Mar 31, 2018
INDEPENDENT AUDITOR''S REPORT
The Members of M/s. Polyspin Exports Limited
Report on the standalone IND AS Financial Statements
We have audited the accompanying standalone IND AS financial statements of Polyspin Exports Limited, which comprise the Balance Sheet as at March 31, 2018 and the Statement of Profit and Loss (including other Comprehensive Income), the Cash Flow Statement and the statement of changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
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 with respect to the preparation of these standalone IND AS financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (IND AS) specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the 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 in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone IND AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone IND AS financial statements. The procedures selected depend on the 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:
a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2018;
b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by 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 1â a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, Statement of Profit and Loss, the Cash Flow Statement and the statement of changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone IND AS financial statements comply with the Indian Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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, we give our separate report in âAnnexure Bâ
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) The company has disclosed the impact of pending litigations on its financial position in its standalone IND AS financial statements - Refer to Note No. 37.3 to the financial statements
ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii) There has been no delay in transferring amounts required to be transferred to the investor Education and protection Fund by the Company.
Annexure referred to in paragraph 1 of our Report of even date to the members of Polyspin Exports Limited on the accounts of the Company for the year ended
31stMarch 2018
In terms of Companies (Auditor''s Report) Order 2016, issued by Central Government of India, in terms of Section 143(11) of The Companies Act, 2013, we further report, on the matters specified in paragraph 3 and 4 of the said Order, that: -
1. FIXED ASSET
i) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
9
ii) The Company has instituted a programme of physically verifying its fixed assets in a phased manner over a period of three years. In accordance with this programme, scheduled fixed assets were verified during the year and no material discrepancies were noticed during such verification.
iii) 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
2. INVENTORIES
The management has conducted physical verification of its inventories at reasonable intervals during the year. No material discrepancies were noticed during such verification; the discrepancies wherever noticed were accounted for appropriately in the books of account.
3. LOANS TO PARTIES LISTED U/S 189 OF THE ACT
The Company has not granted any loans, secured or unsecured, to parties covered in register maintained under Section 189 of The Companies Act, 2013.
4. COMPLIANCE WITH SECTIONS 185 & 186 OF THE ACT
i) In connection with matters specified u/s 185 of the act, the Company has not advanced any loans, directly or indirectly, to any of its directors or to any other person in whom the directors are interested, or has given any guarantee or provided security in connection with any loan taken by any other person.
ii) The company has not made any investments in any other companies within the meaning of section 186(1) of the act.
iii) In connection with matters specified under section 186(2) of the act, the company has not advanced any loans, directly or indirectly, to any person or body corporate, or has given any guarantee or provided security in connection with any loan taken by any other body corporate or any other person or acquired any securities of companies in excess of limits stipulated
5. The Company has not accepted any deposits from the public.
6. The Central Government has not stipulated the maintenance of Cost Records, under section 148(1) of the act, for the industry within which the company operates.
7. STATUTORY DUES
i) According to the records maintained by the company and the information and explanations given to us, the company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, VAT / Sales Tax, GST, Duty of Customs, Service Tax, Cess.
ii) According to the records maintained by the company and the information and explanations given to us, there were no arrears of undisputed statutory dues, in respect of provident fund, income tax, sales tax, value added tax, GST, duty of customs, service tax, cess which remained outstanding as at 31st March 2018, for a period of more than six months from the date they became payable.
iii) According to the records of the company and the information and explanations given to us, the disputed statutory dues relating to Central excise duty under the Central Excise act, 1944, pertaining to earlier years aggregating to Rs.393.62 lakhs on account of matters pending before appropriate authorities is as under and for which no provision had been made in the accounts.
S.No. |
Name of the Statue |
Nature of the Dues |
Forum where the dispute is pending |
Period |
Amount (Rs. in Lakhs) |
1. |
Central Excise Act, 1944 |
Excise Duty |
Commissioner of Central Excise, Madurai. |
June 2008 To March, 2013 |
71.70 |
2. |
Central Excise Ad, 1944 |
Excise Duty |
Commissioner of Central Excise, Madurai. |
January, 2009 To March, 2013 |
129.10 |
3. |
Central Excise Act, 1944 |
Excise Duty |
Assistant Commissioner of Central Excise, Rajapalayam. |
April, 2010 To March, 2011 |
3.69 |
4. |
Central Excise Ad, 1944 |
Excise Duty |
Assistant Commissioner of Central Excise, Rajapalayam. |
April, 2013 To December, 2014 |
70.11 |
5. |
Central Excise Ad, 1944 |
Excise Duty |
Assistant Commissioner of Central Excise, Rajapalayam. |
April, 2014 To September, 2014 |
30.04 |
6. |
Central Excise Ad, 1944 |
Excise Duty |
Assistant Commissioner of Central Excise, Rajapalayam. |
October, 2014 To March, 2015 |
30.23 |
7. |
Central Excise Ad, 1944 |
Excise Duty |
Assistant Commissioner of Central Excise, Rajapalayam. |
April, 2015 To September, 2015 |
25.24 |
8. |
Central Excise Ad, 1944 |
Excise Duty |
Assistant Commissioner of Central Excise, Rajapalayam. |
October, 2015 To March, 2016 |
33.51 |
TOTAL |
393.62 |
8. The Company has not defaulted in the repayment of any dues to a financial institution, bank or government or debenture holders.
