Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements M/S. NATUAL CAPSULES 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 Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone 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 Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone 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 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 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs 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 Companyâs 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. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence obtained by us 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, 2018, and its Profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
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 terms of sub-section (11) of section 143 of the Act, we give in the Annexure âAâ statement on the matters specified in the paragraph 3 and 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, Statement of Changes in Equity and the Statement of Cash Flow 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 the written representations received from the directors as on 31st March, 2018taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 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 our separate report in âAnnexure Bâ Our report expresses an unmodified opinion on the adequacy and 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 does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditorsâ Report
The Annexure referred to in our Independent Auditorsâ Report to the members of the Company on the standalone financial statements for the year ended 31 March 2018, we report that:
i. a) The Company has maintained records of its fixed assets.
b) As explained to us, the company is in the process of carrying out physical verification of its fixed assets. Adjustments if any, which may arise on such verification shall be dealt with on completion of the verification.
c) According to the information and explanation given to us, the title deeds in respect to immovable properties are held in the name of the company.
ii. Physical verification of inventory has been conducted at reasonable intervals by the management and any material discrepancies were noticed have been properly dealt with in the books of account.
iii. The Company not granted any loan to companies covered in the register maintained under section 189 of the Companies Act,2013, hence this clause is not applicable.
iv. The company has not granted any of loans, investments, guarantees, and security during the year under provisions of section 185 and 186 of the Companies Act, 2013 hence this clause is not applicable
v. The company has not accepted any deposits accordingly this clause is not applicable.
vi. As per the information and explanations given to us the maintenance of cost records has not been prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013.
vii. a) Undisputed statutory dues including investor education and protection fund, sales-tax and other material statutory dues, as applicable, have been deposited generally regularly with the appropriate authorities for provident fund, employeesâ state insurance, income-tax and service tax, as applicable other then the following amount which has been due
Name of the Statue Amount in Rs. Period to which the amount relates
Karnataka VAT Act 1,492 2015-16
b) According to the information and explanation given to us, there are no material statutory dues which have not been deposited on account of any dispute other than the amounts as listed below.
Name of the Statue |
Nature of Dues |
Amount in Rs. |
Period to which the amount relates |
Forum where dispute is Pending |
Service Tax |
Service Tax Payable |
2,208,074 |
Nov 2009 to Oct 2012 |
Commissioner of Central Excise |
Service Tax |
Penalty on Service Tax Payable |
2,208,948 |
Nov 2009 to Oct 2012 |
Commissioner of Central Excise |
Service Tax |
Penalty on Service Tax Payable |
295,907 |
April 2011 to March 2012 |
Commissioner of Central Excise |
Income Tax |
DDT - Short remittance |
1,057,860 |
April 2015 to March 2006 |
Deputy Commissioner of Income Tax |
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.
ix. The company has not raised moneys by way of initial public offer or further public offer during the year and the company has not availed any new terms loans during the year hence this clause is not applicable.
x. During the course of our examination of the books and records of the company, carried in accordance with the auditing standards generally accepted in India, we have neither come across any instance of fraud on or by the Company noticed or reported during the course of our audit nor have we been informed of any such instance by the Management.
xi. According to the information and explanation given to us , the company has paid managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule- V of companies act 2013.
xii. The company is not a Nidhi company hence this clause not applicable
xiii. all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act,2013 where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards
xiv. The company has not issued any shares or Debentures during the year hence this clause is not applicable.
xv. The company has not entered into any non-cash transactions with directors or persons connected with him hence this clause not applicable
xvi. the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 hence this clause not applicable
Annexure - B to the Auditorsâ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Natural Capsules Limited(âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013. Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, 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 March 31, 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 M/s P.Chandrasekar LLP
Chartered Accountants
Place: Bangalore Firm Registration No. 000580S/S20066
Date: 18.05.2018 Rajagopalan S
Partner
Membership No.025349.
Mar 31, 2016
To the Members of M/s Natural Capsules Limited
Report on the Financial Statements
We have audited the accompanying financial statements of M/s Natural Capsules Limited
I "the Company"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, and Cash Flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters 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) Rule 2014. This responsibility also includes maintenance of accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgment and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatements, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provision of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosure in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statement.
