Mar 31, 2016
We have audited the accompanying financial statements of MANGALAM TIMBER PRODUCTS LIMITED, which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit & Loss and the Cash Flow Statement for the year ended on that date and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and 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 the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, and its loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by Companies (Auditors Report) Order, 2016 (''''the order'''') issued by the Central Government of India in terms of Sub Section (11) of Section 143 of the Act on the matters specified in paragraph 3 and 4 of the said order, we further report that-
i) 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 programme, 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) The title deeds of immovable properties, as disclosed in Note 2.10 on Fixed Assets to the financial statements, are held in the name of the company, except for
Total number of cases |
Whether leasehold/ freehold |
Gross Block (Rs. in lacs) |
Net Block (Rs.in lacs) |
Remarks |
1 |
Freehold |
1.94 |
1.94 |
- |
ii) The management has conducted physical verification of inventory during the year at reasonable intervals. The discrepancies between the physical stock and book records which were material in respect of certain items of inventories, have been properly dealt in the books of account.
iii) a) The company has not granted any loans, secured or unsecured to companies, firms Limited Liability Partnership or other parties covered in the register maintained under section 189 of Companies Act, 2013.
b) Clause (iii)(a), (b), (c) of the aforesaid order are not applicable.
iv) In our opinion and according to information and explanations given to us, the company has not granted any loan or provided any guarantee or security to the parties covered under section 185 of the Act. In our opinion and according to information and explanations given to us, the Company has complied with provisions of section 186 of the Act in respect of investment made and guarantee or security provided.
v) The Company has not accepted any deposits from the public within the provisions of section 73 to 76 or any other relevant provisions of the Act and rules framed there under.
vi) The Central Government of India has not prescribed the maintenance of cost records under section 148(1) of the Act in respect of any product of the Company.
vii) a) According to the records of the company examined by us and according to the information and explanations given to us, in our opinion the company has not been 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, and any other material statutory dues as may be applicable. However, extent of arrears of outstanding statutory dues as at the last day of financial year for a period of more than six months from the date is NIL.
viii) According to the information and explanations given to us, the company has not defaulted in repayment of any dues to financial institutions, banks, Government and debenture holders as at the Balance Sheet date.
b) According to the records of the company examined by us and according to information and explanations given to us, there are no dues in respect of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax which have not been deposited on account of any dispute except as detailed hereunder:
Name of the Statute |
Nature of the Dues |
Period to which it relates |
Rs. in Lacs |
Forum where dispute is pending |
Central Excise Act, 1944 |
Central Excise |
1993-94 |
3.49 |
Assistant Commissioner Central Excise Customs & Service Tax |
Central Excise |
1988-92 |
126.57 |
Customs, Excise & Service Tax Appellate Tribunal |
|
Central Excise |
2006-07 |
5.76 |
Customs, Excise & Service Tax Appellate Tribunal |
|
Finance Act, 1994 |
Service Tax |
2009-10 |
52.21 |
Customs, Excise & Service Tax Appellate Tribunal |
Bihar & Orissa Excise Act, 1915 |
State Excise |
2002-03 |
21.39 |
Odisha High Court |
State Excise |
2003-04 |
135.75 |
Odisha High Court |
|
State Excise |
2004-05 |
170.90 |
Odisha High Court |
|
State Excise |
2005-06 |
251.58 |
Odisha High Court |
|
State Excise |
2006-07 |
267.53 |
Odisha High Court |
|
State Excise |
2007-08 |
120.37 |
District Magistrate & Collector, Nabarangpur |
|
State Excise |
2008-09 |
103.20 |
District Magistrate & Collector, Nabarangpur |
|
State Excise |
2009-10 |
96.60 |
District Magistrate & Collector, Nabarangpur |
|
State Excise |
2010-11 |
57.60 |
District Magistrate & Collector, Nabarangpur |
|
West Bengal Sales Tax Act, 1941 |
Sales Tax |
1986-87 |
0.16 |
Commissioner Commercial Taxes |
Sales Tax |
1987-88 |
0.06 |
Commissioner Commercial Taxes |
|
Sales Tax |
1993-94 |
0.33 |
Commissioner Commercial Taxes |
|
Central Sales Tax Act, 1956 |
Sales Tax |
1987-88 |
0.05 |
Commissioner Commercial Taxes |
Sales Tax |
1994-95 |
0.72 |
Deputy Commissioner Commercial Taxes |
|
Sales Tax |
2000-01 |
93.56 |
Sales Tax Tribunal, Odisha |
|
Sales Tax |
2001-02 |
110.00 |
Sales Tax Tribunal, Odisha |
|
Sales Tax |
2002-03 |
70.12 |
Sales Tax Tribunal, Odisha |
|
Sales Tax |
2003-04 |
135.66 |
Sales Tax Tribunal, Odisha |
|
Sales Tax |
2004-05 |
30.22 |
Sales Tax Tribunal, Odisha |
|
Odisha Entry Tax Act, 1999 |
Entry Tax |
2000-01 |
8.11 |
Sales Tax Tribunal, Odisha |
Entry Tax |
2002-03 |
28.35 |
Sales Tax Tribunal, Odisha |
|
Odisha Sales Tax Act, 1947 |
Sales Tax |
2002-03 |
1.85 |
Sales Tax Tribunal, Odisha |
Odisha VAT Act, 2004 |
VAT |
2005-06 |
17.20 |
Sales Tax Tribunal, Odisha |
VAT |
2007-09 |
14.96 |
Sales Tax Tribunal, Odisha |
ix) The Company has not raised any moneys by way of initial public offer, further public offer (Including debt instruments) and term loans. Accordingly, the provisions of Clause 3(ix) of the Order are not applicable to the Company.
x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi) 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.
xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable
xiii) According to the information and 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 financial statements as required by the applicable accounting standards.
xiv) 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.
(xv) 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.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Report on Other Legal and Regulatory Requirements
As required by Section 143 (3) of the Act, we report that:
1. 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.
2. 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.
3. 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.
4. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
5. On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
6. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure "A"; and
7. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
a) The Company has disclosed the impact of pending litigations on its financial position in its financial statements-Refer Note 2.25 to the 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 during the year ended 31st March, 2016.
We have audited the internal financial controls over financial reporting of Mangalam Timber Products Limited ("the Company") as at 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Actâ)
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For S M DAGA & CO.
Chartered Accountants
Firm Registration Number: 303119E
J M DAGA
Partner
Membership No.052489
Dated: 25th May, 2016
Place: Kolkata
Mar 31, 2015
We have audited the accompanying financial statements of MANGALAM
TIMBER PRODUCTS LIMITED, (the Company), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit & Loss, the Cash
Flow Statement for the year ended on that date and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act 2013('the Act') with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the Accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgements and estimates that
are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act and Rules made
thereunder including the accounting and auditing standards and matters
which are required to be included in the audit report.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statement. 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. 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March 2015, and its loss and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) order 2015 issued by
Central Government of India in terms of Sub Section(11) of Section 143
of the Act (hereinafter referred to as the "Order"), and on the matters
specified in paragraph 3 and 4 of the said Order, we further report
that-
i) a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
b) As explained to us Fixed Assets of the Company are physically
verified by the management according to a phased programme designed to
cover all the items over a period of three years which considering the
size and nature of operations of the Company appears to be reasonable.
