Mar 31, 2018
Report on the Standalone IND AS Financial Statements
We have audited the accompanying standalone IND AS financial statements of Metalyst Forgings Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2018,the statement of Profit and Loss[including other comprehensive income], the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information(hereinafter referred to as âStandalone IND AS Financial Statementsâ)
Managementâs Responsibility for the standalone IND AS Financial Statements
The management and companyâs Board of Directors is responsible for the matters specified in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone IND AS financial statements that give a true and fair view of the financial position, financial performance [including Other Comprehensive Income], Cash Flows and Changes in Equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards [IND AS] prescribed under section 133 of the Act, read with companies (Indian Accounting Standards) rules 2015.
This responsibility also includes the 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 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 adequate 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 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.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order issued under section 143(11) of the Act.
We conducted our audit of the standalone IND AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone IND AS financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone IND AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone IND AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the companyâs preparation of the standalone IND AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the companyâs management and 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.
Our Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone IND AS financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the IND AS, of the state of affairs of the company as at March 31, 2018 and its Profit and Loss account for the year ended March 31, 2018 ,Total Comprehensive Income, its Cash Flows and the Changes in Equity for the year ended on that date.
Emphasis of Matter
Notwithstanding anything contained in the standalone IND AS financial statements of Metalyst Forgings Limited as on 31.03.2018, affects the true & fair opinion over the same, but following is a list of matters, considered significant for the users of the standalone IND AS financial statements, adequately disclosed by the management:
A Corporate Insolvency Resolution Process (âCIRPâ) has been initiated against Metalyst Forgings Limited (âthe Companyâ) vide an order of Mumbai bench of the National Company Law Tribunal (NCLT) dated December 15, 2017 under the provisions of the Insolvency and Bankruptcy code 2016 (Code). Pursuant to the order, the power of the Board of directors stands suspended and are exercisable by Mr Dinkar T. Venkatasubramanian, who was appointed as Interim Resolution Professional (IRP) by the NCLT vide order dated December 15, 2017 and was consequently confirmed as Resolution Professional (RP) by the Committee of Creditors (CoC) in its meeting held on January 12, 2018. The power of the Board of Directors have been suspended and assigned to Resolution Professional. As the powers of the Board of Directors had been suspended, the above results have not been adopted by Board of Directors. However, These Standalone Ind AS financial statements have been signed by Mr. Shekhar Gupta ( Whole Time Director) Mr. Sanjiv Bhasin ( Director) and taken on record by the RP.
1. The company has been continuously making losses, consequently its net worth is negative and the companyâs total liabilities exceeded its total assets. This indicates the existence of material uncertainty that may cast significant doubt on the companyâs ability to continue as a going concern. However, in view of the Corporate Insolvency Resolution Process in respect of the company, which is in progress, the accounts have been prepared on a going concern basis (Refer Note [2.1 ] to Financial Statements).
2. Considering the current operating level of the company , and the ongoing CIRP it is not possible to determine:
a. Impairment if any , in the economic value of fixed assets, capital work in progress and tools & die;
b. Diminution, if any, in the value of investment. At March 31, 2018. Castex Technologies Limited was undergoing CIRP vide an order of Chandigarg Bench of National Company Law Board (NCLT) from December 20, 2017 under the provisions of Insolvency and Bankrupcy Code 2016 (code), Metalyst has investment aggregating Rs. 343.48 Crores in equity shares of Castex Technologies Limited, which is under CIRP. Pending completion of CIRP plan, adjustment if any, in the carrying value of investments has not been considered in the preparation of the financial statements.
(Refer Note [2.8,2.13,2.14 ] to Financial Statements)
3. In respect of various claims submitted by the financial, operational & other creditors of the Company to the RP pursuant to Insolvency and Bankruptcy Code, 2016, that are currently under consideration / verification/ reconciliation. Pending finalization of Resolution Plan, we are unable to comment on the consequential impact, if any, on the accompanying statement [Refer Note [ 2.1] to financial Statements]
4. Trade receivables, loans & advances and other recoverable at March 31, 2018, which also includes balances from the group entities, are subject to confirmation/reconciliation and recoverability assessment thereof is under process. (Refer Note [2.11 ] to Financial Statements)
5. The financial statements for the year ended 31 March 2017 was carried out and reported by M/S Manoj Mohan & Associates. whose report has been furnished to us by the management and which has been relied upon by us for the purpose of our audit.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in exercise of powers conferred by sub section (11) of section 143 of the act, we give in annexure A, a statement on the matters specified in paragraph 3 & 4 of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the company so far as it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss [including Other Comprehensive Income],the Cash Flow Statement and the Statement of Changes in Equity dealt with by this report are inagreement with the relevant books of account;
(d) In our opinion, the aforesaid standalone IND AS financial statements comply with the Indian Accounting Standards specified under section 133 of the Act, read with the relevant rules there under;
(e) On the basis of the written representations received from the directors as on 31st March 2018 and taken on record by the board of directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of Section 164 (2) of the Act; and (to be changed)
(f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ. Our report expresses an unmodified opinion on the adequacy and the operating effectiveness of the companyâs internal financial controls over financial reporting; and
(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 as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The company has disclosed the impact of pending litigations on its financial position in its standalone IND AS financial statements [Refer Note no. 3.26.4].
ii. The company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the company.
Annexure - A to the Independent Auditorsâ Report
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the standalone IND AS financial statements for the year ended 31st March 2018.