Opinion
In out opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of die state of affairs of the Company as at 31 March 2016 and its profit and its 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, 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 statement on the matters specified in paragraphs 3 and 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 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 these books;
c. The Balance Sheet, the Statement of Profit & Loss, and the Cash Flow Statement dealt with by this report are in agreement with the books of account;
d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of the written representations received from the directors as on 3151 March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 315'' March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
f. With respect to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure - B"
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 27(iii) to the financial statements;
ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses;
a) The Company has maintained proper records showing full particulars including
b) As explained to us, the fixed assets were physically verified during the year by the Management with a regular programme of verification 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
2) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals. According to the information and explanations given
3) The Company has not granted any loan, secured or unsecured, to the Companies, firms or other parties covered in the register maintained under section 189 of the Companies Act,
4) The Company has not advanced any loans, investments, guarantees and security in terms of Section 185 & 186 of the Companies Act, 2013 and reporting under this clause is not
5) In our opinion and according to the information and explanations given to us, the Company has not accepted any Deposits in terms of directives issued by Reserve Hank of India and under provisions of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under, during the year. Hence reporting under this
6) According to the records produced and information given to us, the provisions of Section 148(1) of the Companies Act, 2013 regarding maintenance of cost records is applicable to the
7) According to the information and explanations given to us and according to the books and records as produced and examined by us, in respect of statutory due :
a) The Company has been generally regular in depositing undisputed statutory dues, including Provident Fund, Investor Education and Protection Fund, Income Tax, Sales Tax, Excise Duty, Custom Duty, Service Tax, Cess and other statutory dues with the appropriate authorities during the period wherever applicable. However the following undisputed Central Sales tax are in arrears as at 31sl March, 2016 for a period of more
Name Of Statue |
Nature of Dues |
Amount (in Rs.) |
For the Period |
Due Date |
Central Sales tax Act |
Tax Collected |
4,302 |
2011-12 |
April 2012 |
Central Sales tax Act |
Tax Collected |
3,105 |
2012-13 |
April 2013 |
Central Sales tax Act |
Tax Collected |
3,000 |
2012-13 |
April 2013 |
b) According to the information and explanation given to us, there are no material dues of Provident Fund, Income Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues which have not been deposited with the appropriate authorities on account of any dispute. However, according to information and explanation given to us, the following dues of Service Tax have not been deposited by the company on account of disputes :
Name Of Statue |
Nature of Dues |
Amount (in Rs.) |
For the Period |
Forum Where dispute is Pending |
Service Tax |
Service tax |
2,26,747 |
Jan,2005 to Nov, 2008 |
CESTAT |
Service Tax |
Penalty on Service Tax |
2,58,935 |
Jan,2005 to Nov, 2008 |
CESTAT |
Service Tax |
Service tax |
22,08,074 |
Nov,2009 to Oct, 2012 |
Commissioner of Central Excise |
Service Tax |
Penalty on Service Tax |
22,08,074 |
Nov,2009 to Oct, 2012 |
Commissioner of Central Excise |
Service Tax |
Penalty and Interest on Service Tax |
2,95,907 |
April, 2011 to March, 2012 |
Commissioner of Central Excise |
Service Tax |
Service Tax |
1,42,102 |
June 2013 to December 2013 |
Commissioner of Central Excise |
Service Tax |
Penalty on Service Tax |
10,000 |
June 2013 to December 2013 |
Commissioner of Central Excise |
Service Tax |
Service Tax |
1,71,530 |
April 2007 to March 2008 |
Commissioner of Central Excise |
Service Tax |
Penalty on Service Tax |
1,24,818 |
April 2007 to March 2008 |
Commissioner of Central Excise |
Service Tax |
Service Tax |
1,31,902 |
April 2012 to October 2012 |
Commissioner of Central Excise |
Service Tax |
Penalty on Service Tax |
6,500 |
April 2012 to October 2012 |
Commissioner of Central Excise |
Service Tax |
Service Tax |
95,828 |
November 2012 to May 2013 |
Commissioner of Central Excise |
Service Tax |
Penalty on Service Tax |
4,500 |
November 2012 to May 2013 |
Commissioner of Central Excise |
c) As per the information and explanation given to us the amounts which were required to be transferred to the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and the rules made there under has been transferred to such fund within time, wherever applicable.
8) According to the information and explanation given to us, the Company has not defaulted in repayment of dues to a Financial Institutions or Banks. There are no outstanding dues to debenture holders during the year.
9) According to the information and explanation given to us, the Company has not raised any public offer (including debt instruments) or term loans during the year and hence reporting under this clause is not applicable.
10) To the best of our knowledge and belief, according to the information and explanation given to us by the Management, and according to the books and records as produced and examined by us, no frauds were noticed or reported during the year.
11) According to the information and explanation given to us, the managerial remuneration has been paid in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule-V to the Companies Act.
12) In our opinion, the Company is not a Nidhi Company. Therefore, Reporting under this clause is not applicable.
13) In our opinion and according to the information and explanation provided. Section 177 of the Companies Act, 2013 is not applicable to the Company. All transactions with the related parties are in compliance with section 188 of the Companies Act, 2013 and adequate details have been disclosed in the Financials Statements, etc as required by the applicable accounting standards.
14) Company has made preferential allotment during year and requirement of sec 42 of the Companies Act, 2013 have been compiled with and the amount raised have been used for the purpose for which the funds raised.
15) In our opinion and according to the information and explanation provided, the company has not entered into any non-cash transactions with the directors or persons connected to the director/s in terms of Section 192 of the Companies Act, 2013 and hence reporting under this clause is not applicable.
16) According to the information and explanation given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
We have audited the internal financial controls over financial reporting of M/s Natural Capsule Limited ("the Company") as of March 31, 2016 in conjunction with our audit of the financial
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of
These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the
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 "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
A 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, that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;
(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on die 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 GNANOBA & BIIAT,
Chartered Accountants,
Firm Regn No. 000939S
Place; Bangalore KK GNANOBA
Date: 28/05/2016 Partner
M.No. 023137
Mar 31, 2015
We have audited the accompanying financial statements of M/s Natural
Capsules Limited ("the Company"), which comprise tire Balance Sheet as
at 31st March, 2015, and the Statement of Profit and Loss, and Cash
Flow statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134 (5) of the Companies Act, 2013 (the Act) with respect to
the preparation and presentation 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) Rule 2014. This responsibility also
includes maintenance of accounting records in accordance with the
provisions of the Act for safeguarding the assets of the company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgment and
estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls that were
operating effectively for ensuring the accuracy and completeness of
tire accounting records, relevant to the preparation and presentation
of the financial statements that give a true and fair view and are free
from material misstatements, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, tire accounting
and auditing standards and matters which are required to be included in
the audit report under the provision 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 perfornr tire
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 disclosure in the financial statements, the procedures
selected depend on the auditor's judgement, including the assessment of
the risks of material misstatement of the financial statements whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether tire company has in place an adequate internal financial
control system over financial reporting and the 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 the Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statement.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31 March 2015 and its profit and its cash flows for tire 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 the Annexure a
statement on the matters specified in paragraphs 3 and 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 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 these
books;
c. The Balance Sheet, the Statement of Profit & Loss, and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act;
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 26(iii) to
the financial statements;
ii. The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There has been no delay in transferring amount, required to be
transferred to the Investor
Education and Protection Fund by tire Company.
