Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying standalone Ind AS financial statements of âNTC Industries Limitedâ (âthe Companyâ) which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Emphasis on Matter
Without Qualifying our report we would like to draw attention to the following matter in the notes to the financial statements:
a) Note 36 to the financial statements, which describe the uncertainty related to the outcome of pending dispute in the matter of provision of interest on unsecured loan.
b) Note 38 to the financial statements, which describe the uncertainty related to the outcome of pending dispute with West Bengal Government in the matter of Entry Tax.
c) Note 39 to the financial statements, which describe the uncertainty related to the outcome of suit filed by the group of minority shareholders in the matter of disposal of land and building appurtenant thereto.
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 A, a 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, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31st March, 2018 taken 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 Auditorâs) 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 standalone Ind AS financial statements in accordance with the generally accepted accounting principle, refer note 36, 38 & 39 to the standalone Ind AS 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 were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
ANNEXURE A TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As informed to us the fixed assets of the company have been physically verified by the Management at the year end and in our opinion the frequency of verification is reasonable having regard to the size of the Company and the nature of its asset. No discrepancies were noticed on such physical verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, we report that, except as stated in Note No 35 regarding non registration of propery at Silliguri of Rs. 6,55,372/- in the name of the company, all other title deeds of the immovable properties are held in the name of the Company as at the balance sheet date.
ii) As explained to us, the inventories other than material lying with third parties (which have substantially been confirmed) were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on such physical verification.
iii) The company has granted unsecured loans to the parties covered in the register maintained under Section 189 of the Act; and with respect to the same:
a) The terms and conditions of the grant of such loans are not prejudicial to the companyâs interest.
b) The loans granted to the parties covered in the register maintained under section 189 of the Act, has no stipulated schedule of repayment of principal and payment of interest and are repayable on demand.
c) According to the information and explanations given to us, since the loans granted has no stipulated schedule of repayment of principal and payment of interest , the question of overdue amounts does not arise.
iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities.
v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
vi) The rules regarding maintenance of cost records which have been specified by the central government under section 148(1) of Companies Act, 2013 are not applicable. Accordingly, the provisions of clause 3(vi) of the Order are not applicable.
vii) a) According to the information and explanations given to us and on the basis of our examination of the
records of the Company, amount deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and Other Statutory Dues applicable to it have been generally regularly deposited during the year with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect to above were in arrears, as at March 31, 2018 for a period of more than six months from the date on which they become payable except as stated below:
Nature of due |
Amount (Rs. in lacs) |
Period |
Entry Tax |
0.42 |
2017-18 |
b) As at 31st March, 2018, there is no amounts payable in respect of disputed income tax, sales tax, service tax, duty of customs, duty of excise and value added tax except as stated below:
Nature of Statute |
Nature of Dues |
Amount (Rs. in lacs) |
Period |
Forum where pending |
Central Excise Act, 1944 |
Excise Duty |
3.37 |
September 1994 to October 1995 |
Customs, Excise & Service Tax Appellate Tribunal |
viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks. The company has not taken any loans or borrowings from any financial institution and government or has not issued any debentures..
ix) The company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. Term loan has been applied for the purpose for which they were obtained.
x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers/employees has been noticed or reported during the period covered by our audit.
xi) In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii) The company is not a Nidhi Company. Accordingly, the provisions of clause 3(xii) of the Order are not applicable.
xiii) Based on our examination of the records and the information and explanations given to us, all transactions with the related parties were in compliance with sections 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Standalone Ind AS Financial Statements etc as required by the applicable accounting standards.
xiv) Based on our examination of the records and the information and explanations given to us,, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Therefore the provisions of clause 3(xiv) of the Order are not applicable to the Company.
xv) Based on our examination of the records and the information and explanations given to us, the Company has not entered into any non-cash transactions with the directors or persons connected with him. Therefore the provisions of clause 3(xv) of the Order are not applicable to the Company.
xvi) Based on our examination of the records and the information and explanations given to us, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
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 NTC Industries Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The 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) issued by ICAI and and the Standards on Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 judgement, 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 unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 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 VKR & Associates.
Chartered Accountants
ICAI Firm Registration No.: 320323E
Santosh Kumar Agrawal, FCA
Place: Kolkata (Partner)
Date: 29th May, 2018 Membership No.: 067092
Mar 31, 2016
TO THE MEMBERS OF NTC INDUSTRIES LIMITED
We have audited the accompanying financial statements of NTC INDUSTRIES LIMITED, which comprise the Balance Shoot as at March 31, 2016, the Statement of Profit & Loss and Cash Flow Statement for the year ended on that date, and also 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) Rules, 2014. This responsibility also induces 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 financial statements that give a true and fair view and arc free from material misstatement, whether due to fraud or error.
