Mar 31, 2018
Report on the Standalone IND AS Financial Statements
We have audited the accompanying Standalone IND AS financial statements of MAURIA UDYOG LIMITED, which comprise the Balance Sheet as at March 31,2018 theStatement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information(hereinafter referred to as the âStandalone IND AS financial statementsâ).
Managementâs Responsibility for the Standalone IND AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these 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 judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone IND AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Standalone IND AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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 IND AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the IND AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone IND AS financial statements, whether due to fraud or error. In making those risk assessments, we consider internal financial control relevant to the Companyâs preparation of the standalone IND AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone IND AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone IND AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone IND AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, 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 (Auditorâs Report) Order, 2017 (âthe Orderâ), 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 it 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 standalone IND AS 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, 2018 taken on record by the board of directors none of the director is disqualified as on 31 March 2018 for being appointment as a director in terms of the 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 inâAnnexure Bâ.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its IND AS financial statements, if any.
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 the Investor Education and Protection Fund.
ANNEXURE - A TO THE INDEPENDENT AUDITORâS REPORT ON MAURIA UDYOG LIMITED
(Referred to Paragraph 1 of Report on Other Legal and Regulatory Requirements 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 fixed assets.
b) As explained to us, fixed assets are physically verified by the management at reasonable intervals, in a phased verification programme, which, in our opinion, is reasonable, looking to the size 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 been conducted by the management at reasonable intervals by the management.
b) Procedures of physical verification of inventory followed by the management is reasonable andadequate 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 three parties listed in the register maintained under section 189 of the Companies Act, 2013.No 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 the provisions of section 185 and 186 of Companyâs Act, 2013 in relation to loans, investments, guarantee and securities given, if any.
v. According to the information and explanations given to us, theCompany has not accepted any deposits from the public.
vi. We have broadly reviewed the books of accounts maintained by the company in respect of the products where, pursuant to Rules made by the Central Govt. of India, the maintenance of cost records has been prescribed under sub-section (1) of section 148 of the Company Act, 2013 and are of the opinion that prima-facie, the prescribed accounts and records have been made and maintained in respect of steels, tubes & pipes and other steel products. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate and complete.
vii. a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, income-tax, sales tax, value added tax, duty of customs, service tax, Goods & Service Tax (GST) cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of employeesâ state insurance and excise duty.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of customs, service tax, Goods & Service Tax (GST), cess and other material statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable.
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
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. Thus paragraph 3(viii) of the order is not applicable.
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 utilised the same for the purpose for which 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 explanations given to us managerial remuneration has been paid by the Company is in compliance with requisite approvals 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 required by the applicable Accounting Standards.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. To the best of our knowledge and belief and as per the information and explanations given to us, the Company hasnot entered into any non-cash transaction with directors or persons connected with him.
xvi. The activities carried by the company other than the main operative business are not to the extent which require registration under section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORâS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013(âthe Actâ) (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 31 March 2018 in conjunction with our audit of the IND AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) 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 auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of 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 unauthorised acquisition, use, or disposition of the Companyâs 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 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For U.K Goenka & Co.
Chartered Accountants
Firm Registration No.:010549N
Sd./-
Place: New Delhi UMESH GOENKA
Date: 28.05.2018 Partner
Membership No.: 083410
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 Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in 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 Aâ TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 1 âReport on Other Legal & Regulatory Requirementâ 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 (âthe Actâ)
(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.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 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 auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
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
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