Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Oswal Agro Mills Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2018, and 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 the 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 state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements, that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of standalone the Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure 1â a statement on the matters specified in paragraphs 3 and 4 of the said Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including the Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed 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 2â, and
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 37 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 1 TO THE INDEPENDENT AUDITORSâ REPORT
Referred to in our report of even date to the members of Oswal Agro Mills Limited on the standalone Ind AS financial statements for the year ended 31st March 2018, we report that:
(i) (a) In our opinion and according to the information and explanation given to us during the course of audit, the company has maintained proper records showing full particulars including quantitative details and situation of property, plant and equipment and investment properties.
(b) In our opinion and according to the information and explanation given to us during the course of audit, property, plant and equipment and investment properties have been physically verified by the management at reasonable interval having regard to the size of the company and the nature of its assets and no material discrepancy was noticed on such verification as compared to book records.
(c) According to the information and explanations given to us and on the basis of records examined by us, the titled deeds of the immovable properties are held in the name of the company subject to following limitations:
Particulars of the Immovable Property |
Gross carrying amount as at 31st March, 2018 (Rs. in thousand) |
Net carrying amount as at 31st March, 2018 (Rs. in thousand) |
Remarks |
1) Building at Vijay Vihar, Chembur, Mumbai |
560.89 |
517.58 |
Photocopy of the original title deeds was provided. |
2) Freehold Land at Ludhiana, Punjab |
3,088.25 |
3,088.25 |
Title deed is not available with the Company. However, the same has been verified from Tehsildarâs record, duly certified. |
(ii) In our opinion and according to the information and explanations given to us, inventories have been physically verified by the management at reasonable intervals having regard to the size of the company and no material discrepancy was noticed on such verification as compared to book records.
(iii) In our opinion and according to the information and explanation given to us during the course of audit, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Therefore, sub clauses (a), (b) & (c) of paragraph 3(iii) the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanation given to us during the course of audit, the Company has complied with the provisions Section 185 and 186 of the Act in respect of loans and investments of the Company. Further, the company has not given any guarantee or security; accordingly, to this extent paragraph 3(iv) of the Order is not applicable.
(v) In terms of the books and records examined by us, we state that the Company has not accepted any deposit from the public in terms of section 73 to 76 of the Act and the rules framed thereunder.
(vi) In our opinion and according to the information and explanation given to us, the Central Government has not prescribed maintenance of cost records under section 148 (1) of the Act. Therefore, paragraph 3(vi) of the Order is not applicable.
(vii) (a) According to the information and explanations given to us and the books and records examined by us, we state that the company is generally regular in depositing 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 any other statutory dues as applicable. There are no outstanding statutory dues for more than six months from the date they became payable as on 31st March 2018.
(b) In terms of the information and explanations sought by us and given by the company and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that there are no dues of income tax or sale tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of any dispute except disclosed as under:
Name of Statute |
Nature of the Dues |
Period to which it relates |
Amount in (Rs. thousand) |
Forum where it is pending |
Punjab General Sales Tax Act, 1948 (PGST) |
Value Added Tax |
1994-1995 |
16,151.28 |
Punjab VAT Tribunal |
Punjab General Sales Tax Act, 1948 (PGST) |
Value Added Tax |
1998-1999 |
1352.63 |
Punjab VAT Tribunal |
Punjab General Sales Tax Act, 1948 (PGST) |
Value Added Tax |
1999-2000 |
1422.73 (Excluding amount paid under protest Rs. 474.25 thousand) |
Punjab VAT Tribunal |
Central Sales Tax Act, 1956 |
Central Sales Tax |
1994-1995 |
349.33 |
Punjab VAT Tribunal |
(viii) The company does not have any loans or borrowing from any financial institution, bank, Government or debenture holders during the year. Accordingly, Paragraph 3(viii) of the Orders not applicable.
(ix) The company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
(x) According to the information and explanation given to us no fraud by the company or on the company, by its officers or employees has been noticed or reported during the course of our audit.
(xi) In our opinion and according to the information and explanation given to us during the course of audit, the Company has paid managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Act.
(xii) In our opinion and according to the information and explanation given to us during the course of audit, the company is not a Nidhi company. Therefore, clause 3(xii) of the Order are not applicable.
(xiii) In terms of the information and explanations sought by us and given by the company and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that transactions with the related parties are in compliance with sections 177 & 188 of the Act where applicable and details of such transactions have been disclosed in the Ind AS standalone financial statements as required by the applicable accounting standards.
(xiv) In terms of the information and explanations sought by us and given by the company and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that the company has not made any preferential allotment or private placements of shares or fully or partly convertible debentures during the year.
(xv) In terms of the information and explanations sought by us and given by the company and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that the Company has not entered into non- cash transaction with directors or persons connected with him. Therefore paragraph 3(xv) Order is not applicable.
(xvi) In our opinion and according to the information and explanation given to us during the course of audit, 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 with reference to financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls with reference to financial statements of Oswal Agro Mills Limited (âthe Companyâ) as of 31st March, 2018 in conjunction with our audit of the Standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for internal financial controls with reference to financial statements
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to financial statements 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 (ICAI). 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 with reference to financial statements based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. 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 with reference to financial statements 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 with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, 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 with reference to financial statements.
