Mar 31, 2023
PRECOT LIMITED
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Precot Limited (âthe Companyâ) which comprise the Standalone Balance Sheet as at March 31, 2023, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year then ended and notes to the standalone financial statements including a summary of significant accounting policies and other explanatory information (hereinafter referred to as âthe standalone financial statementsâ).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended ("Ind AS"), of the state of affairs of the Company as at March 31,2023, its loss including other comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the âAuditor''s Responsibilities for the Audit of the Standalone Financial Statementsâ section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (âICAIâ) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the standalone financial statements of the current period. This matter was addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on this matter. We have determined the matter described below to be the key audit matter to be communicated in our report.
Key Audit Matter |
How our audit addressed the Key Audit Matter |
Valuation of inventory: As at 31st March 2023, the Company''s inventories amounted to ? 24,200.89 lakhs representing 27% of the Company''s total assets as at 31st March, 2023. The Company''s inventory primarily comprises cotton, WIP, yarn and technical textile products. Inventories are valued at the lower of the cost and net realizable value (''NRV''). Considering the volatility in the prices of raw material and finished goods and significant degree of management judgement and estimation involved in valuation of inventories, we identified the valuation of inventories as a key audit matter. |
Our audit procedures included the following: ⢠Assessed the appropriateness of the accounting policy for inventories as per the relevant accounting standards. ⢠Obtained an understanding of and performed the test of design and operating effectiveness of the Company''s key internal controls over the process for valuation of inventories. ⢠Compared the cost of raw materials with supplier invoices for selected samples. ⢠In connection with NRV testing, we have compared carrying value to subsequent selling price of selected samples as indicated in sales invoices subsequent to the reporting date. ⢠In respect of inventories remaining unsold, we compared the carrying value of inventories with prevailing quotations / market prices of selected samples subsequent to the reporting period. ⢠Assessed the appropriateness of disclosures in the financial statements in accordance with the applicable accounting standards. |
Information other than the Standalone Financial Statements and Auditor''s Report thereon
The Company''s Management and the Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Company''s annual Report but does not include the standalone / consolidated financial statements and our auditor''s report thereon.
The other information is expected to be made available to us after the date of this report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone/consolidated financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
When we read the other information, as stated above, which is expected to be received after the date of our audit report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions, as applicable under applicable laws and regulations.
Management''s and Board of Directors'' Responsibilities for the Standalone Financial Statements
The Company''s Management and the Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including Ind AS specified under
section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Management and the Board of Directors are also responsible for overseeing the company''s financial reporting process.
Auditor''s Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management and Board of Directors.
⢠Conclude on the appropriateness of the Board of Director''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report.
However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of section 143(11) of the Act, we give in "Annexure 1", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. (A) As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other comprehensive income), the Standalone Statement of changes in Equity and the Standalone Statement of Cash Flows dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid Standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act read with relevant rules issued thereunder;
e. On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023 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 with reference to standalone financial statements of the Company and the operating effectiveness of such controls, we give our separate report in "Annexure 2";
(B) 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, 2021, 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 as on 31st March 2023 on its financial position in its standalone financial statements - Refer Note 46 to the standalone financial statements;
(ii) The Company did not have any long-term contracts including derivative contracts. Hence, the question of any material foreseeable losses does not arise;
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31st March 2023;
(iv) (a) The management has represented that, to the best of its knowledge and belief, as disclosed in note no.59(ii)A to the standalone financial statements, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The management has represented that, to the best of its knowledge and belief, as disclosed in note no.59(ii)B to the standalone financial statements, no funds (which are material either individually or in the aggregate) have been received by the Company from any persons or
entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that caused us to believe that the representation under sub-clause (iv) (a) and (iv) (b) contain any material mis-statement.
(v) The final dividend proposed with respect to previous year, declared and paid by the
company during the year is in compliance with section 123 of the Companies Act 2013 as applicable. The Board of Directors have not proposed any dividend during the year.
(C) With respect to the matter to be included in the Auditor''s Report in accordance with the requirements of Section 197(16) of the Act, as amended;
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid/provided by the Company to its directors during the current year is in accordance with the provisions of section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Companies Act.
