Mar 31, 2015
We have audited the accompanying financial statements of N. R.
INTERNATIONAL LIMITED, which comprise the Balance Sheet as at March 31,
2015, the Statement of Profit and Loss and the Cash Flow Statement, and
a summary of significant accounting policies and other explanatory
information in which are incorporated the audited accounts for the year
ended on that date audited by the branch auditors of the Company's
branch / unit located at Ranchi, Jharkhand.
Management's Responsibility for the Consolidated Financial Statements:
The Company's Board of Directors is responsible for the matters stated
in section 134 (5) of the Companies Act, 2013 ( "the Act")with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the Accounting principles
generally accepted in India, including the accounting standards
specified under section 133 of the act, read with rule 7 of the
companies (Accounts) Rules, 2014.This responsibility also includes the
maintenance of adequate accounting records in accordance with the
provisions of the act for safeguarding the assets of the company and
for preventing and detecting the frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgment and estimates that are reasonable and prudent; and design,
implementation and maintenance of internal financial control, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of
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.
I 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.
2. We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
3. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give true
and fair view, in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion
on whether the Company has in place an adequate internal financial
controls system over financial reporting and operating effectiveness of
such controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the financial statements.
4. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
In our opinion and to the best of our information and according to the
explanations statements give the mlormation 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 31 March 2015 and its profit for the year
ended on that date; and
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 (II) of section 143 of the Act, are not 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 and proper accounts adequate for the purposes of our audit have
been received from the branches not visited by us.
c) the report(s) on the accounts of the branch office(s) of the Company
audited under Section 143(8) of the Act by the branch auditors have
been sent to us and have been properly dealt with by us in preparing
this report.
d) The financial statements dealt with by this Report are in agreement
with the books of account and the statement received from the branches
not visited by us.
e) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
f) On the basis of written representations received from the directors
as on 3) March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
g) In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014 ;
i. The Company does not have pending litigations which would impact
its financial position;
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses ;
iii. There were no amounts which required to be transferred by the
Company to the Investor Education and Protection Fund.
Annexure to the Auditors' Report
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory'
Requirements' of our Report of even date to the members of N. R.
INTERNATIONAL LIMITED ( "COMPANY") on the accounts of the company for
the year ended 31st March, 2015)
()n the basis of such checks as we considered appropriate and according
to the information and Explanations given to us during the course of our
audit, we report that:
i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) As explained to us, fixed assets have been physically verified by
the management during the year in accordance with the phased programme
of verification adopted by the management which, in our opinion,
provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
(c) The company has during the year disposed off it's coke oven plant
at Dhenkanal, Orissa in the name of I. B. Industries Ltd and also it's
land at Jharsuguda.
ii) The company does not have any inventory during the current year.
However there was an inventory in the previous year. In our opinion and
according to the information and explanation given to us company has
maintained proper record of its inventory during previous year.
iii) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act 2013 and accordingly, paragraphs
3(iii) of the Order arc not applicable.
iv) In our opinion and according to the Information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods (and/services). During the course of our Audit, we have not
observed any continuing failure to correct major weaknesses in internal
control.
v) The company has not accepted any deposits within the meaning of
Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits)
Rules, 2014 (as amended). Accordingly the provisions of clause 3(v) of
the Order are not applicable.
vi) As informed to us, the Central Government has not prescribed
maintenance of cost records under sub- section (1) of Section 148 of
the Act, in respect of the activities carried on by the Company.
vii) ln respect of statutory dues
(a) According to the records of the company and information and
explanations given to us, the Company has generally been regular in
depositing undisputed statutory dues, including Provident Fund,
employees state insurance (ESI), Investor Education and Protection
Fund, Income-tax, Tax deducted at sources. Tax collected at source,
Professional Tax, Sales Tax, value added tax (VAT), Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it, with the appropriate authorities.
