, I956.
19. The company does not have any debentures outstanding, as on the
Balance Sheet date, hence, the clause 4(xix) of the order is not
applicable.
20. The company has not raised any money through the public issue
during the year. Accordingly, clause 4(xx) of the order is not
applicable.
21. According to the information and explanations given to us, and on
the basis of our examination of the books and records of the company
carried out in accordance with the generally accepted auditing
practices in India, we have not come across any such instance of fraud
on or by the company, noticed and reported during the year.
For KANODIA SANYAL & ASSOCIATES
Chartered Accountants
FRN 008396N
R.K. KANODIA
Place: New Delhi Partner
Dated: 24-05-2013 Membership No.016121
Mar 31, 2012
We have audited the attached Balance Sheet of M/S MAHARASHTRA SEAMLESS
LIMITED as at 31 st March 2012 and also the annexed Statement of
Profit and Loss Account and the Cash Flow Statement for the year ended
on that date (together referred to as 'financial statements'). 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
We conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and 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.
As required by the Companies (Auditor's Report) Order, 2003, issued by
the Central Government of India in terms of Section 227(4A), of the
Companies Act 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 & 5 of the said order.
Further to our comments in the Annexure referred to above, we report
that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of such
books.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
flow Statement dealt with by this report have been prepared in
compliance with the Accounting standards referred to in Sub Section
(3C) of Section 21 I of the Companies Act, 1956.
e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the said directors are disqualified as on 31 st March 2012,
from being appointed as directors in terms of clause (g) ofsub-section
(I) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with significant accounting polices and notes thereon give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
In the case of Balance Sheet, of the state of affairs of the Company as
at 31 st March, 2012 and,
In the case of the Statement of Profit & Loss Account, of the Profit of
the Company for the year ended on that date
In case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS' REPORT OF MAHARASHTRA SEAMLESS LIMITED (Annexure
referred to in our report of even date)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As explained to us,
the management during the year has physically verified all the fixed
assets of the Company and no material discrepances between the book
records and the physical verification were noticed on such
verification.
(c) Fixed assets disposed off during the year, were not substantial
and, therefore, ,t does not affect the going concern assumption,
2. (a) As explained to us, the inventories of finished goods, sem,
finished goods, stores, spare parts and raw materials except raw
material in transit, lying with the third parties, have been physically
verified by the management during the year. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The company has maintained proper records of inventories. As
explained to us, there were no material discrepances noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
company to / from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
(a) The company has granted loans to six companies during the year. The
maximum amount involved during the year was Rs. 233 18 lacs the year end
balance of loan granted to such companies was 7 12031.87 lacs. The
company has taken loan during the year from one company. The maximum
amount involved during the year was Rs. 137.74 lacs, the year end balance
of loan taken from such company was Rs. I 32.54 lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions are
not prima face prejudicial to the interest of the company
(c) In respect of loans granted by the company the interest payments
are regular and the principal amounts are being received /renewed on
the due dates. In respect of loans taken by the company, the interest
payments are regular and the principal amount is repayable on demand.
(d) There is no overdue amount in respect of the above loans,
4. In our opinion, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business for the purchase of stores, raw material including components,
plant and machinery, equipment and other assets, and for the sale of
goods. Further, on the basis of our examination of the books and
records of the company in accordance with the generally accepted
auditing practices, we have neither come across, nor have we been
informed the existence of major weakness in the internal control
procedures and systems.
5. (a) As per the audit procedures applied by us, and according to the
information and explanations given to us by the management, the
transactions which are required to be entered in the register
maintained under section 301 of the Act have been so entered.
(b) As per the audit procedures applied by us and as per the
information and explanations given to us, with respect to the
transactions as entered in the register maintained under section 301,
with any party during the financial year, the prices at which these
have been made are reasonable having regard to the prevailing, market
prices at that time.
6. According to the information and explanations given to us, the
company has not accepted any deposits during the year from the public
within the provisions of Section 58A & 58AA of the Companies Act, 1956
and the Companies (Acceptance of Deposit) rules 1975 have been complied
with.
7. In our opinion the company has an internal audit system
commensurate with the nature and size of its business,
8. We have broadly reviewed the cost records maintained by the company
pursuant to the order made by the Central Government for the
maintenance of cost records, u/s 209(l)(d) of the Companies Act, 1956
and are of opinion that prima -face the prescribed records and accounts
have been maintained by the company. However, we have not made a
detailed examination of these records to verify whether they are
accurate or complete.