9. Term loans were utilised for the purposes for which they were obtained.
10. Based upon the audit procedures performed and information and explanations given to us by the management, no fraud by the company or on the Company by its officers or employees have been noticed or reported during the course of our audit.
11. According to the information and explanations given to us and based on our examination of the records of the company, the company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12. The provisions of section 406(1) of the act do not apply to the company.
13. The transactions entered into with related parties are in compliance with requirements of sections 177 & 188 of the act and the details have been disclosed in the financial statements etc., as required by the applicable accounting standards.
14. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. The Company has not entered into any non-cash transactions with directors or persons connected with directors, during the year.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
[Referred to in paragraph (g) under ''Report on Other Legal and Regulatory Requirements'' in our Independent Auditor''s Report of even date, to the members of the Holding Company on the consolidated IND AS financial statements for the year ended 31st March, 2018]
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
In conjunction with our audit of the consolidated Ind AS financial statements of the Holding Company as of and for the year ended 31st March, 2018, we have audited the internal financial controls over financial reporting of the Group, in respect of companies incorporated in India, as of that date.
MANAGEMENT''S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The respective Board of Directors of the entities of the Group which are companies incorporated in India, are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Holding Company, considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of business, including adherence to the respective
company''s policies, the safeguarding of 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 Act.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on the Holding Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing specified under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were 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 and the audit evidence obtained by the other auditors in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the Holding 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 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 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 controls 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 Group, in respect of companies incorporated outside India, has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on the internal control over financial reporting criteria established by the Holding Company, considering the essential components of internal control stated in the Guidance Note issued by the ICAI.
OTHER MATTERS
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting, in so far as it relates to one associate of the Holding Company which is company incorporated outside India, is based on the corresponding reports of the auditors of such companies incorporated outside India.
For M/s. SRITHAR & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No. 015896S
Place : Rajapalayam S. SRITHAR
Date : 29.05.2018 Membership No. 209047
Mar 31, 2016
INDEPENDENT AUDITOR''S REPORT
The Members of M/s. Polyspin Exports Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Polyspin Exports Limited, which comprise the Balance Sheet as at March 31, 2016 and the Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2016;
b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act 2013, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.
b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors as on March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us
i) the company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer to Note No. 23 (11) to the financial statements
ii) the company does not have any long-term contracts requiring a provision for material foreseeable losses.
iii) the company does not have any amounts required to be transferred to the Investor Education and Protection Fund.
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF POLYSPIN EXPORTS LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
We have audited the Internal Financial Controls over financial reporting of Polyspin Exports Limited as of March 31, 2016 in conjunction with our audit of the 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.
These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
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 Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 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.
Annexure referred to in paragraph 1 of our Report of even date to the members of Polyspin Exports Limited on the accounts of the Company for the year ended 31st March, 2016
In terms of Companies (Auditor''s Report) Order 2016, issued by Central Government of India, in terms of Section 143(11) of the Companies Act, 2013, we further report, on the matters specified in paragraphs 3 and 4 of the said Order, that: -
1. FIXED ASSETS
i) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.
ii) The Company has instituted a programme of physically verifying its fixed assets in a phased manner over a period of three years. In accordance with this programme, scheduled fixed assets were verified during the year and no material discrepancies were noticed during such verification.
iii) 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.
2. INVENTORIES
The management has conducted physical verification of its inventories at reasonable intervals during the year. No material discrepancies were noticed during such verification; the discrepancies wherever noticed were accounted for appropriately in the books of account.
3. LOANS TO PARTIES LISTED U/S 189 OF THE ACT
The Company has not granted any loans, secured or unsecured, to parties covered in register maintained under Section 189 of the Companies Act, 2013.
4. COMPLIANCE WITH SECTIONS 185 & 186 OF THE ACT
i) In connection with matters specified u/s 185 of the act, the Company has not advanced any loans, directly or indirectly, to any of its directors or to any other person in whom the directors are interested or has given any guarantee or provided security in connection with any loan taken by any other person.
ii) The company has not made any investments in any other companies within the meaning of section 186(1) of the act.
iii) In connection with matters specified under section 186(2) of the act, the company has not advanced any loans, directly or indirectly to any person or body corporate, or has given any guarantee or provided security in connection with any loan taken by any other body corporate or any other person or acquired any securities of companies in excess of limits stipulated
5. The Company has not accepted any deposits from the public.
6. The Central Government has not stipulated the maintenance of Cost Records, under section 148(1) of the act, for the industry within which the company operates.
7. STATUTORY DUES
i) According to the records maintained by the company and the information and explanations given to us, the company has been generally regular in depositing undisputed statutory dues including Provident Fund, Income tax, Sales tax, Value added tax, Duty of customs, Service tax, Cess.
ii) According to the records maintained by the company and the information and explanations given to us, there were no arrears of undisputed statutory dues, in respect of Provident fund, Income tax, Sales tax, Value added tax, duty of customs, Service tax, Cess which remained outstanding as at 31st March 2016, for a period of more than six months from the date they became payable.
iii) According to the records of the company and the information and explanations given to us, the disputed statutory dues relating to Central excise duty under the Central Excise Act, 1944, pertaining to earlier years aggregating to Rs. 360.11 Lakhs on account of matters pending before appropriate authorities is as under and for which no provision had been made in the accounts.