(b) According to the information and explanations given to us, there
were payable in respect of Income-tax, Wealth Tax, Custom Duty, Excise
Duty Cess and other material statutory dues in arrears /were outstanding
as at 31 March, 2015 for a period of more than six months from the date
they became payable except the following :
Statute Name Period to Forum where matter is Amount
which it pending (Rs)
relates
Orissa VAT Act 01.04.2005 - Under appeals with 3,06,76,978
31.03.2008 respective department
Orissa CST Act 01.04.2005 - 9,97,627
31.03.2008 --- Do--
Orissa Entry Tax 01.04.2005 - 23,48,038
Act 31.03.2008 --- Do--
Service Tax 2008-09 and 27,33,189
2009-10 --- Do--
viii) The accumulated losses of the company are not more than 50% of
its Net Worth at the end of financial year. The company has not
incurred any Cash losses during the financial covered by our Audit and
the immediately preceding financial year.
ix) The company has no dues payable to a financial institutions, banks
and debenture holders during the year. Hence the provisions of clause
3(ix) of the order are not applicable.
x) The Company has given corporate guarantee for loans taken by a
company from a Bank. Further, in the absence of express terms and
conditions of such guarantee and availability of financial information
about borrower, we do not opine on the reasonableness thereof.
xi) The company has not obtained any term loan during the year, so this
Para of order is not applicable
xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For, Agarwal Vishwanath & Associates
Chartered Accountants
ICAl Registration no.323024E
Sd/-
(CA Vishwanath Agarwal)
Proprietor
Membership No. 054806
Place: Kolkata
Date: 30th May 2015
Mar 31, 2014
We have audited the accompanying financial statements of M/s N. R.
INTERNATIONAL LIMITED ("the Company'') which comprise the Balance Sheet
as at 31 March 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). 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 subject
to :
(i) Note No 29.8(d) regarding non ascertainment and provision of
interest on delay payments of statutory dues such as TDS, Service Tax,
etc.
give a true and fair view in conformity with the accounting principles
generally accepted in India:
i. in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2014;
ii. in the case of the statement of profit and loss, of the profit for
the year ended on that date; and
iii. in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Reference to Accounting Standards in Audit Report
"In our opinion, the Balance Sheet and the Statement of Profit and Loss
comply with the Accounting Standards notified under the Companies Act,
1956 read with the General Circular 15/2013 dated 13 September 2013 of
the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013."
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books [and proper returns adequate for the purposes of our audit have
been received from branches not visited by us];
bb, the report on the accounts of the proprietorship unit-M/s Bharat
Hardcok Manufacturers audited under section 228 by a person other than
the company's auditor has been forwarded to us as required by clause(c)
of sub - section (3) of section 22s and have been dealt with in
preparing our report in the manner considered -necessary by us
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account and with the returns received from branches not visited by us
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred To in
sub-section (3C) of Section 211 of the Companies Act, 1956; and
e. on the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
Annexure to the Auditors' Report
The Annexure referred to in our report to the members of M/s N. R.
INTERNATIONAL LIMITED ("the Company") for the year ended 31 March 2014.
We report that:
i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) As explained to us, the fixed assets of the company have been
physically verified by the management at reasonable interval and no
material discrepancies were noticed on such verification.
(c) The company has disposed off during the year balance of Tangi Land
along with building, shed & plant & machinery. With this the entire
fixed assets of the company relating to iron and steel business has
been disposed. However, the going concern status of the company is not
affected.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) In our opinion, 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 has maintained proper records of inventory. No material
discrepancies were noticed on physical verification carried out at the
end of the year.
(iii) (a) The company has provided interest free advances in the form
of advance aggregating to Rs. 6,56,78,243/- (Previous year Rs.
10,00,000/-) and share application money aggregating Rs. NIL (Previous
year Rs. 18,25,20,000/-) to the firms / companies covered in the
register maintained u/s 301 of the Companies Act, 1956.
(b) In our opinion and according to information's and explanations
given to us, the terms and conditions of such advances are prima facie
not prejudicial to the interest of the company.
(c) In the absence of stipulations regarding repayment of such
advances, we are unable to comment upon the regularity of repayment of
the same.
(d) As stated above, no repayment schedule has been specified and hence
we are unable to comment upon any overdue amount in excess of Rs. 1.00
Lac in this regard.