9. (a) The company is generally regular in depositing the undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income-Tax, Sales Tax,
Wealth-tax, Custom Duty, Excise Duty, Cess and other statutory dues
with the appropriate authorities during the year. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31 st March
2012 for a period of more than six months from the date of becoming
payable.
(b) According to the information and explanations given to us, details
of dues of income tax, Sales tax, Custom Duty, Wealth Tax, Excise Duty
and Cess which have not been deposited as on 31 st March, 2012 on
account of any dispute are given below:
Name of Nature of Dues Forum where Period to
which the Amount
the Statute dispute is
pending amount
relates (Rs. in
Lacs)
Sales Tax Demand for Sales Tax Maharashtra
Sales Tax 2001-2002 4.65
Authority
(Appellate
Tribunal)
Excise Duty Demand for Excise
Duty CESTAT Jan. 1998-
June 1999 18.70
CESTAT May 1998-
Feb.1999 6.73
Commissioner
Appeal Feb. 1999 -
March 1999 0.84
CESTAT Dec. 1999 2.42
CESTAT April 2000-
July 2000 5.03
CESTAT May 2000-
Aug. 2001 3.74
CESTAT Oct. 2002 0.37
CESTAT 2001-2002 3.58
Commissioner
Appeal 2002-2003 12.12
Additional
Commissioner 2005-2006 3.46
2006-2007 199.45
2006-2007 54.73
Commissioner
Appeal 2007-2008 315.22
2008-2009 580.66
2009-2010 676.77
2009-2010 19.44
Income Tax Demand for
Income Tax Commissioner
Appeal 2006-2007 35.58
10. There are no accumulated losses at the end of the year. There are
no cash losses during the financial year and in the immediately
preceding financial year.
11. According to the information and explanations given to us and as per
the books of accounts examined by us, the company has not defaulted in
the repayment of dues to the financial institutions / banks.
12. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
byway of pledge of shares, debentures and other securities.
13. In our opinion, the company is not a Chit Fund/N,dh,/Mutual Fund/
Society Therefore, clause 4(x,Ã) of the Companies (Auditor's Report)
Order 2003 are not applicable to the company.
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4(x,v) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
15. In our opinion and according to the information and explanations
given to us, the terms and conditions of the corporate guarantees given
by the company for loan taken by other company from banks are not prima
face prejudicial to the interest of the company.
16. According to the information and explanations given to us, the
company has not obtained any term loan during the year: accordingly
clause (xvi) of paragraph 4 of the Order are not applicable to the
Company.
17. According t o the information and explanations given to us and as
per the books and records examined by us, as on the date of Balance
Sheet, the funds raised by the Company on short-term basis have not
been applied for long-term investments and vice versa.
18. According to the information and explanations given to us, during
the year, the company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956.
19. The company does not have any debentures outstanding, as on the
Balance Sheet date, hence, the clause 4(x,x) of the order ,s not
applicable.
20. The company has not rased any money through the public issue during
the year. Accordingly, clause 4(xx) of the order is not applicable.
21. According to the information and explanations given to us, and on
the basis of our examination of the books and records of the company
earned out in accordance with the generally accepted auditing practices
in India, we have not come across any such instance of fraud on or by
the company, noticed and reported during the year.
For KANODIA SANYAL & ASSOCIATES
Chartered Accountants
Firm's Regn. No. 008396N
R.K. KANODIA
Place : New Delhi Partner
Dated : 8th August, 2012 Membership No. 016121
Mar 31, 2011
We have audited the attached Balance Sheet of M/S MAHARASHTRA SEAMLESS
LIMITED as at 31 st March, 2011 and also the annexed Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
(together referred to as 'financial statements'). These financial
statements are the responsibility of the Company's management. Our
responsibility is to express are opinion on these financial statements
based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and 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.
As required by the Companies (Auditor's Report) Order, 2003, issued by
the Central Government of India in terms of Sector 227(4A), of the
Companies Act 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 & 5 of the said order.
Further to our comments in the Annexure referred to above, we report
that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of such
books.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
flow Statement dealt with by this report have beer prepared in
compliance with the Accounting standards referred to in Sub Section
(3C) of Section 211 of the Companies Act. 1956.
e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the said directors are disqualified as on 31st March 2011,
from being appointed as directors in terms of clause (g) ofsub-section
(I) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with significant accounting polices and notes thereon in
Schedule '20' 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:
- In the case of Balance Sheet, of the state of affairs of the Company
as at 31 st March, 2011 and,
- In the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date.