ANNEXURE TO AUDITOR'S REPORT REFERRED TO IN PARAGRAPH 1 OF OUR
REPORT OF EVEN DATE
1) 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, the fixed assets were physically verified during
the year by the Management with a regular programme of verification
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.
2) In respect of its Inventory :
a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
b) In our opinion and according to the Information and explanations
given to us, the procedures of physically verification of inventory
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) On the basis of our examination of records of inventory, in our
opinion, the Company has maintained proper records of inventory and the
discrepancies noticed on physical verification between the physical
stocks and the book records were not material in relation to the
operations of the Company.
3) The Company has not granted any loan, secured or unsecured, to the
Companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013.
4) 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 and fixed assets and for the
sale of goods and services. Further, on the basis of examination and
according to the information and explanations given to us, we have
neither come across nor we have informed of any instance of major
weaknesses in the aforesaid internal control systems.
5) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits in terms of
Chapter-V the Companies Act, 2013 read with The Companies (Acceptance
of Deposits) Rules, 2014 and hence reporting under this clause is not
applicable.
6) According to the records produced and information given to us, the
provisions of Section 148(1) of the Companies Act, 2013 regarding
maintenance of cost records is applicable to the company and the
company has maintained the records as required.
7) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
respect of statutory due :
a) The Company has been generally regular in depositing undisputed
statutory dues, including Provident Fluid, Investor Education and
Protection Fund, Income Tax, Sales Tax, Excise Duty, Custom Duty,
Service Tax, Cess and other statutory dues with the appropriate
authorities during the period wherever applicable. However the
following undisputed Central Sales tax are in arrears as at 31st March,
2015 for a period of more than six months from the date they became
payable ;
Name Of Statue Nature of Amount For the Due Date
Dues (in Rs.) Period
Central Sales Tax Collected 21,710 2007-08 April 2008
tax Act
Central Sales Tax Collected 79,269 2008-09 April 2009
tax Act
Central Sales Tax Collected 40,337 2009-10 April 2010
tax Act
b) According to the information and explanation given to us, there are
no material dues of Provident Fund, Income Tax, Wealth Tax, Custom
Duty, Excise Duty, Cess and other statutory dues which have not been
deposited with the appropriate authorities on account of any dispute.
However, according to information and explanation given to us, the
following dues of Service Tax have not been deposited by the company on
account of disputes :
Name Of Statue Nature of Dues Amount For the
(in Rs.) Period
Service Tax Service tax 2,26,747 Jan,2005 to
Nov, 2008
Service Tax Penalty on Service 2,58,935 Jan,2005 to
Tax Nov, 2008
Service Tax Service tax 22,08,074 Nov,2009 to
Oct, 2012
Service Tax Penalty on Service 22,08,074 Nov,20
Tax Oct, 2
Service Tax Penalty and 2,95,907 April,
Interest on Service to Mar
Tax 2012
Name Of Statue Forum Where dispute is Pending
Service Tax CESTAT
Service Tax CESTAT
Service Tax Commissioner of
Central Excise
Service Tax Commissioner of
Central Excise
Service Tax Commissioner of
Central Excise
c) As per the information and explanation given to us the amounts which
were required to be transferred to the Investor Education and
Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and the rules made there under has been
transferred to such fund within time, wherever applicable.
8) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
9) According to the information and explanation given to us, the
Company has not defaulted in repayment of dues to a Financial
Institutions or Banks. There are no outstanding dues to debenture
holders during the year,
10) In our Opinion and according to the information and explanation
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions and hence reporting under
this clause is not applicable to the Company.
11) According to the information and explanation given to us, the term
loans were applied for the purpose for which the term loans were
obtained.
12) According to the information and explanation given to us by the
Management, and according to the books and records as produced and
examined by us, no frauds on or by the Company were noticed or reported
during the course of our audit.
For GNANOBA & BHAT
CHARTERED ACCOUNTANTS
Firm Reg. No: 000939S
Place: BANGALORE
Date: 30.05.2015
K R GNANOBA
(PARTNER)
M. No 023137
Mar 31, 2014
We have audited the accompanying financial statements of M/s Natural
Capsules Limited ("the Company"), which comprise the Balance Sheet as
at 31st March, 2014, and the Statement of Profit and Loss, and 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 disclosure in the financial statements. The procedures
selected depend on the auditor''s judgement, 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 the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) In the case ofthe Balance Sheet, ofthe state of affairs ofthe
Company as at 31st March, 2014
(b) In the case of the Statement of Profit & Loss, of the Profit for
the year ended on that date.
