Mar 31, 2015
We have audited the accompanying financial statements of Paramount
Cosmetics (India) Limited ("the Company"), which comprise 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 Financial Statements
The Company's Board of Directors is responsible for the matters stated
in section 134(5) of The Companies Act 2013("the Act ) with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes 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 the 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 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) the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the 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 controls 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 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 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, 2015
b) In the case of 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 the Companies (Auditor's Report) Order, 2015 issued
by the Central Government of India in terms of sub-section (11) of
section 143 of the Act (hereinafter referred to the "Order"), 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 3 and 4 of the 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
purpose of our audit.
b. In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c. The Balance Sheet, Statement of Profit and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the Directors
as on March 31, 2015, and 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), 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,
(ii) In our opinion and as per the information and explanations
provides to us, the Company has not entered into any long-term
contracts including derivative contracts, requiring provision under
applicable laws or accounting standards, for material foreseeable
losses, and
(iii) The company is not required to transfer amount to investor
education and protection fund therefore there is no delay in
transferring the amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report
(Referred to in Paragraph 1 under section (Report on Other Legal and
Regulatory Requirements, of our report of even date)
1.1. The company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets. However the addition made during the year are not updated.
1.2. Some of the fixed assets were physically verified during the year
by the management in accordance with a program of verification of fixed
assets at reasonable intervals. According to the information and
explanation given to us no material discrepancy were noticed on such
verification.
2.1. According to the information and explanation given to us ,
physical verification of inventory has been conducted by the management
at reasonable interval.
2.2. 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.
2.3. In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of its
inventories and no material discrepancies were noticed on such physical
verification.
3. As informed to us, the company has not granted any loan, secured or
unsecured, to companies, firms or other parties covered in the register
maintained under section 189 of the Companies Act 2013.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of inventories, fixed assets and for the sale of goods and
services. During the course of audit, we have not observed any
continuing failure to correct major weaknesses, if any, in internal
control system.
5. According to the information and explanations given to us, the
Company has not accepted any deposits from public within the meaning of
section 73 to 76 or any other relevant provisions of the Companies Act,
2013 and the rules framed there under during the year under review.
6. The Central Government has not prescribed maintenance of Cost
Records under sub-section (1) of Section 148 of the Companies Act, 2013
in respect of products dealt with by the Company.
7.1 In our opinion and according to the information and explanation
given to us 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 with the
appropriate authorities and we have been informed that there are no
arrears of outstanding statutory dues as at the last day of the
financial year under audit for a period of more than six months from
the date they became payable.
7.2 According to the information and explanations given to us and
records examined by us the particulars of dues of Vat as on 31st march
2015 which have not been deposited on account of dispute is as follows:
Name of the Nature of Amount Period to Forum where
statute dues which the the dispute
involve Rs is pending
(In Lakh) amount Relates
Gujarat sales Vat Dues 576.40 AY 2005-2006 The Commissioner
tax- sales tax commercial
department Taxes Surat,
Gujarat
According to information and explanations given to us and the records
of the company examined by us no dues of vat, duty of custom, duty of
excise, wealth tax, service tax which have not been deposited on
account of any dispute.
7.3 In our opinion and according to the information and explanations
given to us, the company is not required to transfer amounts required
to be transferred to investor education and protection fund in
accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and Rules made there under.
8. The Company has no accumulated losses at the end of the financial
year under audit. The company has not incurred cash losses during the
financial year covered by audit and in the immediately preceding
financial year.
9. According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to a financial
institution or bank.
10. 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.
11. According to the information and explanations given to us, term
loans were obtained during the year under audit and applied for the
purpose for which it has taken the loan.
12. Based upon the audit procedures performed and according to the
information and explanations given to us, no fraud on or by the company
has been noticed or reported during the year of our audit.
