Mar 31, 2018
Report on the Audit of the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Patspin India Limited (''the Company''), which comprise the Balance sheet as at 31st March 2018, the Statement of profit and loss (including other comprehensive income), Cash flow statement and the statement of changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory information (collectively referred to as the ''standalone Ind AS financial statements'').
Management''s Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs (financial position), profit or loss(financial performance including other comprehensive income) cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with relevant rules issued there under. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the Standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncement 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2018
(ii) in the case of the Statement of Profit and Loss (comprising of other comprehensive income), of the loss for the year ended on that date;
(iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date; and
(iv) changes in equity for the year ended on that date.
Report on other Legal and regulatory requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in the paragraph 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 purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance sheet, the Statement of profit and loss (including other comprehensive income), the cash flow statement and the statement of changes in equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Ind AS specified under Section 133 of the Act, read with relevant rules issued thereunder;
(e) On the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 37 to the standalone Ind AS 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) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
âANNEXURE - Aâ TO THE INDEPENDENT AUDITOR''S REPORT
Referred to in paragraph 1 under the heading âReport on other Legal & Regulatory Requirement'' of our report of even date to the Standalone Ind AS financial statements of the Company for the year ended 31st March, 2018:
(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management at reasonable intervals in accordance with regular program of verification. According to the information and explanation given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties, as disclosed in Note 3 on Property, Plant and Equipment to the standalone Ind AS financial statements, are held in the name of the Company.
(ii) During the year, Inventories has been physically verified by the Management and there were no material discrepancies were noticed during such verification.
(iii) As informed to us, during the year the company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans, investments, guarantees and security.
(v) The Company has not accepted any deposits from the public in accordance with the provisions of section 73 to 76 of the Act and rules framed thereunder. Accordingly, paragraph 3(V) of the Order is not applicable.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to sub-section (1) of Section 148 of the Companies Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
(vii) (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, employees state insurance, income-tax, sales tax, value added tax, goods and service tax, duty of customs, service tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. Further, no undisputed amounts payable in respect thereof were outstanding at the year 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 following dues of which have not been deposited on account of dispute and the same being contested by the Company.
Name of the Statute |
Nature of the Dues |
Amount Rs.in Lacs |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise Act,1944 |
Excise Duty |
Rs. 72.99 |
August 2014 to May 2016 |
AC Central Excise, Pollachi. |
CST Act,1956 |
Differential VAT on Interstate billings with local delivery at job work premises of customer as per the instruction of the customer |
Rs. 146.45 |
April 2009 to March 2012 |
DC (Appeals), Pollachi. |
TANGEDCO |
Electricity tax on Maximum demand charges |
Rs. 27.25 |
January 2016 to March 2018 |
TANGEDCO. |
TANGEDCO |
Deemed demand benefit available for use of self generated Power. |
Rs. 55.84 |
April 2015 to March 2018 |
TANGEDCO. |
Income Tax Act,1961 |
Income tax demand and Interest |
Rs. 81.45 |
AY 2005-06 |
Hon''ble Supreme Court of India |
(viii) In our opinion and according to the information and explanation given to us, Company has defaulted in repayment of dues to Banks/financial institutions, following are the defaults.
Particulars |
Term Loan Interest due, but not paid as on 31.03.18 |
Term Loan Repayment due, but not paid as on 31.03.18 |
||||
Rs. in Lacs |
Period of defaults |
Remarks, if any (Date of Payment) |
Rs. in Lacs |
Period of defaults |
Remarks, if any |
|
State Bank of India |
Rs. 12.93 |
6 days |
06-Apr-18 |
Rs. 73.50 |
Repayment is pending as on the date of report |
Rs.12.63 lakhs has paid on 19-04-2018, balance is outstanding on the date of report |
State Bank of Travancore |
Rs. 8.06 |
19 days |
19-Apr-18 |
Rs. 59.50 |
||
Central Bank of India |
Rs. 26.06 |
30 days |
30-Apr-18 |
Rs. 150.54 |
||
EXIM Bank |
Rs. 11.25 |
32 days |
02-May-18 |
Rs. 70.15 |
||
Karur Vysya Bank |
Rs. 7.83 |
32 days |
02-May-18 |
Rs. 82.22 |
||
Bank of Maharashtra |
Rs. 11.10 |
33 days |
03-May-18 |
Rs. 32.68 |
||
Canara Bank |
Rs. 19.47 |
33 days |
03-May-18 |
Rs. 70.32 |
||
Oriental Bank of Commerce |
Rs. 18.43 |
33 days |
03-May-18 |
Rs. 74.25 |
||
Canara Bank |
Rs. 44.42 |
Repayment is pending as on the date of report |
â |
â |
â |
â |
State Bank of India |
Rs. 22.12 |
â |
â |
â |
â |
|
IDBI |
Rs. 1.67 |
â |
â |
â |
â |
|
Karur Vysya Bank |
Rs. 0.94 |
â |
â |
â |
â |
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in Note 36 to the standalone financial statements as required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.
