Mar 31, 2015
We have audited the accompanying standalone financial statements of
PALCO METALS LIMITED ("the Company"), which comprise the Balance Sheet
as at March 31,2015, and 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 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 assets of the Company and for
preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
In our opinion and to the best of our information and according to the
explanations given to us, the standalone financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India,
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date.
c) In case of Cash Flow Statement, of the Cash Flow for the year ended
on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraph 3 and 4 of the Order,
to the extent applicable.
2. As required by section 143 (3) of the Act, we report that:
a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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 aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note to the
financial statement
ii) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts.
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Auditors' Report
Referred to in the Paragraph 1 under the heading 'Report on the Other
Legal and Regulatory Requirements' of our report of even date on the
standalone financial statements of the Company for the year ended March
31,2015.
I. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. According to the information and explanations given to us, the
fixed assets have been physically verified by the management during the
year in a phased periodical manner which, in our opinion, is reasonable
having regard to the size of the Company and nature of its business.
No discrepancies of serious nature have been noticed by the management
and almost all the items as appearing in the register have been
physically verified at the end of the year.
c. During the year, The Company has not disposed of any
substantial/major part of fixed assets.
II. In respect of its Inventories:
a. As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b. In our opinion and according to the information and explanations
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 explanations
given to us and on the basis of our examination of the records of
inventory, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
III. In respect of loans granted and taken to / from parties covered
in the register maintained u/s 189 of the Companies Act, 2013
(a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 189 of the Act. Therefore, the provisions of sub-clause
(a) and (b) of paragraph 3(iii) of the Order are not applicable to the
Company for the current year..
IV. In respect of internal control:
In our opinion, and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business for the purchase
of inventory and fixed assets and for the sale of goods. In our opinion
and according to the information and explanations given to us, there is
no continuing failure to correct major weakness in internal control.
V. In respect of deposits from public :
In our opinion and according to the information and explanations given
to us, the Company has not accepted deposits from the public during the
year. Therefore the provisions of clause 4(vi) of CARO are not
applicable to the Company.
VI. In respect of maintenance of cost records:
Pursuant to rules made by the Central Government for the maintenance of
cost records under sub-section (1) of section 148 of the Companies Act
2013 in respect of certain manufacturing activities, as informed to us,
the Company is not required to maintain cost records.
VII. In respect of statutory dues:
(a) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, amounts
deducted / accrued in the books of account in respect of undisputed
statutory dues including Provident fund, Income tax, Wealth tax, Sales
tax, Service tax, Value added tax, cess and any other material
statutory dues have generally been regularly deposited during the year
by the Company with the appropriate authorities. As explained to us,
the Company did not have any dues on account of Employees' State
Insurance, Custom Duty and Excise duty. According to the information
and explanations given to us, there are no undisputed statutory dues
payable in respect of Provident Fund, Employees State Insurance, Income
tax, Sales-tax Wealth Tax, Custom Duty, Excise Duty, Cess which are
outstanding as at 31.3.2015 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 dues of Wealth tax, Customs duty and Cess which have not been
deposited with the appropriate authorities on account of any dispute.
(c) According to the records of the Company, there has not been an
occasion in case of the company during the year under report to
transfer any sum to the Investor Education and Protection Fund in
accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956).
VIII. In respect of accumulated losses and cash losses:
The Company does not have accumulated losses as at the end of the year
and the Company has not incurred any cash losses during current and the
immediately preceding financial year.
IX. In respect of dues to financial institution / banks / debentures:
Based on our audit procedures and on the basis of information and
explanation given by the management, we are of the opinion that the
company has not defaulted in the repayment of dues to financial
institution and banks.
X. In respect of guarantee given for loans taken by others:
According to the information and explanations given to us, the Company
has given corporate guarantee for loans taken by Palco Recycle
Industries Limited from banks and financial institutions for Rs. 25.35
Crores.
XI. In respect of application of term loans:
To the best of our knowledge and belief and according to the
information explanation given to us, term loans were not availed by the
Company during the year.