AUDITORâS RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act Those Standards require that we comply with optical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are tree from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures In the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether duo 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 and it procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March ,2016. and its Loss and its cash flows for the year ended on that date.
EMPHASIS OF MATTER
We draw attention to the following matter in the Notes to the following financial statements:
a) Note 2.31 to the financial statements, which describe the uncertainty related to the outcome of pending dispute in the matter of provision of interest unsecured loan.
b) Note 2.32 to the financial statements which describe the uncertainty related to the outcome of pending dispute in the matter of Excise duty with Central Excise Department.
c) Note 2 33 to the financial statements which descanted the uncertainty related to the outcome of pending dispute with West Bengal Government in the matter of Entry Tax.
d) Note 2.35 to the financial statements which descanted the uncertainty related to the outcome of suit filed by the group of minority shareholders in the matter of disposal of land and building appurtenant thereto.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (Auditorâs Report) Order. 2016 (âthe Order") issued by the Central Government of India in terms of sub-section < 11) of section 143 of the Act, and on the basis of such checks of the books and records as we considered appropriate and according to the information and explanations given to us, we set out a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
1. a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets
b) As explained to us, Fixed Assets of the company are physically verified by the management according to a phased programme designed to cover all the items which considering the size and nature of operations of the company appears to be reasonable. Pursuant to such program, no material discrepancies between book records and physical inventory have been noticed on physical verification.
c) With respect to immovable properties of acquired land and buildings, according to the information and explanations given to us and the records examined by us and based on the examination of the court orders provided to us we report that, the title deeds of such immovable properties are held in the name of the Company as at the balance sheet date except as staled below:
Description of Properly |
Cos# of Property |
Land at Siliguri |
Rs.6,55,372/ |
2. a) The inventory (excluding stock lying with third parties) has been physically verified by the management at regular intervals. In respect of inventory lying with third parties, these have substantially been confirmed by them.
b) In our opinion and according to the information''s and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.
c) On the basis of our examinations of records of the inventory, in our opinion, the company is maintaining proper records of inventory except in respect of work-in-progress. As in earlier years, work-ln-progress has been determined by the management on the basis of physical verification. The discrepancies ascertained on physical verification between the physical stock and the book records of inventory wore not material in relation to the operations of the Company.
3.) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act 2013. Hence clause is not applicable.
4.) According to the records of the company examined by us and according to the information and explanations given to us, in our opinion the company has given loans to parties covered under the provisions of section 185 and 186 of the Companies Act, 2013. The loan so granted has been granted in compliance with the provisions of section 185 and 186 of the companies Act, 2013.
5.) The company has not accepted deposits and the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed there under are not applicable.
6.) The rules regarding maintenance of cost records which have been specified by the central government under sub-section (1) of section 148 of the Companies Act, 2013 are not applicable to the Company.
7.) a) The company is regular in depositing undisputed statutory dues including provident fund, employees'' stale insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities and there Is no arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable except as stated below:
Nature of Dues |
Amount (Rs In Lacs) |
Period |
Municipal Tax |
3.84 |
14-15 |
Municipal Tax |
0.59 |
Q2J5-16 |
b) According to the records of the company examined by us and according to information and explanations given to us, there are no dues in respect of income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax or cess which have not been deposited on account of any dispute except as stated below:
Nature of Statute |
Nature of Dues |
Amount (Rs in Lacs) |
Period |
Forum where pending |
West Bengal Tax on Entry of Goods into Local Areas Act, 2013 |
Entry Tax |
0.16 2.00 |
2014-15 2015-16 |
Hon''bie High Court of Calcutta |
Central Excise Act, 1944 |
Excise Duty, Interest and Penalty |
9100.74 |
1994-96 2000-01 2001-02 |
Assistant/Additional/Deputy Commissioner, Commissioner! Appeal) Appellate Tribunal and High Court |
8.) According to the records of the Company examined by us and the information and explanations given to us, the Company has neither defaulted in repayment of loans or borrowing to any financial institution, bank and government nor has it any outstanding debenture; hence the clause is not applicable,
9.) According to the information and explanations given to us, there was no money raised by way of initial public offer or further public offer (including debt instruments) and term loan has been applied, on an overall basis, for the purpose for which they were obtained.
10.) According to the information and explanations given to us, we report that neither any fraud by the company nor on the company by its officers / employees has been noticed or reported d during the year.
11.) As examined by us, the company has paid remuneration to managerial personnel during the period in accordance with the requisite approval mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
12.) The company is not a nidhi company. Hence clause is not applicable.