Pursuant to such program, a portion of fixed assets have been
physically verified by the management during the year and no material
discrepancies between book records and physical inventory have been
noticed.
ii) a) The management has conducted physical verification of inventory,
at reasonable intervals. In our opinion, the frequency of physical
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management is reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of inventory and
discrepancies between the physical stock and book records which were
material in respect of certain items of inventories , have been
properly dealt in the books of account.
iii) a) The Company has not granted any loan, secured or unsecured to
companies, firm or other parties covered in the register maintained
under section 189 of the Companies Act.
b) Clause 3(iii) (a), (b) of the aforesaid order are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our Audit we have not come across any
continuing failure to correct major weaknesses in the aforesaid
internal control system.
v) The Company has not accepted deposits from the public within the
provisions of section 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and rules framed there under.
vi) The Central Government of India has not specified the maintenance
of cost records under subsection 1 of section 148 of the Act in respect
of any product of the Company.
vii) a) According to the records of the Company examined by us and
according to the information and explanations given to us, in our
opinion the Company has not been regular in depositing undisputed
statutory dues including Provident Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Custom, Duty of
Excise, Value Added Tax, Cess and any other material statutory dues as
may be applicable. However, extent of arrears of outstanding statutory
dues as at the last day of financial year for a period of more than six
months from the date they become payable is nil.
b) According to the records of the Company examined by us and according
to the information and explanations given to us, there are no dues in
respect of income tax, sales tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax or cess which have not been
deposited on account of any dispute except as detailed hereunder.
Name of the Statute Nature of the Dues Period to
which it
relates
Central Excise Act, 1944 Excise 1993-94
Excise 2000-01
Excise 2006-07
Excise 2009-10
Orissa & Bihar Excise Act, 1941 Excise 2002-03
Excise 2003-04
Excise 2004-05
Excise 2005-06
Excise 2006-07
Excise 2007-08
Excise 2008-09
Excise 2009-10
Excise 2010-11
West Bengal Sales Tax Act, 1941 Sales Tax 1986-87
Sales Tax 1987-88
Sales Tax 1993-94
Central Sales Tax Act, 1956 Sales Tax 1987-88
Sales Tax 1994-95
Sales Tax 2000-01
Sales Tax 2001-02
Sales Tax 2002-03
Sales Tax 2003-04
Sales Tax 2004-05
Orissa Entry Tax Act, 1999 Entry Tax 2000-01
Entry Tax 2002-03
Entry Tax 2007-09
Orissa Sales Tax Act, 1947 Sales Tax 2002-03
Orissa VAT Act, 2004 VAT 2005-06
VAT 2007-09
Income Tax Act, 1961 Income Tax 2008-09
Name of the Statute Rs. in Lacs Forum where dispute
is pending
Central Excise Act, 1944 3.49 Assistant Commissioner,
Central Excise
126.57 Central Excise Service Tax
Appellate Tribunal
5.76 Central Excise Service Tax
Appellate Tribunal
52.21 Central Excise Service Tax
Appellate Tribunal
Orissa & Bihar Excise Act, 1941 21.39 High Court of Orissa
135.75 High Court of Orissa
170.90 High Court of Orissa
251.58 High Court of Orissa
267.53 High Court of Orissa
120.37 District Magistrate &
Collector, Nabarangpur
103.20 District Magistrate &
Collector, Nabarangpur
96.60 District Magistrate &
Collector, Nabarangpur
57.60 District Magistrate &
Collector, Nabarangpur
West Bengal Sales Tax Act, 1941 0.16 Assistant Commissioner,
Commercial Taxes
0.06 Assistant Commissioner,
Commercial Taxes
0.33 Assistant Commissioner,
Commercial Taxes
Central Sales Tax Act, 1956 0.05 Assistant Commissioner,
Commercial Taxes
0.72 Assistant Commissioner,
Commercial Taxes
93.56 Central Sales Tax Tribunal
110.00 Sales Tax Tribunal
70.12 Sales Tax Tribunal
135.66 Sales Tax Tribunal
30.22 Sales Tax Tribunal
Orissa Entry Tax Act, 1999 8.11 Sales Tax Tribunal
28.35 Sales Tax Tribunal
11.07 Additional Commissioner,
Commercial Taxes
Orissa Sales Tax Act, 1947 1.85 Sales Tax Tribunal
Orissa VAT Act, 2004 17.20 Sales Tax Tribunal
20.38 Additional Commissioner,
Commercial Taxes
Income Tax Act, 1961 70.28 Commissioner of Income
Tax (Appeal)
c) There are no amount required to be transferred to Investor Education
and Protection Fund in accordance with the relevant provisions of the
companies Act, 1956 (1 of 1956) and rules made there under.
viii) The accumulated losses of the Company have not exceeded its net
worth as at 31st March, 2015. It has incurred cash losses in the
current financial year and in the preceding financial year.
ix) As per books and records maintained by the Company and according to
the information and explanations made available to us, the Company has
not defaulted in repayment of any dues to financial institutions, banks
and debenture holders as at the Balance Sheet date.
x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from any bank or financial institutions during the year.
Accordingly the provisions of 3(x) of the Order are not applicable to
the Company.
xi) The Company has not raised any term loans. Accordingly provisions
of clause 3(xi) of the Order are not applicable to the Company.
xii) During the course of our examination of the books of accounts
carried out in accordance with the generally accepted auditing
practices in India for the purpose of reporting the true and fair view
of the financial statements, we have neither come across any incidence
of fraud on or by the Company, nor have we been informed of any such
case by the Management.
2) As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
Directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact, if any, of pending
litigations as at 31st March, 2015 on its financial position in its
financial statements-Refer Note 2.26 to the financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts as at 31st March, 2015.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company during the year
ended 31st March, 2015.
For S M DAGA & CO.
Chartered Accountants
Firm Registration Number: 303119E
S M DAGA
Partner
Membership No.4951
Dated: 9th May, 2015
Place: Kolkata
Mar 31, 2014
We have audited the accompanying financial statements of MANGALAM
TIMBER PRODUCTS LIMITED, which comprise the Balance Sheet as at 31st
March, 2014, and the Profit & Loss Statement and Cash Flow Statement
for the year ended on that date, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 (The
Act) read with General Circular 15/2013 dated 13th September, 2013 of
the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
a) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2014.
b) In the case of the Profit & Loss Statement, of the Loss for the year
ended on that date.