XII. In respect of fraud :
To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
For, RAHUL KAKANI & ASSOCIATES
(CHARTERED ACCOUNTANTS)
-sd
[RAHUL KAKANI]
Partner
M.NO.: - 132796
Place: -Ahmedabad
Date: - 25/05/2015
Mar 31, 2014
We have audited the accompanying financial statements of PALCO METALS
LTD.(the Company) which comprise the Balance Sheet as at 31st
March,2014, and the statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statement
The Company''s 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 in accordance with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956 ("the Act") r.w Sec 133 of the Companies Act,
2013 and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation of internal control relevant to preparation and
presentation of financial statements that give a true and fair view and
are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor''s
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March,2014;
(b) in the case of the statement of Profit and Loss, of the profit for
the year ended on that date;
(c) ln the case of cash flow statement, of the cash flows for the year
ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by ''the Companies (Auditor''s Report) Order, 2003, as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004''
and on the basis of such checks of the books and records 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 Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) ln 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) ln 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, 1956r.w Sec 133
of the Companies Act, 2013;
e) On the basis of written representations received from the directors
as on 31tt March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 3lttMarch, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
1(a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
1(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
1(c) According to the information and Explanation and on examination
Books of Accounts, company has not disposed off any substantial part
Fixed Assets during the Year.
2(a) Company is not having any closing stock hence this point is not
applicable.
2(b) There is no closing inventory in hence this clause is not
applicable.
2(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3(a) There are 3 firms covered in the register maintained under section
301 of the Companies Act, 1956 to which the company has granted loans.
The maximum amount involved during the year was Rs. 8.55 crores and
the year-end balance of loans granted to such parties was Rs. 0.92
crores
3(b) ln our opinion, the rate of interest and other terms and
conditions on which loans have been granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company. The company has given interest free advances.
3(c) The parties have repaid the principal amounts as stipulated and
have been regular in the payment of interest.
3(d) There is no overdue amount of loans granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956
3(e) The Company has not taken any Loans Secured or Unsecured from the
other companies listed in the register maintained under section 301 of
the Companies Act, 1956.
3(f) ln our opinion, the rate of interest and other terms and
conditions on which loans have been taken from companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company.
3(g) The company have been repaying the principal amounts as stipulated
and have been regular in the payment of interest.
4 ln our opinion and according to the information and explanation given
to us, there are adequate internal control procedures
5(a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
5(b) ln our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts of
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 in respect of any party during the year have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
6 As per the information and explanation given to us and as per our
examination of books of accounts, the company has not taken any
deposit, hence there is no contravention of the provisions of Section
58A. 58AA or any other relevant provisions of the Companies Act, 1956.
7 ln our opinion, the company has an internal audit system commensurate
with the size and nature of its business
8 The Central Government has not prescribed the maintenance of cost
records in respect of the Company under section 209 (1) (d) of the
Companies Act, 1956.
9(a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
protection fund, employees'' state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
material statutory dues applicable to it.
9(b) According to the information and explanations given to us, the
following is details of litigation, which are still pending for deposit
as the same is being disputed and the company has filled a case:-
Sr. Financial Forum where dispute Amount of tax
no. year is pending under
litigation (Rs.)
1. 2008-09 CIT(APPEALS) 1,67,680
2. 2009-10 lncome Tax Appellate 9,87,740
Tribunal
10 There are no accumulated losses. Hence this clause is not
applicable.
11 ln our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders
12 The company has not granted any loans and advances on the basis of
security by way of pledge of share, debentures and other securities.
13 ln our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
13(a) ln our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
13(b) ln our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
13(c) ln our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
13(d) In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
14 ln our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
15 ln our opinion and as per the explanations given to us, the company
has given a guarantee for Rs.27.50 crores for loan borrowed by Palco
Recycle industries Ltd., and the terms and conditions of the guarantee
given by the company for loans taken by others from bank/financial
institutions, are not prejudicial to the interest of the company
16 No term loan has been taken by the company hence this clause is not
applicable.
17 According to the information and explanations given to us, and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
18 According to the information and explanations given to us and as per
the records of the company, no allotment of preferential shares have
been made during the year to the parties and companies covered in the
register maintained under section 301 of the Companies Act, 1956
19 The company has not issued any debentures hence this clause is not
applicable.
20 No money is raised by way of public issue during the current
financial year, hence this clause is not applicable.
21 According to the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
FOR MADHUSUDAN C. MASHRUWALA & CO.
CHARTERED ACCOTJNTANTS
(U. M. MASHRUWALA)
PARTNER
AHMEDABAD M. No.038254
DATE: 26.05.2014 301-301, AKIK, Opp. Lions Hall,
Mithakhali Six Road. Ahmedabad -
380006
Firm Reg. No. - 105717W
Mar 31, 2013
We have audited the accompanying financial statements of PALCO METALS
LIMITED which comprise the Balance Sheet as at March 31, 2013, and the
Statement of Profit and 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 and
financial performance of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor''s
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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 March 31, 2013;
(b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date.
(c) In the case of cash flow statement, of the cash flows for the year
ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by "The Companies (Auditor''s Report) Order, 2003, as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004,
and on the basis 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 paragraph 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that :
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
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 and Statement of Profit and Loss
comply with the Accounting Standards referred to in subsection (3C) of
section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS REPORT
1 (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
1 (b) All the assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the company and the nature of its assets. No material
discrepancies were noticed on such verification.