Meaning of internal financial controls with reference to financial statements
A Companyâs internal financial controls with reference to financial statements 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 controls with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of internal financial controls with reference to financial statements
Because of the inherent limitations of internal financial controls with reference to financial statements, 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 with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements 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 with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at 31st March, 2018, based on the internal controls over financial reporting criteria established by the Company considering the components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
For Agarwal & Dhandhania
Chartered Accountants
Firm Registration No. 125756W
Sanjay Agarwal
Place : New Delhi (Partner)
Dated : 25th May, 2018 Membership No. 078579
Mar 31, 2016
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Oswal Agro Mills Limited (âthe Company"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matter stated in Section 134(5) of the Companies Act, 2013 (âthe Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
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. 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, 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (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 âAnnexure A", a statement on the matters specified in paragraph 3 and 4 of the said Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, read Rule 7 of Companies (Accounts) Rule 2014.
e) 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.
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 B".
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 2.26 to the standalone 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.
The Annexure referred to in paragraph 1 of Report on other Legal and Regulatory Requirements, we report that:
i) a) The Company has maintained proper records (other than furniture and fixtures for closed units) showing full particulars including quantitative details and situation of fixed assets.
b) In our opinion and according to the information and explanation given to us, fixed assets have been physically verified by the management (other than furniture and fixtures for closed units) at reasonable intervals having regard to the size of the Company and the nature of its assets and no material discrepancy was noticed on such verification as compared to book records.
c) According to the information and explanations given to us and on the basis of records examined by us, the title deeds of the immovable properties are held in the name of the Company subject to following limitations:
Particulars of the Immovable Property |
Gross Block as at 31st March, 2016 (in Rs. thousand) |
Net Block as at 31st March, 2016 (in Rs.thousand) |
Remarks |
1) Building at Vijay Vihar, Chambur, Mumbai |
929.10 |
546.45 |
Photocopy of the Original title deeds was provided. |
1) Freehold Land at Ludhiana, Punjab |
3,088.25 |
3,088.25 |
Title deed is not available with the Company. However, the same has been verified from Tehsildar''s record, duly certified. |
ii) In our opinion and according to the information and explanation given to us, inventories have been physically verified by the management at reasonable intervals having regard to the size of the Company and no material discrepancy was noticed on such verification as compared to book records.
iii) The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act. Therefore, sub clauses (a), (b) & (c) of Paragraph 3(iii) of the Order is not applicable.
iv) In our opinion and according to the information and explanation given to us, the Company has complied with the provisions of Section 185 and Section 186 of the Act in respect of loans and investments of the Company. Further, the Company has not given any guarantees and security; accordingly, to this extent Paragraph 3(iv) of the order is not applicable.
v) In terms of the books and records examined by us, we state that the Company has not accepted any deposit from the public in terms of Section 73 to 76 or any other relevant provisions of the Act and the rules framed there under.
vi) In our opinion and according to the information and explanation given to us, the Central Government has not prescribed maintenance of cost records under section 148 (1) of the Act. Therefore, paragraph 3(vi) of the Order is not applicable.
vii) a) According to the information and explanations given to us and the books and records examined by us, we state that 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 as applicable. There are no outstanding statutory dues for more than six months from the date they became payable as on 31st March, 2016.
b) According to the information and explanations given to us, there are no dues of income tax or sale tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of any dispute except disclosed as under:
Name of Statute |
Nature of the Dues |
Period to which it relates |
Amount in (Rs. thousand) |
Forum where it is pending |
Punjab General Sales Tax Act, 1948 (PGST) |
Value Added Tax |
1994-1995 |
16,151.28 |
Punjab VAT Tribunal |
Punjab General Sales Tax Act, 1948 (PGST) |
Value Added Tax |
1998-1999 |
1,352.63 |
Punjab VAT Tribunal |
Punjab General Sales Tax Act, 1948 (PGST) |
Value Added Tax |
1999-2000 |
1,422.73 |
Punjab VAT Tribunal |
Central Sales Tax Act, 1956 |
Central Sales Tax |
1994-1995 |
349.33 |
Punjab VAT Tribunal |
viii) The Company does not have any loans or borrowing from any financial institution, bank, Government or debenture holders during the year. Accordingly, Paragraph 3(viii) of the Order is not applicable.
ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, Paragraph 3(ix) of the Order is not applicable.
x) According to the information and explanation given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi) According to the information and explanation given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Act.
xii) In our opinion and according to the information and explanation given to us, the Company is not a Nidhi Company. Accordingly, Paragraph 3(xii) of the Order is not applicable.
xiii) According to the information and explanations given to us based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 & 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv) According to the information and explanations given to us and based on the examination of the records of the Company, the Company has not made any preferential allotment or private placements of shares or fully or partly convertible debentures during the year.
xv) According to the information and explanations given to us and based on the examination of the records of the Company, the Company has not entered into non- cash transaction with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
For T R Chadha & Co LLP
Chartered Accountants
(Firm Registration No -006711N/ N500028)
Surender Kumar
Place: New Delhi (Partner)
Dated: 30th May, 2016 Membership No. 082982
Mar 31, 2015
Report on the Financial Statements
We have audited the accompanying financial statements of Oswal Agro
Mills Limited ("the Company"), which comprises the Balance Sheet as at
March 31, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies(Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatements, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the 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 Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2015, and its profit and its cash flows for the year ended
on that date.
Emphasis of Matters
We draw attention to the matters in the Notes to financial statements:
The company is in the process of obtaining the shareholders' approval
for the remuneration of Rs. 1,918.23 thousand, referred to in Note No.
2.27, paid to CEO and Director in the ensuing annual general meeting.
The company is in the process of appointing Independent Directors and
regularizing its Committees and Composition of Board, refer Note No.
2.34(ii) to the financial statements.
Our opinion is not modified in respect of 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, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors
as on March 31, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements  Refer Note 2.26 to the
financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts, for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to
the Investor Education and Protection Fund in accordance with the
relevant provisions of the Companies Act,1956 (1 of 1956) and rules
made thereunder.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date]
1. In respect of the fixed assets of the Company :
(a) The Company is maintaining proper records (other than furniture &
fixtures for closed units) showing full particulars, including
quantitative details and situation of fixed assets.