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2003 as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004
issued by the Central Government in exercise of the power conferred by
section 227(4A) of the Companies Act, 1956 (the Act) on the matters
specified in paragraph 4 and 5 of the said Order, we report that -
i) a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us Fixed Assets of the company are physically
verified by the management according to a phased programme designed to
cover all the items over a period of three years which considering the
size and nature of operations of the company appears to be reasonable.
Pursuant to such program, a portion of fixed assets have been
physically verified by the management during the year and no material
discrepancies between book records and physical inventory have been
noticed.
c) In our opinion, there was no substantial disposal of fixed assets
during the year.
ii) a) The management has conducted physical verification of inventory,
except stock lying with third parties and stock in transit at
reasonable intervals. In our opinion, the frequency of physical
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of inventory and
discrepancies between the physical stock and book records which were
material in respect of certain items of inventories, have been properly
dealt in books of account.
iii) a) The company has not granted any loan, secured or unsecured to
companies, firm or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
b) Clause 4(iii) (b), (c) and (d) of the aforesaid order are not
applicable.
c) The company has not taken any loans secured or unsecured loan from
companies, firms or other parties covered in the register maintained
under section 301 of the companies Act, 1956.
d) Clauses 4(iii)(f) and (iii)(g) of the aforesaid order are not
applicable.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and nature of its business with regard to
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit we have not come across any
continuing failure to correct major weakness in internal control
system.
v) a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements that need to
be entered in the register maintained under section 301 of the Act have
been so entered.
b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of such contracts or
arrangements and exceeding Rupees five lacs in value in respect of each
party during the year have been made at prices which are reasonable
having regard to prevalent market prices at the relevant time other
than the transactions of special nature for which competitive
quotations are not available.
vi) The company has not accepted any deposit from public within the
meaning of section 58A of the Companies Act, 1956.
vii) The company has an internal audit system, which in our opinion, is
commensurate with the size of the Company and nature of its business.
viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209(1)(d) of the
Companies act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have however, not made
a detailed examination of the cost records with a view to determine
whether they are accurate or complete.
ix) a) According to the records of the company examined by us and
according to information and explanations given to us, in our opinion
the company has generally been regular in depositing undisputed
statutory dues including Investor Education and Protection Fund,
Employees State Insurance Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and any other material statutory
dues except Provident Fund applicable to it with appropriate
authorities.
b) According to the records of the Company examined by us and according
to information and explanations given to us, there are no dues of
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty and cess which have not been deposited on account of any dispute
except as detailed hereunder:
Name of the
Statute Nature of the Dues Year Rs. in Lacs
Central Excise
Act, 1944 Excise 1993-94 3.49
Excise 2000-01 126.57
Excise 2006-07 5.76
Excise 2009-10 52.21
Orissa & Bihar
Excise Act, 1915 Excise 2002-03 21.39
Excise 2003-04 135.75
Excise 2004-05 170.90
Excise 2005-06 251.58
Excise 2006-07 267.53
Excise 2007-08 120.37
Excise 2008-09 103.20
Excise 2009-10 96.60
Excise 2010-11 57.60
West Bengal Sales
Tax Act, 1941 Sales Tax 1986-87 0.16
Sales Tax 1987-88 0.06
Sales Tax 1993-94 0.33
Central Sales
Tax Act, 1956 Sales Tax 1987-88 0.05
Sales Tax 1994-95 0.72
Sales Tax 1999-00 2.02
Sales Tax 2000-01 93.56
Sales Tax 2001-02 110.00
Sales Tax 2002-03 70.12
Sales Tax 2003-04 135.66
Sales Tax 2004-05 30.22
Sales Tax 2008-09 0.74
Sales Tax 2009-10 0.47
Orissa Entry
Tax Act, 1999 Entry Tax 2000-01 8.11
Entry Tax 2002-03 28.35
Entry Tax 2007-09 11.07
Orissa Sales
Tax Act, 1947 Sales Tax 2002-03 1.85
Orissa VAT
Act, 2004 VAT 2005-07 17.20
VAT 2007-09 20.38
Income Tax
Act, 1961 Income Tax 2007-08 70.28
Name of the Statue Forum where dispute is Pending
Central Excise Act, 1944 Assistant Commissioner Central Excise
Central Excise Service Tax Appellate
Tribunal
Central Excise Service Tax Appellate
Tribunal
Central Excise Service Tax Appellate
Tribunal
Orissa & Bihar Excise Act, 1915 High Court of Orissa
High Court of Orissa
High Court of Orissa
High Court of Orissa
High Court of Orissa
Dist.Magistrate & Collector, Nabarangpur
Dist.Magistrate & Collector, Nabarangpur
District Magistrate & Collector,
Nabarangpur
District Magistrate & Collector,
Nabarangpur
West Bengal Sales Tax Act, 1941 Assistant Commissioner Commercial Taxes
Assistant Commissioner, Commercial Taxes
Assistant Commissioner Commercial Taxes
Assistant Commissioner, Commercial Taxes
Central Sales Tax Act, 1956 Assistant Commissioner, Commercial Taxes
Additional Commissioner, Commercial Taxes
Central Sales Tax Tribunal
Sales Tax Tribunal
Sales Tax Tribunal
Sales Tax Tribunal
Sales Tax Tribunal
Appellate Deputy Commissioner
CTO
Orissa Entry Tax Act, 1999 Sales Tax Tribunal
Sales Tax Tribunal
Additional Commissioner, Commercial
Taxes
Orissa Sales Tax Act, 1947 Sales Tax Tribunal
Orissa VAT Act, 2004 Sales Tax Tribunal
Additional Commissioner Commercial Taxes
Income Tax Act, 1961 Commissioner of Income Tax (Appeal)
x) The accumulated losses of the Company have exceeded fifty percent of
its net worth as at 31st March, 2014. It has incurred cash losses in
the current financial year and in the immediately preceding financial
year.
xi) As per books and records maintained by the company and according to
the information and explanations made available to us, the company has
not defaulted in repayment of any dues to financial institutions, banks
and debenture holders.
xii) According to information and explanations given to us and based on
the documents and records produced, the company has not granted any
loans and advances on the basis of the security by way of pledge of
shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
fund/society. Accordingly, the provisions of clause 4(xiii) of the
order are not applicable to the Company.
xiv) 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 order are not applicable to the
Company.
xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by its associates
or subsidiaries or others from bank or financial institutions during
the year.
xvi) In our opinion and on the basis of information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
xvii) On the basis of information received from the management and
based on our overall analysis of the Balance Sheet of the Company, the
company has not used any funds raised on short-term basis for long term
purposes.
xviii) During the year, the Company has not made any preferential
allotment of shares to parties or companies covered in the Register
maintained under section 301 of the Act. Accordingly clause 4(xviii) of
the aforesaid order is not applicable.
xix) The company does not have any outstanding debentures during the
year.
xx) The company has not raised any money through public issue during
the year.
xxi) During the course of our examination of the books of accounts
carried out in accordance with the generally accepted auditing
practices in India for the purpose of reporting the true and fair view
of the financial statements, we have neither come across any incidence
of fraud on or by the company nor have we been informed of any such
case by the Management.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of these
books.
c) The Balance Sheet and Profit & Loss Statement 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 & Loss Statement and Cash
Flow Statement comply with the accounting standards notified under the
Companies Act, 1956 read with General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate affairs in respect of
Section 133 of the Companies Act, 2013.
e) In our opinion and according to the explanations given to us none of
the Directors are disqualified from being appointed as directors under
clause (g) of sub-section (1) of section 274 of the Companies Act,
1956.
