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

Auditor Report of Mauria Udyog Ltd.

Mar 31, 2016

TO THE STATUTORY AUDITOR OF MAURIA UDYOG UMITED

Report off the Financial Statements

We have audited the accompanying financial statements of MAURIA UDYOG UMITED, which comprise the Balance Sheet as at 31 March 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, 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 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 the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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 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 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 Company''s Directors, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, and its Profit and its cash flow for the year ended on that date.

Report on other Legal and Regulatory Requirements

I. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

II. As required by section 143(3) of the Act, we report that:

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

b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

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

d) In our opinion, the 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 written representations received from the directors as on 31 March, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2016, from being appointed as a director in terms of Section 164(2) of the Companies Act, 2013.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".

g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i) The Company has disclosed the impact of pending litigations on its financial position in the aforesaid financial statements - Refer Note No. 23(II)(1)(iii)and 23(II)(3).

ii) The Company has made provision, as required under the applicable law or Accounting Standards, for material foreseeable losses, if any.

iii. There has been no delay in transferring amounts required to be transferred to be Investor Education and Protection Fund.

ANNEXURE A” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1 ‘Report on Other Legal & Regulatory Requirement’ of our report of even date)

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

i. a) the Company has maintained proper records showing full particulars, including quantitative details and situation of fined assets namely Land and Building, held has investments.

b) As explained to us, fixed assets are physically verified by the management it reasonable intervals, in a phased verification programme,, which, in our opinion, is reasonable, looking to the sl2e of the Company and the nature of its business, According to the information and explanations given to us no material discrepancies were noticed on such verification.

c) According to the information and explanations given to us and on the basis of our examination of records of the company, the title deed of Immovable property is held in the name of company.

ii. (a) As explained to us physical verification of inventories has beer, conducted by the management at reasonable intervals by the management.

b) Procedures of physical verification of Inventory followed by the management is reasonable and adequate In relation to the size of the company and the nature of the business.

(c) Company is maintaining proper records of Inventory and no material discrepancies were noticed on physical verification.

iii. According to the Information and explanations given to us, the Company has granted unsecured loans and advances to Four (4) parties listed in the register maintained under section 109 of the Companies Act, 2013. Mo formal stipulations in relation to interest, repayment schedule and other terms and conditions has been made therefore we are not in position to comment upon the sub-clauses (iii}(a) and (iii) (c).

iv. According to the information and explanations given to us the Company has complied with tilt provisions of section 185 3ncf 186 of Company''; Act, 2013 in relation to loans, investments, guarantee and securities given, if any.

v. According to the Information and explanations given to us, the Company has not accepted any deposits from t he public.

vi. We have broadly reviewed the books of accounts maintained by the company in respect of the product; where, pursuant to Rules made by the Central Govt. of India, the maintenance of cost recodes has been prescribed under sub-section (1) of section 148 of the Company Act, 2013 and are the opinion that prima-facie, the prescribed accounts and records have been made and maintained. We have, however not made a detailed examination of the records with a view to determine whether they are accurate and complete.

vii. a) According to the records of the company and as per the information and explanations given to us, it has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and other statutory dues with the appropriate authorities.

b) On the basis of information and explanations given to us, there are no disputed Statutory Dues which have not been deposited with the appropriate authorities. However, according to information and explanation given to us, the following dues of income tax, Service Tax and value added tax have been deposited by the Company on account of disputes:

Name of the Statute

Nature of dues

Amount (in Rs.)

Forum where dispute is pending

Income Tax Act, 1961

Income Tax and interest thereon for Assessment Year 2012-13, 2013-14 & 2014-15

51,937,379

Commissioner of Income Tax (Appeals) New Delhi- XXII

viii. The company did not defaulted in repayment of any loan or borrowing from any financial institution, bank, government or debenture holders during the year.

ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instrument) but has taken term loans during the year and utilized the same for the purpose for the the funds were raised.

x. During the course of our examination of the books and records of the company, carried out in accordance with the generally accepted audit practices in India, and according to the information and explanation given to us, we have neither come across instance of fraud on or by the Company noticed or reported during the year, nor have we been informed of such case by the management.

xi. According to the information and explanation given to us managerial remuneration has been paid by the Company is in compliance with requisite approval mandated by provisions of Section 197 of Companies Act, 2013.

xii. Paragraph 3(xii) regarding the Nidhi Company, is not applicable to the Company.

xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with related parties are in compliance with section 177 and 188 of Companies Act 2013 where applicable and details of such transactions is disclosed in notes to accounts as require by the applicable Accounting Standards.

xiv. The Company has not made any preferential allotment or private placement of shares of fully or partly convertible debentures during the year.

xv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

xvi. To the best of our knowledge and belief and as per the information and explanations given to us, the Company has not entered into any non-cash transaction with directors or persons connected with him.

xvii. The activities carried by the company other than the main operative business are not to the extent which require registration under section 45-IA the Reserve Bank of India Act, 1934.

ANNEXURE - B TO THE INDEPENDENT AUDITORS REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

(Referred to Paragraph 2(f) of Report on Other Legal and Regulatory Requirements of our Report of even date)

We have audited the internal financial controls over financial reporting of MAURIA UDYOG LIMITED as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note”) and 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 of 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 compliances with the polices or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For Salarpuria & Partners

Chartered Accountants

Place: Delhi Firm ICAI Reg. No. 302113E

Date; 30.05.2016

Karnal Kumar Gupta

Partner

M. No. 089190


Mar 31, 2014

We have audited the accompanying financial statements of MAURIA UDYOG LIMITED ("the company") which comprise the Balance Sheet as at 31 March 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended 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 referred to in sub-section (3C) of section 211 of the Companies Act, 1956. ("the act") read with the General Circular 15/ 2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013This 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 entity'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 financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 March 2014;

(ii) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

(iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

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

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

a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c. the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

d. in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956; read with the General Circular 15/ 2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and

e. on the basis of written representations received from the directors as on 31 March 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

ANNEXURE TO THE AUDITOR'S REPORT

(Referred to point 1 of paragraph "Report on Other Legal and Regulatory Requirements" of our Report of even date)

i. a. The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

b. Except item-wise records of Plant & Machinery which was purchased in the Court Auction for a consolidated price for which it is not possible to maintain the record.

c. During the year, in our opinion, the Company has not disposed off a substantial part of its fixed assets.

ii. a. The inventories of the company have been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

b. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management were found reasonable and adequate in relation to the size of the Company and the nature of its business.

c. On the basis of our examination of record of inventory, in our opinion, the Company has maintained proper records of inventory and the discrepancies noticed on physical verification between the physical stocks and the book records were not material in relation to the operations of the Company.

iii. a. As per the records maintained by the company and duly certified by a Company Secretary, the Company has given loan to Two (2) parties covered under the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 58.66 Lacs and the balance outstanding at the close of the year is Rs. 8.66 Lacs. The transactions referred herein above does not include amount of Letters of credits discounted under non fund base exposures.

b. In our opinion the rate of interest, wherever applicable and other terms and conditions of such loans given by the company are prima facie not prejudicial to the interests of the company.

c. The Parties were regular in repayment of principal amount and interest.

d. There is no overdue amount of loans given to companies, firms or other parties listed in the register maintained U/s.301 of the Companies Act, 1956.

e. The Company has taken unsecured loans from six (6) parties covered under the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.711.71 Lacs and the balance outstanding at the close of the year is Rs. 182.68 Lacs.

f. In our opinion the rate of interest, wherever applicable and other terms and conditions of unsecured loans taken by the company are prima facie not prejudicial to the interests of the company.

g. The Company is regular in repayment of principal amount and interest also.

iv. In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items are of a special nature for which alternative quotations are not available, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for the sale of goods & services. Further, on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have we been informed of any instance of major weaknesses in the aforesaid internal control system except for the records kept by the branches of the company.