(e) The Company has not. taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act 1956. Accordingly, clauses (f)
and (g) of paragraph (iii) are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, for the purchase of investments and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
(v) (a) According to information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered.
(b)In our opinion and according to the information and explanation
given to us, the transactions in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs have been entered
during the financial year at prices which are reasonable having regard
to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposit during the year from the
public within the meaning of the provisions of Section 58A and 58AA of
the Companies Act, 1956 or any other relevant provisions of the
Companies Act, 1956 and the Rules framed there under.
(vii) The internal audit of the company has been done by the audit
committee under the supervision of the Managing Director on periodical
basis. In our opinion, the Internal Audit System of the company is
needs to be strengthened commensurate to the size and nature of its
business.
(viii) We have reviewed the books of account maintained by the Company
pursuant to Rules made by the Central Government for the maintenance of
cost records u/s 209(l)(d) of the Companies Act, 1956 and are of the
opinion that prima-facie the prescribed accounts and records have been
made and maintained. However, we have not made a. detailed examination
of the same.
(ix) (a) According to the records of the Company, the Company is
regular in depositing with the appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees' State Insurance, Income-tax, Sales-tax,
Wealth-tax, Service-tax, Custom Duty, Excise Duty, Cess and any other
material statutory dues wherever applicable to it. However in certain
cases the said amount has been deposited beyond the due date.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of sales tax, PF, ESI, Service
Tax, Income Tax and other statutory dues were in arrears as at 31st
March 2014 payable for a period of more than six months from the date
they become payable.
(c) According to the information and explanation given to us, there are
no dues of income tax, sales-tax, wealth tax, service tax, custom duty,
excise duty and cess which have not been deposited on account of any
dispute except the following ;
Statute Name Period to Forum where matter is pending
which it
Orissa VAT Act 01.04,2005 Under appeals with respective
31.03.2008 department
Orissa CST Act 01.04.2005 Do
31.03.2008
Orissa Entry Tax 01.04.2005 Do
Act 31.03.2008
Service Tax 2008-09 and Do
2009-10
Statute Name Amount (Rs)
Orissa VAT Act 3,06,76,978
Orissa CST Act 9,97,627
Orissa Entry Tax 23,48,038
Act
Service Tax 27,33,189
(x) The Company has accumulated loss of Rs. 1,28,31,875/- as at the end
of the financial year. It has incurred cash loss of Rs. 14,20,904/-
(Previous Year - 65,65,761/-) during the year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, it is observed that the credit
facilities of the company with The Federal Bank Ltd, 1 R N Mukherjee
Road, Kolkata - 700 001 has become non performing assets and the bank
has initiated recovery proceedings against the company. Apart from that
he Company has not defaulted in repayment of dues to a financial
institution or debenture holders.
(xii) According to records of the Company and on the basis of
information and explanations given to us, the Company has not granted
any loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor's Report) Order, 2003 (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 (Auditor's Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) The Company has given corporate guarantee for loans taken by an
associate company from a Bank without complying with the provisions of
section 295 and 372 A of the Companies Act, 1956. Further, in the
absence of express terms and conditions of such guarantee and
availability of financial information about borrower, we do not opine
on the reasonableness thereof.
(xvi) The company has not obtained any term loan during the year hence
sub clause 4(xvi) is not applicable.
(xvii) According to the Financial Statements and other records examined
by us and the information and explanations given to us, on an overall
basis, it appears that portion of funds raised on short term basis have
been utilized for long term investments. We are not in a position to
quantify the same in the absence of proper segregation and audited
accounts of associate concerns
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the Register maintained under
section 301 of the Act.
(xix) The Company has not issued any debentures during the year,
(xx) The Company has not raised any money by public issue.
(xxi) 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, Sanjay Jagdish & Co.
Chartered Accountants
Firm's Registration Number: 324645E
SD/-
Place : Cuttack Sanjay Kumar Agarwal
Date : 8th August, 2014 Proprietor
Membership Number; 057794
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of M/s N. R.