I. In respect of fixed assets:
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, according to the practice of the company, have been physically verified by the management at reasonable intervals. , the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and nature of its assets. According to the information and explanation given to us , no material discrepancies were noticed on such physical verification.
c. According to the information and explanations given to us and on the basis of our examination of the records of the company, the title deeds of immovable properties are held in the name of the company. However, none is made available to us as they are pledged with the financial institutions.
II. In respect of inventories: We have been informed that the inventories are physically verified during the period by the Company at reasonable intervals. The frequency of physical verification, in our opinion, is reasonable having regard to the size of the company and nature of its business. The discrepancies noticed on verification between the physical inventories and the book records were not material in relation to the operation of the company and the same have been properly dealt with in the books of account.
III. The company, during the year, has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ).Accordingly, paragraph 3(iii) of the Order is not applicable to the company.
IV. In our opinion and according to the information and explanations given to us, the company has complied during the year with the provisions of section 185 and 186 of the Act, with respect to the loans, investments, guarantees and security.
V. Since the company has not accepted any deposit from public, the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under with regard to the deposits accepted from the public are not applicable.
VI. The Central Government has prescribed the maintenance of cost records under section (1) of section 148 of the Companies Act, and on the basis of records produced before us for our verification; we are of the opinion that, prima facie, the prescribed accounts and cost records have been maintained. However, we are neither required to carry out nor have carried out any detailed examination of such accounts & records.
VII. (a) According to the information and explanations given to us and on the basis of our examination
of the records of the company, the company has been generally regular in depositing undisputed statutory dues including provident fund, employees state insurance, income-tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess, Goods and Services Tax and other statutory dues with appropriate authorities during the year ended 31st March 2018. According to the information & explanations given to us, no undisputed amount payable in respect of aforesaid dues was in arrears as at 31st March, 2018 for a period of more than six months from the date when they become payable.
(b) According to the information and explanation given to us, and as per our verification of records of the company, the company has not paid/deposited following statutory dues on account of disputes:
S.No. |
Name of Statute |
Period to which it pertains |
Forum where dispute is pending |
Amount (Rs. in Lakh) |
1 |
Excise/Service Tax |
2002 to 2015 |
High Court, CESTAT, Commissioner (Appeal) |
133.49 |
2 |
Income Tax |
2006 to 2011 |
Income Tax Appellate Tribunals |
184.15 |
3 |
VAT |
2010-2013 |
Tribunal, Mumbai & Pune |
102.21 |
Total |
419.85 |
VIII. Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, a Corporate Insolvency Resolution Process (âCIRPâ) has been initiated against the Company vide an order of Mumbai bench of the National Company Law Tribunal (NCLT) dated December15, 2017 under the provisions of the Insolvency and Bankruptcy Code 2016 (Code). Pursuant to the order, the power of the Board of Directors stands suspended and are exercisable by Mr Dinkar T. Venkatasubramanian, who was appointed as interim resolution professional (IRP) by the NCLT vide order dated December 15, 2017 and was consequently confirmed as Resolution Professional (RP) by the Committee of Creditors (CoC) in its meeting held on January 12, 2018.
IX. According to the information and explanations given to us, and as per our verification of the records of the company, the company, during the year, has not raised moneys by way of initial public offer or further public offer(Including debt instruments). The term loans availed by the company have been applied for the purpose for which the loans were obtained.
X. According to the information and explanations given to us, no fraud by the company or on the company by its officers or employees has been noticed or reported during the Year ended 31st March 2018.
XI. According to the information and explanations given to us and based on our examination of the records of the company, the company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
XII. In our opinion, and according to the information and explanations given to us, the company is not a Nidhi company. Therefore, the provisions of Clause 3 (xii) of the Order are not applicable to the company.
XIII. According to the information and explanations given to us and as per our verification of the records of the company all transactions with the related parties are in compliance with the Sections 177 and 188 of the Companies Act, 2013 where applicable and the details have been disclosed in the IND AS financial statements as required by the applicable accounting standards.
XIV. According to the information and explanations given to us and as per our verification of the records of the company, the company has not made any preferential allotment of shares.
XV. According to the information and explanations given to us, and as per our verification of the records of the company, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of Clause 3 (xv) of the order are not applicable to the company.
XVI. In our opinion, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3 (xvi) of the order are not applicable to the company.
Annexure - B to the Independent Auditorsâ Report
Report on the Internal Financial Controls over financial reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ) of Metalyst Forgings Limited
We have audited the internal financial controls over financial reporting of Metalyst Forgings Limited (âthe Companyâ) as of 31st March 2018 in conjunction with our audit of the standalone IND AS financial statements of the company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The management and companyâs board of directors are 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 (âthe Guidance Noteâ). 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 standalone IND AS 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the 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
A Corporate Insolvency Resolution Process (âCIRPâ) has been initiated against Metalyst Forgings Limited (âthe Companyâ) vide an order of Mumbai bench of the National Company Law Tribunal (NCLT) dated December 15, 2017 under the provisions of the Insolvency and Bankruptcy code 2016 (Code). Pursuant to the order, the power of the Board of directors stands suspended and are exercisable by Mr Dinkar T. Venkatasubramanian, who was appointed as Interim Resolution Professional (IRP) by the NCLT vide order dated December 15, 2017 and was consequently confirmed as Resolution Professional (RP) by the Committee of Creditors (CoC) in its meeting held on January 12, 2018. The power of the Board of Directors have been suspended and assigned to Resolution Professional.