(b) The management has physically verified the fixed assets (other than
furniture & fixtures for closed units) at reasonable intervals. No
material discrepancies were noticed on such verification.
2. In respect of the inventories of the Company:
(a) As explained to us, inventories have been physically verified by
the management at regular intervals. In our opinion, the frequency of
such physical verification is reasonable.
(b) In our opinion and according to the information 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) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory. No
material discrepancies were noticed on physical verification of the
same.
3. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties in the register maintained under
section 189 of the Companies Act, 2013. Therefore, the provisions of
clause 3 (iii), (iii)(a) and (iii)(b) of the Companies (Auditors
Report) Order, 2015 are not applicable.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory, fixed assets and with regard to the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in the
internal control systems of the Company.
5. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
during the year and does not have any unclaimed deposits. Accordingly,
the provisions of Clause 3 (v) of the Order are not applicable to the
Company.
6. The maintenance of cost records under sub- section (1) of Section
148 of the Companies Act, 2013 is not applicable to the company.
Accordingly, the provisions of Clause 3 (vi) of the Order are not
applicable to the Company.
7. (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 generally regular in depositing undisputed statutory dues including
Provident Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service tax, duty of customs, duty of excise, value added
tax, cess and any other statutory dues applicable to it with
appropriate authorities. There were no arrears of undisputed statutory
dues as at March 31, 2015, which were outstanding 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
records of the Company examined by us, the particulars of dues of
Income Tax, Sales Tax, wealth tax, Service Tax, duty of customs, duty
of excise, Value added tax and cess as at March 31, 2015 which have not
been deposited on account of any dispute is as follows:
Name of Statute Nature
of Dues Amount Period to
which the Forum where the
(Rs. in
thousand) amount
relates Dispute is pending
Punjab General
Sales Tax VAT 1,422.73 F.Y.1999
- 2000 Pending before
Punjab
Act 1948 (PGST) VAT Tribunal
(c) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund in accordance with the relevant
provisions of the Companies Act,1956 (1 of 1956) and rules made
thereunder.
8. The accumulated losses of the Company as at March 31, 2015 are not
more than fifty percent of its net worth. The company has not incurred
cash losses during the financial year and in the immediately preceding
financial year.
9. According to the information and explanation given to us, the
company does not have any loan from any financial institution and banks
and has not issued any debentures. Accordingly the provisions of the
clause 3 (ix) of the order are not applicable to the Company.
10. In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year. Therefore,
the provisions of clause 3 (x) of the order are not applicable to the
Company.
11. According to the information and explanation given to us, the
Company has not obtained any term loans during the year. Therefore, the
provisions of clause 3 (xi) of the order are not applicable to the
Company.
12. To the best of our knowledge and belief and according to the
information and explanations given to us by the management, no fraud on
or by the Company has been noticed or reported during the year.
For T.R. Chadha & Co.
Chartered Accountants
(Firm Registration No. 006711N)
Surender Kumar
Place : New Delhi Partner
Date :May 28, 2015 Membership Number: 082982
Mar 31, 2014
We have audited the accompanying financial statements of Oswal Agro
Mills Limited ("the Company"), which comprises the balance sheet as at
31st March, 2014, and the statement of profit and loss and cash flow
statement of the Company for the year then ended and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 read
with the General Circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. 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.
Auditors'' 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 entity''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March, 2014;
(b) in the case of the statement of profit and loss, of the Profit for
the year ended on that date; and
(c) in the case of the cash flow statement, of the cash flows for the
year ended on that date. Report on Other Legal and Regulatory
Requirements
1. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the balance sheet, statement of profit and loss and cash flow
statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the balance sheet, statement of profit and loss and
cash flow statement comply with the Accounting Standards notified under
the Companies Act, 1956 read with the General Circular 15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013;
2. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of ''The Companies Act, 1956 of India
(the ''Act'') and on the basis of such checks of books and records of the
Company as we considered appropriate and according to the information
and explanations given to us, we give in the Annexure as statement on
the matters specified in paragraphs 4 and 5 of the said Order.
3. On the basis of the written representations received from the
directors, as at 31st March, 2014, and taken on record by the Board of
Directors, we report that none of the directors is disqualified from
being appointed as a director under section 274(1) (g) of the Companies
Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
Statement referred to in paragraph (2) of Report on Other Legal and
Regulatory Requirements of even date to shareholders of OSWAL AGRO
MILLS LIMITED on the accounts for the year ended 31st March, 2014
I. a) The Company has maintained proper records other than plant &
machinery and furniture & fixtures for closed units, to show full
particulars including quantitative details and situation of its
fixed assets.
b) According to explanations given to us all the fixed assets other
than plant & machinery and furniture & fixtures for closed units, have
been physically verified by the management at the year end, which in
our opinion is considered reasonable having regard to the size of the
company and nature of its business. No material discrepancy noticed on
such verification as compared to book records.
c) In our opinion and according to the information and explanations
given to us, substantial part of fixed assets has not been disposed of
by the Company during the year.