INTERNATIONAL LIMITED ("the Company") which comprise the Balance
Sheet as at 31 March 2013, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company i/i 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 manner so required and subject to :
(i) Note No 29.8(j) regarding non ascertainment and provision of
interest on payments of statutory dues such as TDS, Service Tax, etc.
give a true and fair view in conformity with the accounting principles
generally accepted in India:
i. in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2013;
ii. in the case of the statement of profit and loss, of the profit for
the year ended on that date; and
iii. in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books [and proper returns adequate for the purposes of our audit have
been received from branched not visited by us];
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account [and with the returns received from branches not visited by
us];
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow . Statement comply with the Accounting Standards referred to
in sub-section (3C) of Section 211 of the Companies Act, 1956; and
e. on the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
The Annexure referred to in our report to the members of M/s N. R.
INTERNATIONAL LIMITED ("the Company") for the year ended 31 March 2013.
We report that:
i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) As explained to us, the fixed assets of the company have been
physically verified by the management at reasonable interval and no
material discrepancies were noticed on such verification.
(c) The company has disposed off during the year part of Tangi Land
along with building, shed & plant & machinery. However, the going
concern status of the company is not affected.
(ii)(a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
(b) In our opinion, 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 has maintained proper records of inventory. No material
discrepancies were noticed on physical verification carried out at the
end of the year.
(iii) (a) The company has provided interest free advances in the form
of advance aggregating to Rs. 18,00,000/- and share application money
aggregating Rs. 18,25,20,000/- to the firms / companies covered in the
register maintained u/s 301 Of the Companies Act, 1956.
(b) Ân our opinion and according to information''s and explanations
given to yes, the terms and conditions of such advances are prima facie
not prejudicial to the interest of the company.
(c) In the absence of stipulations regarding repayment of such
advances, we are unable to comment upon the regularity of repayment of
the same.
(d) As stated above, no repayment schedule has been specified and hence
we are unable to comment upon any overdue amount in excess of Rs. 1.00
Lac in this regard.
(e) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act 1956. Accordingly, clauses (f)
and (g) of paragraph (iii) are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, for the purchase of investments and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in
respect areas. ''
(v) (a) According to information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered.
(b)In our opinion and according to the information and explanation
given to us, the transactions in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs have been entered
during the financial year at prices which are reasonable having regard
to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposit from the Public.
(vii) The internal audit of the company has been done by the audit
committee under the supervision of the Managing Director on periodical
basis. In our opinion, the Internal Audit System of the company is
needs to be strengthened commensurate to the size and nature of its
business.
(viii) As informed to us, we understand that the company is maintaining
cost records as prescribed by the Central Government to the Company
under clause (d) of sub-section (1) of section 209 of the Act. However,
the said records could not be produced to us for verifications.
(ix) (a) According to the records of the Company, the Company is
regular in depositing with the appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax,
Wealth-tax, Service-tax, Custom Duty, Excise Duty, Cess and any other
material statutory dues wherever applicable to it. However in certain
cases they said amount has been deposited beyond the due date.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of sales tax, PF, ESI, Service
Tax, Income Tax and other statutory dues were in arrears as at 31st
March 2013 payable for a period of more than six months from the date
they become payable.
(c) According to the information and explanation given to us, there are
no dues of income tax, sales-tax, wealth tax, service tax, custom duty,
excise duty and cess which have not been deposited on account of any
dispute except the following :
Statute Name Period to Forum where matter is Amount
which it pending (Rs)
relates
Orissa VAT
Act 01.04.2005 - Under appeals with 5,22,86,361
31.03.2008 respective department
(x) The Company has accumulated loss of Rs. 2,02,16,315/-. as at the
end of the financial year. It has incurred cash loss of Rs. 65,65,761/-
(Previous Year - NIL) during the year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, it is observed that the credit
facilities of the company with The Federal Bank Ltd:
Road, Kolkata - 700 001 has become nonperforming assets and the has
initiated recovery proceedings against the company. Apart from -.{Ebb
the Company has not defaulted in repayment of dues to a finality
institution or debenture holders.