13.) According to the information and explanations given to us, we are of the opinion that all the transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 and the details have been disclosed in the financial statements etc., as required by the applicable accounting standards.
14.) According to the information and explanations given to us, we report that the company has neither made any preferential allotment or private placement of shares nor fully or partly convertible debentures during the year under review. Hence clause is not applicable.
15.) According to the information and explanations given to us, we report that the company has not entered into any non-cash transactions with directors or persons connected with them. Hence clause is not applicable.
16.) According to the information and explanations given to us, we report that company is not required to be registered u/s 45-IAof Reserve Bank of India Act, 1934.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by Section 143 (3) of the Act, we report that:
1. 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.
2. 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.
3. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
4. In our opinion, the aforesaid financial statements comply with the Accounting Standards spec Hide under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
5. On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
6. With respect to the adequacy of the internal financial controls over financials reporting of the company and the operating effectiveness of such controls, refer to our separate report in Annexure A.
7. 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:
a) (i) Note 2.31 to the financial statements, which describes the uncertainty related to the outcome of pending dispute in the matter of provision of interest unsecured loan.
(ii) Note 2.32 to the financial statements which describes the uncertainty related to the outcome of pending dispute In the matter of Excise duty against Central Excise Department.
(iii) Note 2.33 to the financial statements which describes the uncertainty related to the outcome of pending dispute against West Bengal Government in the matter of Entry Tax.
(iv) Note 2.35 to the financial statements which describes the uncertainty related to the outcome of suit filed by the group of minority shareholders in the matter of disposal of land and building appurtenant thereto.
b) The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Report on the Internal Financial Controls under Clause (I) of Sub-section 3 of Section 143 of the Companies Act, 2013
TO THE MEMBERS OF NTC INDUSTRIES LIMITED
We have audited the internal financial controls over financial reporting of NTC INDUSTRIES LIMITED as of 31st March 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
i) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company.
ii) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company.
iii) 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 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
ForS. M. DAGA& CO.
Cha rtered Accou nta nts
Firm Registration No. 303119E
Deepak Kumar Daga
(Partner)
Membership No. 059205
Date: 30"''dayof May, 2016
Place: Kolkata - 700 001.
Mar 31, 2015
We have audited the accompanying standalone financial statements of NTC
industries limited, which comprise the Balance Sheet as at March
31,2015, the Statement of Profit & Loss and Cash Flow Statement for the
year ended, and also a summary of significant accounting policies and
other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalonefinancial statements that
give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding 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 financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material ^ misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements. We
believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Emphasis of Matter
We draw attention to the following matter in the Notes to the following
financial statements:
a) Note 2.32 to the standalone financial statements which, describes
the uncertainty related to the outcome of pending dispute in the matter
of provision of interest on unsecured loan Our opinion is not qualified
on this matter.
b) Note 2.33 to the standalone financial statements which, describes
the uncertainty related to the outcome of pending dispute in the matter
of Excise duty against Central Excise department. Our opinion is not
qualified on this matter.
c) Note 2.34 to the standalone financial statements which, describes
the uncertainty related to the matter of Entry Tax. Our opinion is not
qualified on this matter.
d) Note 2.35 to the standalone financial statements which describes
suit filed by the group of shareholders in matter of disposal of land
and building appurtenant thereto. Our opinion is not qualified on this
matter.
e) Note 2.36 to the standalone financial statements which, describes
the uncertainty related to the outcome of pending dispute in the matter
of Value Added Tax against commercial tax department. Our opinion is
not qualified on this matter.
f) Note 2.39 to the standalone financial statements, regarding change
in the method of depreciation from Written Down Value Method to
Straight Line Method. Our opinion is not qualified on this matter.
g) Note 2.40 to the standalone financial statements regarding non
transfer of Dividend for the FY 2006-07 to Investor Education &
Protection Fund (IEPF). Our opinion is not qualified on this matter.
Report on Other Legal and Regulatory Requirements
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, and on the basis of such
checks of the books and records as we considered appropriate and
according to the information and explanations given to us, we set out a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
1. ) a) The company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us Fixed Assets of the company are physically
verified by the management according to a phased programme designed to
cover all the items which considering the size and nature of operations
of the company appears to be reasonable. Pursuant to such program, no
material discrepancies between book records and physical inventory have
been noticed on physical verification.
2. ) a) The inventory has been physically verified by the management at
regular intervals.
b) In our opinion and according to the information's and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) On the basis of our examinations of records of the inventory, in our
opinion, the company is maintaining proper records of inventory except
in respect of work-in-progress. As in earlier years, work-in-progress
has been determined by the management on the basis of physical
verification. The discrepancies ascertained on physical verification
between the physical stock and the book records of inventory were not
material in relation to the operations of the Company.