For S M DAGA & CO.
Chartered Accountants
Firm Registration No. - 303119E
S M Daga
Partner
Membership No. 4951
11, Clive Row, Kolkata - 700 001
Dated, The 14th Day of May, 2014
Mar 31, 2013
We have audited the accompanying financial statements of MANGALAM
TIMBER PRODUCTS LIMITED, which comprise the Balance Sheet as at March
31, 2013, and the Profit & Loss Statement and Cash Flow Statement for
the year ended on that date, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid said financial statements give
the information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
a) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2013.
b) In the case of the Profit & Loss Statement, of the Loss for the year
ended on that date.
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2003 as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004
issued by the Central Government in exercise of the power conferred by
section 227(4A) of the Companies Act, 1956 (the Act) on the matters
specified in paragraph 4 and 5 of the said Order, we report that -
i) a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us Fixed Assets of the company are physically
verified by the management according to a phased programme designed to
cover all the items over a period of three years which considering the
size and nature of operations of the company appears to be reasonable.
Pursuant to such program, a portion of fixed assets have been
physically verified by the management during the year and no material
discrepancies between book records and physical inventory have been
noticed.
c) In our opinion, there was no substantial disposal of fixed assets
during the year.
ii) a) The management has conducted physical verification of inventory,
except stock lying with third parties and stock in transit at
reasonable intervals. In our opinion, the frequency of physical
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of inventory and
discrepancies between the physical stock and book records which were
material in respect of certain items of inventories, have been properly
dealt in books of account.
iii) a) The company has not granted any loan, secured or unsecured to
companies, firm or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
b) Clause 4(iii) (b), (c) and (d) of the aforesaid order are not
applicable.
c) The company has not taken any loans secured or unsecured loan from
companies, firms or other parties covered in the register maintained
under section 301 of the companies Act, 1956.
d) Clauses 4(iii)(f) and (iii)(g) of the aforesaid order are not
applicable.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and nature of its business with regard to
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit we have not come across any
continuing failure to correct major weakness in internal control
system.
v) a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements that need to
be entered in register maintained under section 301 of the Act have
been so entered.
b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of such contracts or
arrangements and exceeding Rupees five lacs in value in respect of each
party during the year have been made at prices which are reasonable
having regard to prevalent market prices at the relevant time other
than the transactions of special nature for which competitive
quotations are not available.
vi) The company has not accepted any deposit from public within the
meaning of section 58A of the Companies Act, 1956.
vii) The company has an internal audit system, which in our opinion, is
commensurate with the size of the Company and nature of its business.
viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209(1)(d) of the
Companies act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have however, not made
a detailed examination of the cost records with a view to determine
whether they are accurate or complete.
ix) a) According to the records of the company examined by us and
according to information and explanations given to us, in our opinion
the company has generally been regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other
material statutory dues applicable to it with appropriate authorities.
However, as on 31st March, 2013, Service Tax for Rs.58,864/- is
outstanding for a period of more than six months from the date they
became payable which has since been paid.
b) According to the records of the Company examined by us and according
to information and explanations given to us, there are no dues of
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty and cess which have not been deposited on account of any dispute
except as detailed hereunder:
Name of the
Statute Nature of
the Dues Year
Central Excise
Act, 1944 Excise 1993-94
Excise 2000-01
Excise 2006-07
Excise 2009-10
Orissa & Bihar
Excise Act, 1915 Excise 2002-03
Excise 2003-04
Excise 2004-05
Excise 2005-06
Excise 2006-07
Excise 2007-08
Excise 2008-09
West Bengal
Sales Tax Act, 1941 Sales Tax 1986-87
Sales Tax 1987-88
Sales Tax 1993-94
Central Sales
Tax Act, 1956 Sales Tax 1987-88
Sales Tax 1994-95
Sales Tax 1999-00
Sales Tax 2000-01
Sales Tax 2001-02
Sales Tax 2002-03
Sales Tax 2003-04
Sales Tax 2004-05
Sales Tax 2007-09
Sales Tax 2008-09
Orissa Entry
Tax Act, 1999 Entry Tax 2000-01
Entry Tax 2002-03
Entry Tax 2007-09
Orissa Sales
Tax Act, 1947 Sales Tax 2002-03
Orissa VAT Act,
2004 VAT 2005-06
VAT 2007-09
Income Tax Act,
1961 Income Tax 2007-08
Name Rs.in Lacs Forum where dispute is Pending
Central Excise
Act, 1944 3.49 Assistant Commissioner
Central Excise
126.57 Central Excise Service Tax
Appellate Tribunal
5.76 Central Excise Service Tax
Appellate Tribunal
52.21 Central Excise Service Tax
Appellate Tribunal
21.39 High Court of Orissa
135.75 High Court of Orissa
170.90 High Court of Orissa
251.58 High Court of Orissa
267.53 High Court of Orissa
120.37 Dist.Magistrate & Collector
Nabarangpur
103.20 Dist.Magistrate & Collector,
Nabarangpur
West Bengal
Sales Tax Act,
1941 0.16 Assistant Commissioner
Commercial Taxes
0.06 Assistant Commissioner,
Commercial Taxes
0.33 Assistant Commissioner
Commercial Taxes
0.05 Assistant Commissioner
Commercial Taxes
0.72 Assistant Commissioner,
Commercial Taxes
2.02 Additional Commissioner,
Commercial Taxes
93.56 Central Sales Tax Tribunal
110.00 Sales Tax Tribunal
70.12 Sales Tax Tribunal
135.66 Sales Tax Tribunal
30.22 Sales Tax Tribunal
806.93 Deputy Commissioner Sales Tax
6.20 Appellate Deputy Commissioner
Orissa Entry
Tax Act, 1999 8.11 Sales Tax Tribunal
28.35 Sales Tax Tribunal
Orissa Entry
Tax Act, 1999 11.07 Additional Commissioner,
Commercial Taxes
Income Tax Act,
1961 1.85 Sales Tax Tribunal
17.20 Sales Tax Tribunal
20.38 Additional Commissioner
Commercial Taxes
70.28 Commissioner of Income
Tax (Appeal)
x) Accumulated losses of the Company are less than fifty percent of its
net worth. It has incurred cash losses in the current financial year
and in the immediately preceding financial year.
xi) As per books and records maintained by the company and according to
the information and explanations made available to us, the company
has not defaulted in repayment of any dues to financial institutions,
banks and debenture holders.