For S.S. Jain & Associates
Chartered Accountants
Firm Registration No. 103970W
Sd/-
S. K.Jain
Proprietor
Membership Number: 038664
Place: Bangalore
Dated: 30th May 2015
Mar 31, 2014
We have audited the accompanying financial statements of Paramount
Cosmetics (India) Ltd. (''the Company'') which comprise the Balance Sheet
as at 31st March 2014, the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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 of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 (the Act) 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 and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the Company''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, subject to
a) Provision of Gratuity for Rs. 5,60,533/-is made for those employees
who have completed five year of their services,
b) Balances of Debtors and creditors are subject to confirmation &
reconciliation, any loss on account of this is undeterminable
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
ii) in the case of the statement of profit and loss, of the profit for
the year ended on that date; and
iii) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
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 Act 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 and
e. on the basis of written representations received from the Directors
as on 31st March 2014, and taken on record by the Board of Directors,
none of the Directors is disqualified as on 31stMarch 2014, from being
appointed as a Director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
The Annexure referred to in our report to the members of Paramount
Cosmetics (India) Ltd. (''the Company'') for the year ended 31st March
2014. We report that:
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained 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 size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
c) In our opinion, the Company has not disposed off substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
a) As explained to us, inventories have been physically verified by the
management at regular intervals during the year, in our opinion the
frequency of verification is adequate.
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) The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. The company has not given any loans, secured or unsecured, to the
companies, firm or other parties covered in the register maintained
under section 301 of the Act. Hence clauses (iii)(b), (c) & (d) of the
order, are not applicable.
(a) The Company has taken unsecured loans from three persons covered in
the register maintained under section 301 of the Act. The maximum
amount involved during the year and the year end balance of such loan
aggregate to Rs. 3,34,43,416/- and Rs. 2,85,43,416/- respectively.
(b) In our opinion, the rate of interest and other terms and conditions
of such loans are not prima facie prejudicial to the interest of the
Company.
(c) In respect of the aforesaid loan, there is no stipulation about
repayment of principal however the loans are repaid as and when
demanded by the loaner.
(d) The company is regular in payment of interest.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods and services. During the course of our audit, we have not
observed any major weaknesses in internal controls.
5. In respect of transactions covered under Section 301 of the
Companies Act,1956;
a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements that needed to be entered
into in the register maintained under Section 301 of the Companies Act,
1956 have been properly entered.
b) According to the information and explanations given to us, the
transactions of purchase of goods and materials and sales of goods,
material and services, made in pursuance to contracts or arrangement
entered in the registers main- tained under Section 301 of the
Companies Act, 1956 and aggregating during the year to Rs. 500,000/-
(Rupees Five lacs only) or more in respect of each party, have been
made at prices which in our opinion are reasonable having regards to
prevailing market prices for such goods, material or services or the
prices at which similar transaction have been made with other parties
as the case may be.
6. The Company has not accepted any deposits from the public within the
meaning of Section 58A and 58AA of the Act and rules framed there
under.
7. In our opinion, the company''s present internal audit system is
commensurate with the size of its business.
8. The Central Government has not prescribed maintenance of Cost
Records under Section 209 (1) (d) of the Companies Act, 1956 in respect
of certain manufacturing activities of the Company.
9. In respect of statutory dues:
a. According to the books and records as produced and examined by us in
accordance with generally accepted auditing practices in India and also
based on management representations of the Company, 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
statutory dues as applicable have been generally regularly deposited
with the appropriate authorities in India except vat dues, income tax
deducted at source,ESIC employees & employers contribution and Dividend
Tax amounting to Rs 10,462/- (Annex 1)
b. As at 31st March 2014 there have been no disputed dues which have
not been deposited with respective authorities in respect of Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Sales-tax, Wealth Tax, Service tax, Customs Duty, Excise
Duty, Cess and other material statutory dues as applicable except:
Sr Name of the Nature of Amount (Rs. Period Forum where
No. Statute the Dues in Lakhs) to which dispute is
the amount
relates
pending
1 Gujarat Commissioner-
Sales Tax Commercial
Dept. Vat Dues 576.40 2005-06 Taxes Surat,
Gujarat
10. The company has not incurred cash loss in the current financial
year and there is no cash loss in the immediately preceding financial
year.
11. According to the records of the Company, the Company has not
defaulted in repayment of its dues of any Bank during the year.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
fund/society.Therefore, clause 4(xiii) of the Companies (Auditor''s
Report) Order 2003 as amended is not applicable to the Company.
14. The Company has not dealt in or of trading in shares, securities,
debentures and other Investments. Accordingly, the provisions of Clause
v(xiv) of the Companies (Auditors Report) order, 2003 are not
applicable to the Company.
15. The Company has not given guarantees for loans taken by other from
bank. According to the information and explanations given to us, we are
of the opinion that the terms and Conditions thereof are not
prima-facie prejudicial to the interest of the Company.