âANNEXURE - Bâ To THE INDEPENDENT AUDITOR''S REPoRT oN THE STANDALoNE IND AS FINANCIAL STATEMENTS
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Patspin India Limited (âthe Companyâ) as on 31 March 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining and understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as on 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For L. U. Krishnan & Co.
Chartered Accountants
FRN - 001527S
P. K. Manoj
Place: Kochi Partner
Date : 30th May, 2018 Membership No. 207550
Mar 31, 2016
TO THE MEMBERS OF PATSPIN INDIA LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Patspin India Limited (''the Company''), which comprise the Balance sheet as at 31st March 2016, 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.
Managementâs Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation 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 the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2016 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance sheet, the Statement of profit and loss and the 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 31 March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 30 (B) to the 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) There are no dues required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure - A to the Auditors'' Report
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended 31 March 2016, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner which in our opinion, is reasonable, having regard to the size of the Company and the nature of its assets and no material discrepancies were noted on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) During the year, Inventories has been physically verified by the Management and there were no material discrepancies were noticed during such verification.
(iii) As informed to us, during the year the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to sub-section (1) of Section 148 of the Companies Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
(vii) (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, employees state insurance, income-tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues have 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 duty of excise.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees state insurance, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31 March 2016 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 following dues which have not been deposited on account of dispute and the same is being contested by the Company.
Sr. No. |
Name of the Statute |
Nature of the Dues |
Amount in Lacs |
Period to which the amount relates |
Forum where dispute is pending |
01. |
Income Tax Act, 1961 |
Income Tax |
34.00 |
A.Y2001-02 to A.Y2005-06 |
Hon''ble Supreme Court of India |
(viii) During the year, Company has defaulted in repayment of dues to Banks/financial institutions and installment of dues are paid after days of delay from due date. And in the case of year end dues as on Balance sheet which remains outstanding on account of default and remained payable are as under:
Particulars |
Amount of default as at the balance sheet date -Rs. In lakhs |
Period of default |
Remarks if any |
Bank of Maharashtra |
Rs.43.71 |
57 days |
Paid on 27th May, 2016 |
EXIM Bank |
Rs.70.17 |
57 days |
Paid on 27th May, 2016 |
Central Bank of India |
Rs.146.70 |
57 days |
Paid on 27th May, 2016 |
Canara Bank |
Rs.68.81 |
57 days |
Paid on 27th May, 2016 |
Karur Vysya Bank |
Rs.92.42 |
57 days |
Paid on 27th May, 2016 |
Oriental Bank of Commerce |
Rs.83.36 |
57 days |
Paid on 27th May, 2016 |
State Bank of India |
Rs.80.02 |
57 days |
Paid on 27th May, 2016 |
State Bank of Travancore |
Rs.63.33 |
57 days |
Paid on 27th May, 2016 |
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Annexure - B to the Independent Auditorsâ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Patspin India Limited (âthe Companyâ) as on 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting. Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as on 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For M.S.Jagannathan & Visvanathan
Chartered Accountants
ICAI FRN 001209S
R.Mugunthan
Place: Coimbatore Partner
Date : 31/05/2016 M.No.21397
Mar 31, 2015
We have audited the accompanying financial statement of Patspin India
Limited ('the Company') which comprises the Balance sheet as at
31st March, 2015, the Statement of Profit and Loss and the cash flow
statement for the year then ended, and a summary of the significant
accounting policy 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 the 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 the frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgment and estimates that are reasonable and
prudent; and design, implementation and maintenance of internal
control, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the 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 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 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 of the financial statements that give true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by companies 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 the Statement of Profit and Loss, of the Loss 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.