(c) In the case of the cash flow statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003, 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 ofthe 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 it appears from the examination ofthe
books.
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow statement comply with the Accounting Standards referred to in
sub- section (3C) of Section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors are disqualified as on 31st 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 AUDITOR''S REPORT REFERRED TO IN PARAGRAPH 1 OF OUR REPORT
OF EVEN DATE.
1) In respect of its fixed assets
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
b) The fixed assets have been physically verified by the management. In
our opinion the frequency of verification is reasonable. According to
the information and explanation given to us no material discrepancies
were noticed on such verification.
c) The company has not disposed off its substantial part of fixed
assets during the year.
2) In respect of inventories
a) As explained to us inventories were physically verified by the
management at reasonable intervals.
b) In our opinion, and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of the business.
c) In our opinion, and according to the information and explanation
given to us, the company has maintained proper books of its inventories
and no material discrepancies were noticed on physical verification.
3) In respect of loans, secured or unsecured, granted or taken by the
Company to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956,
according to the information and explanation given to us
a) During the year, the company has not granted or taken any loans
to/from, firms or other parties recorded in register maintained under
section 301 ofthe Act.
b) Since no loans are granted / taken sub-clause (b), (c) & (d) of
clause iii of paragraph 4 ofthe order are not applicable to the
company.
4) 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 and fixed assets and for the
sale of goods. According to the explanation given to us, there are no
failures to correct the major weaknesses observed in the internal
control;
5) In respect of transactions entered in the Register maintained in
pursuance of Section 301 ofthe Companies Act, 1956
a) To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that needed to
be entered into the register have been so entered.
b) The company has entered in to transactions exceeding the value of
five lakh rupees. However these transactions have been made at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
6) As per the records and according to the information given to us, the
company has not accepted any deposits from the public.
7) In our opinion, the internal audit functions carried out during the
period by a firm of Chartered Accountants appointed by the management
have been commensurate with the size ofthe Company and the nature of
its business.
8) According to the records produced and information given to us, we
have seen that cost records and accounts as prescribed by the Central
Government under Section 209 (1) (d) of the Act have been made and
maintained by the Company to the extent applicable.
9) According to the information and explanations given to us, in
respect of statutory dues and other dues
a) The following statutory dues are unpaid as on the balance sheet date
for a period of more than six months from the date they became payable;
Statute Nature of dues Amt. (Rs.) Period to Due date
which dues
relate
Central Sales
Tax Act Tax collected 79,269 2008-2009 April 2009
Central Sales
Tax Act Tax collected 40,337 2009-2010 April 2010
b) Disputed income tax of Rs.4.26 lacs is pending before Commissioner
Appeals. The company has deposited Rs.0.50 lakhs against disputed
income tax liability,
Statute Nature of dues Amt. (Rs.) Period to which Due date
dues relate
Service Tax Penalty on
service tax 2,58,935 Jan 05-Nov 08 1-04-2009
Service Tax Tax Payable 2,26,747 Jan 05-Nov 08 1-04-2009
10) There are no accumulated losses at the end of the year and hence
clause (x) ofthe Order is not applicable for the company;
11) Based on our audit procedures and according to the information and
explanation given by the management, the Company has not defaulted in
repayment of dues to a financial institution or banks;
12) According to the information furnished to us and verified by us,
the company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities and hence
clause (xi) of the Order is not applicable to the company;
13) In our opinion, the company is not a Chit fund or a Nidhi/Mutual
Benefit Fund/Society. Therefore, the provisions of clause (xiii) ofthe
Order are not applicable to the company;
14) In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments and accordingly provisions
of clause (xiv) ofthe Order are not applicable to the company;
15) According to the information and explanation given by the
management, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
16) To the best of our knowledge and belief and according to the
information and explanation given to us, terms loans availed by the
Company were, Prima facie, applied by the Company during the period for
the purpose for which the loans were obtained.
17) According to the cash flow statement and other records examined by
us, and the information and explanations given to us, on an overall
basis, funds raised on short term basis have, Prima facie, not been
used during the period for long term investment and vice versa.
18) During the year the company has made preferential allotment of
shares to the parties covered in the Register maintained under section
301 of the Act. However the price at which shares have been issued is
not prejudicial to the interest of the company.
19) The company has not issued any debentures during the year and hence
clause (xix) of the Order is not applicable to the company.
20) The company has not raised any money by way of public issue during
the year under report and hence clause (xx) of the Order is not
applicable.
21) The Company has noticed and reported a financial fraud by way of
fake cheque with forged signatures was presented to the SBI Vellore
Branch and the cheque for an amount of Rs.9,23,580/- was credited to an
unidentified account of another bank on 25/03/2014. An amount of
Rs.26,580/- has been encashed by the perpetrators of fraud and the
balance amount of Rs.8,97,000/- has been frozen and held with another
bank. The Company has made provision for loss on balance unavailable
amount of Rs.26,580/- in its books.
For GNANOBA & BHAT
CHARTERED ACCOUNTANTS
(Registration No. 000939S)
PLACE : BANGALORE (K.R. GNANOBA)
PARTNER
DATE : 28.05.2014 Membership No: 023137
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of M/s Natural
Capsules Limited ("the Company"), which comprise the Balance Sheet as
at 31st March, 2013, and the Statement of Profit and Loss and 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 disclosure in the financial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risks of material misstatement of the financial statements whether
due to fraud or error. In making those rise 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 the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 318'' March, 2013
(b) In the case of the Statement of Profit & Loss, of the Profit for
the year ended on that date.