- In case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS' REPORT OF MAHARASHTRA SEAMLESS LIMITED
(Annexure referred to in our report of even date)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As explained to us,
the management during the year has physically verified all the fixed
assets of the Company and no material discrepances between the book
records and the physical verification were noticed on such
verification.
(c) Fixed assets disposed off during the year, were not substantial
and, therefore, it does not affect the going concern assumption.
2. (a) As explained to us, the inventories of finished goods, semi
finished goods, stores, spare parts and raw materials except raw
material in transit, lying with the third parties, have been physically
verified by the management during the year. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The company has maintained proper records of inventories. As
explained to us, there were no material discrepances noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
company to / from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
(a) The company has granted loans to five companies during the year.
The maximum amount involved during the year was Rs. 1,974,666,285/- the
year end balance of loan granted to such companies was Rs.
1,727,066,285/, The Company has taken loan during the year from one
company. The maximum amount involved during the year was Rs.
14,859,947/- the year end balance of loan taken from such company was
Rs. 14,267,692/-.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions are
not prima face prejudicial to the interest of the company.
(c) In respect of loans granted by the company the interest payments
are regular and the principal amounts are being received /renewed on
the due dates. In respect of loans taken by the company, the interest
payments are regular and the principal amount is repayable on demand.
(d) There is no overdue amount in respect of the above loans.
4. In our opinion, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business for the purchase of stores, raw material including components,
plant and machinery, equipment and other assets, and for the sale of
goods. Further, on the basis of our examination of the books and
records of the company in accordance with the generally accepted
auditing practices, we have neither come across, nor have we been
informed the existence of major weakness in the internal control
procedures and systems.
5. (a) As perthe audit procedures applied by us, and according to the
information and explanations given to us by the management. the
transactions which are required to be entered in the register
maintained under section 301 of the Act have been so entered.
(b) As perthe audit procedures applied by us and as perthe information
and explanations given to us, with respect to the transactions as
entered in the register maintained under section 301, with any party
during the financial year, the prices at which these have been made are
reasonable having regard to the prevailing, market prices at that time.
6. According to the information and explanations given to us, the
company has not accepted any deposits during the year from the public
withm the provisions of Section 58A & 58AA of the Companies Act, 1956
and the Companies (Acceptance of Deposit) rules 1975 have been complied
with.
7. In our opinion the company has an internal audit system
commensurate with the nature and size of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the order made by the Central Government for the
maintenance of cost records, u/s 209(l)(d) of the Companies Act, 1956
and are of opinion that prima -face the prescribed records and accounts
have been maintained by the company. However, we have not made a
detailed examination of these records to verify whether they are
accurate or complete.
9. (a) The company is generally regular in depositing the undisputed
statutory dues including Provident Fund, Investor Educator and
Protection Fund, Employees State Insurance, Income-Tax, Sales Tax,
Wealth-tax, Custom Duty, Excise Duty, Cess and other statutory dues
with the appropriate authorities during the year. According to the
information and explanations giver to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31 st March,
2011 for a period of more than six months from the date of becoming
payable.
(b) According to the information and explanations given to us, details
of dues of income tax, Sales tax, Custom Duty, Wealth Tax, Excise Duty
and Cess which have not been deposited as on 31 st March, 2011 on
account of any dispute are giver below:
Name of Nature of Dues Forum where Period to which
the Amount
the Statute dispute is
pending amount relates (Rs.in Lacs)
Sales Tax Demand for Sales
Tax Maharashtra
Sales Tax 2001-2002 4.65
Authority
(Appellate
Tribunal)
Excise Duty Demand for
Excise Duty CESTAT Jan. 1998-June
1999 18.70
CESTAT May 1998-Feb.
1999 6.73
Commissioner
Appeal Feb. 1999 -
March 1999 0.84
CESTAT Dec. 1999 2.42
CESTAT April 2000-
July 2000 5.03
CESTAT May 2000-Aug.