1 (c) According to the Information and Explanation and on examination
of Books of Accounts, company has not disposed off any/ substantial
part of Fixed Assets during the Year.
2 (a) Company is not having any closing stock hence this point is not
applicable
2 (b) There is no closing inventories in hence this clause is not
applicable.
2 (c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3 (a) There are three firms covered in the register maintained under
section 301 of the Companies Act, 1956 to which the company has granted
loans. The maximum amount involved during the year was Rs. 8.55 crores
and the year-end balance of loans granted to such parties was Rs. 6.25
crores
3 (b) In our opinion, the rate of interest and other terms and
conditions on which loans have been granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company. The company has given interest free advances.
3 (c) The parties have repaid the principal amounts as stipulated and
the question of receiving interest does not arrise as the advances are
interest free
3 (d) There is no overdue amount of loans granted to companies, firms
or other parties listed in the register maintained under section 301 of
the Companies Act, 1956
3 (e) There are three firms covered in the register maintained under
section 301 of the Companies Act, 1956 from which the company has taken
loans. The maximum amount involved during the year was Rs. 8.55 crores
and the year-end balance of loans taken from such parties was Rs. Nil
crores
3 (f) In our opinion, the rate of interest and other terms and
conditions on which loans have been taken from companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company.
3 (g) The company have been repaying the principal amounts as
stipulated and have been regular in the payment of interest.
4 In our opinion and according to the information and explanation given
to us, there are no internal control procedures
5 (a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
5 (b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts of
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 in respect of any party during the year have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
6 As per the information and explanation given to us and as per our
examination of books of accounts, the company has not taken any
deposit, hence there is no contravention of the provisions of Section
58A. 58AA or any other relevant provisions of the Companies Act, 1956.
7 In our opinion, the company has no proper internal audit system
commensurate with the size and nature of its business
8 The Central Government has not prescribed the maintenance of cost
records in respect of the Company under section 209 (1) (d) of the
Companies Act, 1956.
9 (a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
protection fund, employees'' state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, Cess and other
material statutory dues applicable to it.
9 (b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, custom duty, excise duty and Cess were in
arrears, as at 31-03-2013. For a period of more than six months from
the date they became payable.
10 There are no accumulated losses. Hence thi clause is not applicable.
11 In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders
12 The company has not granted any loans and advances on the basis of
security by way of pledge of share, debentures and other securities.
13 In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
13 (a) In our opinion, the company is not a chit fund or a nidhi/
mutual benefit fund/society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
13 (b) In our opinion, the company is not a chit fund or a nidhi/
mutual benefit fund/society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
13 (c) In our opinion, the company is not a chit fund or a nidhi/
mutual benefit fund/society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
13 (d) In our opinion, the company is not a chit fund or a nidhi/
mutual benefit fund/society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
14 In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
15 In our opinion as per the Explanation given to us terms and
condition of the guarantee given by the company for loans taken by
others from bank/financial institutions, are not prejudicial to the
interest of the company.
16 No tern loan as been taken by the compaly hence this clause is not
applicable.
17 According to the information and explanations given to us, and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
18 According to the information and explanations given to us and as per
the records of the company, no allotment of preferential shares have
been made during the year to the parties and companies covered in the
register maintained under section 301 of the Companies Act, 1956
19 The company has not issued any debentures hence this clause is not
applicable.
20 No money is raised by way of public issue during the current f.y.
hence this clause is not applicable.
21 According to the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit
Place : AHMEDABAD. For MADHUSUDAN C MASHRUWALA & CO.
Date : 30-05-2013 Chartered Accountants
U.M.MASHRUWALA
Partner
M.No - 038254
301-303,AKIK, OPP.LIONS HALL,
MITHAKHALI SIX ROAD
Ahmedabad- 380006
Firm Reg.No -105717W
Mar 31, 2011
We have audited the Balance Sheet of M/S PALCO METALS LTD. as at 31
March, 2011 and Profit & Loss Account and Cash Flow Statement tor the
year ended on that date annexed and report that:
These financial statements are the responsibility of the Company
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
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.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we enclosed in the annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
(i) We have obtained all the information and explanations, which to,the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books (and proper returns adequate for the purposes of our. audit
have been received from the branches not visited by us. The Branch
Auditors Report(s) have been forwarded to us and have been
appropriately dealt with);
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account (and the audited returns from the branches);
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on that date from being appointed as a
director in terms of clause (g) of sub section (1) of section 274 of
the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(1) insofar as it relates to the Balance Sheet, of the state of affairs
of the Company as at 31, March 2011, and
(2) insofar as it relates to the Profit & Loss Account, of the Profit
of the Company for the period ended on that date,
(3) insofar as it relates to the Cash Flow Statement, of the Cash flows
of the Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
1 (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
1 (b) All the assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the company and the nature of its assets. No material
discrepancies were noticed on such verification.