3. ) The company has not granted loans, secured or unsecured to any
party 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 systems commensurate
with the size of the company and 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 our examination of the books and
records of the company and according to the information and
explanations given to us, no major weakness in internal control system
have been noticed or reported.
5. ) The company has not accepted deposits and the directives issued by
the Reserve Bank of India and the provisions of sections 73 to 76 or
any other relevant provisions of the Companies Act 2013 and the rules
framed there under are not applicable.
6. ) As per the Companies (Cost Records & Audit) Amendment Rules, 2014
dated 31st December, 2014 the products of the Company do not fall under
any of the Central Excise Tariff Act, 1985 heading which are covered
for applicability of the above rules. Hence maintenance of Cost
Records and Cost Audit is not applicable to the Company.
7. ) a) The company is regular in depositing undisputed statutory dues
including provident fund, employees' state insurance, income-tax,
sales-tax, service tax, duty of customs, duty of excise, value added
tax, cess and any other statutory dues with the appropriate authorities
and there is no arrears of outstanding statutory dues as at the last
day of the financial year concerned for a period of more than six
months from the date they became payable except stated below:
Nature of Dues Amount ( Rs. in Lacs) Period
Land Revenue 7.75 2014-15
b) According to the records of the company examined by us and according
to information and explanations given to us, there are no dues in
respect of income tax, sales tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax or cess which have not been
deposited on account of any dispute except as stated below:
Nature of Nature of Amount (Rs. Period Forum where pending
Statute Dues Lacs)
Central Excise Excise 9006.02
Act, 1944 Duty and Assistant/Additional/
interest Deputy Commissioner,
Penalty Commissioner (Appeals),
there on Appellate Tribunal and
Supreme Court
West Bengal VAT 110.24 2011-12 Joint Commissioner
Value Added Appeal (Commercial
Tax Act, 2003 Tax)
c) During the year amount of Rs. 1,31,140.50/- for the F.Y. 2006-07 was
required to be transferred to Investor education and protection fund in
accordance with the relevant provisions of the companies Act, 1956 (1
of 1956) and rules made there under, which was delayed but was
transferred before signing of Financial Statements.
8. ) The Company does not have accumulated losses in the current
financial year. Further, neither there was any cash loss in the
financial year under review nor in the immediately preceding financial
year.
9. ) As per the books and records examined by us and according to the
information and explanations given to us, in our opinion, the company
has not defaulted in repayment of dues to financial institutions or
banks or debenture holders.
10. ) The Company has not given any guarantee for the loans taken by
others from banks or financial institutions during the year.
11. ) In our opinion, and according to the information's and
explanations given to us, the term loan has been applied, on an overall
basis, for the purpose for which they were obtained.
12. ) During the course of our examination of the books and records of
the company carried out in accordance with the generally accepted
auditing practices in India and according to the information's and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of any such case by the management.
Report on Other Legal and Regulatory Requirements
As required by Section 143 (3) of the Act, we report that:
1. 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.
2. 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.
3. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
4. Subject to Note No. 2.40, regarding change in method of accounting
of depreciation from WDV to SLM. 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.
5. 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.
6. 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:
a) i. Note 2.32 to the standalone financial statements which, describes
the uncertainty related to the outcome of pending dispute in the matter
of provision of interest on unsecured loan. Our opinion is not
qualified on this matter.
ii. Note 2.33 to the standalone financial statements which, describes
the uncertainty related to the outcome of pending dispute in the matter
of Excise duty against Central Excise department. Our opinion is not
qualified on this matter.
iii. Note 2.34 to the standalone financial statements which, describes
the uncertainty related to the matter of Entry Tax. Our opinion is not
qualified on this matter.
iv. Note 2.35 to the standalone financial statements which describes
suit filed by the group of shareholders in matter of disposal of land
and building appurtenant thereto. Our opinion is not qualified on this
matter.
v. Note 2.36 to the standalone financial statements which, describes
the uncertainty related to the outcome of pending dispute in the matter
of Value Added Tax against commercial tax department. Our opinion is
not qualified on this matter.
b) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
c) During the year amount of Rs. 1,31,140.50/- for the F.Y. 2006-07 was
required to be transferred to Investor education and protection fund in
accordance with the relevant provisions of the companies Act, 1956 (1
of 1956) and rules made there under, which was delayed but was
transferred before signing of Financial Statements.