2001 3.74
CESTAT Oct. 2002 0.37
CESTAT 2001-2002 3.58
Commissioner
Appeal 2002-2003 12.12
Additional
Commissioner 2005 - 2006 3.46
2006-2007 179.96
Commissioner
Appeal 2007-2008 166.79
2008 - 2009 580.66
2009-2010 676.77
Income Tax Demand for
Income Tax Commissioner
Appeal 2006-2007 35.58
10. There are no accumulated losses at the end of the year. There are
no cash losses during the financial year and in the immediately
preceding financial year.
11. According to the information and explanations given to us and as
per the books of accounts examined by us, the company has not defaulted
in the repayment of dues to the financial institutions / banks.
12. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
byway of pledge of shares, debentures and other securities.
13. In our opinion, the company is not a Chit Fund/Nidhi/Mutual Fund/
Society Therefore, clause 4(xiÃ) of the Companies (Auditor's Report)
Order 2003 are not applicable to the company.
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
15. According to the information and explanations given to us, the
company has not given any guarantees against loans taken by others from
banks & financial institutions.
16. According to the information and explanations given to us, the
company has not obtained any term loan during the year: accordingly
clause (xvi) of paragraph 4 of the Order are not applicable to the
Company.
17. According to the information and explanations given to us and as
per the books and records examined by us, as on the date of balance
sheet, the funds rased by the company on short-term basis have not been
applied for long-term investments and vice versa.
18. According to the information and explanations given to us, during
the year, the company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956.
19. The company does not have any debentures outstanding, as on the
Balance Sheet date, hence, the clause 4(xix) of the order is not
applicable.
20. The company has not rased any money through the public issue
during the year. Accordingly, clause 4(xx) of the order is not
applicable.
21. According to the information and explanations given to us, and on
the basis of our examination of the books and records of the company
earned out in accordance with the generally accepted auditing practices
in India, we have not come across any such instance of fraud on or by
the company, noticed and reported during the yean
For KANODIA SANYAL & ASSOCIATES
Chartered Accountants
FRN 008396N
R.K. KANODIA
Place : New Delhi Partner
Dated : 3rd August, 2011 Membership No. 01 6121
Mar 31, 2010
We have audited the attached Balance Sheet of M/S MAHARASHTRA SEAMLESS
LIMITED as at 31 st March 2010 and also the annexed Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
(together referred to as financial statements). 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
We conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and 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.
As required by the Companies (Auditors Report) Order, 2003, issued by
the Central Government of India in terms of Section 227(4A), of the
Companies Act 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4& 5 of the said order.
Further to our comments in the Annexure referred to above, we report
that;
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of such
books.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
flow Statement dealt with by this report have been prepared in
compliance with the Accounting standards referred to in Sub Section
(3C) of Section 21 I of the Companies Act, 1956.
clause (g) of sub-section (I) of Section 274 of the Companies Act,
1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with significant accounting polices and notes thereon in
Schedule 20 give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
i. In the case of Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2010 and,
ii. In the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date
iii. In case of the Cash Flow Statement, of the cash flows for the
year ended on that date,
ANNEXURETO AUDITORS REPORT OF MAHARASHTRA SEAMLESS LIMITED
(Annexure referred to in our report of even date)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets,
(b) The company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As explained to us,
the management during the year has physically verified all the fixed
assets of the Company and no material discrepancies between the book
records and the physical verification were noticed on such
verification.
(c) Fixed assets disposed off during the year, were not substantial
and, therefore, it does not affect the going concern assumption,
2. (a) As explained to us, the inventories of finished goods, semi
finished goods, stores, spare parts and raw materials except raw
material in transit, lying with the third parties, have been physically
verified by the management during the year. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The company has maintained proper records of inventories. As
explained to us, there were no material discrepances noticed on
physical verification of inventor/ as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
company to / from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
(a) The company has granted loans to two companies during the year. The
maximum amount involved during the year was Rs. 190,456,278/- the year
end balance of loan granted to such companies was Rs. 39,21 3,376/, The
company has not taken any loans during the year secured or unsecured to
any Company, firm or party covered in register maintained under section
301 of the companies act, 1956.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions are
not prima face prejudicial to the interest of the company.
(c) In respect of loans granted by the company the interest payments
are regular and the principal amounts are being received /renewed on
the due dates.
(d) There is no overdue amount in respect of the above loans,
4. In our opinion, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the purchase of stores, raw material including components,
plant and machinery, equipment and other assets, and for the sale of
goods. Further, on the basis of our examination of the books and
records of the company in accordance with the generally accepted
auditing practices, we have neither come across, nor have we been
informed the existence of major weakness in the internal control
procedures and systems.