In our opinion to the best of our information and according to the explanations given to us, 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 31stMarch 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 Raj Gupta & Co
Chartered Accountants
Firmâs registration number: 000203N
Gunjandeep Singh
[Partner]
Membership Number: 529555
Place : New Delhi
Dated : JUNE 09, 2018
Mar 31, 2016
Independent Auditor''s Report
TO THE MEMBERS OF METALYST FORGINGS LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of Metalyst Forgings Limited ("the company"), which comprise the balance sheet as at 31stMarch 2016, the statement of profit and loss for the six months ended 31st March,2016, the cash flow statement for the six months ended on that date and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The company''s board of directors is responsible for the matters specified in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the accounting principles generally accepted in India, including the accounting standards 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 provisions 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 adequate 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the company''s directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the company as at March 31, 2016 and its loss, and its cash flows for the six months ended on that date.
Report on other Legal and Regulatory Requirements
1. 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 act, we give in the annexure A, a statement on the matters specified in paragraph 3 & 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books;
c) the balance sheet, the statement of profit and loss, and the cash flow statement dealt with by this report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with the accounting standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors as on 31st March 2016 and taken on record by the board of directors, none of the directors is disqualified as on 31stMarch 2016, from being appointed as a director in terms of Section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to separate report in Annexure B; and
g) With respect to the other matters included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit & Auditors) Rules, 2014, in our opinion and to our best of our information and according to the explanations given to us :
i) The company has disclosed the impact of pending litigations on its financial position in its standalone financial statements(Refer to Note 2.26).
ii) The company did not have any long-term contract including derivatives contract for which there were any material foreseeable losses.
iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the company.
Annexure - A to the Independent Auditors'' Report
Re :Metalyst Forgings Limited
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the standalone financial statements for the six months ended 31st March 2016.
(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, according to the practice of the Company, have been physically verified by the management at reasonable intervals. In our opinion, the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such physical verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) We have been informed that the inventories are physically verified during the period by the management at reasonable intervals. The frequency of physical verification, in our opinion, is reasonable having regard to the size of the company and nature of its business. The discrepancies noticed on verification between the physical inventories and the book records were not material in relation to the operation of the Company and the same have been properly dealt with in the books of account.
(iii) The Company during the period has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (''the Act'').Accordingly, paragraph 3(iii) of the Order is not applicable to the Company..
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act 2013 in respect of loans, investments, guarantees and security.
(v) Since the company has not accepted any deposit from public, the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act,2013 and the rules framed there under with regard to the deposits accepted from the public are not applicable.
(vi) The Central Government has prescribed the maintenance of cost records under section (1) of section 148 of the Companies Act, and on the basis of records produced before us for our verification; we are of the opinion that, prima facie, the prescribed accounts and cost records have been maintained. However, we are neither required to carry out nor have carried out any detailed examination of such accounts & records.
(vii) (a) According to the information and explanations given to us and as per the records of the company,
the company has been regular in depositing undisputed statutory dues including provident fund, income tax, wealth tax, service tax, duty of custom, duty of excise, value added tax, cess and other statutory dues with appropriate authorities during the six months ended 31st March 2016.
(b) According to information and explanations given to us and the records of the company examined by us, dues of income tax, sales tax, service tax, custom duty, excise duty, value added tax and cess which have not been deposited on account of matters pending before appropriate authorities are as follows:
S. No |
Name of the Statute |
Nature of Dues |
Year to which the amount relate |
Forum where dispute is pending |
Amount (in Lacs) |
1. |
Customs & Central Excise Act |
Valuation of Goods |
2002 |
High Court Bench at Aurangabad |
4.32 |
2. |
Customs & Central Excise Act |
Valuation of Goods |
2007 |
CESTAT, Mumbai |
10.72 |
3. |
Customs & Central Excise Act |
CENVAT related matter |
2008 |
Addl. Commissioner, Aurangabad |
12.05 |
4. |
Customs & Central Excise Act |
CENVAT related matter |
2009 |
Asstt. Commissioner, Ahmednagar |
0.64 |
5. |
Customs & Central Excise Act |
Valuation of Goods |
2002 |
Supreme Court, Delhi |
6.50 |
6. |
Customs & Central Excise Act |
CENVAT Credit of Service Tax & Interest |
2007 |
Commissioner, (Appeals), Pune |
74.59 |
7. |
Maharashtra Value Added Tax Act |
Receipt of C & D forms related matter |
2010 |
Tribunal |
38.60 |
8. |
Income Tax Act, 1961 |
Income Tax |
Block Assessement from A.Y. 2005-06 to 2012-13 |
Income Tax Appellant Tribunal, Delhi |
183.77 |
|
|
|
Total |
|
331.19 |
(viii) According to the information and explanations given to us and as per our verification of the records of the company, there had been delays in payment of installments and Interest on term loan to the banks during the six months ended. The same have been given in details in Note No. 2.31.
(ix According to the information and explanations given to us and as per our verification of the records of the Company, the Company has not raised moneys by way of initial public offer or further public offer (including Debt instruments). The term loans availed by the company have been applied for the purpose for which the loans were obtained.
(x) According to the information and explanations given to us, no fraud by the company or on the company by its officers or employees has been noticed or reported during the six months ended 31st March 2016.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion, and according to the information and explanations given to us, the company is not a Nidhi company. Therefore, the provisions of Clause 3 (xii) of the Order are not applicable to the Company.
(xiii) According to the information and explanations given to us and as per our verification of the records of the company all transactions with the related parties are in compliance with the Sections 177 and 188 of the Companies Act,2013 where applicable and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and as per our verification of the records of the company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the period under review. Accordingly, the provisions of Clause 3 (xiv) of the order are not applicable to the Company.