For & on behalf of the Board
Nilotpal Deb Ravi Prakash Pincha
Managing Director Director
Place: Kolkata
Date : 30th Day of May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of NTC Industries
limited, which comprise the Balance Sheet as at March 31, 2014, and the
Statement of Profit & Loss for the year 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 of the Company in accordance with the Accounting
Standards notified under the Companies Act, 1956 (Âthe Act") read with
General Circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our '' audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements read with
other notes 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 Balance Sheet, of the state of affairs of the Company
as at 31st March, 2014.
b) In the case of the Statement of Profit & Loss of the Profit for the
year ended 31st March, 2014.
c) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors'' Report) Order, 2003 as amended
by the Companies (Auditor''s Report) (Amendment) Order, 2004 issued by
the Central Government in exercise of the power conferred by section
227(4A) of the Companies Act, 1956 (the Act) on the matters specified
in paragraph 4 and 5 of the said Order, we report that -
1. a '' The company is maintaining proper records showing, full
particulars including quantitative details
and situation of Fixed Assets.
b. In our opinion, the fixed assets have been physically verified by
the management at reasonable intervals. No material discrepancies were
noticed on such verification..
c. In our opinion, substantial part of fixed assets has not been
disposed off by the company during the year.
2. a. In our opinion, the inventory of the Company has been
physically verified by the management at reasonable intervals during
the year. In respect of material lying with third parties, these have
substantially been confirmed by them.
b. In our opinion, the procedures of physical verification followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. On the basis of our examinations of records of the inventory, in
our opinion, the company is maintaining proper records of inventory
except in respect of work-in-progress. As in earlier years,
work-in-progress has been determined by the management on the basis of
physical verification. The discrepancies ascertained on physical
verification between the physical stock and the book records of
inventory were not material in relation to the operations of the
Company.
3. a. The company has granted loan to four parties covered in the
register maintained under section 301
of the Companies Act, 1956, during the year. The maximum amount
involved during the year was Rs. 6,62,28514/- and the year end balance
was nil.
b. In our opinion and according to the explanation given to us, the
rate of interest and other terms and conditions are not prima facie
prejudicial to the interest of the Company.
c. The receipt of the principal amount and interest are regular.
d. There are no overdue amounts of more than rupees one lakh in
respect of the loan granted to a body corporate listed in the register
maintained under section 301 of the Act.
e. The Company has not taken any loans, secured or unsecured from
companies, firms or parties covered in the register maintained under
section 301 of the Act. Accordingly, paragraphs 4(iii)(e) to 4(iii)(g)
of the Order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system 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 our examination of the books and
records of the Company and according to the information and
explanations given to us, we have neither come across nor have we been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. a. In our opinion and according to information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to information and explanations given
to us, the transactions made in pursuance of contract or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 and exceeding the value of Rupees Five Lacs in respect of any
party during the year, have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposit from public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to -
determine whether they are accurate or complete.
9. a. According to the information and explanations given to us and
records of the company examined by
us, in our opinion, no undisputed amounts payable in respect of
provident fund, employees state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
statutory dues were outstanding, at the year end, for a period of more
than six months from the date they became payable.
b. According to the records of the Company examined by us and according
to information and explanations given to us, there are no dues of
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty and cess which have not been deposited on account of any dispute
except as detailed hereunder:
Name of the Statute Nature of the Dues Amount Forum where the
(Rs in Lacs) dispute is
pending
Central Excise duty and Assistant/
Additional/
Deputy
commissioner,
Excise Act, interest, penalty 8911.29 Commissioner,
Commissioner
(Appeals),
Appellate 1944
thereon Tribunal
& Supreme Court
10. The Company does not have accumulated losses. Further, neither
there was any cash loss in the financial year under review nor in the
immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holder as at the Balance Sheet date.
12. In our opinion, the company has not granted any loans & advances
on the basis of security by way of pledge of shares, debentures and
other securities.
13. The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
company.
14. In our opinion and according to the explanations given to us,
proper records have been maintained in respect of transactions and
contracts of dealing in shares and securities and timely entries has
been
J made in these records. The shares/securities have been held by the
company in its own name.
15. The Company has not given any guarantees for loans taken by others
from banks or financial institution.
16. The term loan obtained by the company has been applied for the
purpose for which they were raised.
17. According to the information and explanation given to us and on in
overall examination of the balance sheet of the company, we report that
no funds raised on short term basis have been used for long term
investments by the company.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the registered maintained under
section 301 of the Companies Act, 1956.
19. The company has not issued any debentures and hence question of
creating security in respect thereof does not arise.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
these books.
c. The Balance Sheet and Statement of Profit & Loss are in agreement
with the Books of Account.. ^
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss
comply with the Accounting Standards notified under the Companies Act,
1956 read with the General Circular 15/2013 dated 13 September 2013 of
the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013.
e. In our opinion and according to the explanations given to us none
of the Directors are disqualified from being appointed as directors
under clause (g) of sub-section (1) of section 274 of the Companies
Act, 1956.