(xii) According to records of the Company and on the basis of
information and explanations given to us, the Company has not granted
any loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor''s Report) Order, 2003 (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 (Auditor''s Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) The Company has given corporate guarantee for loans taken by an
associate company from a Bank without complying with the provisions of
section -295 and 372 A of the Companies Act, 1956. Further, in the
absence of express terms and conditions of such guarantee and
availability of financial information about borrower, we do not opine
on the reasonableness thereof.
(xvi) The Company has obtained term loans from banks / financial
institutions against hypothecation of machineries, vehicles .etc which
has been utilized for the purpose for the purpose for which these loans
were obtained.
(xvii) According to the Financial Statements and other records examined
''by us and the information and explanations given to us, on an overall
basis, portion of funds raised on «short term basis have been utilized
for long term investments. We are not in a position to quantify the
same in the absence of proper segregation and audited accounts of
associate concerns.
(xviii)The Company has not raised any fund ;on short-term basis or on
long-term-basis by way of equity share capital.
(xix) The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Act.
(xx) The Company has not issued any debentures during the year.
(xxi) The Company has not raised any money by public issue.
(xxii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during
the course of our audit.
For, Sanjay Jagdish & Co.
Chartered.Accountants
Place : Cuttack Sanji Kumar Agarwal
Date : 27th August, 2013
Membership mumber: 0SS94
Mar 31, 2012
We have audited the annexed Balance Sheet of N. R. INTERNATIONAL
LIMITED as at 31st March 2012, Statement of Profit & Loss and also the
Casli Flow Statement for the year ended on that date annexed thereto.
These Financial Statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
Financial Statements based on our audit.
We conducted our audit in accordance with Auditing Standards Generally
Accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the Financial
Statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the Financial Statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall Financial Statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor's Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of
subsection (4A) of section 227 of the Companies Act, 1956, we enclose
in the Annexure, a statement on the matter specified in paragraphs 4 &
5 of the said Order.
1. Further to our Comments in the Annexure referred to above, we report
that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of the
books;
c) The Balance Sheet, Statement of Profit & Loss and the Cash FKm
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, Balance Sheet, Statement of Profit & Loss and the
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in subsection (3C) of section 211 of
the Companies Act, 1956;
e) On the basis of written representations received from'the Directors,
as on 3 V' March 2012, and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March
2012 from being appointed as a Director in terms of clause (g) of
subsection (1) of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the accounts give the information
required by the companies Act, 1956 in the manner so required and give
a true & fair view in conformity with the Accounting Principles
Generally Accepted in India;
i) In the case of the Balance Sheet of the state of affairs of the
Company as at March 31,2012,
ii) In the case of Profit & Loss of the Profit of the Company for the
year ended on that date and
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) As explained to us, the fixed assets of the company have been
physically verified by the management at reasonable interval and no
material discrepancies were noticed on such verification.
(c) The company has disposed off the entire fleet of heavy commercial
vehicles and some of the office land and buildings during the year.
However, the going concern status of the company is not affected.
(ii) (a) The management has conducted physical verification of
inventor)' at reasonable intervals during the year.
(b) 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' and no
material discrepancies were noticed on physical verification carried
out at the end of the year.
(iii ) (a) The Company has not granted any loan, secured or unsecured
to companies, firms or other parties covered in the register maintained
under section 301 of the Act and accordingly, paragraphs 4(iii), (b),
(c) and (d) of the Order are not applicable.
(iii)(e) The Company has not taken any loans,'Secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Act and accordingly, paragraph 4(iii) (f), (g)
and (h) of the Order are not applicable.
(iv) In our opinion there is an adequate internal control system
commensurate with the size of the company and the nature of its
business, for the purchase of investments and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
(v) (a) According to information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered.
(b) In our opinion and according to the information and explanation
given to us, the transactions in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs have been entered
during the financial year at prices which are reasonable having regard
to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposit from the Public.
(vii) The internal audit of the company has been done by the audit
committee under the supervision of the Managing Director on periodical
basis. In our opinion, the Internal Audit System of the company is
needs to be strengthened commensurate to the size and nature of the
business.