16. In our opinion, on the basis of information and explanation given
to us, the term loans are applied for the purpose for which the loans
were obtained.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that there are no funds raised on short term basis which have
been used for long term investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
For R. U. JAIN & CO.
Chartered Accountants
R. U. JAIN
Place: Bangalore Proprietor
Dated : 30 May, 2014 Membership No. 031037
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Paramount
cosmetics India Ltd. (''the Company'') which comprise the Balance Sheet
as at 31 March 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company 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, Subject to
a) Provision of Gratuity for Rs 12,54,171/-is made for those employees
who have completed five year of their services,
b) Balances of Debtors and creditors are subject to confirmation &
reconciliation any loss on account of this is undeterminable (i) in the
case of the Balance Sheet, of the state of affairs of the Company as at
31 March 2013;
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956; and
e. on the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to the Auditors'' Report
The Annexure referred to in our report to the members of Paramount
cosmetics (India) Ltd. (''the Company'') for the year ended 31 March
2013. We report that:
1 In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained 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 size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
c) In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
2 In respect of its inventories:
a) As explained to us, inventories have been physically verified by the
management at regular intervals during the year, in our opinion the
frequency of verification needs to be increased.
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) The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3 The company has not given any loans, secured or unsecured, to the
companies, firm or other parties covered in the register maintained
under section 301 of the Act. Hence clauses (iii)(b), (c) & (d) of the
order, are not applicable.
(a) The Company has taken unsecured loans from three persons covered in
the register maintained under section 301 of the Act. The maximum
amount involved during the year and the year end balance of such loan
aggregate to Rs. 3,15,43,416 /- and Rs.2,85,43,416/- respectively.
(b) In our opinion, the rate of interest and other terms and conditions
of such loans are not prima facie prejudicial to the interest of the
Company.
(c) In respect of the aforesaid loan, there is no stipulation about
repayment of principal however the loans are repaid as and when
demanded by the loaner.
(d) The company is regular in payment of interest.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods and services. During the course of our audit, we have not
observed any major weaknesses in internal controls.
5. In respect of transactions covered under Section 301 of the
Companies Act,1956;
a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements that needed to be entered
into in the register maintained under Section 301 of the Companies Act,
1956 have been properly entered.
b) According to the information and explanations given to us, the
transactions of purchase of goods and materials and sales of goods,
material and services, made in pursuance to contracts or arrangement
entered in the registers maintained under Section 301 of the Companies
Act, 1956 and aggregating during the year to Rs. 5,00,000/- (Rupees
Five lacs only) or more in respect of each party, have been made at
prices which in our opinion are reasonable having regards to prevailing
market prices for such goods, material or services or the prices at
which similar transaction have been made with other parties as the case
may be.
6. The Company has not accepted any deposits from the public within
the meaning of section 58A and 58AA of the Act and rules framed there
under.
7. In our opinion, the company''s present internal audit system is
commensurate with the size of its business.
8. The Central Government has not prescribed maintenance of Cost
Records under Section 209 (1) (d) of the Companies Act, 1956 in respect
of certain manufacturing activities of the Company.
9. In respect of statutory dues:
a. According to the books and records as produced and examined by us in
accordance with generally accepted auditing practices in India and also
based on management representations of the Company, 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
statutory dues as applicable have been generally regularly deposited
with the appropriate authorities in India except vat dues, income tax
deducted at source, ESIC employees & employers contribution and
Dividend Tax amounting to Rs 3803512/- (Annex 1)
b. As at 31st March, 2013 there have been no disputed dues which have
not been deposited with respective authorities in respect of Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Sales-tax, Wealth Tax, Service tax, Customs Duty, Excise
Duty, Cess and other material statutory dues as applicable except:
Sr
No.Name of the Nature of Amount
(Rs. in Period to
which Forum where
Statute the
Dues Lakhs) the
amount
relates dispute is
pending
1 Gujrat Sales
Tax
Sales tax
Dept. Vat Dues 576.40 2005-06 Commissioner-
Commercial Taxes,
Surat, Gujarat
10. The company has not incurred cash loss in the current financial
year and there is no cash loss in the immediately preceding financial
year.
11. According to the records of the Company, the Company has not
defaulted in repayment of its dues of any Bank during the year.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
fund/society.Therefore, clause 4(xiii) of the Companies (Auditor''s
Report) Order 2003 as amended is not applicable to the Company.