v. a. According to the information and explanations given to us, the transactions that need to be entered into the Register maintained under Section 301 of the Companies Act, 1956 have been so entered.

b. In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Act and exceeding the value of Rupees Five Lakhs in respect of any party during the year, have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. However, in respect of certain transactions including for purchases and sale of goods, prevailing market prices at the relevant time are not available as these transactions are of a special nature, the prices in respect of the transactions entered by the overseas branch of the Company could not be verified.

vi. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 58A & 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public.

vii. In our Opinion, the Company has an internal audit system commensurate with its size 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. In respect of Statutory Dues :

a. According to the records of the Company, 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 other statutory dues have been generally regularly deposited with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were except the following:

Sl. Name of the Amount Nature No. Statute Rs. of dues

1 Competition 36,37,86,806 Order Afresh Act 2002

2 Central Excise 6,97,712 Service Tax(GTA) Act,1944 Service lax(GTA)

6, 97712 Penalty Service Tax(GTA) Service Tax Credit

5,77,959 Availed on Outward Transport

3 Income Tax 12,73,754 Asst. Year 2003-04 Act,1961 See Note Order U/s 263 & Below 143(3)

See Note Asst. Year 2004-05 Below Order U/s 263 and 143(3) 6,13,148 Asst. Year 2007-08 Order U/s 143(3)

Sl. Name of the From Where Dispute No. Statute is Pending

1 Competition Competition Act 2002 Commission

2 Central Excise Commissioner Act,1944 (Appeals) Central Excise, Faridabad

Commissioner (Appeals) Central Excise, Faridabad

Deputy Commissioner Central Excise, Faridabad

3 Income Tax Act,1961 Dy. Comm. of Income Tax ,Cir(7) Kolkata

Dy. Comm, of Income Tax ,Cir(7) Kolkata

Dy. Comm, of Income Tax ,Cir(7) Kolkata

Note :

The liability for the Asst, year 2003-04 & 2004-05 in respect of the demand raised by the Income tax department, has been provided , though the Appeal before the Commissioner Appeals are yet to be Disposed off.

b. According to the information and explanations given to us and according to the books and records as produced and examined by us, there are no undisputed dues on account of sales tax, income tax, custom duty, service tax, wealth tax, excise duty and cess as at 31st March, 2014.

x. The Company has neither accumulated losses as at 31st March, 2014 nor has it incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

xi. Based on our audit procedures and on the information and explanations given by management, we are of the opinion that the company has not defaulted in repayment of its dues to any financial institution, bank during the year.

xii. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities

xiii. The provisions of any special statue as specified under clause (xiii) of paragraph 4 of the Order are not applicable to the Company.

xiv. In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in other Investments.

xv. During the year under report the Company has not given any guarantee for loan taken by another body corporate from a bank. In our opinion the terms and conditions of such arrangement are prima facie not prejudicial to the interests of the company.

xvi. In our opinion and according to the information and explanations given to us, the term loans taken by the company have been applied for the purpose on which they have raised.

xvii. Based on the information and explanations given to us and on an overall examination of the balance sheet of the Company, in our opinion, there are no funds raised on a short term basis which have been used for long term investment.

xviii. According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956.

xix. In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the period covered by our report. Accordingly, the provisions of clause 4(xix) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

xx. During the period covered by our audit report, the Company has not raised any money by public issue.

xxi. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.