II. a) As explained to us, the inventories were physically verified
during the year by the management at the reasonable intervals.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
uswai Mgro mms Limiieo
c) In our opinion and according to the information and explanation
given to us, the Company is maintaining proper records of inventory. No
material discrepancy has been noticed on physical verification of
inventory as compared to book records
III. According to the information and explanation given to us, the
Company has neither granted nor taken any loans, secured or unsecured,
to or from companies, firms or other parties listed in the register
maintained under section 301 of the ''Act''. Accordingly, the provisions
of clause 4 (iii) of the Order are not applicable to the Company
IV. In our opinion and according to the information and explanations
given to us, in general, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods and services. 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 been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
V. In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into the register
in pursuance of Section 301 of the ''Act'', have been so entered and
there are no transactions made in pursuance of contracts and
arrangement entered into the register in pursuance of Section 301 of
the ''Act'' and exceeding the value of rupees five Lacs in respect of any
party during the year, which have been made at prices which are not
reasonable having regard to the prevailing market prices at the
relevant time.
VI. In our opinion and according to the information an explanations
given to us, the Company has not accepted any deposits from the public
to which the directives issued by the Reserve Bank of India and the
provisions of Sections 58A and 58AA of the Act and the Rules framed
there under are applicable
VII. In our opinion, the Company''s present internal audit system is
generally commensurate with its size and nature of its business
VIII. The company is not engaged in any manufacturing or other
activity requiring maintenance of cost records u/s 209(1)(d) of the
Companies Act, 1956
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 generally
regular in depositing undisputed statutory dues, including provident
fund, investor education and protection fund, employees'' state
insurance, income- tax, sales tax, wealth tax, service tax, customs
duty, excise duty, cess and other material statutory dues as
applicable, with the appropriate authorities According to the
information and explanations given to us, there are no undisputed
amounts payable in respect of such statutory dues which have remained
outstanding as at 31st March 2014 for a period of more than six months
from the date they became payable
b. According to the information and explanations given to us, there are
no material dues of income tax, service tax, customs duty, wealth tax,
excise duty and cess which have not been deposited with the appropriate
authorities on account of any dispute. However according to the
information and explanations given to us, the following dues of sales
tax and excise duty have not been deposited by the Company on account
of a dispute:
Name of Statute Nature Amount Period to Forum where
of Dues In thousand Which the the Dispute
amount relate Pending
Punjab General Sales VAT 1,422.73 1999 to 2000 Pending before
Tax Act 1948 (PGST) Punjab VAT
Tribunal
X. The accumulated losses of the company as at March 31, 2014 are not
more than fifty percent of its net worth. The company has not incurred
cash losses during the current financial year and has incurred cash
losses in the immediately preceding financial year.
XI. According to the information and explanation given to us, the
company does not have any loan from any financial institution and has
not issued any debentures. Accordingly the provisions of the clause 4
(xi) of the order are not applicable to the Company.
XII. In our opinion, and according to the information and explanation
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities. Accordingly the provisions of the clause 4 (xii) of the
order are not applicable to the Company.
XIII. The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4 (xiii) of the order
are not applicable to the Company.
XIV The company has not traded in shares, securities, debentures and
other investments during the year. However, the company is maintaining
separate records of the transactions and contracts for the shares held
as stock in trade and making timely entries therein. These shares and
other securities are held by the company in its own name
XV. In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions during the year. Therefore,
the provisions of clause 4 (xv) of the order are not applicable to the
Company.
XVI. According to the information and explanation given to us, the
Company has not obtained any term loan during the year. Therefore, the
provisions of clause 4 (xvi) of the order are not applicable to the
Company.
XVII. According to information and explanations 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.
XVIII. According to information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered
n the register maintained under Section 301 of the ''Act'' during the
year.
XIX. According to information and explanations given to us, the
Company has not issued any debenture during the year and accordingly,
no securities have been created
XX. According to information and explanations given to us, the Company
has not raised any money by public issues during the year.
XXI. According to 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 T.R. Chadha & Co.
Accountance Chartered
(Firm Registration No. 006711N)
(Aashish Gupta)
Partner
Membership Number: 097343
Place : New Delhi
Date : 30th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Oswal Agro
Mills Limited ("the Company"), which comprises the balance sheet as at
31stMarch 2013, the statement of profit and loss of the Company for the
year then ended, the cash flow statement of the Company for the year
then ended and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the balance sheet, of the state of affairs of the
Company as at 31st March 2013;
(b) in the case of the statement of profit and loss, of the loss for
the year ended on that date; and
(c) in the case of the cash flow statement, of the cash flows for the
year ended on that date. Report on Other Legal and Regulatory
Requirements
1. As required by section 227(3) of the Act, we report that:
(a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
(c) the balance sheet, statement of profit and loss and cash flow
statement dealt with by this Report are in agreement with the books of
account; and
(d) in our opinion, the balance sheet, statement of profit and loss and
cash flow statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
2. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Govt. of India in terms of sub-section (4A) of section
227 of ÂThe Companies Act, 1956'' of India (the ÂAct'') and on the basis
of such checks of books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure as statement on the matters specified in
paragraphs 4 and 5 of the said Order.
3. On the basis of the written representations received from the
directors, as at 31st March, 2013, and taken on record by the Board of
Directors, we report that none of the directors is disqualified from
being appointed as a director under section 274(1) (g) of the Companies
Act, 1956.