(c) In the case of the cash flow statement, of the cash flows forthe
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003, 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 beliefwere necessary for the purpose of our
audit.
b. In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from the examination of the
books.
c. The Balance Sheet, Statement of Profit and Loss dealt with by this
Report are in agreement with the books of account
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow statement comply with the Accounting Standards referred to in
sub-section (3C) ofSection211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on 31st March, 2013, and taken on record by the Board of Directors,
none of the directors are disqualified as on 31s'' March, 2013, from
being appointed as a director in terms of clause (g) of sub- section
(1) of section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITOR''S REPORT REFERRED TO IN PARAGRAPH 1 OF OUR REPORT
OF EVEN DATE.
1) In respect of its fixed assets
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
b) The fixed assets have been physically verified by the management. In
our opinion the frequency of verification is reasonable. According to
the information and explanation given to us no material discrepancies
were noticed on such verification.
c) The company has not disposed off its substantial part of fixed
assets during the year.
2) In respect of inventories
a) As explained to us inventories were physically verified by the
management at reasonable intervals.
b) In our opinion, and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of the business.
c) In our opinion, and according to the information and explanation
given to us, the company has maintained proper books of its inventories
and no material discrepancies were noticed on physical verification.
3) In respect of loans, secured or unsecured, granted or taken by the
Company to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956,
according to the information and explanation given to us
a) During the year, the company has not granted or taken any loans
to/from, firms or other parties recorded in register maintained under
section 301 of the Act.
b) Since no loans are granted / taken sub-clause (b), (c) & (d) of
clause iii of paragraph 4 of the order are not applicable to the
company.
4) 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 and fixed assets and for the
sale of goods. According to the explanation given to us, there are no
failures to correct the major weaknesses observed in the internal
control;
5) In respect of transactions entered in the Register maintained in
pursuance of Section 301 of the Companies Act, 1956
a) To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that needed to
be entered into the register have been so entered.
b) The company has not entered in to any transactions exceeding the
value of five lakh rupees in respect of each party and hence we are not
required to comment on such transactions.
6) As per the records and according to the information given to us, the
company has not accepted any deposits from the public. The Company Law
Board has not passed any order on the company.
7) In our opinion, the internal audit functions carried out during the
period by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business.
8) According to the records produced and information given to us, we
have seen that cost records and accounts as prescribed by the Central
Government under Section 209 (1)(d) of the Act have been made and
maintained by the Company to the extent applicable but no examination
of such records and accounts has been carried out by us.
9) According to the information and explanations given to us, in
respect of statutory dues and other dues
a) The company has been generally regular in depositing undisputed
statutory dues, including Provident Fund, Employees'' State Insurance,
Investor Education and Protection Fund, Income Tax, Wealth Tax, Custom
Duty, Excise Duty, Cess and other statutory dues with appropriate
authorities during the period.
b) Disputed income tax of Rs.4.26 lacs is pending before Commissioner
Appeals. The company has deposited Rs.0.50 lakhs against disputed
income tax liability.
c) Central sales tax amount of Rs.0.80 Lacs of 2008-09 is showing as
the payable from the year 2008-2009 for which the demand order has not
received.
10) There are no accumulated losses at the end of the year and hence
clause (x) of the Order is not applicable for the company;
11) Based on our audit procedures and according to the information and
explanation given by the management, the Company has not defaulted in
repayment of dues to a financial institution or bank or debenture
holders.
12) According to the information furnished to us and verified by us,
the company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities and hence
clause (xi) of the Order is not applicable to the company;
13) In our opinion, the company is not a Chit fund or a Nidhi/Mutual
Benefit Fund/Society. Therefore, the provisions of clause (xiii) of the
Order are not applicable to the company;
14) In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments and accordingly provisions
of clause (xiv) of the Order are not applicable to the company;
15) According to the information and explanation given by the
management, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
16) To the best of our knowledge and belief and according to the
information and explanation given to us, terms loans availed by the
Company were, Prima facie, applied by the Company during the period for
the purpose for which the loans were obtained.
17) According to the cash flow statement and other records examined by
us, and the information and explanations given to us, on an overall
basis, funds raised on short term basis have, Prima facie, not been
used during the period for long term investment and vice versa.
18) During the year 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 and hence clause (xviii) of the Order is
not applicable to the company.
19) The company has not issued any debentures during the year and hence
clause (xix) of the Order is not applicable to the company.
20) The company has not raised any money by way of public issue during
the year under report and hence clause (xx) of the Order is not
applicable.
21) To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the Company
was noticed or reported during the year.
For GNANOBA & BHAT
CHARTERED ACCOUNTANTS
(Registration No. 000939S)
M (K.R. GNANOBA)
PLACE : BANGALORE PARTNER
DATE : 25.05.2013 Membership No: 023137
Mar 31, 2012
We have audited the attached Balance Sheet of M/s. NATURAL CAPSULES
LIMITED, Bangalore, as at 31st March 2012, and also the Profit & Loss
account for the year ended on that date annexed thereto and the cash
flow statement for the year ended on that date, which we have signed
under reference to this report. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003, issued
by the Department of Company Affairs in terms of Section 227 (4A) of
the Companies Act, 1956 and on the basis of such checks as we
considered appropriate and according to the information and
explanations given to us, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
2. Further to our comments in the Annexure referred to in paragraph
(1) above:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from the examination of
those books;
(iii) The Balance Sheet, Profit & Loss account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, Profit & 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 31 st March 2012.