(xv) According to the information and explanations given to us and as per our verification of the records of the company, the company has not entered into any non-cash transactions with directors or persons connected with it. Accordingly, the provisions of Clause 3 (xv) of the order are not applicable to the Company.
(xvi) In our opinion, the company is not required to be registered under section 45-IA of the reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3 (xvi) of the order are not applicable to the Company.
For & on behalf of
Manoj Mohan & Associates
Chartered Accountants
ICAI Firm Regd. No. 009195C
Sd/-
(Manoj Kumar Agarwal)
Place : New Delhi (Partner)
Dated: 30th May, 2016 Membership No.: 76980
Sep 30, 2015
We have audited the accompanying Standalone financial statements of
METALYST FORGINGS LIMITED (Formerly Known as Ahmednagar Forgings
Limited) ("the company"), which comprise the balance sheet as at 30th
September 2015, 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 Standalone Financial Statements
The company's board of directors is responsible for the matters
specified in section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these Standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the company in accordance with the
accounting principles generally accepted in India, including the
accounting standards 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 provisions 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 adequate
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 Standalone
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these Standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the rules made thereunder.
We conducted our audit in accordance with the standards on auditing
specified under section 143(10) of the Act. Those standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the Standalone financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the Standalone financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the Standalone
financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal financial control
relevant to the company's preparation of the Standalone financial
statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on whether the company has in place an
adequate internal controls system over financial reporting and the
operating effectiveness of such controls. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the company's
directors, as well as evaluating the overall presentation of the
Standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid Standalone financial
statements, give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
a) in the case of the balance sheet, of the state of affairs of the
company as at September 30, 2015;
b) in the case of the statement of profit and loss, of the Loss for the
year ended on that date; and
c) in the case of the cash flow statement, of the cash flow for the
year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of sub
section (11) of section 143 of the Act, we give in annexure - 1, a
statement on the matters specified in paragraph 3 & 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books.
c) the balance sheet, the statement of profit and loss, and the cash
flow statement dealt with by this report are in agreement with the
books of account.
d) In our opinion, the aforesaid Standalone financial statements comply
with the accounting standards specified under section 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 30th September 2015, taken on record by the board of directors,
none of the directors is disqualified as on 30th September 2015, from
being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters included in the Auditor's Report
in accordance with Rule 11 of the Companies (Audit & Auditors) Rules,
2014, in our opinion and to our best of our information and according
to the explanations given to us :
i) The company has disclosed the impact of pending litigations on its
financial position in its Standalone financial statements (Refer to no
-2.27) .
ii) The company did not have any long-term contract including
derivatives contract for which there were any material foreseeable
losses.
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the company.
Annexure 1 referred to under paragraph 1 of the Report on Other Legal
and Regulatory Requirements of the Auditors' Report
Re: METALYST FORGINGS LIMITED (Formerly Known as Ahmednagar Forgings
Limited) ('the Company')
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of the fixed
assets.
(b) All the fixed assets have been physically verified by the
management during the year. There is a regular program of verification,
which, in our opinion, is reasonable having regard to the size of the
company and nature of its assets. As per the information/reports
submitted by the company, no material discrepancies have been noticed
on such verification.
(ii) (a) We have been informed that the inventory of stores and spares
are physically verified during the year by the management on a
continuous basis as per program of perpetual inventory. The inventories
of other items have been physically verified at the year-end. The
frequency of physical verification, in our opinion, is reasonable
having regard to the size of the company and nature of its business.
(b) In our opinion and according to the explanation given to us, the
procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification by the management between the
physical stock and book records, though not material, have been
properly dealt with in the books of account and are not material.
(iii) (a) The Company during the year under report, has not granted
unsecured loans and advances to its Subsidiaries, associates, joint
ventures, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013 ('the Act').
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and nature of its business, with regard to
the purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control system of the company.
(v) Since the company has not accepted any deposit from public, the
provisions of section 73 to 76 and the rules framed there under with
regard to filing of statutory returns as required under these
provisions and the relevant rules are not applicable to the company.
(vi) We have broadly reviewed the cost records maintained by the
company and report that prima-facie, the directions specified by the
Central Government under sub-section (1) of section 148 of the
Companies Act, with regard to maintenance of cost records have been
complied with.
(vii) (a) According to the information and explanations given to us and
as per the records of the company, the company has been regular in
depositing undisputed statutory dues including provident fund, income
tax, wealth tax, service tax, duty of custom, duty of excise, value
added tax, cess and other statutory dues with appropriate authorities
during the year.
(b) According to information and explanations given to us, the
following dues of income tax, sales tax, wealth tax, service tax custom
duty, excise duty, value added tax and cess Which have not been
deposited on account of matters pending before appropriate authorities
are as under:
(c) As per the information and explanations given to us and based on
the records of the company produced to us, the company does not have
any amount that is required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the Act
and the rules made there under.
(viii) The company does not have accumulated losses as at the end of
this financial year and has not incurred cash losses during the current
financial year under report and also during the immediately preceding
financial year.
(ix) According to the information and explanations given to us and as
per our verification of the records of the company, there had been
delays in payment of instalments and Interest of term loan to the
bank/financial institution during the year. The amount overdue as on
the date of balance sheet was Rs.15,724.94 Lacs Principal and
Rs.4,172.03 Lacs interest with Average delay of less than 90 Days.