Deepak Kumar Daga
(Partner)
For S. M. Daga & Co.
Membership No. 59205
Chartered Accountants
11, Clive Row, Kolkata - 700 001.
Firm Registration No. 303119E
The 28th day of May, 2014
Mar 31, 2013
We have audited the accompanying financial statements of NTC Industries
limited, which comprise the Balance Sheet as at March 31, 2013, the
Statement of Profit & Loss for the year ended on that date and Cash
Flow Statement for the year ended on that date, 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 of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("The Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements read with
other notes 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 Balance Sheet, of the state of affairs of the Company
as at 31st March, 2013.
b) In the case of the Statement of Profit & Loss of the Profit for the
year ended 31st March, 2013.
c) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date. Report on Other Legal and Regulatory Requirements
As required by Section 227(3) of the Act, we report that:
1. 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.
2. Proper books of account as required by law have been kept by the
Company so far as appears from our examination of these books.
3. The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the Books of
Account.
4. The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
5. In our opinion and according to the explanations given to us none
of the Directors are disqualified from being appointed as directors
under clause (g) of sub-section (1) of section 274 of the Companies
Act, 1956.
As required by the Companies (Auditors'' Report) Order, 2003 as amended
by the Companies (Auditor''s Report) (Amendment) Order, 2004 issued by
the Central Government in exercise of the power conferred by section
227(4A) of the Companies Act, 1956 on the matters specified in
paragraph 4 and 5 of the said Order, we report that -
i) a) The company is maintaining proper records showing, full
particulars including quantitative details and situation of Fixed
Assets.
b) In our opinion, the fixed assets have been physically verified by
the management at reasonable intervals. No material discrepancies were
noticed on such verification.
c) In our opinion, substantial part of fixed assets has not been
disposed off by the company during the year.
ii) a) In our opinion, the inventory of the Company has been physically
verified by the management at reasonable intervals during the year. In
respect of material lying with third parties, these have substantially
been confirmed by them.
b) In our opinion, the procedures of physical verification followed by
the management are 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 inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies ascertained on physical verification between the physical
stocks and the book records of inventories were not material in
relation to the operations of the Company.
iii) a) The company has granted loan to one party covered in the
register maintained under section 301 of the Companies Act, 1956,
during the year. The maximum amount involved during the year was Rs.
9,95,12,361/- and the year end balance wasRs. 6,14,26,168/,
b) In our opinion and according to the explanation given to us, the
rate of interest and other terms and conditions are not prima facie
prejudicial to the interest of the Company.
c) The receipt of the principal amount and interest are regular.
d) There are no overdue amounts of more than rupees one lakh in respect
of the loan granted to a body corporate listed in the register
maintained under section 301 of the Act.
e) The Company has not taken any loans, secured or unsecured from
companies, firms or parties covered in the register maintained under
section 301 of the Act. Accordingly, paragraphs 4(iii)(e) to 4(iii)(g)
of the Order are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system 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 our examination of the books and
records of the Company and according to the information and
explanations given to us, we have neither come across nor have we been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v) a) In our opinion and according to information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of contract or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 and exceeding the value of Rupees Five Lacs in respect of any
party during the year, have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi) The Company has not accepted any deposit from public.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(l)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
ix) a) According to the information and explanations given to us and
records of the company examined by us, in our opinion, no undisputed
amounts payable in respect of Provident Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other statutory dues were outstanding, at the
year end, for a period of more than six months from the date they
became payable.
x) The accumulated losses as at 31st March, 2013 are not more than
fifty percent of its net worth. The company has not incurred any cash
losses in the financial year ended on that date or in the immediately
preceding financial year.
xi) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holder as at the Balance Sheet date.
xii) In our opinion, the company has not granted any loans & advances
on the basis of security by way of pledge of shares, debentures and
other securities.
xiii) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
company.
xiv) In our opinion and according to information and explanations given
to us, the Company is not dealing in or trading in shares, securities,
debentures and other investments.
xv) The Company has not given any guarantees for loans taken by others
from banks or financial institution.
xvi) The term loan obtained by the company has been applied for the
purpose for which they were raised.
xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investments by the company.
xviii)The company has not made any preferential allotment of shares to
parties and companies covered in the registered maintained under
section 301 of the Companies Act, 1956.
xix) The company has not issued any debentures and hence question of
creating security in respect thereof does not arise.
xx) The Company has not raised any money by way of public issue during
the year.
xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management. ''
For S.M.DAGA&CO.