ANNEXURE TO AUDITORS'' REPORT
[Referred in paragraph 2 of Report on Other Legal and Regulatory
Requirements of even date]
i) a) The Company has maintained proper records other than plant &
machinery and furniture & fixtures for closed Units, to show full
particulars including quantitative details and situation of its fixed
assets.
b) According to explanations given to us all the fixed assets other
than plant & machinery and furniture & fixtures for closed units, have
been physically verified by the management at the year end, which in
our opinion is considered reasonable having regard to the size of the
company and nature of its business. No material discrepancy noticed on
such verification as compared to book records.
c) In our opinion and according to the information and explanations
given to us, substantial part of fixed assets has not been disposed of
by the Company during the year.
ii) a) As explained to us, the inventories were physically verified
during the year by the management at the reasonable intervals.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanation
given to us, the Company is maintaining proper records of inventory. No
material discrepancy has been noticed on physical verification of
inventory as compared to book records.
iii) According to the information and explanation given to us, the
Company has neither granted nor taken any loans, secured or unsecured,
to or from companies, firms or other parties listed in the register
maintained under section 301 of the ÂAct''. Accordingly, the provisions
of clause 4 (iii) of the Order are not applicable to the Company.
iv) In our opinion and according to the information and explanations
given to us, in general, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods and services. 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 been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
v) In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into the register
in pursuance of Section 301 of the ÂAct'', have been so entered and
there are no transactions made in pursuance of contracts and
arrangement entered into the register in pursuance of Section 301 of
the ÂAct'' and exceeding the value of rupees five Lacs in respect of any
party during the year, which have been made at prices which are not
reasonable having regard to the prevailing market prices at the
relevant time.
vi) In our opinion and according to the information an explanations
given to us, the Company has not accepted any deposits from the public
to which the directives issued by the Reserve Bank of India and the
provisions of Sections 58A and 58AA of the Act and the Rules framed
there under are applicable.
vii) In our opinion, the Company''s present internal audit system is
generally commensurate with its size and nature of its business.
viii) The company is not engaged in any manufacturing or other activity
requiring maintenance of cost records u/s 209(1)(d) of the Companies
Act, 1956.
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 generally regular in depositing undisputed statutory dues, including
provident fund, investor education and protection fund, employees''
state insurance, income-tax, sales tax, wealth tax, service tax,
customs duty, excise duty, cess and other material statutory dues as
applicable, with the appropriate authorities.
b) According to the information and explanations given to us, there are
no material dues of income tax, service tax, customs duty, wealth tax,
excise duty and cess which have not been deposited with the appropriate
authorities on account of any dispute.
x) The accumulated losses of the company as at March 31, 2013 are not
more than fifty percent of its net worth. The company has incurred cash
losses during the financial year ended on that date and also in
immediately preceding financial year.
xi) According to the information and explanation given to us, the
company does not have any loan from any financial institution and has
not issued any debentures. Accordingly the provisions of the clause 4
(xi) of the order are not applicable to the Company.
xii) In our opinion, and according to the information and explanation
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities. Accordingly the provisions of the clause 4 (xii) of the
order are not applicable to the Company.
xiii) The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4 (xiii) of the order
are not applicable to the Company.
xiv) In our opinion, the Company is trading in shares, securities, and
other investments. The company is maintaining separate records of the
transactions and contracts and making timely entries therein. These
shares and other securities are held by the company in its own name.
xv) In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions during the year. Therefore,
the provisions of clause 4 (xv) of the order are not applicable to the
Company.
xvi) According to the information and explanation given to us, the
Company has not obtained any term loan during the year. Therefore, the
provisions of clause 4 (xvi) of the order are not applicable to the
Company.
xvii) According to information and explanations 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.
xviii) According to information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the ÂAct'' during the year.
xix) According to information and explanations given to us, the Company
has not issued any debenture during the year and accordingly, no
securities have been created.
xx) According to information and explanations given to us, the Company
has not raised any money by public issues during the year.
xxi) According to 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 T. R. Chadha & Co.
(Firm Registration No. 006711N)
Chartered Accountants
(Surender Kumar)
Place : New Delhi Partner
Date : 28th May, 2013 Membership Number: 82982
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s Oswal Agro Mills
Ltd. as at 31st March 2012, the annexed Statement of Profit & Loss and
the Cash Flow Statement for the year ended on that date, which we have
signed under reference to this report. These financial statements are
the responsibility of the Company's Management. Our responsibility is
to express an opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Repot) Order, 2003 issued
by Central Government of India in terms of sub-section (4A) of Section
227 of 'The Companies Act, 1956' (the 'Act') and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. Further to our comments in Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) In our opinion, proper books of account have been kept by the
Company as required by law so far as appears from our examination of
those books;
(c) The Balance Sheet, the Statement of Profit & Loss and the Cash Flow
Statement dealt with in this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, the Statement of Profit & Loss
and the Cash Flow Statement dealt with by this report have been
prepared in compliance with the applicable accounting standards
referred to in section 211 (3C) of the 'Act';
(e) On the basis of written representations received from the Directors
of the Company and taken on record by the Board of Directors, we report
that none of the directors are disqualified as on March 31, 2012 from
being appointed as a director in terms of clause (g) of sub- section
(1) to Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet, the Statement of
Profit & Loss and the Cash Flow Statement, together with the notes
thereon and attached thereto, given in the prescribed manner, the
information required by the 'Act' give respectively, a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012
(b) in the case of the Statement of Profit & Loss, of the Loss 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.
[Referred to in paragraph 3 of the Auditors' Report of even date]
i) a) The Company has maintained proper records other than for closed
divisions, plant & machinery and furniture & fixtures to show full
particulars including quantitative details and situation of its fixed
assets.
b) According to explanations given to us all the fixed assets other
than for closed divisions, plant & machinery and furniture & fixtures
have been physically verified by the management at the year end, which
in our opinion is considered reasonable having regard to the size of
the company and nature of its business. No material discrepancy noticed
on such verification as compared to book records.
c) In our opinion and according to the information and explanations
given to us, substantial part of fixed assets has not been disposed of
by the Company during the year.
ii) a) As explained to us, the inventories were physically verified
during the year by the management at the reasonable intervals.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanation
given to us, the Company is maintaining proper records of inventory.