1 (c) According to the Information and Explanation and on examination
of Books of Accounts, company has disposed off substantial part of
Fixed Assets during the Year pursuant to agreement to sell.
2 (a) The inventory has been physically verified during the year by the
management.In our opinion, the frequency of verification is reasonable.
2 (b) 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.
2 (c) The company is maintaining proper records of inventory. No
discrepancies were noticed on verification between the physical stocks
and the book records.
3 (a) The Company has not granted any loan secured or unsecured to
companies firms or other parties covered in the register maintained
under Sec.301 of the Companies Act. Therefore the provisions of this
clause of CARO are not applicable
3 (b) The Company has not granted any loan secured or unsecured to
companies firms or other parties and hence, provisions of clause
4(iii)(b) of CARO are not applicable.
3 (c) The Company has not granted any loan secured or unsecured to
companies firms or other parties and hence, provisions of clause
4(iii)(c) of CARO are not applicable.
3 (d) There is no over due amount and all the loans are squared up at
the end of the year.
3 (e) The Company has taken any Loan from 2 companies listed in the
register maintained under section 301 of the
Companies Act, 1956.The amount borrowed is Rs 29,61 crores and at the
end of the year all liabilities have been transferred pursuant to
agreement to sell business.
3 (f) In our opinion the rate of interest and the terms and conditions
are prima facie not prejudicial to the interests of the company.
3 (g) At the end of the year, all liabilities transferred pursuant to
agreement to sell business.
4 In our opinion an according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the company and the nature of its business with regard to
purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
controls.
5 (a) According to the information and explanation given to us and as
per our examination from the books of accounts, there is no such
transaction in the company which is to be mentioned in the register
maintained under section 301 of the Companies Act, 1956
5 (b) As there is no such transaction in the company, hence this point
is not applicable.
6 As per the information and explanation given to us and as per our
examination of books of accounts, the company has not taken any
deposit, hence there is no contravention of the provisions of Section
58A. 58AA or any other relevant provisions of the Companies Act, 1956.
7 In our opinion, the company has an internal audit system commensurate
with the size and nature of its business.
8 The Central Government has not prescribed the maintenance of cost
records in respect of the Company under section 209 (1) (d) of the
Companies Act, 1956.
9 (a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
protection fund, employees state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, Cess and other
material statutory dues applicable to it.
9 (b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, service tax, custom duty, excise duty and Cess were in arrears, as
at 31-03-2011, for a period of more than six months from the date they
became payable.
10 The company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
11 In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders
12 There are no such transactions and hence this clause is not
applicable,
13 In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/society.
Therefore, the provisions of clause 4(xiii) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the company.
13 (a) There are no deposits accepted and hence this clause is not
applicable.
13 (b) As there is no money lending business or acceptance of deposits,
this clause is not applicable.
13 (c) There is no money lending business of the company and hence this
clause is not applicable.
13 (d) There is no money lending business and hence this clause is not
applicable,
14 In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiii) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
15 As per the Explanation and as per the records of the company, no
guarantee has been given by the company for loans taken by others.
16 As per the Explanation and as per the records of the company, the
term loans taken has been applied for the purpose for which the same
has been taken.
17 According to the information and explanations given to us, and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been sued to finance short-term
assets except permanent working capital.
18 According to the information and explanations given to us and as per
the records of the company, no allotment of preferential shares have
been made during the year to the parties and companies covered in the
register maintained under section 301 of the Companies Act, 1956
19 The company has not issued any debentures and hence this clause is
not applicable to the company.
20 No money has been raised by way of public issue during the year
under consideration.
21 According to the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
Place : AHMEDABAD. For MADHUSUDAN C MASHRUWALA & CO
Date : 27-08-2011 Chartered Accountants
U.M MASHRUWALA
Partner
M.NO- 038254
301-303, AKIK,
OPP. LIONS HAH.,
NR.MITHAKHALI SIX ROAD
Ahmedabad - 380006
Firm Reg.No -105717W
Mar 31, 2010
We have audited the attached Balance Sheet of PALCO METALS LIMITED as
at 31st March, 2010 and also the Profit and Loss Account and the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor's Report) Order, 2003 as amended
by Companies (Auditor's Report) (Amendment) Order, 2004 (together the
'Order') issued by the Central Government of India in terms of
Sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure, a statement on the matters specified in Paragraphs 4
and 5 of the said order.