S.No. |
Name of the Statue |
Nature of the Dues |
Forum where the dispute is pending |
Period |
Amount (Rs. in Lakhs) |
1. |
Central Excise Act, 1944 |
Excise Duty |
Commissioner of Central Excise, Madurai. |
June 2008 To March, 2013 |
71.70 |
2. |
Central Excise Ad, 1944 |
Excise Duty |
Commissioner of Central Excise, Madurai. |
January, 2009 To March, 2013 |
129.10 |
3. |
Central Excise Act, 1944 |
Excise Duty |
Assistant Commissioner of Central Excise, Rajapalayam. |
April, 2010 To March, 2011 |
3.69 |
4. |
Central Excise Act, 1944 |
Excise Duty |
Assistant Commissioner of Central Excise, Rajapalayam. |
April, 2013 To December, 2014 |
70.11 |
5. |
Central Excise Act, 1944 |
Excise Duty |
Assistant Commissioner of Central Excise, Rajapalayam. |
April, 2014 To September, 2014 |
30.04 |
6. |
Central Excise Act, 1944 |
Excise Duty |
Assistant Commissioner of Central Excise, Rajapalayam. |
October, 2014 To March, 2015 |
30.23 |
7. |
Central Excise Act, 1944 |
Excise Duty |
Assistant Commissioner of Central Excise, Rajapalayam. |
Aprli, 2015 To September, 2015 |
25.24 |
TOTAL |
360.11 |
8. The Company has not defaulted in the repayment of any dues to a financial institution, bank or government or debenture holders.
9. Term loans were utilized for the purposes for which they were obtained.
10. Based upon the audit procedures performed and information and explanations given to us by the management, no fraud by the company or on the Company by its officers or employees have been noticed or reported during the course of our audit.
11. According to the information and explanations given to us and based on our examination of the records of the company, the company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12. The provisions of section 406(1) of the act do not apply to the company.
13. The transactions entered into with related parties are in compliance with requirements of sections 177 & 188 of the act and the details have been disclosed in the financial statements etc., as required by the applicable accounting standards.
14. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. The Company has not entered into any non-cash transactions with directors or persons connected with directors, during the year.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For M/s. KRISHNAN AND RAMAN
CHARTERED ACCOUNTANTS
Firm Registration No. 001515S
V. SRIKRISHNAN
Place : Rajapalayam PARTNER
Date : 30.05.2016 Membership No. 206115
Mar 31, 2015
1. We have audited the accompanying financial statements of Polyspin
Exports Limited ('the Company') which comprise 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 significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. 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 Standards
specified under Section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
the 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
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. 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 consider internal control relevant to the
Company's preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
5. 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
6. 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.
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31s1 March, 2015.
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
year ended on that date.
Report on other Legal and Regulatory Requirements
7. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") as amended, issued by the Central Government of India in terms
of Section 143(11) of the Act, we give in the Annexure a statement on
the matter specified in paragraphs 3 and 4 of the order.
8. As required by Section 143 (3)of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books;
(c) The Balance Sheet, 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 financial statements comply with the
Accounting Standards specified Section 133 of the act, read with Rule 7
of the companies (Accounts) Rules, 2014;
(e) On the basis of written representations received from the directors
as on 31s' March, 2015 taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2015, from being
appointed as a director in terms of section 164 (2) of the Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, In our opinion and to the best of our information and
according to the explanations given to us:
i. The company has in accordance with the generally accepted accounting
practice, disclosed the impact of pending litigations on its financial
position in its financial statements -Also refer Note 22(14) to the
financial statements.
ii. The company did not have any long term contacts including
derivative contracts for which there were any material foreseeable
losses under the applicable law or accounting standards.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the year ended
31 March, 2015, we report that:
(i) In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, the fixed assets of the company have been
physically verified by the management during the year in a phased
periodical manner, which in our opinion is reasonable, having regard to
the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
(ii). In respect of its inventories:
a. As explained to us, inventories have been physically verified by the
management at regular intervals during the year.
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 were reasonable and adequate in relation to
the size of the Company and nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies notified on
physical verification of inventory as compared to the book records.
(iii). The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
under Section 189 of the Companies Act, 2013 and accordingly, the
provisions of Clause (iii) of paragraph 3 of the order are not
applicable to the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedure commensurate
with the size of the company and the nature of its business of the
purchase of inventories, fixed assets and also for the sale of goods.
During the course of our audit, we have not observed any major
weaknesses in internal controls.
(v) The Company has accepted deposits from Public and in our opinion
and according to the explanations given to us, the provisions of
Section 58A and 58AA of the Companies Act, 1956 read with Companies
(Acceptance of Deposits) Rules, 1975, wherever applicable have been
complied with. However, in view ofthe amendment to the Companies Act,
2013, Deposits will have to be repaid and regularized as per Section 74
(1) (b) of the Companies Act, 2013 in accordance with terms and
conditions for which the deposits have been accepted. The company is
assured to repay on or before 30.06.2015.
(vi) In our opinion and according to the information and explanations
given to us, the requirement for maintenance of cost records pursuant
to the Companies (Cost Records and Audit) Rules, 2014 specified by the
Government of India under Section 148 of the Companies Act, 2013 are
not applicable to the company for the year under audit.