Chartered Accountants
Firm Registration No 303119E
Deepak Kumar Daga
ll,CliveRow,Kolkata-700 001 Partner
Dated : The 30th day of May, 2013 Membership No. 059205
Mar 31, 2012
We have audited the attached balance sheet of ntc industries limited as
at 31st March 2012, the related statement of profit and loss and cash
flow statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of 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.
We report that -
1. 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.
2. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
these books.
3. The balance sheet, statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
accounts.
4. In our opinion, the balance sheet, statement of profit and loss 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.
5. On the basis of written representations received from the directors
as on 31 st March 2012 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2012 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
6. In our opinion and based on the information and according to the
explanations given to us, the said account read with notes forming part
of the financial statements give the information required by the
Companies Act, 1956 in the manner so required and give true and fair
view:
(a) in the case of balance sheet, of the state of affairs of the
Company as at 31 st March 2012;
(b) in the case of statement of profit and loss, of the profit of the
Company for the year ended on that date; and
(c) in the case of the cash flow statement, of the Cash flows for the
year ended on that date.
As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956 and on the basis of such
checks of the books and records as we considered appropriate and
according to information and explanations given to us, the matters
specified in the said order are given hereunder to the extent to which
they are applicable.
i) a) The Company is maintaining proper records showing, full
particulars including quantitative details and situation of fixed
assets.
b) In our opinion, the fixed assets have been physically verified by
the management at reasonable intervals. No material discrepancies were
noticed on such verification.
c) The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern.
ii) a) The inventory (excluding stock lying with third parties)
has been physically verified by the management at regular intervals. In
respect of inventory lying with third parties, these have substantially
been confirmed by them. In our opinion, the frequencies of
verifications are reasonable.
b) In our opinion, the procedures of physical verification followed by
the management are 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 inventory records, we are of the
opinion that the Company is maintaining proper records of inventory.
The discrepancies noticed on physical verification between the physical
stocks and the book records were not material.
iii) a) The Company has not granted any loan during the year to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Consequently, the
requirements of sub clauses (a), (b), (c) and (d) of clause (iii) of
paragraph 4 of the order are not applicable,
b) The Company has not taken any loan during the year from companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Consequently, the requirements of sub
clauses (e), (f) and (g) of clause (iii) of paragraph 4 of the order
are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system 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 our examination of the books and
records of the Company and according to the information and
explanations given to us, we have neither come across nor have we been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v) a) In our opinion and according to information and explanations
given to us, the particulars of contracts or arrangements referred
to in section 301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of contract or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 and exceeding the value of Rupees Five Lacs in respect of any
party during the year, have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
Therefore the provisions of clause (vi) are not applicable to the
Company.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1 )(d) of the
companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
ix) a) According to the information and explanations given to us
and records of the Company examined by us, in our opinion, no
undisputed amounts payable in respect of provident fund, employees
state insurance, income tax, sales tax, wealth tax, service tax, custom
duty, excise duty, cess and other statutory dues were outstanding, at
the year end, for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us and the
record examined by us, there are no dues (except as stated below) in
respect of sales tax, income tax, customs duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute.
Name of Nature of Amount Forum where the
the Statute the Dues (Rs in Lacs) dispute is pending
Central Excise duty 8721.83 Assistant/Additional/
Excise and interest, Deputy commissioner,
Act, 1944 penalty Commissioner,
thereon Commissioner (Appeals),
Appellate Tribunal &
Supreme Court
x) The Company does not have accumulated losses as at 31st March 2012
and it has not incurred any cash losses in the financial year ended on
that date or in the immediately preceding financial year.
xi) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders during the year.
xii) In our opinion, the Company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
xiii) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company.
xiv) In our opinion and according to information and explanations given
to us. Company is not dealing in or trading in shares, securities,
debentures and other investments.
xv) The Company has not given any guarantees for loans taken by others
from banks or financial institution.
xvi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
raised.
xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short term basis have been used for long term
investment by the Company.
xviii) The Company has not made preferential allotment of shares to
parties and companies covered in register maintained under section 301
of the Companies Act, 1956 during the year.
xix) The Company has no debentures outstanding at any time during the
year and hence question of creating security in respect thereof does
not arise.
xx) As informed to us, the Company has not raised any money by way of a
public issue during the period covered by our audit report.
xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the Generally Accepted
Auditing Practices in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For S. M. Daga & Co.
Chartered Accountants
Firm Registration No. 303119E
11, Clive Row, MEGH RAJ DAGA
Kolkata - 700 001 (Partner)
28th May 2012 Membership No. 013625
Mar 31, 2010
We have audited the attached Balance Sheet of RDB INDUSTRIES LIMITED as
at 31st March, 2010, the related Profit & Loss Account and Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards
generalt,ly 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.