(x) According to the information and explanations given to us,the
company has given corporate guarantee of Rs. 4,400.00 Lacs for the
loans availed by Subsidiaries, associates, joint ventures and other
group companies from banks and financial institutions and terms and
conditions are not prejudicial to the interests of the company.
(xi) According to the information and explanations given to us, the
term loans availed by the company have been applied for the purpose for
which the loans were obtained.
(xii) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
For & on behalf of
Manoj Mohan & Associates
Chartered Accountants
ICAI Firm Regd. No. 009195C
Sd/-
(Manoj Kumar Agarwal)
Place: New Delhi (Partner)
Dated: 28th November, 2015 Membership No.: 76980
Sep 30, 2014
We have audited the accompanying financial statements of Ahmednagar
Forgings Limited ("the company") as at 30th September 2014, which
comprise the Balance Sheet as at September 30, 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 notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September,
2013 of the Ministry of Corporate Affairs in respect of section 133 of
the Companies Act, 2013 and in accordance with the accounting
principles generally accepted in India. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
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 aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the State of Affairs of the
Company as at September 30, 2014;
b) in the case of Statement of Profit and Loss, of the Profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") as amended by the Companies (Auditor''s Report)
(Amendment) Order, 2004 issued by the Central Government of India in
terms of sub- section (4A) of section 227 of the Act (hereinafter
referred to as the "Order") and on the basis of such checks of
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 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 accounts 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 the Cash Flow
Statement dealt with by this Report are in agreement with the books of
accounts;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
the Cash Flow Statement comply with the Accounting Standards notified
under the Companies Act, 1956, read with the General Circular 15/2013
dated 13th September, 2013 of the Ministry of Corporate Affairs in
respect of section 133 of the Companies Act, 2013.
e) On the basis of written representations received from the directors
as on September 30, 2014, and taken on record by the Board of
Directors, none of the directors is disqualified as on September 30,
2014, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
(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, according to the practice of the
Company, have been physically verified by the management at reasonable
intervals. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such physical
verification.
(c) During the year, the company has not disposed off substantial part
of the fixed assets, and the going concern status of the company is not
affected.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of physical
verification is reasonable.
(b) The procedure for physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the company and nature of its business.
(c) In our opinion, the company has maintained proper records of
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material & the same have
been properly dealt with in the books of accounts.
(iii) The Company, during the year under report, has given loans &
advances to its subsidiary companies, associates and joint ventures,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956.
(a) The balance at the end of the year and the maximum amount involved
during the year was Rs. 20 Lacs and Rs. 20 Lacs respectively.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest, wherever applicable and other terms
and conditions are not prima facie prejudicial to the interest of the
company.
(c) In respect of the loan granted to its subsidiaries, the loan is
interest free and being repayable on demand are not overdue.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, consumable stores, fixed assets and with
regard to sale of goods and services. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal controls Systems of the Company.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangement
that need to be entered in the register required to be maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies act, 1956 in respect of any party during the year have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
(vi) The company has not accepted public deposits within the meaning
and provisions of section 58A and 58AA of the companies Act, 1956.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central government has prescribed maintenance of cost
accounting records under section 209 (1) (d) of the Companies Act,
1956. We have broadly reviewed the accounts and records of the company
in this connection and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax/VAT, custom duty, excise duty and cess were in arrears, as at 30th
September, 2014 for a period of more than six months from the date they
became payable.
(c) The disputed statutory dues aggregating to Rs.148.63 lacs not
deposited on account of matters being pending before appropriate
authorities are given here under:
S. Name of the Statute Nature of Year to which
No Dues the amount relate
1. Customs & Valuation of 2002
Central Excise Act Goods
2. Customs & Valuation of 2007
Central Excise Act Goods
3. Customs & CENVAT 2008
Central Excise Act related matter
4. Customs & CENVAT 2009
Central Excise Act related matter
5. Customs & Valuation of 2002
Central Excise Act Goods
6. Customs & CENVAT 2007
Central Excise Act Credit of
Service Tax
& Interest
7. Income Tax Act, Income Tax Block Assessement
1961 from A.Y. 2005-06
to 2011-12
Name of the Statute Forum where Amount
dispute is pending (in Lacs)
Customs & Central Excise Act High Court Bench at 4.32
Aurangabad
Customs & Central Excise Act CESTAT, 10.72
Mumbai
Customs & Addl. Commissioner, 12.05
Central Excise Act related matter
Customs & Asstt. Commissioner, 0.64
Central Excise Act Ahmednagar
Customs & High Court, 6.50
Central Excise Act Mumbai
Customs & Commissioner, 74.59
Central Excise Act (Appeals), Pune
Income Tax Act, Income Tax 39.81
1961 to 2011-12 Appellant
Tribunal, Delhi
Total 148.63
(x) The company does not have accumulated losses for the year ended
30th September, 2014. Further, it has not incurred any cash loss in
current financial year or in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks, financial institutions or debenture holders.
(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) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause of
4(xiii) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors'' Report)
Order, 2003 (as amended) are not applicable to the company. The
company, however, is maintaining proper records of transactions and
contracts in respect of long term investment made by it and timely
entries have been made therein. Further, all the securities including
shares, debentures and other investments have been held by the company
in its own name.
(xv) The company has not given guarantees for loans taken by others
from Banks or Financial Institutions.
(xvi) According to the information and explanation given to us, in our
opinion, term loan availed by the company were, prima facie, applied by
the company during the year under report for the purpose for which the
term loans were obtained, other than temporary deployment pending
applications.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment and no long term funds have been used to finance short term
assets except permanent working capital.