Report on Other Legal and Regulatory Requirements
1. As required by section 143(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 purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the 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 the Cash Flow Statement comply with the Accounting Standards
referred to in Section 133 of the Companies Act, 2013, 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 sub section (2) of
section 164 of the Companies Act, 2013.
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. There has been no delay in transferring the amounts, required to
be transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITOR'S REPORT
The Annexure referred to in paragraph 1 of Report on Other Legal and
Regulatory Requirements of our report of even date to the members of
Patspin India Limited for the year ended 31st March 2015. We report
that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets are physically verified in a
phased periodical manner, which, in our opinion, is reasonable, having
regard to the size of the Company and the nature of its assets and no
material discrepancies were noted on such verification;
(ii) (a) The Inventory has been Physically verified during the year by
the Management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventories
and no material discrepancies were noticed on physical verification as
compared to the book records.
(iii) As informed to us, the company has not granted any loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under section 189 of the Companies Act.
Accordingly, the sub-clauses (a) and (b) are not applicable to the
company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
(v) According to the information and explanations given to us, the
Company has not accepted any deposits in terms of directives issued by
Reserve Bank of India and the provisions of Section 73 to 76 or any
other relevant provisions of the Companies Act and the rules framed
there under.
(vi) We have broadly reviewed the books of account maintained by the
Company pursuant to sub-section (1) of Section 148 of the Companies
Act, and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained.
(vii) (a) The company is regular in depositing undisputed statutory
dues including provident fund, employees' state
insurance, income-tax, sales-tax, service tax, duty of customs, duty of
excise, value added tax, cess and any other statutory dues with the
appropriate authorities and 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.
(b) According to the information and explanations given to us, there
are following dues of which have not been deposited on account of
dispute and the same is being contested by the Company:
Name of the Statute
Income Tax Act,1961
Nature of the Dues
Income Tax
Amount in Lacs
34.00
Period to which the amount relates
A.Y2001-02 to A.Y.2005-06
Forum where dispute is pending
Hon'ble Supreme Court of India
(c) In our opinion and according to the information and explanations
given to us, 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 thereunder have been
transferred to such fund within time.
(viii) The Company has accumulated losses of Rs.4141 lakhs as at 31st
March 2015 which is more than the fifty percent of the networth. The
Company has not incurred any cash loss during the financial year
covered by our audit and during immediately preceding financial year.
(ix) Based on our audit procedures and according to the information,
the company has not defaulted in repayment of dues to Bank(s) or
Financial Institution(s). However, there is delay in few days for
repayment of dues.
(x) During the year, the Company has not given guarantees for loans
taken by others from bank(s) or financial institution(s).
(xi) In our opinion and according to the information and explanations
given to us, the Term Loans have been applied for the purpose for which
they are raised.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
FOR M. S. JAGANNATHAN & VISVANATHAN
CHARTERED ACCOUNTANTS
(ICAI FIRM NO. 001209S)
R. MUGUNTHAN
Place : Kochi PARTNER
Date : 27th May, 2015 M NO.21397
Mar 31, 2014
We have audited the accompanying financial statement of Patspin India
Limited (''the Company'') which comprises 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 the significant
accounting policy 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 read with the General Circular 15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
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 the
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 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 the Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company 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") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956 and
sub-section (11) of Section 143 of the Companies Act, 2013, 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 Companies Act, 1956, we report
that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account 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 Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act, 1956 read with the General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013.
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT
The Annexure referred to in paragraph 1 of Report on Other Legal and
Regulatory Requirements of our report of even date to the members of
PATSPIN INDIA LIMITED for the year ended 31st March 2014. We report
that:
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the fixed assets are physically verified in a
phased periodical manner, which, in our opinion, is reasonable, having
regard to the size of the Company and the nature of its assets and no
material discrepancies were noted on such verification.
c) During the year, the Company has not disposed off a substantial part
of its fixed assets, which affect the going concern status of the
Company.