5. (a) As per the audit procedures applied by us, and according to the
information and explanations given to us by the management, the
transactions which are required to be entered in the register
maintained under section 301 of the Act have been so entered.
(b) As per the audit procedures applied by us and as per the
information and explanations given to us, with respect to the
transactions as entered in the register maintained under section 301,
with any party during the financial year, the prices at which these
have been made are reasonable having regard to the prevailing, market
prices at that time.
6. According to the information and explanations given to us, the
company has not accepted any deposits during the year from the public
within the provisions of Section 58A & 58AA of the Companies Act, 1956
and the Companies (Acceptance of Deposit) rules 1975 have been complied
with.
7. In our opinion the company has an internal audit system
commensurate with the nature and size of its business,
8. We have broadly reviewed the cost records maintained by the company
pursuant to the order made by the Central Government for the
maintenance of cost records, u/s 209( I )(d) of the Companies Act, 1956
and are of opinion that prima -face the prescribed records and accounts
have been maintained by the company. However, we have not made a
detailed examination of these records to verify whether they are
accurate or complete.
9. (a) The company is generally regular in depositing the undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income-Tax, Sales Tax,
Wealth-tax, Custom Duty, Excise Duty, Cess and period of more than six
months from the date of becoming payable.
(b) According to the information and expilanations gives to us, details
of income Tax, Custom Duty, Wealth Tax, Excise Duty and Cess which have
not been deposited as on 31st march, 2010 on account of aby dispute are
given below.
Name of Nature of Forum where Period of
Which the Amount
the
Statute Dues dispute is
pending amount relates (Rs.in Lacs)
Sales
Tax Demand for
Sales Tax Maharashtra
Sales Tax 1992-1993 4.65
Authority
(Appellate
Tribunal)
Excise
Duty Demand for
Excise Duty CESTAT Jan. 1998-
june 1999 18.70
CESTAT May 1998-
Feb.l999 6.73
Commissioner
Appeal Feb. 1999-
Mar. 1999 0.84
CESTAT Dec. 1999 2.42
CESTAT Apr. 2000-
july 2000 5.03
CESTAT May 2000-
Aug.2001 3.74
CESTAT Oct.2002 0.37
CESTAT 2001-2002 3.58
Commissioner
Appeal Jan. 2005 -
Sep. 2005 1.64
Additional
Commissioner 2005-2006 3.46
2006-2007 179.12
Commissioner
Appeal 2007-2008 135.39
2008-2009 599.58
2009-2010 425.05
Income
Tax Demand for
Income Tax Commissioner
Appeal 2006-2007 35.58
10. There are no accumulated losses at the end of the year. There are
no cash losses during the financial year and the immediately preceding
financial year.
I. According to the information and explanations given to us and as per
the books of accounts examined by us, the company has not defaulted in
the repayment of dues to the financial institutions / banks.
12. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. In our opinion, the company is not a CM Fund/N,dh,/Mutual Fund/
Society Therefore, clause 4(x,Ã) of the Companies (Auditors Report)
Order 2003 is not applicable to the company.
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4(x,v) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantees against loans taken by others from
banks & financial institutions.
16. According to the information and explanations given to us, the
Company has not obtained any term loan during the year; accordingly
clause (xvi) of paragraph 4 of the Order is not applicable to the
Company.
17. According to the information and explanations given to us and as
per the books and records examined by us, as on the date of Balance
Sheet, the funds raised by the Company on short-term basis have not
been applied for long-term investments and vice versa.
I 8. According to the information and explanations given to us, during
the year, the Company has not made preferential allotment of shares to
parties and Companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The company does not have any debentures outstanding, as on the
Balance Sheet Date, hence, the clause 4(x,x) of the order is not
applicable.
20. The company has not raised any money through the public issue
during the year. Accordingly, clause 4(xx) of the order is not
applicable.
21. According to the information and explanations given to us, and on
the basis of our examination of the books and records of the company
earried out in accordance with the generally accepted auditing
practices in India, we have not come across any such instance of fraud
on or by the company, noticed and reported during the year.
For KANODIA SANYAL & ASSOCIATES
Chartered Accountants
FRN 008396N
R.K. KANODIA
Place : New Delhi Partner
Dated: 31st August, 2010 Membership No. 016121