For SALARPURIA & PARTNERS FIRM REGISTRATION NO.-302113E CHARTERED ACCOUNTANTS



Place: 1008, Chiranjiv Tower, 43, Nehru Place, (KAMAL KUMAR GUPTA) New Delhi-110 019 PARTNER Date: 30.05.2014 M. No. 89190


Mar 31, 2013

We have audited the accompanying financial statements of MAURIA UDYOG LIMITED ("the company") which comprise the Balance Sheet as at 31 March 2013, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended 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 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 financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

(ii) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

(iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

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

2. As section 22(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 the purpose audit

b. in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c. the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

d. in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956; and

e. on the basis of written representations received from the directors as on 31 March 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

ANNEXURE TO THE AUDITOR'S REPORT

(Referred to point 1 of paragraph "Report on Other Legal and Regulatory Requirements" of our Report of even date

i. a. The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

b. Except item-wise records of Plant & Machinery which was purchased in the Court Auction for a consolidated price for which it is not possible to maintain the record.

c. During the year, in our opinion, the Company has not disposed off a substantial part of its fixed assets.

ii. a. The inventories of the company have been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

b. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management were found reasonable and adequate in relation to the size of the Company and the nature of its business.

c. On the basis of our examination of record of inventory, in our opinion, the Company has maintained proper records of inventory and the discrepancies noticed on physical verification between the physical stocks and the book records were not material in relation to the operations of the Company.

iii. a. As per the records maintained by the company and duly certified by a Company Secretary,the Company has given loan to Five (5) parties covered under the register maintained under section 301 of the Companies Act, 1956.The maximum amount involved during the year was Rs. 2157.17 Lacs and the balance outstanding at the close of the year is Rs 6.27Lacs.The transactions referred herein above does not include amount of Letters of credits discounted under non fund base exposures.

b. In our opinion the rate of interest, wherever applicable and other terms and conditions of such loans given by the company are prima facie not prejudicial to the interests of the company.

c. The Parties were regular in repayment of principal amount and interest.

d. There is no overdue amount of loans given to companies, firms or other parties listed in the register maintained U/s.301 of the Companies Act, 1956.

e. The Company has taken unsecured loans from eight (8) parties covered under the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.897.09 Lacs and the balance outstanding at the close of the year is Rs. 338.09 Lacs.

f In our opinion the rate of interest, wherever applicable and other terms and conditions of unsecured loans taken by the company are prima facie not prejudicial to the interests of the company.

g The Company is regular in repayment of principal amount and interest also.

iv In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items are of a special nature for which alternative quotations are not available, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for the sale of goods & services further, on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have we been informed of any instance of major weaknesses in the aforesaid internal control system except for the records kept by the branches of the company

v. a According to the information and explanations given to us, the transactions that need to be entered into the Register maintained under Section 301 of the Companies Act, 1956 have been so entered.

b. in our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Act and exceeding the value of Rupees Five Lakhs in respect of any party during the year, have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. However, in respect of certain transactions including for purchases and sale of goods, prevailing market prices at the relevant time are not available as these transactions are of a special nature, the prices in respect of the transactions entered by the overseas branch of the Company could not be verified.

vi. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 58A & 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public.

vii. In our Opinion, the Company has an internal audit system commensurate with its size 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. In respect of Statutory Dues :

a. According to the records of the Company, 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 other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were except the following:

SI. Name of the Statute Amount Nature of dues No. Rs.

1 Competition Act,2002 36,37,86,806 Penalty

2 Central Excise 6,97,712 Service Tax(GTA) Act, 1944 6 97 712 Penalty Service Tax(GTA)

Service Tax Credit 5,77,959 Availed on Outward Transport

3 Income lax 12,73,754 Asst, Year 2003-04 Act 1961 Order U/s 263 and See Note 143(3) Below

See Note Asst, year 2004-05 Below Order U/s 263 and 143(3)

6.13,148 Asst. year 2007-08 Order U/s 143(3)



SI. Name of the Statute From Where Dispute is Pending No.