No material discrepancy has been noticed on physical verification of
inventory as compared to book records.
iii) According to the information and explanation given to us, the
Company has neither granted nor taken any loans, secured or unsecured,
to or from companies, firms or other parties listed in the register
maintained under section 301 of the 'Act'. Accordingly, the
provisions of clause 4 (iii) of the Order are not applicable to the
Company.
iv) In our opinion and according to the information and explanations
given to us, in general, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods and services. 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 been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
v) In our opinion and according to the information an explanations
given to us, the transactions that need to be entered into the register
in pursuance of Section 301 of the 'Act', have been so entered and
there are no transactions made in pursuance of contracts and
arrangement entered into the register in pursuance of Section 301 of
the 'Act' and exceeding the value of rupees five Lacs in respect of
any party during the year, which have been made at prices which are not
reasonable having regard to the prevailing market prices at the
relevant time.
vi) In our opinion and according to the information an explanations
given to us, the Company has not accepted any deposits from the public
to which the directives issued by the Reserve Bank of India and the
provisions of Sections 58A and 58AA of the Act and the Rules framed
there under are applicable.
vii) In our opinion, the Company's present internal audit system is
generally commensurate with its size and nature of its business.
viii) The company is not engaged in any manufacturing or other activity
requiring maintenance of cost records u/s 209(1)(d) of the Companies
Act, 1956.
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 generally regular in depositing undisputed statutory dues, including
provident fund, investor education and protection fund, employees'
state insurance, income-tax, sales tax, wealth tax, service tax,
customs duty, excise duty, cess and other material statutory dues as
applicable, with the appropriate authorities.
b) According to the information and explanations given to us, there are
no material dues of income tax, service tax, customs duty, wealth tax
and cess which have not been deposited with the appropriate authorities
on account of any dispute. However according to the information and
explanations given to us, the following dues of sales tax and excise
duty have not been deposited by the Company on account of a dispute:
Name of
Statute Nature of
Dues Amount Period to which the Forum where the
(Rs. in
thousand) amount relates Dispute is
pending
Central
Excise
Act 1944 Excise Duty 20,900.71 1991 to 1993 Pending Before
CESTAT Mumbai
UP Sales
Tax Sales Tax 1,109.96 1993 to 1996 High Court
Allahabad
Punjab
General
Sales Tax VAT 1,422.73 1999 to 2000 Pending before
Punjab
Act 1948
(PGST) Vat Tribunal
x) The accumulated losses of the company as at March 31, 2012 are not
more than fifty percent of its net worth. The company has incurred cash
losses during the financial year ended on that date. The Company has
not incurred cash losses in immediately preceding financial year.
xi) According to the information and explanation given to us, the
company does not have any loan from any financial institution and has
not issued any debentures. Accordingly the provisions of the clause 4
(xi) of the order are not applicable to the Company.
xii) In our opinion, and according to the information and explanation
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities. Accordingly the provisions of the clause 4 (xii) of the
order are not applicable to the Company.
xiii) The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4 (xiii) of the order
are not applicable to the Company.
xiv) In our opinion, the Company is trading in shares, securities, and
other investments. The company is maintaining separate records of the
transactions and contracts and making timely entries therein. These
shares and other securities are held by the company in its own name.
xv) In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions during the year. Therefore,
the provisions of clause 4 (xv) of the order are not applicable to the
Company.
xvi) According to the information and explanation given to us, the
Company has not obtained any term loans during the year. Therefore, the
provisions of clause 4 (xvi) of the order are not applicable to the
Company.
xvii) According to information and explanations 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.
xviii) According to information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the 'Act' during the year.
xix) According to information and explanations given to us, the Company
has not issued any debenture during the year and accordingly, no
securities have been created.
xx) According to information and explanations given to us, the Company
has not raised any money by public issues during the year.
xxi) According to 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 T.R. Chadha & Co.
(Firm Registration No. 006711N)
Chartered Accountants
Place: New Delhi (Surender Kumar)
Date: 29th May, 2012 Partner
M. No. 82982
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s Oswal Agro Mills
Ltd. as at 31st March 2011, the annexed Profit & Loss Account and the
Cash Flow Statement for the year ended on that date, which we have
signed under reference to this report. These financial statements are
the responsibility of the Company's Management. Our responsibility is
to express an opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by Central Government of India in terms of sub-section (4A) of Section
227 of 'The Companies Act, 1956' (the 'Act') and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. Further to our comments in Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) In our opinion, proper books of account have been kept by the
Company as required by law so far as appears from our examination of
those books;
(c) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with in this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, the Profit & Loss Account and
the Cash Flow Statement dealt with by this report have been prepared in
compliance with the applicable accounting standards referred to in
section 211 (3C) of the 'Act';
(e) On the basis of written representations received from the Directors
of the Company and taken on record by the Board of Directors, we report
that none of the directors are disqualified as on March 31, 2011 from
being appointed as a director in terms of clause (g) of sub- section
(1) to Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet, the Profit & Loss
Account and the Cash Flow Statement, together with the notes thereon
and attached thereto, given in the prescribed manner, the information
required by the 'Act' and subject to our comments in paragraph 5 below,
give respectively, a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2011
(b) in the case of the Profit & Loss Account, of the profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5 Non- translation of interest free export advance received (net) of
USD 52,37,796.80 at the year end exchange rate and which is contrary to
Accounting Standard 11 and further non- provision of interest accrued
on the amount receivable Rs. 38,386.29 thousand due to the pending
execution of Decree orders passed by the High Court on 09.05.1989, as
stated in Note No. 3 in Schedule XVIII.