(vii) According to information and explanations given to us and the
books of account examined by us, in respect of statutory dues:
a. The company has generally been regular in depositing undisputed
statutory dues including Provident Fund, Investor Education Protection
Fund, Employees State Insurance, Income Tax, VAT, Wealth Tax , Customs
duty, Excise duty, Cess and other statutory dues applicable to it with
appropriate authorities during the year. According to the information
and explanations given to us, no undisputed amounts payable in respect
of the aforesaid dues were outstanding as on 31st March 2015 for a
period of more than six months from the date of becoming payable.
b. The disputed statutory dues aggregating to Rs.274.60 Lakhs that
have not been deposited on account of matters pending before
appropriate authorities areas under:
Name of the Nature of the Forum where the Amount
Statue Dues dispute is pending Period (Rs. in
S. Lakhs)
No.
1. Commissioner of June
Central Exase Exclse Duty Centra Excise 2008 31.17
Act 1944 Madurai. March,
2013 40.53
2. Central Excise Commissioner of January,
2009
Act, 1944 Excise Duty Central Excise, To March,
2013 129.10
Madurai.
3. Central Excise Assistanl
Commissioner
Act 1944 Excise Duty of Central Excise, April
2010 to 3.69
Rajajpalayam March
2011
4. Central Excise Assistant
Commissioner
Act1944 Excise Duty of Central Excise April
2013 to 26.84
Rajapalayam December 43.27
2014
TOTAL 274.60
c. According to the information and explanations given to us, the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules thereunder has been
transferred to such fund within time.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(ix) The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
(x) In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(xi) In our opinion and according to the information and explanations
given to us, the term loan have been applied
by the company during the year for the purpose for which they were
obtained.
(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. KRISHNAN AND RAMAN
CHARTERED ACCOUNTANTS
Firm Registration No. 001515S
V. SRIKRISHNAN
Place: Rajapalayam PARTNER
Date : 29.05.2015 Membership No. 206115
Mar 31, 2014
We have audited the accompanying financial statements of Polyspin
Exports Limited (''the Company'') which comprise the Balance Sheet as at
31st March, 2014, the statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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") read with General
circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedure to obtain audit evidence about
the amounts and disclosure 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
consider internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India.
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014.
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") as amended, issued by the Central Government of India in
terms of sub - section (4 A) of Section 227 of the Act, we give in the
Annexure a statement on the matter specified in paragraphs 4 and 5 of
the order.
2. As required by Section 227 (3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub - section (3C) of Section 211 of the Companies Act, 1956, read with
General circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013
and
e) On the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2013, from
being appointed as a director in terms of clause (g) of sub - section
(1) of Section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITOR''S REPORT
(Referred to in Paragraph 2 of our report of even date)
1. In respect of its fixed assets :
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, the fixed assets of the company have been
physically verified by the management during the year in a phased
periodical manner, which in our opinion is reasonable, having regard to
the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
c. In our opinion the Company has not disposed of substantial part of
its fixed assets during the year and going concern status of the
company is not affected.
2. In respect of its inventories :
a. As explained to us, inventories have been physically verified by the
management at regular intervals during the year.
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 nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies notified on
physical verification of inventory as compared to the book records.
3. In respect of loans secured or unsecured granted or taken by the
Company to/from Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956;
a. The Company has not granted any loans to Companies, firms or other
parties during the year and no loans have been taken from any party
during the year.
b. In our opinion and according to information and explanations given
to us, the rate of interest, wherever applicable and other terms and
conditions are not prima facie prejudicial to the interest of the
Company.
c. Since the company has not taken any loans there is no question of
overdue amount.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedure commensurate
with the size of the company and the nature of its business of the
purchase of inventory, fixed assets and also for the sale of goods.
During the course of our audit, we have not observed any major
weaknesses in internal controls.
5. In respect of transactions covered under section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into 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 prices paid for the purchase of goods and materials
and sale of goods, materials and services, made in pursuance of
contracts or arrangements entered in the register(s) maintained under
section 301 of the Companies Act, 1956, as aggregating during the
period to Rs.5,00,000/- (Rupees Five Lacs) or more in respect of each
party are reasonable having regard to the prevailing market prices for
such goods, materials or services or the prices at which transactions
for similar goods or services have been made with other parties.
6. The Company has accepted deposits from Public and in our opinion and
according to the explanations given to us the provisions of Section 58A
and 58AA of the Companies Act, 1956 read with Companies (Acceptance of
Deposits) Rules, 1975 wherever applicable have been complied with.
However, in view of the amendment to the Companies Act, 2013, deposits
will have to be repaid and regularized as per Section 74 of the
Companies Act, on or before 31.03.2015. The company is advised to
conform to the provisions.
7. In our opinion the Internal Audit system of the Company is
Commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under Section 209 (1) (d) of the Act in
relation to products manufactured and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. We have not, however, made a detailed examination of the
records.
9. In respect of Statutory dues :
According to records of the Company undisputed statutory dues including
Provident Fund, Investor Education Protection Fund, Employees State
Insurance, Income Tax, VAT, Wealth Tax, Customs duty, Excise duty, Cess
and other statutory dues have been regularly deposited with appropriate
authorities. According to the information and explanations given to us,
no undisputed amounts payable in respect of the aforesaid dues were
outstanding as on 31st March, 2014 for a period of more than six months
from the date of becoming payable.