1 Competition Act,2002 Competition Appellate Tribunal

2 Central Excise Commissioner (Appeals) Act, 1944 Central Excise, Faridabad Commissioner (Appeals) Central Excise, Faridabad

pending for Adjudication before Deputy Commissioner Central Excise, Faridabad

3 Income lax Rectification pending before Act 1961 Dy. Comm, of Income Tax ,Cir(7) Kolkata

Rectification pending before Dy. Comm, of Income Tax ,Cir(7) Kolkata

Rectification pending before Dy. Comm, of Income Tax ,Cir(7) Kolkata

Note :

The liability the Asst, year 7003 04 & 2004 05 in respect of the demand raised by the been though the Appeal before the Commissioner

b. According to the information and explanations given to us and according to the books and records as produced and examined by us, there are no undisputed dues on account of sales tax, income tax, custom duty, service tax, wealth tax, excise duty and cess as at 31st March, 2013.

x. The Company has neither accumulated losses as at 31st March, 2013 nor has it incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

xi. Based on our audit procedures and on the information and explanations given by management, we are of the opinion that the company has not defaulted in repayment of its dues to any financial institution, bank during the year.

xii. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities

xiii. The provisions of any special statue as specified under clause (xiii) of paragraph 4 of the Order are not applicable to the Company.

XIV In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in other Investments.

xv. During the year under report the Company has not given any guarantee for loan taken by another body corporate from a bank. In our opinion the terms and conditions of such arrangement are prima facie not prejudicial to the interests of the company.

xvi. In our opinion and according to the information and explanations given to us, the term loans taken by the company have been applied for the purpose on which they have raised.

xvii. Based on the information and explanations given to us and on an overall examination of the balance sheet of the Company, in our opinion, there are no funds raised on a short term basis which have been used for long term investment.

xviii. According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956.

xix In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the period covered by our report. Accordingly, the provisions of clause 4(xix) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

xx. During the period covered by our audit report, the Company has not raised any money by public issue.

xxi To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.

For SALARPURIA & PARTNERS FIRM REGISTRATION No.-302113E CHARTERED ACCOUNTANTS

(KAMAL KUMAR GUPTA) PARTNER M. No.89190

Place:

1008, Chiranjiv Tower, 43, Nehru Place, New Delhi-110 019 Date 30.05.2013


Mar 31, 2012

1. We have audited the attached Balance Sheet of MAURIA UDYOG LIMITED as at 31st March, 2012 and the related Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit,

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors' Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 (the 'Act ) and on the basis of such checks of the Books and records of the company as we considered appropriate and according to the information and explanation given to us, we give in the Annexure a statement on the matters specified in paragraph 4 & 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

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

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

(iv) In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

(v) On the basis of written representations received from the directors, as on 31st March, 2012, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

(vi) In our opinion and to the best of our information and according to the explanation given to us, the said financial statements read together with Notes thereon attached to the Balance Sheet give in the prescribed manner the information required by the Act, 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, 2012,

(b) in the case of Profit and Loss Account, of the Profit for the year ended on that date, and

(c) in the case of Cash Flow Statement, of the Cash Flows for the year ended bn that date.

i. a. The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

b. Except item-wise records of Plant & Machinery which was purchased in the Court Auction for a consolidated price for which it is not possible to maintain the record.

c. During the year, in our opinion, the Company has not disposed off a substantial part of its fixed assets

ii. a. The inventories of the company have been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

b. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management were found reasonable and adequate in relation to the size of the Company and the nature of its business.

c. On the basts of our examination of record of inventory, in our opinion, the Company has maintained proper records of inventory and the discrepancies noticed on physical verification between the physical stocks and the book records were not material in relation to the operations of the Company.

iii. a. The Company has given loan to seven (7) parties covered under the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.5720.22 Lacs and the balance outstanding at the dose of the year is Rs. 302.35

b. In our opinion the rate of interest, wherever applicable and other terms and conditions of such loans given by the company are prima facie not prejudicial to the interests of the company.

c. The Parties were regular in repayment of principal amount and interest.

d. There is no overdue amount of loans given to companies, firms or ether parties listed in the register maintained U/s.301 of the Companies Act, 1956.

e. The Company has taken unsecured loans from ten (10) parties covered under the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.1027.85 Lacs and the balance outstanding at the close of the year is Rs. 507 82 Lacs.