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 has maintained proper records of inventory. As explained
to us, no material discrepancies were noticed on physical verification
of inventories as compared to the book records.
iii) a) The Company has not granted any loans or advances, secured or
unsecured to firms, companies or other parties covered in the Register
maintained under section 301 of the Companies Act, 1956 and hence sub
clauses b, c & d are not applicable.
b) During the year, the Company has not taken any loans or advances,
secured or unsecured from firms, companies or other parties covered in
the Register maintained under section 301 of the Companies Act, 1956.
However, there is a deposit received amounting to Rs. 9 lakhs from a
party covered under the above mentioned section during earlier years
and same remains as outstanding at the year end and maximum amount
outstanding during the year.
c) In our opinion and according to the information and explanations
given to us, other terms and conditions on which such deposit have been
taken are prima facie not prejudicial to the interest of the company;
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and 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 control system.
v) a) According to the information and explanations given to us, we are
of the opinion that the transactions that made in pursuance of
contracts or arrangements, that need to be entered in the register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements referred to in (v)(a) above and exceeding the value of
rupees five lakhs 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.
vi) In our opinion and according to the information and explanations
given to us the company has complied with the provisions of section 58A
and 58AA of the Companies Act, 1956 and the companies (Acceptance of
Deposits) Rules 1975 with regard to the deposits accepted from the
public. No order has been passed by the National Company Law Tribunal
or Reserve Bank of India or any court or any other Tribunal.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) According to the information and explanations given to us, the
Central Government has prescribed maintenance of cost records under
Section 209(1)(d) of the Companies Act, 1956 and Section 128 read with
Section 2(13) of the Companies Act, 2013 in respect of manufacturing
activities of the Company. We have broadly reviewed the accounts and
records of the Company in this connection and are of the opinion, that
prima facie, the prescribed accounts and records have been made and
maintained. We have not, however carried out a detailed examination of
the same.
ix) a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees'' State Insurance, Income Tax, Investor Education Protection
Fund, Value Added Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and Cess were in arrears, at the year
end for a period of more than six months from the date they became
payable.
c) According to the information and explanations given to us, there are
following dues of which have not been deposited on account of dispute
and the same is being contested by the Company.
Srl. Name of the Nature of Amount Period to which Forum where
No. Statute the Dues (Rupees the amount dispute is
in lakhs) relates pending
1. Income tax Income tax 254 A.Y.2001-02 to Hon''ble Supr-
Act, 1961 A.Y.2005-06 eme Court of
India
x) The Company has accumulated losses of Rs. 3480.53 lakhs as at 31st
March 2014 which is more than fifty percent (50%) of the networth. The
Company has not incurred any cash loss during the financial year
covered by our audit and had incurred cash loss of Rs. 291.69 lakhs
during immediately preceding financial year.
xi) Based on our audit procedures and according to the information, the
company has not defaulted in repayment of dues to Bank(s) or Financial
Institution(s).
xii) In our opinion and according to the information and explanations
given to us, the company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiii) 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.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) order,
2003 are not applicable to the Company.
xv) During the year, the Company has not given guarantees for loans
taken by others from bank(s) or financial institution(s).
xvi) In our opinion and according to the information and explanations
given to us, the Term Loans have been applied for the purpose for which
they were raised.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance sheet of the company, we report
that no funds raised on short time basis have been used for long term
investments.
xviii)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.
xix) The company has not issued any debentures during the year.
xx) The company has not made any Public Issues during the year.
xxi) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For M. S. JAGANNATHAN & VISVANATHAN
CHARTERED ACCOUNTANTS
FRN 001209S
Place : Kochi R. MUGUNTHAN
Date : 15/05/2014 PARTNER (MEMBERSHIP NO. 21397)
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statement of PATSPIN INDIA
LIMITED (''the Company'') which comprise the Balance sheet as at 31st
March, 2013, the Statement of Profit and Loss and the cash flow
statement for the year then ended, and a summary of the significant
accounting policy 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 the
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 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 the Management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the Loss 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. Report on Other Legal and
Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the 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 purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the 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 the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
Annexure referred to in our Report of even date on the accounts for the
year ended 31st March, 2013 of PATSPIN INDIA LIMITED.
On the basis of such checks as we considered appropriate during the
course of our audit, we state that:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets are physically verified in a
phased manner which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noted on such verification.