Further to our comments in the Annexure referred to above, we report
that:
(I) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(II) In our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of
those books;
(III) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(IV) In our opinion, the Balance Sheet, the Profit & Loss Account and
the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in Sub-section (3C) of Section 211 of
the Companies Act, 1956 to the extent applicable;
(V) On the basis of written representations received from the
Directors, as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2009 from being appointed as a director in terms of Clause
(g) of Sub-section (1) of Section 274 of the Companies Act, 1956;
(VI) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2010
(b) In the case of the Profit and Loss Account, of the PROFIT of the
Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO AUDITOR'S REPORT OF PALCO METALS LIMITED REFERRED TO IN
PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
(I) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular program of verification which,
in our opinion, is reasonable having regards to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) During the year, the company has not disposed off any substantial
fixed assets
(II) (a) The Inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
( b ) 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) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(III) (a) The Company has not granted any loan secured or unsecured to
companies firm or other parties covered in the registered maintained
under section 301 of the companies act, 1956. Therefore, the provisions
of clause 4c (iii) of the companies (Auditor's report) order 2003 are
not applicable to the Company.
(b) The Company has not granted any loan to companies, firm and other
parties, hence the provision of clause 4 (iii) (b) of the companies
(Auditor's Report) order, 2003 are not applicable to the Company.
(c) The Company has not given any loan hence the provision of clause 4
(iii) (c) of the companies (Auditor's Report) order, 2003 are not
applicable to the Company.
(d) There is no overdue amount of loans granted to companies, firms or
other parties listed in the register maintained under section 301 of
the companies act, 1956.
(e) The Company has taken loans from two companies for Rs. 2.22 Crores
covered in the registered maintained under section 301 of the companies
act, 1956.
(f) In our opinion the rate of interest and other terms and conditions
are prima facie not prejudicial to the interest of the Company.
(g) As regards the loan taken the terms of repayment have not been
stipulated.
(IV) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory fixed assets and with
regard to the sale of goods and services. During the course of our
audit we have not observed any continuing failure to correct major
weakness in internal controls.
(V) (a) The Company has not made any transaction that need to be
entered in to the register maintained under section 301 of the
companies act, 1956.
(b) The Company has not made any transactions with above parties which
are not reasonable.
(VI) In our opinion and according to the information and explanation
given to us the company has complied with the provision of section 58A
58AA or any other relevant provision of the Act and the companies
(Acceptance of deposits) rule 1975 with regard to the deposits accepted
from the public.
(VII) In our opinion, the company has no internal audit system
commensurate with the size and nature of its business.
(VIII) The provisions of Section 209(1) (d) of the Companies Act, 1956
regarding maintenance of cost records are not applicable to the Company
(IX) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees state insurance, income tax, sales tax, custom duty, wealth
tax, service tax, excise duty, cess and other material statutory dues
applicable to it.
(b) According to the records of the company as act 31st March, 2010 the
following are the perticulars of disputed dues on account of Income
Tax, Wealth Tax, Service Tax, Sales Tax, Custom Duty, Excise Duty and
cess which have not been deposited
Name of the Nature of Dues Amount Forum where dispute
Statute Rs. In Lacs is pending
Central Central Excise 12.79 Commisioner of
Excise Central Excise
(X) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
proceeding financial year.
(XI) Based on our audit procedures and as per the information and
explanation given to us we are of the opinion that the company has not
defaulted in repayment of dues to banks.
(Xll) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares
(XIII) In our opinion, the company is not a chit fund or a Nidhi mutual
benefit fund / society. Therefore the provision of clauses 4 (xiii) of
the order are not applicable to the Company.
(XIV) In our opinion the company is not dealing in or trading in
shares, securities debentures and other investments. Accordingly the
provisions of clauses (vix) of the order are not applicable to the
Company
(XV) The Company has not given guarantees for loans taken by others
from banks or financial institutions.
(XVI) The Company has not taken any term loan,
( XVII) No funds have been raised on short term basis and no long term
investment has been made from it.
(XVIII) The Company has not issued any shares hence there is no
preferential allotment.
(XIX) The Company has not issued any debenture.
( XX ) The Company has not raised money from public issue.
(XXI) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
PLACE : AHMEDABAD For, MADHUSUDAN C. MASHRUWALA & CO.
(CHARTERED ACCOUNTANTS)
DATE: 03-08-2009
(U.M. MASHRUWALA)
PARTNER
MEMBERSHIP NO.: 38254
Firm Regisration No. 105717W