xii) According to information and explanations given to us and based on
the documents and records produced, the company has not granted any
loans and advances on the basis of the security by way of pledge of
shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
fund/society. Accordingly, the provisions of clause 4(xiii) of the
order are not applicable to the Company.
xiv) 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 order are not applicable to the
Company.
xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by its associates
or subsidiaries or others from bank or financial institutions during
the year.
xvi) In our opinion and on the basis of information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
xvii) On the basis of information received from the management and
based on our overall analysis of the Balance Sheet of the Company, the
company has not used any funds raised on short-term basis for long term
purposes.
xviii) During the year, the Company has not made any preferential
allotment of shares to parties or companies covered in the Register
maintained under section 301 of the Act. Accordingly clause 4(xviii) of
the aforesaid order is not applicable.
xix) The company does not have any outstanding debentures during the
year.
xx) The company has not raised any money through public issue during
the year.
xxi) During the course of our examination of the books of accounts
carried out in accordance with the generally accepted auditing
practices in India for the purpose of reporting the true and fair view
of the financial statements, we have neither come across any incidence
of fraud on or by the company nor have we been informed of any such
case by the Management.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of these
books.
c) The Balance Sheet and Profit & Loss Statement 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 & Loss Statement and Cash
Flow Statement comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
e) In our opinion and according to the explanations given to us none of
the Directors are disqualified from being appointed as directors under
clause (g) of sub-section (1) of section 274 of the Companies Act,
1956.
For S M DAGA & CO.
Chartered Accountants
Firm Registration No. - 303119E
S M Daga
Partner
Membership No. 4951
11, Clive Row,
Kolkata - 700 001
Dated, The 8th
Day of May, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of MANGALAM TIMBER PRODUCTS
LIMITED as at 31st March, 2012, Profit & Loss Statement and Cash Flow
Statement for the year ended on that date both annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An Audit includes
examining, on a test basis, evidence supporting, the amounts and
disclosures in the financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors' Report) Order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
issued by the Central Government in exercise of the power conferred by
section 227(4A) of the Companies Act, 1956 (the Act) on the matters
specified in paragraph 4 and 5 of the said Order.
i) a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The Fixed Assets of the company are physically verified by the
management according to a phased programme designed to cover all the
items over a period of three years which considering the size and
nature of operations of the company appears to be reasonable. Pursuant
to such program, a portion of fixed assets have been physically
verified by the management during the year and no material
discrepancies between book records and physical inventory have been
noticed.
c) There was no substantial disposal of fixed assets during the year.
ii) a) The management has conducted physical verification of inventory,
except stock lying with third parties and stock in transit at
reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of inventory and
discrepancies between the physical stock and book records which were
material in respect of certain items of inventories, have been properly
dealt in books of account.
iii) a) The company has not granted any loan, secured or unsecured to
companies, firm or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
b) Clause 4(iii) (b), (c) and (d) of the aforesaid order are not
applicable.
c) The company has not taken any loans secured or unsecured loan from
companies,firms or other parties covered in the register maintained
under section 301 of the companies Act, 1956.
d) Clauses 4(f) and (g) of the aforesaid order are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and nature of its business with regard to
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit we have not come across any
continuing failure to correct major weakness in internal control
system.
v) a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under that section.
b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of such contracts or
arrangements and exceeding Rupees five lacs in value in respect of each
party during the year have been made at prices which are reasonable
having regard to prevalent market prices at the relevant time other
than the transactions of special nature for which competitive
quotations are not available.
vi) The company has not accepted any deposit from public within the
meaning of section 58A of the Companies Act, 1956.
vii) The company has an internal audit system, which in our opinion, is
commensurate with the size of the Company and nature of its business.
viii) We have been informed that the Central Government has prescribed
for the maintenance of the cost records under section 209(1) (d) of the
Companies Act, 1956 in respect of Formaldehyde. In our opinion, the
prescribed accounts and records have been made and maintained by the
Company. However, we have not carried out any detailed examination of
aforesaid records whether they are accurate and correct.
ix) a) According to the records of the company examined by us and
according to information and explanations given to us, in our opinion
the company has generally been regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other
material statutory dues applicable to it with appropriate authorities.
b) According to the records of the Company, there are no dues of Income
Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and
cess which have not been deposited on account of any dispute except as
detailed hereunder:
Name of
the
Statute Nature of
the Dues Year Rs in Lacs Forum where dispute is
pending
Central
Excise
Act, 1944 Excise 1993-94 3.49 Assistant Commissioner
Central Excise
Excise 2000-01 126.57 Central Excise Service
Tax Appellate Tribunal
Excise 2006-07 5.76 Central Excise Service
Tax Appellate Tribunal
Excise 2009-10 52.21 Additional Commissioner
Central Excise
Odisha &
Bihar
Excise
Act, 1915 Excise 2002-03 21.39 High Court of Odisha
Excise 2003-04 135.75 High Court of Odisha
Excise 2004-05 170.90 High Court of Odisha
Excise 2005-06 251.58 High Court of Odisha
Excise 2006-07 267.53 High Court of Odisha
West
Bengal
Sales
Tax
Act, 1941 Sales Tax 1986-87 0.16 Assistant Commissioner
Commercial Taxes
Sales Tax 1987-88 0.06 Assistant Commissioner,
Commercial Taxes
Sales Tax 1993-94 0.33 Assistant Commissioner
Commercial Taxes
Central
Sales
Tax
Act, 1956 Sales Tax 1993-94 0.30 Additional Deputy
Commissioner
Sales Tax 1995-96 3.07 Additional Deputy
Commissioner
Sales Tax 2001-02 110.00 Sales Tax Tribunal
Sales Tax 1987-88 0.05 Assistant Commissioner,
Commercial Taxes
Sales Tax 2002-03 70.12 Sales Tax Tribunal
Sales Tax 2003-04 135.66 Sales Tax Tribunal
Sales Tax 1994-95 0.72 Sales Tax Tribunal
Sales Tax 2004-05 30.22 Sales Tax Tribunal
Sales Tax 1999-00 2.02 Additional Commissioner,
Commercial Taxes
Sales Tax 2007-09 806.93 Sales Tax Tribunal
Sales Tax 2008-09 6.20 Appellate Deputy
Commissioner
Sales Tax 2000-01 93.56 Central Sales Tax
Tribunal
Andhra
Pradesh
General
Sales
Tax
Act, 1957 Sales Tax 1993-94 8.91 Additional Deputy
Commissioner
Sales Tax 1994-95 6.34 Additional Deputy
Commissioner
Sales Tax 1995-96 17.61 Sales Tax Appellate
Tribunal
Sales Tax 1996-97 19.99 Sales Tax Appellate
Tribunal
Sales Tax 1990-91 2.31 High Court, Andhra
Pradesh
Sales Tax 1991-92 1.27 High Court, Andhra
Pradesh
Sales Tax 1992-93 1.11 High Court, Andhra
Pradesh
Odisha
Entry Tax
Act, 1999 Entry Tax 2000-01 8.11 Sales Tax Tribunal
Entry Tax 2002-03 28.35 Sales Tax Tribunal
Entry Tax 2007-09 11.07 Additional Commissioner,
Commercial Taxes
Odisha
Sales Tax
Act, 1947 Sales Tax 2002-03 1.85 Additional Commissioner,
Commercial Taxes
Odisha VAT
Act, 2004 VAT 2005-06 17.20 Sales Tax Tribunal
VAT 2007-09 20.38 Additional Commissioner
Commercial Taxes
x) Accumulated losses of the Company are less than fifty percent of its
net worth. It has incurred cash losses in the current financial year
and in the immediately preceding financial year.