f. In our opinion the rate of interest, wherever applicable and other terms and conditions of unsecured loans taken by the company are prima facie not prejudicial to the interests of the company.

g. The Company is regular in repayment of principal amount and interest also.

iv. In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items are of a special nature for which alternative quotations are not available, there are adequate interna! control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for the sale of goods & services. Further, on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have we been informed of any instance of major weaknesses in the aforesaid internal control system.

v. a. According to the information and explanations given to us, the transactions that need to be entered into the Register maintained under Section 301 of the Companies Act, 1956 have been so entered.

b. In our opinion and according the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Act and exceeding the value of Rupees Five Lakhs in respect of any party during the year, .have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. However, in respect of certain transactions including for purchases and sale of good§, prevailing market prices at the relevant time are not available as these transactions are of a special nature, the prices in respect of the transactions entered by the overseas branch of the Company could not be verified.

vi. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the Companies Act, 1956 and Rules framed thereunder and the directives issued by the Reserve Bank of India.

vii. In our Opinion, the Company has an internal audit system commensurate with its size 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. In respect of Statutory Dues :

a. According to the records of the Company, 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 other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were except the following:

SI. Name of the Statute Amount Nature of dues No. Rs.

1 Central Excise Act,1944 361,009 Penalty Service Tax GTA for (and Cenvat Credit the Year 2006-07 Rule) 697,712 Service Tax(GTA)

697 712 Penalty Service Tax(GTA)

577,959 Service Tax Credit Availed on Outward Transport

2 Income Tax Act,1961 Asst. Year 2003-04 1,273,754 order U/s263 and 143(3) See Note Asst Year 2004-05 Below order u/s 263 and 143(3)

14,140 Asst. Year 2007-08 Order U/s 143(3)

SI. Name of the Statute From Where Dispute is Pending No.

1 Central Excise Central Excise and Service Tax Act,1944 Appellate Tribunal New Delhi (and Cenvat Credit Rule) Commissioner (Appeals) Central Excise, Faridabad

pending for Adjudication before Deputy Commissioner Central Excise, Faridabad

2 Income Tax Act,1961 Rectification pending before Dy. Comm. of Income TaxCir(7) Kolkata

Note : The liability for the Asst, year 2003-04 and 2004-05 in respect of the demand raised by the Income tax s, department, has been provided though the Appeal before the Commissioner Appeals are yet to be Disposed off.

According to the information and explanations given to us and according to the books and records as produced and examined by us, there are no undisputed dues on account of sales tax, income tax, custom duty, service tax, wealth tax, excise duty and cess as at 31st March, 2012.

x. The Company has neither accumulated losses as at 31s1 March, 2012 nor has it incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year,

xi. Based on our audit procedures and on the information and explanations given by management, we are of the opinion that the company has not defaulted in repayment of its dues to any financial institution, bank during the year.

xii. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii. The provisions of any special statue as specified under clause (xiii) of paragraph 4 of the Order are not applicable to the Company.

xiv. In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in other Investments.

xv. During the year under report the Company has not given any guarantee for loan taken by another body corporate from a bank. In our opinion the terms and conditions of such arrangement are prima facie not prejudicial to the interests of the company.

xvi. In our opinion and according to the information and explanations given to us, the term loans taken by the company have been applied for the purpose on which they have raised.

xvii. Based on the information and explanations given to us and on an overall examination of the balance sheet of the Company, in our opinion, there are no funds raised on a short term basis which have been used for long term investment.

xviii. According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956,

xix. In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the period covered by our report. Accordingly, the provisions of clause 4(xix) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

xx. During the period covered by our audit report, the Company has not raised any money by public issue.

xxi. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.

For SALARPURIA & PARTNERS FIRM REG. NO. 302113E CHARTERED ACCOUNTANTS

(KAMAL KUMAR GUPTA) PARTNER M. No.89190 1008, Chiranjiv Tower 43, Nehru Place New Delhi-110019

Date : 30th May, 2012

Find IFSC