ANNEXURE TO AUDITORS' REPORT
[Referred to in paragraph 3 of the Auditors' Report of even date]
i) a) The Company has maintained proper records other than for closed
divisions and furniture & fixtures to show full particulars including
quantitative details and situation of its fixed assets.
b) According to explanations given to us all the fixed assets other
than for closed divisions and furniture & fixtures have been physically
verified by the management at the year end, which in our opinion is
considered reasonable having regard to the size of the company and
nature of its business. No material discrepancy noticed on such
verification as compared to book records.
c) In our opinion and according to the information and explanations
given to us, substantial part of fixed assets has not been disposed of
by the Company during the year.
ii) a) The company is not carrying any inventory as on 31st March 2011
except land converted into inventory during the year and shares held
for trading. The inventories have been physically verified by the
management during the year. In our opinion, the frequency of
verification is reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory the
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
iii) a) The Company has granted unsecured loan amounting to Rs.
14,716.41 thousand (Maximum Balance Outstanding Rs. 29,516.29 thousand)
during the year to one company covered in the register maintained under
Section 301 of the Act.
b) The rate of interest and other terms and conditions of loan given is
not prime facie prejudicial to the interest of the company.
c) In respect of aforesaid loan, the party is repaying the principal
amount as stipulated and is also regular in payment of interest, where
applicable.
d) In respect of aforesaid loan, there is no overdue amount more than
Rs. one lac.
e) The Company has taken unsecured loan amounting to Rs.39,067.46
thousand (Maximum Balance Outstanding Rs.25,308.35 thousand) during
the year from one company covered in the register maintained under
Section 301 of the Act.
f) The rate of interest and other terms and conditions of loan taken is
not prime facie prejudicial to the interest of the company.
g) In respect of aforesaid loan, the company is repaying the principal
amount as stipulated and is also regular in payment of interest, where
applicable.
iv) In our opinion and according to the information and explanations
given to us, in general, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods. 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 been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
v) In our opinion and according to the information an explanations
given to us, the transactions that need to be entered into the register
in pursuance of Section 301 of the Act, have been so entered and there
are no transactions made in pursuance of contracts or arrangement
entered into the register in pursuance of Section 301 of the Act and
exceeding the value of rupees five lacs in respect of any party during
the year, which have been made at prices which are not reasonable
having regard to the prevailing market prices at the relevant time.
vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the Rules framed
there under.
vii) In our opinion, the Company's present internal audit system is
generally commensurate with its size and nature of its business.
viii) The company is not engaged in any manufacturing or other activity
requiring maintenance of cost records u/s 209(1)(d) of the Companies
Act, 1956.
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 generally regular in depositing undisputed statutory dues including
investor education and protection fund, employees' state insurance,
income-tax, wealth tax, customs duty, service tax, excise duty and
other material statutory dues as applicable, with the appropriate
authorities.
b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
sales- tax, income-tax, customs duty, service tax, wealth tax, excise
duty and cess as at March 31, 2011 which have not been deposited on
account of a dispute, are as follows -
Name of Statute Nature of Dues Amount Period to which the
the (Rs. in
thousand) amount relates
Central Excise
Act 1944 Excise Duty 36,434.03 1,991 to 1993
UP Sales Tax Sales Tax 1,109.96 1,993 to 1996
Name Of Statute Forum where the
Dispute is pending
Central Excise Act 1944 Pending Before CESTAT
Mumbai
UP Sales Tax High Court Allahabad
x) The accumulated losses of the company as at March 31, 2011 are not
more than 50% of its net worth. The company has neither incurred cash
losses during the financial year ended on the date nor in immediate
preceding year.
xi) According to the information and explanation given to us the
company has not defaulted in repayment of dues to the banks. The
company does not have any loan from any financial institution and has
not issued any debentures.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company.
xiv) In our opinion, the Company is trading in shares, securities and
other investments. The company is maintaining separate records of the
transactions and contracts and making timely entries therein. These
shares and other securities are held by the company in its own name.
xv) In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions during the year.
xvi) As per information and explanations given to us the Company has
not obtained any term loans during the year.
xvii) According to information and explanations 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.
xviii) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
xix) The Company has not issued any debenture during the year and
accordingly, no securities have been created.
xx) The Company has not raised any money by public issues 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 T.R. Chadha & Co.
(Firm Registration No. 006711N)
Chartered Accountants
(Surender Kumar)
Date : 28th May, 2011 Partner
Place : New Delhi M. No. 82982
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s Oswal Agro Mills
Ltd. as at 31st March 2010, the annexed Profit & Loss Account and the
Cash Flow Statement for the year ended on that date, which we have
signed under reference to this report. These financial statements are
the responsibility of the CompanyÃs Management. Our responsibility is
to express an opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the companies (AuditorÃs Repot) Order, 2003 issued
by Central Government of India in terms of sub-section (4A) of Section
227 of ÃThe Companies Act, 1956Ã (the ÃActÃ) and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. Further to our comments in Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) In our opinion, proper books of account have been kept by the
Company as required by law so far as appears from our examination of
those books;
(c) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with in this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, the Profit & Loss Account and
the Cash Flow Statement dealt with by this report have been prepared in
compliance with the applicable accounting standards referred to in
section 211 (3C) of the ÃActÃ;
(e) On the basis of written representations received from the Directors
of the Company and taken on record by the Board of Directors, we report
that none of the directors are disqualified as on March 31, 2010 from
being appointed as a director in terms of clause (g) of sub- section
(1) to Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet, the Profit & Loss
Account and the Cash Flow Statement, together with the notes thereon
and attached thereto, given in the prescribed manner, the information
required by the ÃActà and subject to our comments in paragraphs 5.1 to
5.4 below, give respectively, a true and fair view in conformity with
the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010
(b) in the case of the Profit & Loss Account, of the profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5.1 Non- translation of interest free export advance received (net) of
USD 52,37,796.80 at the year end exchange rate and which is contrary to
Accounting Standard 11 and further non- provision of interest accrued
on the amount receivable Rs. 38,386.29 thousand due to the pending
execution of Decree orders passed by the High Court on 09.05.1989, as
stated in Note No. 4 in Schedule XVIII.