(viii) As informed to us, we understand tluit the company (viii)
maintaining cost records as prescribed by the Central Government to the
Company under clause (ii) of sub-section (1) of section 209 of the Act.
However, the said records could not he produced to us for
verifications.
(ix)(a) According to the records of the Company, the Company is regular
in depositing with the appropriate authorities undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales-tax, Wealth-tax,
Servicetax, Custom Duty, Excise Duty, Cess and any other material
statutory dues wherever applicable to it. However in certain cases the
said amount has been deposited beyond the due date.
(b) According to the information and explanations given to is an
undisputed sum of Rs. 920.00 on account of professional tax and Rs.
14,7777- on account of IDS has been outstanding at the year end for a
period of more than six months.
(c) According to the information and explanation given to us, there are
no dues of income tax, sales-tax, wealth tax, service tax, custom duty,
excise duty and cess which have not been deposited on account of any
dispute except the following :
StatuteN ame Period to which Forum where matter is Amount
it relates pending (Rs.)
Income Tax
Act, 1961 A.Yr: 1998-99 Income Tax Appellate 12,97,859
Tribunal, Kolkata
Income Tax
Act, 1961 A.Yr: 1998-66 Commissioner of
Income Tax 1,13,292
-IV, Kolkata
Orissa VAT Act 01.04.2005- Under appeals with
respective 5,22,86,361
31.03.2008 department
(x) The Company has accumulated loss of Rs. 1,15,54,7377- as at the end
of the financial year. It has not incurred any cash loss during the
year. Cash loss of Rs. 22,52,5947- was incurred in the immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, it is observed that the credit
facilities of the company with The Federal Bank Ltd, 1 R N Mukherjee
Road, Kolkata - 700 001 has become non performing assets and the hank
has initiated recovery proceedings against the company. Apart from that
he Company has not defaulted in repayment of dues to a financial
institution or debenture holders.
(xii) According to records of the Company and on the basis of
information and explanations given to us, the Company has not granted
any loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi 7
mutual benefit fund 7 society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor's Report) OrjkL 2003 (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 (Auditor's Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) The Company lias given corporate guarantee for loans taken by an
associate company from a Bank without complying with the provisions of
section 295 and 372 A of the Companies Act, 1956. Further, in the
absence of express terms and conditions of such guarantee and
availability of financial information about borrower, we do not opine
on the reasonableness thereof.
(xvi) The Company has obtained term loans from banks / financial
institutions against hypothecation of machineries, vehicles etc which
has been utilized for the purpose for the purpose for which these loans
were obtained.
(xvii) According to the Financial Statements and other records examined
by us and the information and explanations given to us, on an overall
basis, portion of funds raised on short term basis have been utilized
for long term investments. We are not in a position to quantify the
same in the absence of proper segregation and audited accounts of
associate concerns.
(xviii) The Company has not raised any fund on short-term basis or on
long-term-basis by way of equity share capital.
(xix ) The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Act.
(xx) The Company has not issued any debentures during the year.
(xxi) The Company has not raised any money by public issue.
(xxii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during
the course of our audit.
For, Sanjay Jagdish & Co.
Chartered Accountants
Firm's Registration Number; 324645E
Sanjay Kumar Agarwal
Proprietor
Membership Number: 057794
Place of Signature: Cuttack
Date: 09.07.2012
Mar 31, 2010
We have audited the annexed Balance Sheet of N. R. INTERNATIONAL
LIMITED as at 31st March 2010 and also the Profit & Loss Account 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. 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) issued by the Central Government of India in terms of
subsection (4A) of section 227 of the Companies Act, 1956, we enclose
in the Annexure, a statement on the matter specified in paragraphs 4 &
5 of the said Order.
1. Further to our Comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of the
books;
c) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, Balance Sheet, the Profit & Loss Account and the
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in subsection (3C) of section 211 of
the Companies Act, 1956;
e) On the basis of written representations received from the Directors,
as on 31st March 2010, and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March
2010 from being appointed as a Director in terms of clause (g) of
subsection (1) of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the accounts give the information
required by the companies Act, 1956 in the manner so required and give
a true & fair view in conformity with the Accounting Principles
Generally Accepted in India;
i) In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March 2010,
ii) In the case of Profit & Loss of the loss of the Company for the
year ended on that date and
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure Re; N. R. INTERNATIONAL LIMITED
i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) As explained to us, the fixed assets of the company have been
physically verified by the management at reasonable interval and no
material discrepancies were noticed on such verification.