(xviii) According to the information & explanation given to us, the
company, during the year under report, has not made any preferential
allotment, to parties and companies covered in the register maintained
under section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the year and
therefore the question of creating security / charge does not arise.
(xx) According to information and explanation given to us and the
records of the company examined by us, the Company has not raised any
money by public issue during the year.
(xxi) 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 & on behalf of
Manoj Mohan & Associates
Chartered Accountants
ICAI Firm Regd. No. 009195C
Sd/-
(Manoj Kumar Agarwal)
Place of Signature : New Delhi (Partner)
Dated : 24th November, 2014 Membership No.: 76980
Sep 30, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Ahmednagar
Forgings Limited ("the company") as at 30th September 2013, which
comprise the Balance Sheet as at September 30, 2013; the Statement of
Profit and Loss and the Cash Flow Statement for the 15 months period
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 aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at September 30, 2013;
b) in the case of Statement of Profit and Loss, of the profit for the
15 months period ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the 15
months period 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 accounts 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 the Cash Flow
Statement dealt with by this Report are in agreement with the books of
accounts;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
the Cash Flow Statement comply with the Accounting Standards referred
to in sub section (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on September 30, 2013, and taken on record by the Board of
Directors, none of the directors is disqualified as on September 30,
2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
f) Since the central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO INDEPENDENT AUDITOR''S REPORT REFERRED TO IN POINT 1 OF
PARAGRAPH 5 OF OUR REPORT OF EVEN DATE OF AHMEDNAGAR FORGINGS LIMITED
FOR THE 15 MONTHS PERIOD ENDED 30th SEPTEMBER 2013
(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, according to the practice of the
Company, have been physically verified by the management at reasonable
intervals. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such physical
verification.
(c) During the period, the company has not disposed off substantial
part of the fixed assets, and the going concern status of the company
is not affected.
(ii) (a) The inventories have been physically verified during the
period by the management. In our opinion, the frequency of physical
verification is reasonable.
(b) The procedure for physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the company and nature of its business.
(c) In our opinion, the company has maintained proper records of
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material & the same have
been properly dealt with in the books of accounts.
(iii) The Company, during the period under report, has neither given
nor taken loan from the companies, firms or other parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
Hence, clause no. iii (a), (b), (c) (d), (e), (f) & (g) are not
applicable to the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, consumable stores, fixed assets and with
regard to sale of goods and services. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal controls Systems of the Company.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangement
that need to be entered in the register required to be maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies act, 1956 in respect of any party during the period have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
(vi) The company has not accepted public deposits within the meaning
and provisions of section 58A and 58AA of the companies Act, 1956.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central government has prescribed maintenance of cost
accounting records under section 209 (1) (d) of the Companies Act,
1956. We have broadly reviewed the accounts and records of the company
in this connection and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax/VAT, custom duty, excise duty and cess were in arrears, as at 30th
September, 2013 for a period of more than six months from the date they
became payable.
(c) The disputed statutory dues aggregating to Rs. 367.28 lacs not
deposited on account of matters being pending before appropriate
authorities are given here under:
S. Name of the Statute Nature of Year to
which Forum where Amount
No Dues the
amount
relate dispute is
pending (in Lacs)
1. Customs & Valuation
of 2002 High Court
Bench at 4.32
Central Excise Act Goods Aurangabad
2. Customs & Valuation
of 2007 CESTAT, 10.72
Central Excise Act Goods Mumbai
3. Customs & CENVAT 2008 Addl.
Commissioner, 12.05
Central Excise Act related
matter Aurangabad
4. Customs & CENVAT 2009 Dy.
Commissioner, 0.64
Central Excise Act related
matter Ahmednagar
5. Customs & Valuation
of 2002 Supreme Court, 6.50
Central Excise Act Goods Delhi
6. Customs & CENVAT 2007 Commissioner, 74.59
Central Excise Act Credit of (Appeals), Pune
Service
Tax &
Interest
7. Income Tax Act, Income Tax Block
Assesse
ment Income Tax 258.46
1961 Goods from A.Y.
2005-06 Appellant
to
2011-12 Tribunal,
Delhi
Total 367.28
(x) The company does not have accumulated losses for the period 15
months end 30th September, 2013. Further, it has not incurred any cash
loss in current financial period or in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks, financial institutions or debenture holders.
(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) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause of
4(xiii) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors'' Report)
Order, 2003 (as amended) are not applicable to the company. The
company, however, is maintaining proper records of transactions and
contracts in respect of long term investment made by it and timely
entries have been made therein. Further, all the securities including
shares, debentures and other investments have been held by the company
in its own name.
(xv) The company has not given guarantees for loans taken by others
from Banks or Financial Institutions.
(xvi) According to the information and explanation given to us, in our
opinion, term loan availed by the company were, prima facie, applied by
the company during the period under report for the purpose for which
the term loans were obtained, other than temporary deployment pending
applications.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment and no long term funds have been used to finance short term
assets except permanent working capital.
(xviii) According to the information & explanation given to us, the
company, during the period under report, has not made any preferential
allotment, to parties and companies covered in the register maintained
under section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the period and
therefore the question of creating security/ charge does not arise.
(xx) According to information and explanation given to us and the
records of the company examined by us, the Company has not raised any
money by public issue during the period.