xi) As per books and records maintained by the company and according to
the information and explanations made available to us, the company has
not defaulted in repayment of any dues to financial institutions, banks
and debenture holders.
xii) According to information and explanations given to us and based on
the documents and records produced, the company has not granted any
loans and advances on the basis of the security by way of pledge of
shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
fund/society. Accordingly, the provisions of clause 4(xiii) of the
order are not applicable to the Company.
xiv) 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 order are not applicable to the
Company.
xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by its associates
or subsidiaries or others from bank or financial institutions during
the year.
xvi) In our opinion and on the basis of information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
xvii) On the basis of information received from the management and
based on our overall analysis of the Balance Sheet of the Company, the
company has not used any funds raised on short-term basis for long term
purposes.
xviii) The company has not made any preferential allotment of shares
during the year to any parties or companies covered in the register
maintained under section 301 of the Companies Act, 1956.
xix) The company does not have any outstanding debentures during the
year.
xx) The company has not raised any money through public issue during
the year.
xxi) During the course of our examination of the books of accounts
carried out in accordance with the generally accepted auditing
practices in India for the purpose of reporting the true and fair view
of the financial statements, we have neither come across any incidence
of fraud on or by the company nor have we been informed of any such
case by the Management.
2. Further to our other comments:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) The Balance Sheet, Profit & Loss Statement, Cash Flow Statement
dealt with by this report are in agreement with the books of account.
c) In our opinion, the Balance Sheet, Profit & Loss Statement and Cash
Flow Statement comply with the accounting standards referred to in
Sub-section (3C) of section 211 of the Companies Act, 1956.
d) 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 the books
of account.
e) On the basis of written representations, received from the Directors
and taken on record by the Board of Directors, none of the Director is
disqualified as on 31st March, 2012 from being appointed as a director
in terms of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with other notes
and in particular Note no: 2.3(d) 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 case of the Balance Sheet, of the state of affairs of the Company
as at 31st March, 2012
ii) In case of the Profit & Loss Statement, of the Loss for the year
ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows, for the
year ended on that date.
For S M DAGA & CO.
Chartered Accountants
Firm Registration No. - 303119E
S M Daga
Partner
Membership No. 4951
11, Clive Row, Kolkata - 700 001
Dated, The 10th Day of May, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of MANGALAM TIMBER PRODUCTS
LIMITED as at 31st March, 2011 and the Profit & Loss Account and Cash
Flow Statement for the year ended on that date both annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An Audit includes
examining, on a test basis, evidence supporting, the amounts and
disclosures in the financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors' Report) Order, 2003 ("the
order") (As amended) issued by the Central Government in exercise of
the power conferred by section 227(4A) of the Companies Act, 1956 (the
Act) on the matters specified in paragraph 4 and 5 of the said Order.
i) a) The company has maintained proper records showing full particular
including quantitative details and situation of fixed assets.
b) The Fixed Assets of the company are physically verified by the
management according to a phased programme designed to cover all the
items over a period of three years which considering the size and
nature of operations of the company appears to be reasonable. Pursuant
to such program, a portion of fixed assets have been physically
verified by the management during the year and no material
discrepancies between book records and physical inventory have been
noticed.
c) There was no substantial disposal of fixed assets during the year.
ii) a) The management has conducted physical verification of inventory,
except stock lying with third parties and stock in transit at
reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of inventory and
discrepancies between the physical stock and book records which were
material in respect of certain items of inventories, have been properly
dealt in books of account.
iii) a) The company has not granted any loan, secured or unsecured to
companies, firm or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
b) Clause 4(iii) (b), (c) and (d) of the aforesaid order are not
applicable.
c) The company has taken unsecured loan from one party covered in the
register maintained under section 301 of the companies Act, 1956. The
maximum amount outstanding during the year was Rs.575.00 Lacs.
d) The rate of interest and other terms and conditions of such loan
taken by the company are prima-facie not prejudicial to the interest of
the company.
e) According to information and explanations given to us, the payment
of principal amount of loan taken and interest thereon is regular as
per stipulated terms.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and nature of its business with regard to
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit we have not come across any
continuing failure to correct major weakness in internal control
system.
v) a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under that section.
b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of such contracts or
arrangements and exceeding Rupees five lacs in value in respect of any
party during the year have been made at prices which are reasonable
having regard to prevalent market prices at the relevant time other
than the transactions of special nature for which competitive
quotations are not available.
vi) The company has not accepted any deposit from public within the
meaning of section 58A of the Companies Act, 1956.
vii) The company has an internal audit system, which in our opinion, is
commensurate with the size of the Company and nature of its business.
viii) We have been informed that the Central Government has prescribed
for the maintenance of the cost record under section 209(1) (d) of the
Companies Act, 1956 in respect of Formaldehyde. In our opinion, the
prescribed accounts and records have been made and maintained by the
Company. However, we have not carried out any detailed examination of
aforesaid records whether they are accurate and correct.
ix) a) According to the records of the company examined by us and
according to information and explanations given to us, in our opinion
the company has generally been regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other
material statutory dues applicable to it with appropriate authorities.