(c) During the year, there was no sale of substantial part of fixed
assets and hence the going concern of the Company is not affected.
(ii) (a) During the year, inventory has been physically verified by the
management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management 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 had not granted loan to parties covered in the
register maintained under Section 301 of the Companies Act, 1956 and
hence sub clauses (b) to (d) of clause (iii) of the said Order are not
applicable.
(b) During the year Company had not taken deposits from any parties
covered in the register maintained under Section 301 of the Companies
Act, 1956. However, the deposits received during the previous year''s
from such parties were outstanding at the year end was Rs.9 lakhs and
maximum amount outstanding at any time during the year was Rs. 49
lakhs.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
deposits taken by the Company are prima facie not prejudicial to the
interest of the Company.
(d) The re-payment of deposits and payment of interest are as
stipulated.
(e) There is no overdue amount in respect of the fixed deposit
mentioned in para (b) above.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees five lakhs 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.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of sections
58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules,1975 with regard to the deposits accepted from the
public. No order has been passed by the National Company Law Tribunal
or Reserve Bank of India or any Court or any other Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the Books of Account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
(ix) (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, Value Added Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess and other material statutory dues applicable to it.
(b) According to the information and explanation given to us there is
following dues of which have not been deposited on account of dispute
and the same is being contested by the Company.
Sr. Name of the Nature of Amount Year to
which the Forum where
dispute is pending
No. Statute the Dues (Rs in
lakhs) amount
relates
1. Income Tax Income Tax 16 A.Y.2001-02 to Honourable
Supreme Court of
India
Act, 1961 A.Y.2005-06
(x) The accumulated losses of the Company as on 31st March, 2013 is
more than fifty percent (50%) of its net worth. The Company has
incurred cash loss of Rs. 292 lakhs and Rs. 1608 lakhs during the
financial year covered by our audit and immediately preceding financial
year respectively.
(xi) Based on our audit procedures and according to the information
given to us, the Company has not defaulted in repayment of dues to
Financial Institutions and Banks based on agreed restructured schedule
of repayment as per Corporate Debt Restructuring (CDR) package.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not 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.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
(xv) In our opinion and according to the information and explanations
given to us, during the year Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short term basis have been used for long term
investments.
(xviii) During the year, 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.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any monies by way of Public Issues
during the year.
(xxi) According to the explanation and information given to us, based
upon the audit procedures performed and representations made by the
management, we report that no fraud on or by the Company has been
noticed or reported during the course of our Audit.
FOR M S JAGANNATHAN & VISVANATHAN
CHARTERED ACCOUNTANTS (FRN 001209S)
(R.MUGUNTHAN)
Place : Kochi PARTNER
Date : 30th May, 2013 M NO.21397
Mar 31, 2012
1. We have audited the attached Balance Sheet of PATSPIN INDIA LIMITED
as at 31st March, 2012, Statement of Profit and Loss and also 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.
2. 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.
3. As required by the Companies (Auditor's Report) Order, 2003 and as
amended by the Companies (Auditor's Report) Amendment Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. 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, Statement of Profit and Loss and Cash Flow
statement dealt with by this report are in agreement with the Books of
Account;
iv) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
v) On the basis of written representation received from the directors,
as on 31st March, 2012, and taken on record by the Board of Directors,
we report that none of the directors is disqualified from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956, on the said date.
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant Accounting Policies 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 31st March, 2012;
b) in the case of the Statement of Profit and Loss, of the Loss of the
Company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
On the basis of such checks as we considered appropriate during the
course of our audit, we state that:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets are physically verified in a
phased manner which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noted on such verification.
(c) During the year, there was no sale of substantial part of fixed
assets and hence the going concern of the Company is not affected.
(ii) (a) During the year, inventory has been physically verified by the
management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management 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 had not granted loan to Companies covered in the
register maintained under Section 301 of the Companies Act, 1956 and
hence sub clauses (b) to (d) of clause (iii) of the said Order are not
applicable.
(b) The Company had taken deposits from eight parties amounting to Rs188
lakhs and maximum amount outstanding at anytime during the year was
Rs456 lakhs and year end balance was Rs 49 lakhs.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
deposits taken by the Company are prima facie not prejudicial to the
interest of the Company.
(d) The re-payment of Deposits and payment of interest are as
stipulated.