The disputed statutory dues aggregating to Rs. 204.49 Lakhs that have
not been deposited on account of matters pending before appropriate
authorities as under:
Name of the Nature of the Forum where the
Statue Dues dispute is pending
Commissioner of
Central Excise Excise Duty Central Excise,
Act, 1944 Madurai.
Central Excise Commissioner °f
Act 1994 Excise Duty Central Excise,
Madurai.
Central Excise
Act 1994 Assistant Commissioner
Excise Duty of Central Excise,
Rajapalayam.
Name of the Preiod Amount
Statue Rs in Lakhs
Central Excise June 2008 To 31.17
Act, 1944 March, 2013 40.53
Central Excise January, 2009
Act 1994 To March, 2013 129.10
Central Excise April, 2010 To
Act 1994 March, 2011 3.69
TOTAL 204.49
10. The Company has no accumulated Losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to financial institutions, banks or
debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a Chit Fund or a nidhi / mutual
benefit fund / society. Therefore clause 4 (xiii) of the Companies
(Auditors Report) order, 2003, is not applicable to the Company.
14. The Company has maintained proper records or transactions and
contracts in respect of trading in securities, debentures and other
investments and timely entries have been made therein. All Shares,
Debentures and other investments have been held by the Company in its
own name.
15. The Company has not given any guarantees for loans taken by others
from banks or financial institutions.
16. The Company has raised new term loans during the year. The Term
Loans outstanding at the beginning of the year as also those availed
during the year were applied for the purposes for which they were
raised.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investment.
18. During the year the Company has not made any preferential allotment
of shares to parties and companies covered in the Register maintained
under Section 301 of the Companies Act, 1956.
19. The Company has not issued any Debentures and hence creation of
securities in respect of the same does not arise.
20. The Company has not raised any money by way of Public Issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that Causes the financial statements to be materially
misstated.
For M/S.KRISHNAN AND RAMAN
CHARTERED ACCOUNTANTS
Firm Registration No.001515S
K.V. RAMAN
Place : Rajapalayam PARTNER
Date : 28.05.2014 Membership No. 9790
Mar 31, 2012
We have audited the attached Balance Sheet of Polyspin Exports Limited,
Rajapalayam as on 31st March 2012 and the Profit & Loss Account for the
year ended on that date annexed thereto and Cash Flow Statement for the
year ended on that date. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. 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 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.
2. As required by the Companies (Auditor's Report) order issued by the
Central Government of India in terms of Sub-Section 4(A) of Section 227
of the Companies Act, 1956, we enclose in the annexure hereto a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
3. Further to our comments in the Annexure referred to in paragraph 2
and above, we report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion, proper books of account, as required by law, have
been kept by the company, so far as appears from our examination of
those books.
c. The Balance Sheet, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account.
d. In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred in Sub Section (3c) of Section 211 ofthe
Companies Act, 1956.
e. In our opinion and based on information and explanation given to
us, none of the directors are disqualified as on 31st March 2012 from
being appointed as directors in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant policies and other notes thereon given the information
required by the Companies Act 1956, in the manner so required, and
present a true and fair view, in conformity with the accounting
principles generally accepted in India.
i. In so far as it relates to Balance Sheet, of the State of Affairs
for the Company as at 31st March 2012
ii. In so far as it relates to the Profit and Loss Account of the
Profit of the Company for the year ended on that date; and
iii. In so far as it relates to the Cash Flow Statement, of the Cash
flows of the Company for the year ended on that date.
ANNEXURE TO AUDITOR'S REPORT
(Referred to in Paragraph 2 of our report of even date)
1. In respect of its fixed assets :
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, the fixed assets of the company have been
physically verified by the management during the year in a phased
periodical manner, which in our opinion is reasonable, having regard to
the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
c. In our opinion the Company has not disposed of substantial part of
its fixed assets during the year and going concern status of the
company is not affected.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
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 nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies notified on
physical verification of inventory as compared to the book records.
3. In respect of loans secured or unsecured granted or taken by the
Company to/from Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956;
a. The Company has not granted any loans to Companies, firms or other
parties during the year and no loans have been taken from any party
during the year.
b. In our opinion and according to information and explanations given
to us, the rate of interest, wherever applicable and other terms and
conditions are not prima facie prejudicial to the interest of the
Company.
c. Since the company has not taken any loans there is no question of
overdue amount.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedure commensurate
with the size of the company and the nature of its business of the
purchase of inventory, fixed assets and also for the sale of goods.
During the course of our audit, we have not observed any major
weaknesses in internal controls.
5. In respect of transactions covered under section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into 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 prices paid for the purchase of goods and materials
and sale of goods, materials and services, made in pursuance of
contracts or arrangements entered in the register(s) maintained under
section 301 of the Companies Act, 1956, as aggregating during the
period to Rs.5,00,000/- (Rupees Five Lacs) or more in respect of each
party are reasonable having regard to the prevailing market prices for
such goods, materials or services or the prices at which transactions
for similar goods or services have been made with other parties.
6. The Company has accepted deposits from Public and in our opinion
and according to the explanations given to us the provisions of Section
58A and 58AA of the Companies Act, 1956 read with Companies (Acceptance
of Deposits) Rules, 1975 wherever applicable have been complied with.