b) According to the records of the Company, there are no dues of Income
Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and
cess which have not been deposited on account of any dispute except as
detailed hereunder:
Name of the Statute Nature of the Dues Year Rs.in Lacs
Central Excise Act,
1944 Excise 1993-94 3.49
Excise 2000-01 126.57
Excise 2006-07 5.76
Excise 2009-10 52.21
Orissa & Bihar Excise 2002-03 21.39
Excise Act, 1915 Excise 2003-04 135.75
Excise 2004-05 170.90
Excise 2005-06 251.58
Excise 2006-07 267.53
West Bengal Sales
Tax Act, 1941 Sales Tax 1986-87 0.16
Sales Tax 1987-88 0.06
Sales Tax 1993-94 0.33
Central Sales Tax
Act, 1956 Sales Tax 1993-94 0.30
Sales Tax 1995-96 3.07
Sales Tax 2001-02 110.00
Sales Tax 1987-88 0.05
Sales Tax 2002-03 70.12
Sales Tax 2003-04 135.66
Sales Tax 1994-95 0.72
Sales Tax 2004-05 30.22
Sales Tax 1999-00 2.02
Sales Tax 2007-09 806.93
Andhra Pradesh
General Sales Tax
Act, 1957 Sales Tax 1993-94 8.91
Sales Tax 1994-95 6.34
Sales Tax 1995-96 17.61
Sales Tax 1996-97 19.99
Sales Tax 1990-91 2.31
Sales Tax 1991-92 1.27
Sales Tax 1992-93 1.11
Orissa Entry Tax
Act, 1999 Entry Tax 2000-01 8.11
Entry Tax 2002-03 28.35
Entry Tax 2007-09 11.07
Orrisa Sales Tax
Act, 1947 Sales Tax 2002-03 1.85
Orissa VAT Act, 2004 VAT 2005-06 17.20
VAT 2007-09 20.38
Name of the Statute Forum where dispute is Pending
Central Excise Act, Assistant Commissioner
1944 Central Excise
Central Excise Service Tax
Appellate Tribunal
Central Excise Service Tax
Appellate Tribunal
Additional Commissioner
Central Excise
Orissa & Bihar High Court of Orissa
Excise Act, 1915 High Court of Orissa
High Court of Orissa
High Court of Orissa
High Court of Orissa
West Bengal Sales Assistant Commissioner
Tax Act, 1941 Commercial Taxes
Assistant Commissioner
Commercial Taxes
Assistant Commissioner
Commercial Taxes
Additional Deputy
Commissioner
Additional Deputy
Commissioner
Sales Tax Tribunal
Assistant Commissioner
Commercial Taxes
Sales Tax Tribunal
Sales Tax Tribunal
Sales Tax Tribunal
Sales Tax Tribunal
Additional Commissioner
Commercial Tax
Sales Tax Tribunal
Andhra Pradesh Additional Deputy
General Sales Tax Commissioner
Act, 1957
Additional Deputy
Commissioner
Sales Tax
AppellateTribunal
Sales Tax
AppellateTribunal
High Court,
Andhra Pradesh
High Court,
Andhra Pradesh
High Court,
Andhra Pradesh
Orissa Entry Tax
Act, 1999 Sales Tax Tribunal
Sales Tax Tribunal
Additional Commissioner
Commercial Taxes
Additional Commissioner
Commercial Taxes
Orissa VAT Act, 2004 Sales Tax Tribunal
Additional Commissioner
Commercial Taxes
x) Accumulated losses of the Company are less than fifty percent of its
net worth. It has incurred cash losses in the current financial year
and in the immediately preceding financial year.
xi) As per books and records maintained by the company and according to
the information and explanations made available to us, the company has
not defaulted in repayment of any dues to financial institutions, banks
and debenture holders.
xii) According to information and explanations given to us and based on
the documents and records produced, the company has not granted any
loans and advances on the basis of the security by way of pledge of
shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
fund/society. Accordingly, the provisions of clause 4(xiii) of the
order are not applicable to the Company.
xiv) 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 order are not applicable to the
Company.
xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by its associates
or subsidiaries or others from bank or financial institutions during
the year.
xvi) In our opinion and on the basis of information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
xvii) On the basis of information received from the management and
based on our overall analysis of the Balance Sheet of the Company, the
company has not used any funds raised on short-term basis for long term
purposes.
xviii) The company has not made any preferential allotment of shares
during the year to any parties or companies covered in the register
maintained under section 301 of the Companies Act, 1956.
xix) The company does not have any outstanding debentures during the
year.
xx) The company has not raised any money through public issue during
the year.
xxi) During the course of our examination of the books of accounts
carried out in accordance with the generally accepted auditing
practices in India for the purpose of reporting the true and fair view
of the financial statements, we have neither come across any incidence
of fraud on or by the company nor have we been informed of any such
case by the Management.
2. Further to our other comments:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) The Balance Sheet, Profit & Loss Account, Cash Flow Statement dealt
with by this report are in agreement with the books of account.
c) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement comply with the accounting standards referred to in
Sub-section (3C) of section 211 of the Companies Act, 1956.
d) 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 the books
of account.
e) On the basis of written representations, received from the Directors
and taken on record by the Board of Directors, none of the Director is
disqualified as on 31st March, 2011 from being appointed as a director
in terms of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with notes thereon
and attached thereto give a true and fair view in conformity with the
accounting principles generally accepted in India:
i) In case of the Balance Sheet, of the state of affairs of the Company
as at 31st March, 2011
ii) In case of the Profit & Loss Account, of the Loss for the year
ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows, for the
year ended on that date.
For S M DAGA & CO.
Chartered Accountants
Firm Registration No. - 303119E
S M Daga
Partner
Membership No. 4951
11, Clive Row, Kolkata - 700 001
Dated, The 25th April, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of MANGALAM TIMBER PRODUCTS
LIMITED as at 31st March, 2010 and the Profit & Loss Account and Cash
Flow Statement for the year ended on that date both annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An Audit includes
examining, on a test basis, evidence supporting, the amounts and
disclosures in the financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 ("the
order") (As amended) issued by the Central Government in exercise of
the power conferred by section 227(4A) of the Companies Act, 1956 (the
Act) on the matters specified in paragraph 4 and 5 of the said Order.
i) a) The company has maintained proper records showing full particular
including quantitative details and situation of fixed assets.
b) The Fixed Assets of the company are physically verified by the
management according to a phased programme designed to cover all the
items over a period of three years which considering the size and
nature of operations of the company appears to be reasonable. Pursuant
to such program, a portion of fixed assets have been physically
verified by the management during the year and no material
discrepancies between book records and physical inventory have been
noticed.
c) There was no substantial disposal of fixed assets during the year.
ii) a) The management has conducted physical verification of inventory,
except stock lying with third parties and stock in transit at
reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of inventory and
discrepancies between the physical stock and book records which were
material in respect of certain items of inventories, have been properly
dealt in books of account.
iii) a) The company has not granted any loan, secured or unsecured to
companies, firm or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
b) Clause 4(iii) (b), (c) and (d) of the aforesaid order are not
applicable.
c) The company has taken unsecured loan from one party covered in the
register maintained under section 301 of the companies Act, 1956. The
maximum amount outstanding during the year was Rs.621.80 Lacs.
d) The rate of interest and other terms and conditions of such loan
taken by the company are prima-facie not prejudicial to the interest of
the company.