(e) There is no overdue amount in respect of the fixed deposit
mentioned in para (b) above.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees five lakhs 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.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of sections
58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975 with regard to the deposits accepted from the
public. No order has been passed by the National Company Law Tribunal
or Reserve Bank of India or any court or any other Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the Books of Account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
(ix) (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, Customs Duty, Excise Duty,
Cess and other material statutory dues applicable to it.
(b) According to the information and explanation given to us there is
following dues of which have not been deposited on account of dispute
and the same is being contested by the Company.
Srl. Name of the Nature of the Amount Year to which
the Forum where
No. Statute Dues (Rs in
lacs) amount relates dispute is
pending
1) Income Tax
Act, Income Tax 16 A.Y2001-02 to Honourable
1961 2005-06 Supreme
Court of
India
(x) The Company has accumulated losses of Rs2324 lakhs as at 31st March,
2012. The Company has incurred cash loss of Rs1608 Lakhs during the
financial year covered by our audit and the company had not incurred
any cash loss during immediately preceding financial year.
(xi) Based on our Audit procedures and according to the information
given to us, the company has not defaulted in repayment of dues to
Financial Institutions and Banks.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not 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.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
(xv) During the year, the Company has given guarantee to an extent of
Rs350 lakhs and Rs777 lakhs for loan borrowed by GTN Textiles Limited and
GTN Enterprises Limited respectively from a Financial Institution and
the terms and conditions whereof are prima facie not prejudicial to the
interest of the company.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that Rs4044 lakhs raised on short term basis have been used for long
term purpose.
(xviii) During the year, 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.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any monies by way of Public Issues
during the year.
(xxi) According to the explanation and information given to us, based
upon the audit procedures performed and representations made by the
management, we report that no fraud on or by the Company has been
noticed or reported during the course of our Audit.
FOR M S JAGANNATHAN & VISVANATHAN
CHARTERED ACCOUNTANTS (FRN 001209S)
(R.MUGUNTHAN)
Place : Kochi PARTNER
Date : 23rd May, 2012 M NO.21397
Mar 31, 2011
1. We have audited the attached Balance Sheet of PATSPIN INDIA LIMITED
as at 31st March, 2011 Profit and Loss Account and also the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. 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.
3. As required by the Companies (Auditors Report) Order, 2003 and as
amended by the Companies (Auditors Report) Amendment Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. 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, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the Books of Account;
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 representation received from the directors,
as on 31st March, 2011, and taken on record by the Board of Directors,
we report that none of the directors is disqualified from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956, on the said date.
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant Accounting Policies and Notes to Accounts in Schedule "19"
and those appearing elsewhere in the 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 31st March, 2011;
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 for the
year ended on that date.
Annexure referred to in our Report of even date on the accounts for the
year ended 31st March, 2011 of PATSPIN INDIA LIMITED.
On the basis of such checks as we considered appropriate during the
course of our audit, we state that:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets are physically verified in a
phased manner which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noted on such verification.
(c) During the year, there was no sale of substantial part of fixed
assets and hence the going concern of the Company is not affected.
(ii) (a) 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 explanation
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 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 had not granted loan to Companies covered in the
register maintained under Section 301 of the Companies Act, 1956 and
hence sub clauses (b) to (d) of clause (iii) of the said Order are not
applicable.
(b) The Company had taken Fixed Deposits from Three Companies and six
other parties amounting to Rs.279.50 lacs and maximum amount
outstanding at anytime during the year and year end balance remains the
same.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
Fixed Deposits taken by the Company are prima facie not prejudicial to
the interest of the Company.
(d) The re-payment of Fixed Deposit and interest are as stipulated.
(e) There is no overdue amount in respect of the Fixed Deposit
mentioned in para (b) above.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees five lakhs 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.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of sections
58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975 with regard to the deposits accepted from the
public. No order has been passed by the National Company Law Tribunal
or Reserve Bank of India or any court or any other Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the Books of Account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
(ix) (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, Customs Duty, Excise Duty,
Cess and other material statutory dues applicable to it.
(b) According to the information and explanation given to us there is
following dues of which have not been deposited on account of dispute
and the same is being contested by the Company.