7. In our opinion the Internal Audit system of the Company is
Commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under Section 209 (1) (d) of the Act in
relation to products manufactured and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. We have not, however, made a detailed examination of the
records.
9. In respect of Statutory dues:
According to records of the Company undisputed statutory dues including
Provident Fund, Investor Education Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax , Customs duty, Excise
duty, Cess and other statutory dues have been regularly deposited with
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as on 31st March, 2012 for a period of more than
six months from the date of becoming payable.
10. The Company has no accumulated Losses and has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to financial institutions, banks or
debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a Chit Fund or a nidhi/ mutual
benefit fund / society. Therefore clause 4 (xiii) of the Companies
(Auditors Report) order, 2003, is not applicable to the Company.
14. The Company has maintained proper records or transactions and
contracts in respect of trading in securities, debentures and other
investments and timely entries have been made therein.
All Shares, Debentures and other investments have been held by the
Company in its own name.
15. The Company has not given any guarantees for loans taken by others
from banks or financial institutions.
16. The Company has raised new term loans during the year. The Term
Loans outstanding at the beginning of the year as also those availed
during the year were applied for the purposes for which they were
raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short term basis have been used for long term
investment.
18. During the year the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any Debentures and hence creation of
securities in respect of the same does not arise.
20. The Company has not raised any money by way of Public Issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that Causes the financial statements to be materially
misstated.
For M/S.KRISHNAN & RAMAN,
CHARTERED ACCOUNTANTS
Place : Rajapalayam K.V.RAMAN
Date : 28.05.2012 PARTNER
Mar 31, 2011
We have audited the attached Balance Sheet of Polyspin Exports Limited,
Rajapalayam as on 31st March 2011 and the Profit & Loss Account for the
year ended on that date annexed thereto and Cash Flow Statement for the
year ended on that date. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. 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 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.
2. As required by the Companies (Auditor's Report) order issued by the
Central Government of India in terms of Sub-Section 4(A) of Section 227
of the Companies Act, 1956, we enclose in the annexure hereto a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
3. Further to our comments in the Annexure referred to in paragraph 2
and above, we report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion, proper books of account, as required by law, have
been kept by the company, so far as appears from our examination of
those books.
c. The Balance Sheet, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account.
d. In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with mandatory
Accounting Standards referred in Sub Section (3c) of Section 211 of the
Companies Act, 1956.
e. In our opinion and based on information and explanation given to
us, none of the directors are disqualified as on 31st March 2011 from
being appointed as directors in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant policies and other notes thereon given the information
required by the Companies Act 1956, in the manner so required, and
present a true and fair view, in conformity with the accounting
principles generally accepted in India.
i. In so far as it relates to Balance Sheet, of the State of Affairs
for the Company as at 31st March 2011
ii. In so far as it relates to the Profit and Loss Account of the
Profit of the Company for the year ended on that date; and
iii. In so far as it relates to the Cash Flow Statement, of the Cash
flows of the Company for the year ended on that date.
ANNEXURE TO AUDITOR'S REPORT
(Referred to in Paragraph 2 of our report of even date)
1. In respect of its fixed assets :
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, the fixed assets of the company have been
physically verified by the management during the year in a phased
periodical manner, which in our opinion is reasonable, having regard to
the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
c. In our opinion the Company has not disposed of substantial part of
its fixed assets during the year and going concern status of the
company is not affected.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
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 nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies notified on
physical verification of inventory as compared to the book records.
3. In respect of loans secured or unsecured granted or taken by the
Company to/from Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956;
a. The Company has not granted any loans to Companies, firms or other
parties during the year and no loans have been taken from any party
during the year.
b. In our opinion and according to information and explanations given
to us, the rate of interest, wherever applicable and other terms and
conditions are not prima facie prejudicial to the interest of the
Company.
c. Since the company has not taken any loans there is no question of
overdue amount.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedure commensurate
with the size of the company and the nature of its business of the
purchase of inventory, fixed assets and also for the sale of goods.
During the course of our audit, we have not observed any major
weaknesses in internal controls.
5. In respect of transactions covered under section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into 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 prices paid for the purchase of goods and materials
and sale of goods, materials and services, made in pursuance of
contracts or arrangements entered in the register(s) maintained under
section 301 of the Companies Act, 1956, as aggregating during the
period to Rs.5,00,000/- (Rupees Five Lacs) or more in respect of each
party are reasonable having regard to the prevailing market prices for
such goods, materials or services or the prices at which transactions
for similar goods or services have been made with other parties.
6. The Company has accepted deposits from Public and in our opinion
and according to the explanations given to us the provisions of Section
58A and 58AA of the Companies Act, 1956 read with Companies (Acceptance
of Deposits) Rules, 1975 wherever applicable have been complied with.
7. In our opinion the Internal Audit system of the Company is
Commensurate with its size and nature of its business.
8. According to the information and explanations given to us, cost
records under section 209(1)(d) of the Companies Act, 1956 are not
required to be maintained.
9. In respect of Statutory dues:
According to records of the Company undisputed statutory dues including
Provident Fund, Investor Education Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax , Customs duty, Excise
duty, Cess and other statutory dues have been regularly deposited with
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as on 31st March, 2011 for a period of more than
six months from the date of becoming payable.