(vi) and taken on record by the Board of Directors, we report that none
of the Directors are disqualified as on 31st March 2012 from being
appointed as a Director in terms of Clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956;
(vii) In our opinion and to the best of our information and according
to the explanations given to us, the said financial statements together
with the notes thereon and attached thereto, 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 31 st March 2012;
(b) in the case of the Profit & Loss account, of the Profit of the
Company for year ended on that date; and in the case of Cash flow
statement, of the cash flows for the year ended on that date.
(c) in the case of Cash flow statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITOR'S REPORT (REFERRED TO IN PARAGRAPH 1 OF OUR REPORT
OF EVEN DATE).
1. In respect of its fixed assets
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
b. The fixed assets have been physically verified by the management.
In our opinion the frequency of verification is reasonable. According
to the information and explanation given to us no material
discrepancies were noticed on such verification.
c. The company has not disposed off its substantial part of fixed
assets during the year.
2. In respect of inventories
a. As explained to us inventories were physically verified by the
management at reasonable intervals.
b. In our opinion, and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of the business.
c. In our opinion, and according to the information and explanation
given to us, the company has maintained proper books of its inventories
and no material discrepancies were noticed on physical verification.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956,
according to the information and explanation given to us
a. During the year, the company has not granted or taken any loans
to/from, firms or other parties recorded in register maintained under
section 301 of the Act.
b. Since no loans are granted / taken sub-clause (b), (c) & (d) of
clause iii of paragraph 4 of the order are not applicable to the
company.
4. 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 and fixed assets and for the
sale of goods. According to the explanation given to us, there are no
failures to correct the major weaknesses observed in the internal
control;
5. In respect of transactions entered in the Register maintained in
pursuance of Section 301 of the Companies Act, 1956
a. To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that needed to
be entered into the register have been so entered.
b. The company has not entered in to any transactions exceeding the
value of five lakh rupees in respect of each party and hence we are not
required to comment on such transactions.
6. As per the records and according to the information given to us,
the company has not accepted any deposits from the public. The Company
Law Board has not passed any order on the company.
7. In our opinion, the internal audit functions carried out during the
period by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business.
8. According to the records produced and information given to us, we
have seen that cost records and accounts as prescribed by the Central
Government under Section 209 (1 )(d) of the Act have been made and
maintained by the Company to the extent applicable but no examination
of such records and accounts has been carried out by us.
9. According to the information and explanations given to us, in
respect of statutory dues and other dues
a. The company has been generally regular in depositing undisputed
statutory dues, including Provident Fund, Employees' State Insurance,
Investor Education and Protection Fund, Income Tax, Wealth Tax, Custom
Duty, Excise Duty, Cess and other statutory dues with appropriate
authorities during the period.
b. Disputed Excise Duty of Rs. 2.02 lacs are pending before the
Commissioner Appeals. The company has deposited Rs.0.53 lacs against
the disputed excise duty liability; company has provided an equal
amount of penalty for the duty payable.
c. Disputed income tax of Rs.4.26 lacs is pending before Commissioner
Appeals. The company has deposited Rs.0.50 lakhs against disputed
income tax liability.
d. Central sales tax amount of Rs.0.80 of 2008-09 is showing as the
payable from the year 2008-2009 which the company may have to pay.
10. There are no accumulated losses at the end of the year and hence
clause (x) of the Order is not applicable for the company;
11. Based on our audit procedures and according to the information and
explanation given by the management, the Company has not defaulted in
repayment of dues to a financial institution or bank or debenture
holders.
12. According to the information furnished to us and verified by us,
the company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities and hence
clause (xi) of the Order is not applicable to the company;
13. In our opinion, the company is not a Chit fund or a Nidhi/Mutual
Benefit Fund/Society. Therefore, the provisions of clause (xiii) of the
Order are not applicable to the company;
14. In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments and accordingly provisions
of clause (xiv) of the Order are not applicable to the company;
15. According to the information and explanation given by the
management, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. To the best of our knowledge and belief and according to the
information and explanation given to us, terms loans availed by the
Company were, Prima facie, applied by the Company during the period for
the purpose for which the loans were obtained.
17. According to the cash flow statement and other records examined by
us, and the information and explanations given to us, on an overall
basis, funds raised on short term basis have, Prima facie, not been
used during the period for long term investment and vice versa.
18. During the year 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 and hence clause (xviii) of the
Order is not applicable to the company.
19. The company has not issued any debentures during the year and
hence clause (xix) of the Order is not applicable to the company.
20. The company has not raised any money by way of public issue during
the year under report and hence clause (xx) of the Order is not
applicable.
21. To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the Company
was noticed or reported during the year.