14. The Company has not dealt in or of trading in shares, securities,
debentures and other Investments. Accordingly, the provisions of Clause
v(xiv) of the Companies (Auditors Report) order, 2003 are not
applicable to the Company.
15. The Company has not given guarantees for loans taken by other from
bank. According to the information and explanations given to us, we are
of the opinion that the terms and Conditions thereof are not
prima-facie prejudicial to the interest of the Company.
16. In our opinion, on the basis of information and explanations given
to us, the term loans are applied for the purpose for which the loans
were obtained.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short term basis which
have been used for long term investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
For R. U. JAIN & CO.
Chartered Accountants
R. U. JAIN
Place: Bangalore Proprietor
Dated : 30 May, 2013 Membership No. 031037
Mar 31, 2012
We have audited the attached Balance sheet of PARAMOUNT COSMETICS INDIA
LIMITED as at 31st March 2012 and the Profit and Loss Account for the
year ended on that date annexed there to and Cash Flow Statement of the
Company for the year ended on that date. 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.
1. We conducted our audit in accordance with Auditing Standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement. 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 the Management, as well as evaluating the overall financial
presentation. We believe that our audit provides reasonable basis for
our opinion.
2. As required by the Companies (Auditor's Report) Order 2003 ( as
amended ) 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 hereto a statement on the matters specified in
paragraphs 4 & 5 of the said Order.
3. Further to our comments in the Annexure referred to in paragraph 2
above, we report that:
a) We have obtained all the information and explanations which, to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of accounts as required by law, have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet ,Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agree- ment with the Books of
Accounts;
d) In our opinion, the Balance Sheet, the Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred in sub section (3C) of Section 211 of the
Companies Act, 1956;
e) In our opinion, and based on information and expectations given to
us, none of the Director are disqualified as on 31st March 2012 from
being appointed as directors in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and other notes thereon 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 principle generally accepted in India, subject to :
a) Provision for gratuity for Rs. 6,87,588.73 is made for those
employees who have completed five years of their service.
b) Balance of Debtors and Creditors are subject to confirmation &
reconciliation, any loss on account of these are undeterminable.
i) In so far as related to the Balance Sheet, of the statement of
affairs of the Company as at 31st March, 2012 :
ii) In so far as it relates to the Profit & Loss Account, of the Profit
of Company for the period ended on that date; and
iii) In so far as it relates to the Cash Flow Statement, of the cash
flows of the Company for the year ended on that date.
ANNEXURE TO AUDITORS' REPORT
Referred to in Paragraph 2 of our report of even date
1. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained 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 assets. No material discrepancies were noticed on
such physical verification.
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the year, 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 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 has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of the loans, Secured or Unsecured, granted or taken by
the Company to/from Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956 :
a. The Company has not granted secured/unsecured loans to any
companies, firm or other parties covered in the register maintained
under section 301 of the Companies Act 1956 consequently the
requirement of clause (b) (c) & (d) of the paragraph 4 of the order are
not applicable.
b. The Company has taken unsecured loans from five parties covered in
the register maintained under section 301 of the Act. The maximum
amount outstanding at any time during the year and the year-end balance
of such loan aggregate to Rs.2,89,54,020/- and Rs. 2,85,43,416/-
respectively.
c. In our opinion and according to the information and explanations
given to us, the rate of interest, wherever applicable and other terms
and conditions are not prima facie prejudicial to the interest of the
Company, there is no stipulation about the repayment of five of these
loan hence clause (iii) (g) is not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods and services. During the course of our audit, we have not
observed any major weaknesses in internal controls.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956 ;
(a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements that needed to be entered
into in the register maintained under Section 301 of the Companies Act,
1956 have been so entered.
(b) According to the information and explanations given to us, the
transactions of purchase of goods and materials and sales of goods,
material and services, made in pursuance to contracts or arrangement
entered in the registers main- tained under Section 301 of the
Companies Act, 1956 and aggregating during the year to Rs.5,00,000/-
(Rupees Five lacs only) or more in respect of each party, have been
made at prices which in our opinion are reasonable having regard to
prevailing market prices for such goods, materials or services or
prices at which similar transactions have been made with other parties
as the case may be, since the purchases/sales are for branded goods,
comparative prices are not available.
6. According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Therefore, the
provisions of clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
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 maintenance of Cost
Records under Section 209(1) (d) of the Companies Act, 1956 in respect
of certain manufacturing activities of the Company.