(c) No substantial part of fixed assets has been disposed off during
the year which has bearing on the going concern assumption.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) 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 and no
material discrepancies were noticed on physical verification carried
out at the end of the year.
(iii) (a) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Act and accordingly, paragraphs 4(iii), (b),
(c) and (d) of the Order are not applicable.
(iii)(e) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Act and accordingly, paragraph 4(iii) (f), (g)
and (h) of the Order are not applicable.
(iv) Tn our opinion there is an adequate internal control system
commensurate with the size of the company and the nature of its
business, for the purchase of investments and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
(v)(a) According to information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered.
(b) In our opinion and according to the information and explanation
given to us, the transactions in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs have been entered
during the financial year at prices which are reasonable having regard
to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposit from the Public.
(vii) The internal audit of the company has been done by M/s R. Gopal &
Associates, Chartered Accountants at Bhubaneshwar on quarterly basis.
In our opinion, the Internal Audit System of the company is
commensurate to size and nature of its business.
(viii) The company is maintaining cost records as prescribed by the
Central Government to the Company under clause (d) of sub-section (1)
of section 209 of the Act. However, the said records have not been
verified by us.
(ix)(a) According to the records of the Company, the Company is regular
in depositing with the appropriate authorities undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income-tax, Sales-tax, Wealth-tax,
Service-tax, Custom Duty, Excise Duty, Cess and any other material
statutory dues wherever applicable to it. However in certain cases the
said amount has been deposited beyond the due date.
(b) According to the information and explanations given to us an
undisputed sum of Rs. 32,43,024.19 on account of service tax has been
outstanding at the year end for a period of more than six months.
(c) According to the information and explanation given to us, there are
no dues of income tax, sales-tax, wealth tax, service tax, custom duty,
excise duty and cess which have not been deposited on account of any
dispute except the following :
Statute Name Period to
which it Forum where
matter is
pending Amount
relates (Rs)
Income Tax Act, A Yr:
2006-07 Commissioner
of Income 4,01,202
1961 Tax(Appeals)
- XII, Kolkata
Income Tax Act, A Yr:
1998-99 Income Tax
Appellate 12,97,859
1961 Tribunal,
Kolkata
Income Tax Act, A Yr:
1998-99 Commissioner
of Income 1,13,292
1961 Tax
- IV, Kolkata
(
x) The Company has no accumulated losses at the end of the financial
year. However, it has incurred cash loss of Rs. 2,00,41,842/- in the
current financial year but there has not been any cash loss in the
immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(xii) According to records of the Company and on the basis of
information and explanations given to us, the Company has not granted
any loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditors Report) Order, 2003 (as amended)
arc 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.
(xv) The Company has given corporate guarantee for loans taken by an
associate company from a Bank without complying with the provisions of
section 295 and 372 A of the Companies Act, 1956. Further, in the
absence of express terms and conditions of such guarantee and
availability of financial information about borrower, we do not opine
on the reasonableness thereof.
(xvi) The Company has obtained term loans from banks / financial
institutions against hypothecation of machineries, vehicles etc which
has been utilized for the purpose for the purpose for which these loans
were obtained.
(xvii) According to the Financial Statements and other records examined
by us and the information and explanations given to us, on an overall
basis, part of funds raised on short term basis have been utilized for
long term investments.
(xviii)The Company has not raised any fund on short-term basis or on
long-term-basis by way of equity share capital.
(xix) The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Act.
(xx) The Company has not issued any debentures.
(xxi) The Company has not raised any money by public issue.
(xxii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during
the course of our audit.
For Sanjay Jagdish &
Co Chartered Accountants
Sanjay Kumar Agarwal
Proprietor Place : Kolkata Membership No.057794
Date : 22nd September, 2010 Firm Regn No.324645E
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