For GNANOBA & BHAT
CHARTERED ACCOUNTANTS
(Registration No. 000939S)
(K.R. GNANOBA)
PLACE: BANGALORE PARTNER
DATE : 26.05.2012 Membership No: 023137
Mar 31, 2011
We have audited the attached Balance Sheet of M/s. NATURAL CAPSULES
LIMITED, Bangalore, as at 31st March 2011, and also the Profit & Loss
account for the year ended on that date annexed thereto and the cash
flow statement for the year ended on that date, which we have signed
under reference to this report. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003, issued
by the Department of Company Affairs in terms of Section 227 (4A) of
the Companies Act, 1956 and on the basis of such checks as we
considered appropriate and according to the information and
explanations given to us, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
2. Further to our comments in the Annexure referred to in paragraph
(1) above:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from the examination of
those books;
(iii) The Balance Sheet, Profit & Loss account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, Profit & 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 31 st March 2011
(vi) and taken on record by the Board of Directors, we report that none
of the Directors are disqualified as on 31st March 2011 from being
appointed as a Director in terms of Clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956;
(vii) In our opinion and to the best of our information and according
to the explanations given to us, the said financial statements together
with the notes thereon and attached thereto, 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 31 st March 2011;
(b) in the case of the Profit & Loss account, of the Profit of the
Company for year ended on that date; and in the case of Cash flow
statement, of the cash flows for the year ended on that date.
(c) in the case of Cash flow statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITOR'S REPORT
(REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE).
1. In respect of Us fixed assets
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
b. The fixed assets have been physically verified by the management.
In our opinion the frequency of verification is reasonable. According
to the information and explanation given to us no material
discrepancies were noticed on such verification.
c. The company has not disposed off its substantial part of fixed
assets during the year.
2. In respect of inventories
a. As explained to us inventories were physically verified by the
management at reasonable intervals.
b. In our opinion, and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of the business.
c. In our opinion, and according to the information and explanation
given to us, the company has maintained proper books of its inventories
and no material discrepancies were noticed on physical verification.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956,
according to the information and explanation given to us
a. During the year, the company has not granted or taken any loans
to/from, firms or other parties recorded in register maintained under
section 301 of the Act.
b. Since no loans are granted / taken sub-clause (b), (c) & (d) of
clause iii of paragraph 4 of the order are not applicable to the
company.
4. 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 and fixed assets and for the
sale of goods. According to the explanation given to us, there are no
failures to correct the major weaknesses observed in the internal
control;
5. In respect of transactions entered in the Register maintained in
pursuance of Section 301 of the Companies Act, 1956
a. To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that needed to
be entered into the register have been so entered.
b. The company has not entered in to any transactions exceeding the
value of five lakh rupees in respect of each party and hence we are not
required to comment on such transactions.
6. As per the records and according to the information given to us,
the company has not accepted any deposits from the public. The Company
Law Board has not passed any order on the company.
7. In our opinion, the internal audit functions carried out during the
period by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business.
8. According to the records produced and information given to us, we
have seen that cost records and accounts as prescribed by the Central
Government under Section 209 (1 )(d) of the Act have been made and
maintained by the Company to the extent applicable but no examination
of such records and accounts has been carried out by us.
9. According to the information and explanations given to us, in
respect of statutory dues and other dues
a. The company has been generally regular in depositing undisputed
statutory dues, including Provident Fund, Employees' State Insurance,
Investor Education and Protection Fund, Income Tax, Wealth Tax, Custom
Duty, Excise Duty, Cess and other statutory dues with appropriate
authorities during the period.
b. Disputed Excise Duty of Rs. 2.02 lacs are pending before the
Commissioner Appeals. The company has deposited Rs.0.53 lacs against
the disputed excise duty liability; company has provided an equal
amount of penaltyforthe duty payable.
c. Disputed income tax of Rs.9.12 lacs is pending before Commissioner
Appeals. The company has deposited Rs.0.50 lakhs against disputed
income tax liability.
d. Central sales tax amount of Rs.0.80 of 2008-09 is showing as the
payable from the year 2008-2009 which the company may have to pay.
10. There are no accumulated losses at the end of the year
and hence clause (x) of the Order is not applicable for the company;
11. Based on our audit procedures and according to the information and
explanation given by the management, the Company has not defaulted in
repayment of dues to a financial institution or bank or debenture
holders.
12. According to the information furnished to us and verified by us,
the company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities and hence
clause (xi) of the Order is not applicable to the company;
13. In our opinion, the company is not a Chit fund or a Nidhi/Mutual
Benefit Fund/Society. Therefore, the provisions of clause (xiii) of the
Order are not applicable to the company;
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments and accordingly
provisions of clause (xiv) of the Order are not applicable to the
company;
15. According to the information and explanation given by the
management, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. To the best of our knowledge and belief and according to the
information and explanation given to us, terms ioans availed by the
Company were, Prima facie, applied by the Company during the period for
the purpose for which the loans were obtained.
17. According to the cash flow statement and other records examined by
us, and the information and explanations given to us, on an overall
basis, funds raised on short term basis have, Prima facie, not been
used during the period for long term investment and vice versa.
18. During the year 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 and hence clause (xviii) of the
Order is not applicable to the company.
19. The company has not issued any debentures during the year and
hence clause (xix) of the Order is not applicable to the company.
20. The company has not raised any money by way of public issue during
the year under report and hence clause (xx) of the Order is not
applicable.
21. To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the Company
was noticed or reported during the year.