9. In respect of statutory dues:
a. According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance dues, Income-Tax, Sales-tax, Wealth Tax,
Service Tax , Customs Duty, Excise Duty, Cess, FBT and other material
statutory dues have not been regularly deposited with the appropriate
authorities. According to the information and explanations given to us,
Rs. 23,31,527/- undisputed amounts payable in respect of the aforesaid
dues were outstanding as at 31st March 2012 for a period of more than
six months from the date of becoming payable, as per Annexure 1.
b. As at 31st March, 2012 there have been disputed Sales Tax dues
aggregating to Rs.95,580/-, that have not been deposited on account of
matters pending before appropriate appellate are as under:
Sr. Name of Nature of the Amount Forum where Period to which
No. statute Dues (Rs.) dispute is
pending the amount
Relates
1 Daman Sales Tax 95,580 Commissioner
(Appeals) 92-95
10. The Company does not have accumulated losses at the end of the
financial year.The Company has not incurred cash loss during the
financial year covered by our audit and the immediately preceding
financial year.
11. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to a financial institution or bank
12. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a niche/mutual
benefit fund/ society. Therefore, clause 4(xiii) of the Companies
(Auditors' Report) Order 2003 as amended is not applicable to the
Company.
14. The Company has not dealt in or of trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditors Report) order, 2003 are not
applicable to the Company.
15. The Company has not given guarantees for loans taken by others
from bank.
16. As explained to us, the Company has not raised any further
business loan.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short term basis which
have been used for long term investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year that causes the financial statements to be materially
misstated.
For R. U. JAIN & CO.
Chartered Accountants
R. U. JAIN
Place: Bangalore, Proprietor
Dated: 29th August, 2012 Membership No. 031037
Mar 31, 2010
We have audited the attached Balance sheet of PARAMOUNT COSMETICS
(INDIA) LIMITED as at 31st March 2010 and the Profit and Loss Account
for the year ended on that date annexed there to and CashFlow Statement
of the Company for the year ended on that date. These financial
statements are the responsibility of the Companys Management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
1. We conducted our audit in accordance with Auditing Standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement. 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 the Management, as well as evaluating the overall financial
presentation. We believe that our audit provides reasonable basis for
our opinion.
2. As required by the Companies (Auditors Report) Order 2003 ( as
amended ) 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 hereto a statement on the matters specified in
paragraphs 4 & 5 of the said Order.
3. Further to our comments in the Annexure referred to in paragraph 2
above, we report that:
a) We have obtained all the information and explanations which, to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of accounts as required by law, have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet ,Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agree- ment with the Books of
Accounts;
d) In our opinion, the Balance Sheet, the Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred in sub section (3C) of Section 211 of the
Companies Act, 1956;
e) In our opinion, and based on information and explanations given to
us, none of the Director are disqualified as on 31st March 2010 from
being appointed as directors in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and other notes thereon 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 principle generally accepted in India, subject to :
a) Provision for gratuity for Rs. 13,01,064/- is made for those
employees who have completed five years of their service (Note 4 -
Schedule 20).
b) Balance of Debtors and Creditors are subject to confirmation &
reconciliation, any loss on account of these are undeterminable.
c) No provision is made for doubtful debts for Rs.13,57,582/- (Schedule
8)
d) Non compliance of Accounting Standard 22 for Deferred Tax, deferred
tax assets are under stated by Rs.44,75,364/- (Note 14 Schedule 20)
i) In so far as related to the Balance Sheet, of the statement of
affairs of the company as at 31st March 2010;
ii) In so far as it relates to the Profit & Loss Account, of the Profit
of Company for the period ended on that date; and
iii) In so far as it relates to the Cash Flow Statement, of the cash
flows of the Company for the year ended on that date.
ANNEXURE TO AUDITORS REPORT Referred to in Paragraph 2 of our report of
even date
1. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained 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 assets. No material discrepancies were noticed on
such physical verification.