(xxi) 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 & on behalf of
M anoj Mohan & Associates
Chartered Accountants
Firm Regn. No. 009195C
Sd/-
(Manoj Kumar Agarwal)
Place : New Delhi (Partner)
Dated: 29th November, 2013 Membership No.: 76980
Jun 30, 2010
We have audited the attached Balance Sheet of Ahmednagar Forgings
Limited as at 30th June 2010, the Profit and Loss Account and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India (Indian GAAP). 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.
As required by the Companies (Auditors Report) Order, 2003 (as
amended) by the companies (Auditors Report) (amended) order, 2004
(together the order) issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Companies Act, 1956, we
enclose in the Annexure, a statement on the matters specified in
paragraph 4 and 5 of the said order.
Further to our comments in the Annexure referred to 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 of the Company, dealt with by this report are in agreement
with the books of account.
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 30th June 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
30th June 2010 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 explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 30th June 2010;
(b) in the case of the 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 flow for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE OF
AHMEDNAGAR FORGINGS LIMITED FOR THE YEAR ENDED 30Ã JUNE 2010
(i) (a) The Company has maintained proper records showing lull
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, fixed assets, according to the practice of the
Company, have been physically verified by the management at reasonable
intervals. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the Company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such physical
verification.
(c) During the year, the Company has not disposed off any substantial
part of the fixed assets and the going concern status of the Company is
not affected.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of physical verification
is reasonable.
(b) The procedure for physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) The Company, during the year under report, has neither given nor
taken loan from the companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Hence, clause no. iii (a), (b), (c) (d), (e), (f) & (g) are not
applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system 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 and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangement
referred to in section 301 of the act has been entered in the register
required to be maintained under section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies act, 1956 in respect of any party during the year have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
(vi) In our opinion and according to the information and explanation
given to us, the Company has complied with all the provisions of
section 58A and 58AA and any other relevant provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to deposits accepted from public. No order has been passed by
the Company Law Board, Reserve Bank of India, National Company Law
Tribunal or any other Court or any Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central government has prescribed maintenance of cost
accounting records under section 209 (1) (d) of the Companies Act, 1956
in respect of certain machining activities of the Company. We have
broadly reviewed the accounts and records of the Company in this
connection and are of the opinion that prima facie, the prescribed
accounts and records have been properly maintained.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax/ VAT, wealth tax, service tax, custom duty, excise duty,
cess and other material statutory dues applicable to it.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax / VAT, custom duty, excise duty and cess were in
arrears, as at 30th June 2010 for a period of more than six months from
the date they became payable.
(c) The disputed statutory dues aggregating to Rs.134.87 Lacs, that
have not been deposited on account of matters pending before
appropriate authorities are as under:
S. Name of the Statute Nature of Year to which
No Dues the amount relate
1. Customs & Valuation of 2006
Central Excise Act Goods
2. Customs & Scrap at Job 2002
Central Excise Act Workers end
3. Customs & Valuation of 2007
Central Excise Act Goods
4. Customs & CENVAT 2008
Central Excise Act related matter
5. Customs & CENVAT 2010
Central Excise Act related matter
6. Customs & CENVAT 2007
Central Excise Act Credit of
Service Tax
& Interest
7. Customs & Valuation of 2002
Central Excise Act Goods 2008
8. Customs & CENVAT 2007
Central Excise Act related matter
Total
Name of the Statue Forum where Amount
dispute is pending (Rs. in Lacs)
Customs &
Central Excise Act Jt. Commissioner, 18.35
Aurangabad
Customs &
Central Excise Act High Court Bench at 4.32
Aurangabad
Customs &
Central Excise Act CESTAT, Mumbai 3.85
Customs &
Central Excise Act Addl. Commissioner, 12.05
Aurangabad
Customs &
Central Excise Act Dy. Commissioner, 0.27
Ahmednagar
Customs &
Central Excise Act Commissioner (Appeals), 81.77
Pune
Customs &
Central Excise Act Supreme Court, Delhi 7.90
Asst. Commissoner, 0.92
Pune
Customs &
Central Excise Act Asst. Commissoner, 5.44
Pune
Total 134.87
(x) The Company has no accumulated losses and has not incurred any cash
loss during the year under report or in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
(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) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause of
4(xiii) of the Companies (Auditors Report) Order, 2004 (as amended)
are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 (as amended) are not applicable to the Company. The Company,
however, is maintaining proper records of transactions and contracts in
respect of long term investment made by it and timely entries have been
made therein. Further, all the securities including shares, debentures
and other investments have been held by the Company in its own name.
(xv) The Company has not given guarantees for loans taken by others
from Banks or Financial Institutions.
(xvi) According to the information & explanation given to us, in our
opinion, term loan availed by the Company were, prima facie, applied by
the Company during the year under report for the purpose for which the
term loans were obtained, other than temporary deployment pending
applications.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short term basis have been used for long term
investment and no long term funds have been used to finance short term
assets except permanent working capital.
(xviii) According to the information & explanation given to us, the
Company, during the year under report, has made preferential allotment
of 18,30,000 equity shares of Rs.10/- each at a premium of Rs.37/- per
shares against warrants issued by it in the earlier years, to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956.
(xix) According to the information given to us, and the record of the
Company examined by us, the Company has not issued any debentures.
(xx) According to the information and explanation given to us and the
record of the Company examined by us, the Company has not raised any
money by public issue during the year.