10. The Company has no accumulated Losses and has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to financial institutions, banks or
debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a Chit Fund or a nidhi/mutual
benefit fund / society. Therefore clause 4 (xiii) of the Companies
(Auditors Report) order, 2003, is not applicable to the Company.
14. The Company has maintained proper records or transactions and
contracts in respect of trading in securities, debentures and other
investments and timely entries have been made therein. All Shares,
Debentures and other investments have been held by the Company in its
own name.
15. The Company has not given any guarantees for loans taken by others
from banks or financial institutions.
16. The Company has raised new term loans during the year. The Term
Loans outstanding at the beginning of the year as also those availed
during the year were applied for the purposes for which they were
raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short term basis have been used for long term
investment.
18. During the year the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any Debentures and hence creation of
securities in respect of the same does not arise.
20. The Company has not raised any money by way of Public Issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that Causes the financial statements to be materially
misstated.
For M/S.KRISHNAN AND RAMAN,
CHARTERED ACCOUNTANTS
Place: Rajapalayam K V RAMAN
Date : 29.07.2011 PARTNER
Mar 31, 2010
We have audited the attached Balance Sheet of Polyspin Exports Limited,
Rajapalayam as on 31st March 2010 and the Profit & Loss Account for the
year ended on that date annexed thereto and Cash Flow Statement for the
year ended on that date. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. 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 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.
2. As required by the Companies (Auditors Report) order issued by the
Central Government of India in terms of Sub-Section 4(A) of Section 227
of the Companies Act, 1956, we enclose in the annexure hereto a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
3. Further to our comments in the Annexure referred to in paragraph 2
and above, we report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion, proper books of account, as required by law, have
been kept by the company, so far as appears from our examination of
those books.
c. The Balance Sheet, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account.
d. In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with mandatory
Accounting Standards referred in Sub Section (3c) of Section 211 of the
Companies Act, 1956.
e. In our opinion and based on information and explanation given to
us, none of the directors are disqualified as on 31st March 2010 from
being appointed as directors in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant policies and other notes thereon given the information
required by the Companies Act 1956, in the manner so required, and
present a true and fair view, in conformity with the accounting
principles generally accepted in India.
i. In so far as it relates to Balance Sheet, of the State of Affairs
for the Company as at 31st March 2010
ii. In so far as it relates to the Profit and Loss Account of the
Profit of the Company for the year ended on that date; and
iii. In so far as it relates to the Cash Flow Statement, of the Cash
flows of the Company for the year ended on that date.
ANNEXURE TO AUDITORS REPORT (Referred to in Paragraph 2 of our report
of even date)
1. In respect of its fixed assets :
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, the fixed assets of the company have been
physically verified by the management during the year in a phased
periodical manner, which in our opinion is reasonable, having regard to
the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
c. In our opinion the Company has not disposed of substantial part of
its fixed assets during the year and going concern status of the
company is not affected.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
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 nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies notified on
physical verification of inventory as compared to the book records.
3. In respect of loans secured or unsecured granted or taken by the
Company to/from Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956;
a. The Company has not granted any loans to Companies, firms or other
parties during the year and no loans have been taken from any party
during the year.
b. In our opinion and according to information and explanations given
to us, the rate of interest, wherever applicable and other terms and
conditions are not prima facie prejudicial to the interest of the
Company.
c. Since the company has not taken any loans there is no question of
overdue amount.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedure commensurate
with the size of the company and the nature of its business of the
purchase of inventory, fixed assets and also for the sale of goods.
During the course of our audit, we have not observed any major
weaknesses in internal controls.
5. In respect of transactions covered under section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into 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 prices paid for the purchase of goods and materials
and sale of goods, materials and services, made in pursuance of
contracts or arrangements entered in the register(s) maintained under
section 301 of the Companies Act, 1956, as aggregating during the
period to Rs.5,00,000/- (Rupees Five Lacs) or more in respect of each
party are reasonable having regard to the prevailing market prices for
such goods, materials or services or the prices at which transactions
for similar goods or services have been made with other parties.
6. The Company has accepted deposits from Public and in our opinion
and according to the explanations given to us the provisions of Section
58A and 58AA of the Companies Act, 1956 read with Companies (Acceptance
of Deposits) Rules, 1975 wherever applicable have been complied with.
7. In our opinion the Internal Audit system of the Company is
Commensurate with its size and nature of its business.
8. According to the information and explanations given to us, cost
records under section 209(1)(d) of the Companies Act, 1956 are not
required to be maintained.
9. In respect of Statutory dues:
a. According to records of the Company undisputed statutory dues
including Provident Fund, Investor Education Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax , Customs duty,
Excise duty, Cess and other statutory dues have been regularly
deposited with appropriate authorities. According to the information
and explanations given to us, no undisputed amounts payable in respect
of the aforesaid dues were outstanding as on 31st March, 2010 for a
period of more than six months from the date of becoming payable.
b. The disputed statutory dues aggregating to Rs.12.67 Lakhs that have
not been deposited on account of matters pending before appropriate
authorities are as under:
Nature of the Forum where the Financial Amount
Name of the Statute Dues dispute is pending Year (Rs. in Lakhs)
1) Finance Act, 1994 Madurai Bench of 09.07.04 12.67
(Service Tax Service Tax Madras High Court to
provisions) 15.06.05
10. The Company has no accumulated Losses and has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to financial institutions, banks or
debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a Chit Fund or a nidhi / mutual
benefit fund / society. Therefore clause 4 (xiii) of the Companies
(Auditors Report) order, 2003, is not applicable to the Company.