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the year, in our opinion the
frequency of verification needs to be increased.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inven- tories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of the loans, Secured or Unsecured, granted or taken by
the Company to/from Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956 :
a. The Company has granted unsecured loans to one company covered in
the register maintained under section 301 of the Companies Act 1956. In
respect of the said loan, the maximum amount outstanding at any time
during the year was Rs. 6,05,602/- and the year end balance of such
loans aggregate to Rs. 6,05,602/-.
b. In our opinion and according to the information and explanations
given to us, no interest is charged on the loan and other terms and
conditions are not prima facie prejudicial to the interest of the
Company.
c. In respect of the aforesaid loan, There is no stipulation about the
repayment hence the clause iii (d) is not applicable. The said Loan is
repayable on demand and there is no repayment Schedule.
d. In respect of the Loan given by the Company, the same is repayable
on demand and therefore the question of overdue amount does not arise.
e. The Company has taken unsecured loans from two parties covered in
the register maintained under section 301 of the Act. The maximum
amount outstanding at any time during the year and the year-end balance
of such loan aggregate to Rs.60,74,372/ - and Rs. 4,70,122/-
respectively.
f. In our opinion and according to the information and explanations
given to us, the rate of interest, wherever applicable and other terms
and conditions are not prima facie prejudicial to the interest of the
Company, there is no stipulation about the repayment of two of these
loan hence clause (iii) (g) is not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods and services. During the course of our audit, we have not
observed any major weaknesses in internal controls.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956.
(a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements that needed to be entered
into in the register maintained under Section 301 of the Companies Act,
1956 have been properly entered.
(b) According to the information and explanations given to us, the
transactions of purchase of goods and materials and sales of goods,
material and services, made in pursuance to contracts or arrangement
entered in the registers maintained under Section 301 of the Companies
Act, 1956 and aggregating during the year to Rs.5,00,000/- (Rupees Five
lacs only) or more in respect of each party, have been made at prices
which in our opinion are reasonable having regard to prevailing market
prices for such goods, materials or services or prices at which similar
transactions have been made with other parties as the case may be,
since the purchases/sales are for branded goods, comparative prices are
not available.
6. The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Companies Act and rules
framed there under.
7. In our opinion, the companys present internal audit system needs
to be strengthened having regard to the nature and size of its
business.
8. The Central Government has not prescribed maintenance of Cost
Records under Section 209(1) (d) of the Companies Act, 1956 in respect
of certain manufacturing activities of the Company.
9. In respect of statutory dues:
a. According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protec-
tion Fund, Employees State Insurance dues, Income-Tax, Sales-tax,
Wealth Tax, Service Tax , Customs Duty, Excise Duty, Cess, FBT and
other material statutory dues have not been regularly deposited with
the appropriate authorities. According to the information and
explanations given to us, Rs. 27,14,887/- undisputed amounts payable in
respect of the aforesaid dues
were outstanding as at 31st March 2010 for a period of more than six
months from the date of becoming payable, as per Annexure 1.
b. As at March,31,2010 there have been disputed Sales Tax dues
aggregating to Rs.9,45,477/-, that have not been deposited on
account of matters pending before appropriate appellate are as under:
Sr. Name of Nature of the Amount Forum where Period to which
No. statute Dues Rs.) dispute is
pending the amount
Sales Tax- relates
1. Daman Sales Tax 95,580 Commissioner
(Appeals) 92-95
2. Guwahati - 1,23,192 Board of
Revenue 99-00
3. Guwahati - 1,75,708 -do- 98-99
4. Guwahati - 2,50,797 -do- 97-98
5. Guwahati - 3,00,000 -do- 96-97
Total: 9,45,477
10. The Company has not incurred cash loss during the financial year
covered by our audit and the immediately preceding financial year.
11. According to the records of the Company, the Company has settled
loan account with G.S.F.C., and no outstanding balance.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a niche/mutual
benefit fund/ society. Therefore, clause 4(xiii) of the Compa- nies
(Auditors Report) Order 2003 as amended is not applicable to the
Company.
14. The Company has not dealt in or of trading in shares, securities,
debentures and other investments. Accordingly, the provi- sions of
Clause v(xiv) of the Companies (Auditors Report) order, 2003 are not
applicable to the Company.
15. The Company has given guarantees for loans taken by others from
bank. The same was cancelled on 12th May, 2009.
16. As explained to us, the Company has raised business loan for the
purpose of products development and launching and it has been used for
the said purpose.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short term basis which
have been used for long term investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year that causes the financial statements to be materially
misstated.
For R. U. JAIN & CO.
Chartered Accountants
R. U. JAIN
Place : Bangalore, Proprietor
Dated: 30th August, 2010 Membership No. 031037
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