Srl. Name of the Nature of the Amount Year to Forum where
No. Statute Dues (Rs. which dispute is
in lacs) the pending
amount
relates
1) Kerala VAT Act, Penalty 1.11 2009-10 Deputy
2003 Commissioner,
Appeals
(x) The Company does not have accumulated losses as at 31st March,
2011. The Company has not incurred cash loss during the financial year
covered by our audit and during immediately preceding financial year.
(xi) Based on our Audit procedures and according to the information
given to us, the company has not defaulted in repayment of dues to
Financial Institutions and Banks.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 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 clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
(xv) In our opinion, during the year the Company has not given
guarantee for loans taken by others from banks or Financial
Institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short term basis have been used for long term
investments.
(xviii) During the year, 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.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any monies by way of Public Issues
during the year.
(xxi) According to the explanation and information given to us, based
upon the audit procedures performed and representations made by the
management, we report that no fraud on or by the Company has been
noticed or reported during the course of our Audit.
FOR M S JAGANNATHAN & VISVANATHAN
CHARTERED ACCOUNTANTS (FRN 001209S)
(R.MUGUNTHAN)
PARTNER
M NO.21397
Place : Kochi
Date : 10th May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Messrs. PATSPIN INDIA
LIMITED as at 31 st March, 2010 and also the Profit and Loss Account
and also the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. 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.
3. As required by the Companies (Auditors Report) Order, 2003 and as
amended by the Companies (Auditors Report) Amendment Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. 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, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the Books of Account;
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 representation received from the directors,
as on 31 st March, 2010, and taken on record by the Board of Directors,
we report that none of the directors is disqualified from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956, on the said date.
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant Accounting Policies and Notes to Accounts in Schedule "19"
and those appearing elsewhere in the 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 Loss of the
Company for the year ended on that date; and .
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE
YEAR ENDED 31ST MARCH; 2010 OF PATSPIN INDIA LIMITED.
On the basis of such checks as we considered appropriate during the
course of our audit, we state that:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to Us, the fixed assets are physically verified in a
phased manner which, in bur opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were notedon such verification.
(c) During the year, there was no sale of substantial part of fixed
assets and hence the going concern of the Company is not affected.
(ii) (a) 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 explanation
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 is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) The Company had not taken / granted loan from / to Companies
covered in the register maintained under Section 301 of the Companies
Act, 1956 and hence sub clauses b, c, d, e, f, g and h of clause (iii)
of the said Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees five lakhs 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.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of sections
58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975 with regard to the deposits accepted from the
public. No order has been passed by the Company Law Board or Reserve
Bank of India or any court or any other Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the Books of Account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
(ix) (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, Customs Duty, Excise Duty,
Cess and other material statutory dues applicable to it.
(b) According to the information and explanation given to us the
following dues of which have not been deposited on account of dispute
and the same is being contested by the Company.
Sl.No. Name of the
Statute Nature of the Dues Amount Year to which the
(Rs. in lacs) amount relates
1) Income Tax Act Tax & Interest 1401.41 A.Y: 2001-02; to A.Y:
2006-07
Name of the Forum where dispute is
Statue pending
Income Tax Act Income Tax Appellate
Tribunal, Kochi
(x) In our opinion, the accumulated losses of the Company are not more
than fifty percent of the networth. Further, the Company has not
incurred cash loss during the financial year covered by our audit and
has incurred cash-loss of Rs. 1746.52 lacs in the immediately
preceeding financial year.
(xi) Based on our Audit procedures and according to the information
given to us, the company has not defaulted in repayment of dues to
Financial Institutions and Banks.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advance on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion; the Company is not chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditors Report) Order, 2003 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 clause 4
(xiv) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
(xv) In our opinion, during the year the Company has not given
guarantee for loans taken by others from banks or Financial
Institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short term basis have been used for long term
investments.
(xviii) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any monies by way of Public Issues
during the year. (xxi) According to the explanation and information
given to us, based upon the audit procedures performed and
representations made by the management, we report that no fraud on or
by the Company has been noticed or reported during the course of our
Audit.
FOR M S JAGANNATHAN & VISVANATHAN
CHARTERED ACCOUNTANTS
(ICAIFirmNo. 001209S)
R. MUGUNTHAN
Place. Kochi PARTNER
Date ; 13th May 2010 M NO.21397
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article