14. The Company has maintained proper records or transactions and
contracts in respect of trading in securities, debentures and other
investments and timely entries have been made therein. All Shares,
Debentures and other investments have been held by the Company in its
own name.
15. The Company has not given any guarantees for loans taken by others
from banks or financial institutions.
16. The Company has raised new term loans during the year. The Term
Loans outstanding at the beginning of the year as also those availed
during the year were applied for the purposes for which they were
raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short term basis have been used for long term
investment.
18. During the year the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any Debentures and hence creation of
securities in respect of the same does not arise.
20. The Company has not raised any money by way of Public Issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that Causes the financial statements to be materially
misstated.
For M/S.KRISHNAN AND RAMAN,
CHARTERED ACCOUNTANTS
Place: Rajapalayam KVRAMAN
Date : 26.7.2010 PARTNER
Mar 31, 2000
I have examined the annexed Balance Sheet of Polyspin Exports Limited,
Rajapalayam as at 31st March, 2000 and also the Profit & Loss account
of the company for the year ended on that date and report that :-
1. I have obtained all the information and explanation which to the
best of my knowledge and belief were necessary for the purpose of my
audit.
2. In my opinion, proper books of accounts as required by law have
been kept by the company so far as it appears from my examination of
the books of account of the company.
3. The Balance Sheet and Profit & Loss account dealt with by this
report are in agreement with the books of accounts of the company.
4. In my opinion the Balance Sheet and Profit and Loss account dealt
with by this report complied with the accounting standards referred to
in sub section 3(c) of section 211 of the Companies Act, 1956.
5. In my opinion and to the best of my information and according to
the explanations given to me the accounts give the information required
by the Companies Act, 1956 in the manner so required, the said accounts
subject to Note 19(1) (vi) (2) regarding the payment of Bonus accounted
on cash basis, give a true and fair view :
(a) in the case of the Balance Sheet of the state of affairs of the
company as at 31st March 2000 and
(b) in the case of Profit and Loss account of the profit for the year
ended on that date.
6. As required by the Manufacturing and other Companies (Auditors
Report) Order 1988 and on the basis of such checks of the books and
records of the company as I considered appropriate and the information
and explanations given to me, I state that:
i) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. These
fixed assets have been physically verified by the management at
reasonable intervals and no material discrepancies were noticed between
the books, records and the physical inventory.
ii) The fixed assets have not been revalued during the year.
iii) The management has conducted physical verification at reasonable
intervals in respect of finished goods, stores, spare parts and raw
materials.
iv) The procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and nature of business.
v) The discrepancies noticed on verification between the physical
stocks and the book records were not material.
vi) In my opinion the valuation of stock is fair and proper and in
accordance with the normally accepted accounting principles.
vii) The company has taken loan from companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 and the terms and conditions are not prejudicial to the
interest of the company.
viii) Loans or advances in the nature of loans have not been given to
the companies referred above.
ix) In my opinion, there is adequate internal control procedure
commensurate with the size of the company and the nature of its
business for the purchase of the stores, raw materials, plant &
machinery, equipments and other similar assets.
x) In my opinion and according to the information and explanation given
to me and on the basis of checking of the selective items it appears
that the purchase of goods and materials and sale of goods, materials
and services made in pursuance of contracts or arrangements entered in
the Register(s) maintained under section 301 of the Companies Act, and
aggregating, during the year to Rs. 50,000/- or more in respect of each
party have been made at prices which are reasonable having regard to
prevailing market prices for such goods, materials or services or the
prices at which transactions for similar goods, materials or services
have been made with other parties.
xi) There are no unserviceable or damaged stores and raw materials for
which provision is necessary.
xii) In my opinion and according to the informa- tion and explanations
given to me, the company has complied with the provisions of section
58A, of the Companies Act, and the Companies ( acceptance of deposits )
Rules 1975 with regard to the deposits accepted from the public.
xiii) in my opinion the company has maintained reasonable records for
the sale and disposal of the waste and scrap.
xiv) The company has an adequate internal audit system commensurate
with the size and scope of the business.
xv) The company has been regular in deposit- ing P.F. & ESI dues to the
appropriate authorities.
xvi) According to the information and explanations given to me, cost
records under section 209 (1) (d) of the Companies Act, 1956 are not
required to be maintained.
xvii) According to the information and explanation given to me, no
undisputed amounts payable in respect of income-tax, sales tax, customs
duty and excise duty were outstanding as at 31.03.2000 for a period of
more than six months from the date, they became payable.
xviii) According to the information and explanations given to me, no
personal expenses of employees or Directors have been charged to
revenue account, other than those payable under contractual obligations
or in accordance with the generally accepted business practice.
xix) The company is not a sick industrial company (within the meaning
of clause (O) of sub-section (1) of section 3 of the sick industrial
companies ( special provisions) act, 1985,
Place : Rajapalayam T.R.K. RAMAKRUSHNA RAJHA
Date 26th July, 2000. CHARTERED ACCOUNTANT.
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