(xxi) 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 & on behalf of Manoj
Mohan & Associates
Chartered Accountants
Firm Regn. No. 009195C
Sd/-
(M. K. Aggarwal)
Place : New Delhi (Partner)
Date : 24th November, 2010 Membership No.: 76980
Jun 30, 2009
We have audited the attached Balance Sheet of Ahmednagar Forgings
Limited as at 30th June 2009, the Profit and Loss Account and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India (Indian GAAP). 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.
As required by the Companies (Auditors Report) Order, 2003 (as
amended) by the companies (Auditors Report) (amended) order, 2004
(together the order) issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Companies Act, 1956, we
enclose in the Annexure, a statement on the matters specified in
paragraph 4 and 5 of the said order.
Further to our comments in the Annexure referred to 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 of the company, dealt with by this report are in agreement
with the books of account.
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 30th June 2009 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
30th June 2009 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 explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 30th June 2009;
(b) in the case of the 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 flow for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE OF
AHMEDNAGAR FORGINGS LIMITED FOR THE YEAR ENDED 30TH JUNE 2009
(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, according to the practice of the
Company, have been physically verified by the management at reasonable
intervals. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such physical
verification.
(c) During the year, the company has not disposed off any substantial
part of the fixed assets and the going concern status of the company is
not affected.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of physical verification
is reasonable.
(b) The procedure for physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) The Company, during the year under report, has neither given nor
taken loan from the companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Hence, clause no. iii (a), (b), (c) , (d), (e), (f) & (g) are not
applicable to the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system 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 and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangement
referred to in section 301 of the act has been entered in the register
required to be maintained under section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies act, 1956 in respect of any party during the year have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
(vi) In our opinion and according to the information and explanation
given to us, the company has complied with all the provisions of
section 58A and 58AA and any other relevant provision of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to deposits accepted from public. No order has been passed by
the Company Law Board, Reserve Bank of India, National Company Law
Tribunal or any other Court or any Tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central government has prescribed maintenance of cost
accounting records under section 209 (1) (d) of the Companies Act, 1956
in respect of certain machining activities of the company. We have
broadly reviewed the accounts and records of the company in this
connection and are of the opinion that prima facie, the prescribed
accounts and records have been properly maintained.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax/ VAT, wealth tax, service tax, custom duty, excise duty,
cess , fringe benefit tax and other material statutory dues applicable
to it.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax / VAT, custom duty, excise duty, cess and fringe
benefit tax were in arrears, as at 30th June 2009 for a period of more
than six months from the date they became payable.
(c) The disputed statutory dues aggregating to Rs.134.87 Lacs, that
have not been deposited on account of matters pending before
appropriate authorities are as under:
S. Name of the Statute Nature of Year to which
No Dues the amount relate
1. Customs & Valuation of 2006
Central Excise Act Goods
2. Customs & Scrap at Job 2002
Central Excise Act Workers end
3. Customs & Valuation of 2007
Central Excise Act Goods
4. Customs & CENVAT 2008
Central Excise Act related matter
5. Customs & CENVAT 2009
Central Excise Act related matter
6. Customs & CENVAT 2007
Central Excise Act Credit of
Service Tax
& Interest
7. Customs & Valuation of 2002
Central Excise Act Goods 2008
8. Customs & CENVAT 2007
Central Excise Act related matter
Total
Name of the Statue Forum where Amount
dispute is pending (Rs. in Lacs)
Customs &
Central Excise Act Jt. Commissioner, 18.35
Aurangabad
Customs &
Central Excise Act High Court Bench at 4.32
Aurangabad
Customs &
Central Excise Act CESTAT, Mumbai 3.85
Customs &
Central Excise Act Addl. Commissioner, 12.05
Aurangabad
Customs &
Central Excise Act Dy. Commissioner, 0.27
Ahmednagar
Customs &
Central Excise Act Commissioner (Appeals), 81.77
Pune
Customs &
Central Excise Act Supreme Court, Delhi 7.90
Asst. Commissoner, 0.92
Pune
Customs &
Central Excise Act Asst. Commissoner, 5.44
Pune
Total 134.87
(x) The company has no accumulated losses and has not incurred any cash
loss during the year under report or in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
(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) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause of
4(xiii) of the Companies (Auditors Report) Order, 2004 (as amended)
are not applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 (as amended) are not applicable to the company. The company,
however, is maintaining proper records of transactions and contracts in
respect of long term investment made by it and timely entries have been
made therein. Further, all the securities including shares, debentures
and other investments have been held by the company in its own name.
(xv) The company has not given guarantees for loans taken by others
from Banks or Financial Institutions.
(xvi) According to the information & explanation given to us, in our
opinion, term loan availed by the company were, prima facie, applied by
the company during the year under report for the purpose for which the
term loans were obtained, other than temporary deployment pending
applications.
(xvii) According to the information & explanation given to us, the
company, during the year under report, has not made preferential
allotment of shares/warrants to parties and companies covered in the
register maintained under section 301 of the Companies Act, 1956.
(xviii) According to the information and explanation given to us, and
on an overall examination of the balance sheet of the company, we
report that no funds raised on short term basis have been used for long
term investment and no long term funds have been used to finance short
term assets except permanent working capital.
(xix) According to the information given to us, and the record of the
company examined by us, the company has not issued any debentures.
(xx) According to the information and explanation given to us and the
record of the company examined by us, the company has not raised any
money by public issue during the year.
(xxi) 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 & on behalf of Manoj Mohan & Associates
Chartered Accountants
Sd/-
(M. K. Aggarwal)
Place: New Delhi (Partner)
Date : 2nd December, 2009 Membership No.: 76980