e) According to information and explanations given to us, the payment
of principal amount of loan taken and interest thereon is regular as
per stipulated terms.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commen rate with
the size of the company and nature of its business with regard to
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit we have not come across any
continuing failure to correct major weakness in internal control
system. v) a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
required to be maintained under that section. b) In our opinion and
according to information and explanations given to us, the transactions
made in pursuance of such contracts or arrangements and exceeding
Rupees five lacs in value in respect of any party during the year have
been made at prices which are reasonable having regard to prevalent
market prices at the relevant time other than the transactions of
special nature for which competitive quotations are not available. vi)
The company has not accepted any deposit from public within the meaning
of section 58A of the Companies Act, 1956. vii) The company has an
internal audit system, which in our opinion, is commensurate with the
size of the Company and nature of its business. viii) We have been
informed that the Central Government has prescribed for the maintenance
of the cost record under section 209(1) (d) of the Companies Act, 1956
in respect of Formaldehyde. In our opinion, the prescribed accounts and
records have been made and maintained by the Company. However, we have
not carried out any detailed examination of aforesaid records whether
they are accurate and correct. ix) a) According to the records of the
company examined by us and according to information and explanations
given to us, in our opinion the company has generally been regular in
depositing undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
any other material statutory dues applicable to it with appropriate
authorities. b) According to the records of the Company, there are no
dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty,
Excise Duty and cess which have not been deposited on account of any
dispute except as detailed hereunder:
Name of the Statute Nature of the Dues Year Rs. in Lacs
Central Excise Act, 1944 Excise 1993-94 3.49
Excise 1997-98 3.37
Excise 2000-01 126.57
Excise 2006-07 2.88
Orissa & Bihar Excise 2002-03 21.39
Excise Act, 1915 Excise 2003-04 135.75
Excise 2004-05 170.90
Excise 2005-06 251.58
Excise 2006-07 267.53
West Bengal Sales
Tax Act, 1941 Sales Tax 1986-87 0.16
Sales Tax 1987-88 0.06
Sales Tax 1993-94 0.33
Central Sales
Tax Act, 1956 Sales Tax 1993-94 0.30
Sales Tax 1995-96 3.07
Sales Tax 2001-02 110.00
Sales Tax 2001-02 0.03
Sales Tax 1987-88 0.05
Sales Tax 2002-03 70.12
Sales Tax 2003-04 135.66
Sales Tax 2000-01 93.56
Sales Tax 1994-95 0.72
Sales Tax 2004-05 30.22
Sales Tax 1997-98 0.47
Sales Tax 1999-00 2.02
Andhra Pradesh General
Sales Tax Act, 1957 Sales Tax 1993-94 8.91
Sales Tax 1994-95 6.34
Sales Tax 1995-96 17.61
Sales Tax 1996-97 19.99
Sales Tax 1990-91 2.31
Sales Tax 1991-92 1.27
Sales Tax 1992-93 1.11
Name of the Statute Forum where dispute is Pending
Central Excise Act, 1944 Assistant Commissioner
Central Excise
Assistant Commissioner
Central Excise
Central Excise Service Tax
Appellate Tribunal
Custom, Excise and Service Tax
Appellate Tribunal
Orissa & Bihar
Excise Act, 1915 High Court of Orissa
High Court of Orissa
High Court of Orissa
High Court of Orissa
High Court of Orissa
West Bengal Sales Tax Act, 1941 Assistant Commissioner
Commercial Taxes
Assistant Commissioner
Commercial Taxes
Assistant Commissioner
Commercial Taxes
Central Sales Tax Act, 1956 Additional Deputy
Commissioner
Additional Deputy
Commissioner
Sales Tax Tribunal
Joint Commissioner
(Appeal) Trade Tax
Assistant Commissioner
Commercial Taxes
Sales Tax Tribunal
Sales Tax Tribunal
Sales Tax Tribunal
Sales Tax Tribunal
Sales Tax Tribunal
Additional Commissioner
Commercial Tax
Additional Commissioner
Commercial Tax
Andhra Pradesh General
Sales Tax Act, 1957 Additional Deputy
Commissioner
Additional Deputy
Commissioner
Sales Tax AppellateTribunal
Sales Tax AppellateTribunal
High Court, Andhra Pradesh
High Court, Andhra Pradesh
High Court, Andhra Pradesh
Name of the Statute Nature of the Dues Year Rs. in Lacs
Orissa Entry Tax Act, 1999 Entry Tax 2000-01 8.11
Entry Tax 2002-03 28.35
Entry Tax 2003-04 4.24
Entry Tax 2004-05 0.59
Orissa Sales Tax Act, 1947 Sales Tax 2002-03 1.85
Orissa VAT Act, 2004 VAT 2005-06 17.20
Name of the Statute Forum where dispute is Pending
Orissa Entry Tax Act, 1999 Sales Tax Tribunal
Sales Tax Tribunal
Sales Tax Tribunal
Assistant Commissioner
Orissa Sales Tax Act, 1947 Sales Tax Tribunal
Orissa VAT Act, 2004 Sales Tax Tribunal
x) The company does not have any accumulated losses at the end of the
financial year. It has incurred cash losses in the current financial
year. However it has not incurred any cash losses in the immediately
preceding financial year.
xi) As per books and records maintained by the company and according to
the information and explanations made available to us, the company has
not defaulted in repayment of any dues to financial institutions, banks
and debenture holders.
xii) According to information and explanations given to us and based on
the documents and records produced, the company has not granted any
loans and advances on the basis of the security by way of pledge of
shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
fund/society. Accordingly, the provisions of clause 4(xiii) of the
order are not applicable to the Company.
xiv) 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 order are not applicable to the
Company.
xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by its associates
or subsidiaries or others from bank or financial institutions during
the year.
xvi) In our opinion and on the basis of information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
xvii) On the basis of information received from the management and
based on our overall analysis of the Balance Sheet of the Company, the
company has not used any funds raised on short-term basis for long term
purposes.
xviii) The company has not made any preferential allotment of shares
during the year to any parties or companies covered in the register
maintained under section 301 of the Companies Act, 1956.
xix) The company does not have any outstanding debentures during the
year.
xx) The company has not raised any money through public issue during
the year.
xxi) During the course of our examination of the books of accounts
carried out in accordance with the generally accepted auditing
practices in India for the purpose of reporting the true and fair view
of the financial statements, we have neither come across any incidence
of fraud on or by the company nor have we been informed of any such
case by the Management.
2. Further to our other comments:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) The Balance Sheet, Profit & Loss Account, Cash Flow Statement dealt
with by this report are in agreement with the books of account.
c) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement comply with the accounting standards referred to in Sub-
section (3C) of section 211 of the Companies Act, 1956.
d) 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 the books
of account.
e) On the basis of written representations, received from the Directors
and taken on record by the Board of Directors, none of the Director is
disqualified as on 31st March, 2010 from being appointed as a director
in terms of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with notes thereon
and attached thereto give a true and fair view in conformity with the
accounting principles generally accepted in India:
i) In case of the Balance Sheet, of the state of affairs of the Company
as at 31st March, 2010
ii) In case of the Profit & Loss Account, of the Loss for the year
ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows, for the
year ended on that date.
For S. M.DAGA&CO
Firm Registration No.-303119E
Chartered Accountants
S M Daga
Partner
Membership No. 4951
11,CliveRow, Kolkata - 700 001
Dated, The 1st May, 2010