5.2 Non-confirmation/non-reconciliation of certain debit/credit
balances as stated in Note No. 5 in Schedule XVIII, the overall impact
of these could not determined.
5.3 Contribution amounting to Rs. 100 thousands paid for charitable
purpose in excess of limit specified in Section 293(1)(e) is subject to
the approval of the shareholders as stated in- Note No. 7 in Schedule
XVIII.
5.4 Non-accounting of interest income on loans given to various
enterprises as stated in Note No.10 in Schedule XVIII.
ANNEXURE TO AUDITORSÃ REPORT [Referred to in paragraph 3 of the
Auditorsà Report of even date]
i) a) The Company has maintained proper records other than for closed
divisions and furniture & fixtures to show full particulars including
quantitative details and situation of its fixed assets.
b) According to explanations given to us all the fixed assets other
than for closed divisions and furniture & fixtures have been physically
verified by the management at the year end, which in our opinion is
considered reasonable having regard to the size of the company and
nature of its business. No material discrepancy noticed on such
verification as compared to book records.
c) In our opinion and according to the information and explanations
given to us, substantial part of fixed assets has not been disposed of
by the Company during the year.
ii) a) The company is not carrying any inventory as on 31st March 2010
except shares held for trading amounting to Rs. 458850.00 thousand.
The shares held in physical form have been physically verified by the
management during the year. In our opinion, the frequency of
verification is reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory the
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
iii) a) The Company has granted unsecured loan amounting to Rs.
52,676.02 thousand (Maximum Balance Outstanding Rs. 45,924.58 thousand)
during the year to one company covered in the register maintained under
Section 301 of the Act.
b) The rate of interest and other terms and conditions of loan given is
not prime facie prejudicial to the interest of the company.
c) In respect of aforesaid loan, the party is repaying the principal
amount as stipulated and is also regular in payment of interest, where
applicable.
d) In respect of aforesaid loan, there is no overdue amount more than
Rs. one lac.
e) The Company has taken unsecured loan amounting to Rs 30,952.42
thousand (Maximum Balance Outstanding Rs. 28,808.90 thousand) during
the year from one company covered in the register maintained under
Section 301 of the Act.
f) The rate of interest and other terms and conditions of loan taken is
not prime facie prejudicial to the interest of the company.
g) In respect of aforesaid loan, the company is repaying the principal
amount as stipulated and is also regular in payment of interest, where
applicable.
iv) In our opinion and according to the information and explanations
given to us, in general, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods. 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 been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
v) In our opinion and according to the information an explanations
given to us, the transactions that need to be entered into the register
in pursuance of Section 301 of Act, have been so entered and there are
no transactions made in pursuance of contracts or arrangement entered
into the register in pursuance of Section 301 of the Act and exceeding
the value of rupees five lacs in respect of any party during the year,
which have been made at prices which are not reasonable having regard
to the prevailing market prices at the relevant time.
vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the Rules framed
there under.
vii) In our opinion, the CompanyÃs present internal audit system is
generally commensurate with its size and nature of its business.
viii) The company is not engaged in any manufacturing or other activity
requiring maintenance of cost records u/s 209(1)(d) of the Companies
Act, 1956.
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 generally regular in depositing undisputed statutory dues including
investor education and protection fund, employeesà state insurance,
income-tax, wealth tax, customs duty, service tax, excise duty and
other material statutory dues as applicable, with the appropriate
authorities. b) According to the information and explanations given to
us and the records of the Company examined by us, the particulars of
dues of sales-tax, income-tax, customs duty, service tax, wealth tax,
excise duty and cess as at March 31, 2010 which have not been deposited
on account of a dispute, are as follows -
Name of Statute Nature of Dues Amount
(Rs. in thousand)
Central Excise Act 1944 Excise Duty 36434.03
UP Sales Tax Sales Tax 1109.96
Name of Statue Period to which the Forum where the
amount relates Dispute is pending
Central Excise Act
1944 1991 to 1993 Pending Before
CESTAT Mumbai
UP Sales Tax 1993 to 1996 High Court Allahabad
x) The accumulated losses of the company as at March 31,2010 is Rs.
243,359.97 thousand which is not more than 50% of its net worth. It has
not incurred cash losses during the financial year ended on the date.
However it has incurred cash losses in the immediately preceding
financial year.
xi) As per information & explanation given to us, the company has not
defaulted in repayment of dues to any bank. The Company has not availed
any loans from financial institution and debenture holders.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) 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, the Company is trading in shares, securities, and
other investments. The company is maintaining separate records of the
transactions and contracts and making timely entries therein. These
shares and other securities are held by the company in its own name.
xv) In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions during the year.
xvi) As per information and explanations given to us the Company has
not obtained any term loans during the year.
xvii) According to information and explanations 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.
xviii) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
xix) The Company has not issued any debenture during the year and
accordingly, no securities have been created.
xx) The Company has not raised any money by public issues 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 T.R. Chadha & Co.
(Firm Registration No. 006711N)
Chartered Accountants
Place: New Delhi (Surender Kumar)
Date: 4th September, 2010 Partner
M. No. 082982
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