For GNANOBA & BHAT
CHARTERED ACCOUNTANTS
(Registration No. 000939S)
(K.R. GNANOBA)
PARTNER
Membership No: 023137
PLACE: BANGALORE
DATE: 28.05.2011
Mar 31, 2010
We have audited the attached Balance Sheet of M/s. NATURAL CAPSULES
LIMITED, Bangalore, as at 31st March 2010, and also the Profit & Loss
account for the year ended on that date annexed thereto and the cash
flow statement for the year ended on that date, which we have signed
under reference to this report. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors Report) Order, 2003, issued
by the Department of Company Affairs in terms of Section 227 (4A) of
the Companies Act, 1956 and on the basis of such checks as we
considered appropriate and according to the information and
explanations given to us, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
2. Further to our comments in the Annexure referred to in paragraph
(1) above:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from the examination of
those books;
(iii) The Balance Sheet, Profit & Loss account and the Cash Flow
Statement dealt with by this report are in agreementwith the books of
account.
(iv) In our opinion, the Balance Sheet, Profit & 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;
on record by the Board of Directors, we report that none of the
Directors are disqualified as on 31st March 2010 from being appointed
as a Director in terms of Clause (g) of sub-section (1) of Section 274
of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto, 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 31 st March 2010;
(b) in the case of the Profit & Loss account, of the Profit of the
Company for year ended on that date; and
(c) in the case of Cash flow statement, of the cash flows for the year
ended on that date.
(v) On the basis of written representations received from the Directors
as on 31st March 2010 and taken
ANNEXURE TO AUDITORS REPORT (REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF
EVEN DATE).
1. In respect of its fixed assets
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
b. The fixed assets have been physically verified by the management.
In our opinion the frequency of verification is reasonable. According
to the information and explanation given to us no material
discrepancies were noticed on such verification.
c. The company has not disposed off its substantial part of fixed
assets during the year.
2. In respect of inventories
a. As explained to us inventories were physically verified by the
management at reasonable intervals.
b. In our opinion, and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of the business.
c. In our opinion, and according to the information and explanation
given to us, the company has maintained proper books of its inventories
and no material discrepancies were noticed on physical verification.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956,
according to the information and explanation given to us
a. During the year, the company has not granted or taken any loans
to/from, firms or other parties recorded in register maintained under
section 301 of the Act.
b. Since no loans are granted / taken sub-clause (b), (c) & (d) of
clause iii of paragraph 4 of the order are not applicable to the
company.
4. 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 and fixed assets and for the
sale of goods. According to the explanation given to us, there are no
failures to correct the major weaknesses observed in the internal
control;
5. In respect of transactions entered in the Register maintained in
pursuance of Section 301 of the Companies Act, 1956
a. To the best of our knowledge and belief and according to the information
and explanations given to us, transactions that needed to be entered into
the register have been so entered. b. The company has not entered in to any
transactions exceeding the value of five lakh rupees in respect of each
party and hence we are not required to comment on such transactions.
6. As per the records and according to the information given to us,
the company has not accepted any deposits from the public. The Company
Law Board has not passed any order on the company.
7. In our opinion, the internal audit functions carried out during the
period by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business.
8. According to the records produced and information given to us, we
have seen that cost records and accounts as prescribed by the Central
Government under Section 209 (1) (d) of the Act have been made and
maintained by the Company to the extent applicable but no examination
of such records and accounts has been carried out by us.
9. According to the information and explanations given to us, in
respect of statutory dues and other dues
a. The company has been generally regular in depositing undisputed
statutory dues, including Provident Fund, Employees State Insurance,
Investor Education and Protection Fund, Income Tax, Wealth Tax, Custom
Duty, Excise Duty, Cess and other statutory dues with appropriate
authorities during the period.
b. Disputed Excise Duty of Rs.1.26 lacs is pending before the
Commissioner Appeals. The company has deposited Rs.0.53 lacs against
the disputed excise duty liability.
c. Disputed income tax of Rs.7.65 lacs is pending before Commissioner
Appeals. The company has deposited Rs.0.50 lakhs against disputed
income tax liability.
10. There are no accumulated losses at the end of the year and hence
clause (x) of the Order is not applicable for the company;
11. Based on our audit procedures and according to the information and
explanation given by the management, the Company has not defaulted in
repayment of dues to a financial institution or bank or debenture
holders.
12.According to the information furnished to us and verified by us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities and hence
clause (xi) of the Order is not applicable to the company;
13. In our opinion, the company is not a Chit fund or a Nidhi/Mutual
Benefit Fund/Society. Therefore, the provisions of clause (xiii) of the
Order are not applicable to the company;
14. In our opinion, the company is not dealing in ortradingin shares,
securities, debentures and other investments and accordingly provisions
of clause (xiv) of the Order are not applicable to the company;
15. According to the information and explanation given by the
management, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. To the best of our knowledge and belief and according to the
information and explanation given to us, terms loans availed by the
Company were, Prima facie, applied by the Company during the period for
the purpose for which the loans were obtained.
17. According to the cash flow statement and other records examined by
us, and the information and explanations given to us, on an overall
basis, funds raised on short term basis have, Prima facie, not been
used during the period for long term investment and vice versa.
18. During the year 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 and hence clause (xviii) of the Order is
not applicable to the company.
19. The company has not issued any debentures during the year and hence
clause (xix) of the Order is not applicable to the company.
20. The company has not raised any money by way of public issue during
the year under report and hence clause (xx) of the Order is not
applicable.
21. To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the Company
was noticed or reported during the year.
For GNANOBA & BHAT
CHARTERED ACCOUNTANTS
(K.R. GNANOBA)
PARTNER
Membership No: 023137
PLACE:BANGALORE
DATE : 22nd May, 2010