We report that -
1. 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.
2. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
these books.
3. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the Books of Account.
4. 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.
5. On the basis of written representations received from the directors
as on 31st March, 2010 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2010 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
a) In our opinion and based on the information and according to the
explanations given to us, the said account read with Notes appearing in
Schedule 21 give the information required by the Companies Act, 1956 in
the manner so required and give true and fair view:
b) in the case of Balance Sheet, of the State of Affairs of the Company
as at 31st March, 2010;
c) in the case of Profit & Loss Account, of the Loss of the Company for
the year ended on that date; and
d) in the case of the Cash Flow Statement, of the Cash flows for the
year ended on that date.
As required by the Companies (Auditors Report) Order, 2003, as amended
by the Companies (Auditors Report) (Amendment) Order, 2004, issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956 and on the basis of such checks of the
books and records as we considered appropriate and according to
information and explanations given to us, the matters specified in the
said order are given hereunder to the extent to which they are
applicable.
I) a) The Company is maintaining proper records showing, full
particulars including quantitative details and
situation of fixed assets.
b) In our opinion, the fixed assets have been physically verified by
the management at reasonable intervals.
No material discrepancies were noticed on such verification.
c) The Company has transferred assets pertaining to the real estate
undertaking to RDB Realty & Infrastructure Ltd under a scheme of
arrangement under section 391 to 394 of the Companies Act, 1956.
However it has not affected the going concern of the Company.
ii) a) In our opinion, the inventory of the Company has been physically
verified by the management at
reasonable intervals during the year. In respect of material lying with
third parties, these have substantially been confirmed by them.
b) In our opinion, the procedures of physical verification followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
On the basis of our examination of inventory records, we are of the
opinion, that the Company is maintaining proper records of inventory.
The discrepancies ascertained on physical verification between the
physical stocks and the book records of inventories were not material.
iii) The Company has neither granted nor taken any loans secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act 1956
during the year.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system 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 our examination of the books and
records of the Company and according to the information and
explanations given to us, we have neither come across nor have we been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v) a) In our opinion and according to information and explanations
given to us, the particulars of contracts
or arrangements referred to in section 301 of the Companies Act, 1956
have been so entered.
b) In our opinion and according to information and explanations given
to us, the transactions made in
pursuance of contract or arrangements entered in the register
maintained under section 301 of the Companies Act, 1956 and exceeding
the value of Rupees Five Lacs in respect of any party during the year,
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
vi) The Company has not accepted any deposits from the public.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) According to the information and explanations given to us, the
Central Government has not prescribed maintenance of Cost records under
clause (d) of sub-section (1) of section 209 of the Companies Act, 1956
for the products of the Company.
ix) a) According to the information and explanations given to us and
the records of the Company examined
by us, in our opinion, the Company is regular in depositing the
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income-tax, Sales-tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other
material statutory dues as applicable with the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
c) According to the information and explanations given to us and as far
as ascertained from the records produced for our verification, the
particulars of dues in respect of Excise Duty that have not been
deposited on account of any dispute are as follows:- Amount
Name of
the Nature Nature of
the Dues
Amount Forum where the dispute
is pending
(Rs. in
Lacs)
Assistant/Additional/Deputy
commissioner,
Excise duty
and
Commissioner, Commissioner
(Appeals),
Central Excise
Act, 1944 interest,
penalty 9218.37
Appellate Tribunal & Supreme
Court
thereon
x) The Company does not have accumulated losses as at 31st March, 2010
and it has not incurred any cash losses in the financial year ended on
that date or in the immediately preceding financial year.
xi) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders during the year.
xii) In our opinion, the Company has not granted any loans & advances
on the basis of security by way of pledge of shares, debentures and
other securities.
xiii) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company.
xiii) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company.
xiv) In our opinion and according to information and explanations given
to us, the Company is not dealing in or trading in shares, securities,
debentures and other investments.
xv) The Company has not given any guarantees for loans taken by others
from banks or financial institution.
xvi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
raised.
xvii) According to the information and explanation given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short term basis have been used for long term
investment by the Company.
xviii)The Company has not made preferential allotment of shares to
parties and companies covered in register maintained under section 301
of the Companies Act, 1956 during the year.
xix) The Company has no debentures outstanding at any time during the
year and hence question of creating security in respect thereof does
not arise.
xx) As informed to us, the Company has not raised any money by way of a
public issue during the period covered by our audit report.
xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For S. M. Daga & Co.
Chartered Accountants
11, Clive Row, D.K. Daga
Place: Kolkata: 700 001 Partner
Dated: 29th May, 2010 Membership No. 59205
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