For VKS Aiyer& Co.,
Chartered Accountants ICAI Firm Registration No. 000066S
C.S.Sathyanarayanan
Place: Coimbatore Partner
Date: 26th May, 2023 Membership No. 028328
UDIN:23028328BGUEXI4138
Mar 31, 2021
Key Audit Matter |
How our audit addressed the Key Audit Matter |
Provisions for litigations and disclosure of contingent |
Our audit procedures included the following: ⢠We evaluated and tested the Company''s processes and controls for monitoring of litigations, disputes, compliances and assessment thereof for determining the likely outcome. - We reviewed the summary of the litigations prepared by the management and discussed the material cases to determine the Company''s assessment of the likelihood and magnitude of any liability that may arise. - We evaluated the legal opinion obtained by the Company and assessed the management''s judgements and assumptions on such matters. - We tested the adequacy of disclosures in the financial statements. |
liabilities: The Company is involved in litigations, both for and against the Company, comprising of tax matters, legal compliances and other disputes. The Company assesses the need to make a provision or disclose a contingency on a case-to-case basis considering the underlying facts of each matter, in consultation with its legal advisors and lawyers. This involves a high level of management judgement and assumptions which impact the risk assessment and consequential provisioning and disclosure of contingencies in the financial statements. This area is significant to our audit, since the completeness and accuracy of accounting and disclosures for contingencies is dependent on such management judgement and assumptions. |
To the Members of PRECOT LIMITED (formerly PRECOT MERIDIAN LIMITED)Report on the Audit of Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of Precot Limited (formerly Precot Meridian Limited) (âthe Companyâ) which comprise the Standalone Balance Sheet as at March 31, 2021, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year then ended and notes to the standalone financial statements including a summary of significant accounting policies and other explanatory information (hereinafter referred to as âthe standalone financial statementsâ).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended ("Ind AS"), of the state of affairs of the Company as at March 31,2021, its profit including other comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (âICAIâ) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter |
How our audit addressed the Key Audit Matter |
Trade receivables and expected credit loss: The trade receivables as at March 31,2021 is '' 10,197.56 lakhs and provision for expected credit loss made during the year is '' 248.66 lakhs. The Company measures expected credit loss on trade receivables based on significant management judgement and estimates. We have considered assessment of expected credit loss for receivables as a key audit matter because of the significant management judgement involved in its estimation. |
Our audit procedures included the following: ⢠Obtained an understanding of and assessed the design, implementation and operating effectiveness of key controls relating to collection monitoring process, credit control process and estimation of expected credit losses. ⢠Tested the controls relating to classification of the receivable balances included in the receivables ageing report ⢠Reviewed the ageing, tested the validity of the receivables, discussed with the management as to the disputes, if any, with the customers, understood and evaluated the reason for delay in realisation of the receivables and possibility of realisation of the aged receivable . ⢠Assessed the methodology used by management to estimate the expected credit loss provision and its compliance with the relevant accounting standard. ⢠Assessed the reasonableness of estimate of expected credit loss. |
Information other than the Standalone Financial Statements and Auditor''s Report thereon
The Company''s Management and the Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Company''s annual Report but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information obtained prior to the date of this auditor''s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Management''s and Board of Directors'' Responsibilities for the Standalone Financial Statements
The Company''s Management and the Board of Directors are
responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including Ind AS specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Management and the Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the company''s financial reporting process.
Auditor''s Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of the Management and the Board of Director''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
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 section 143(11) of the Act, we give in âAnnexure 1â, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. (A) As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other comprehensive income), the Standalone Statement of changes in Equity and the Standalone Statement of Cash Flows dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act read with relevant rules issued thereunder;
e. On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2021 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 with reference to standalone financial statements of the Company and the operating effectiveness of such controls, we give our separate report in âAnnexure 2â;
(B) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(I) The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 41 to the standalone 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 - Refer Note 17 and 22 to the standalone financial statements;
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
(C) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended;
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid/provided by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act;
Mar 31, 2018
INDEPENDENT AUDITOR''S REPORT To the Members of Precot Meridian Limited
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Precot Meridian Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2018, 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, (hereinafter referred to as âStandalone Ind AS Financial Statementsâ).
Management''s Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with relevant rules issued thereunder. 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 and ensuring their operating effectiveness and 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 thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditors'' 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 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 including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018, its loss (financial performance including other comprehensive income) its cash flows and changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditors'' 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 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 purposes of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss, 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 relevant rules issued thereunder;
e. On the basis of written representations received from the directors as on 31 stMarch 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, we give our separate Report in âAnnexure 2â.
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 Note 45 on Contingent Liabilities to the standalone Ind AS financial statements;
Annexure I to the Independent Auditor''s Report
[Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' in the Independent Auditor''s Report of even date to the members of Precot Meridian Limited on the standalone financial statements for the year ended 31st March 2018]
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) During the year, fixed assets have been physically
Land / Building |
Total No. of cases |
Leasehold / freehold |
'' in Lakhs |
Remarks |
|
Deemed Cost as on 31st March 2018 |
Carrying Value as on 31â March 2018 |
||||
Land |
1 |
Freehold |
885.86 |
885.86 |
The title deeds are in the name of Meridian Spintex Limited, erstwhile Company that was merged with the Company under Section 391 to 394 of the Companies Act, 1956 in terms of the approval of the Honorable High Court(s) of judicature vide order dt. 01.09.2006. |
Land |
1 |
Freehold |
173.10 |
173.10 |
The title deeds are in the name of Suprem Textiles Processing Limited that was merged with the Company vide NCLT Order Dt. 18.09.2017 |
Land |
1 |
Freehold |
613.20 |
613.20 |
The title deeds are in the name of Multiflora (Floriculture) Private Limited currently known as Multiflora Processing Coimbatore Limited that was merged with the Company vide NCLT Order Dt. 18.09.2017 |
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 - Refer Note 18 and Note 23 to the standalone Ind AS financial statements;
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company. verified by the management as per the regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. As informed, no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties recorded as fixed assets in the books of account of the Company are held in the name of the Company except for the details given below:
(ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. As informed, no material discrepancies were noticed on physical verification carried out during the year.
(iii) As informed, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly, paragraph 3 (iii)(a), (b) and (c) of the Order are not applicable to the Company.
(iv) Based on information and explanation given to us in respect of loans, investments, guarantees and securities, the Company has complied with the provisions of Section 185 and 186 of the Act.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 of the Act and the rules framed there under.
(vi) We have broadly reviewed the books of account maintained by the Company in respect of products where the maintenance of cost records has been specified by the Central Government under sub-section (1) of Section 148 of the Act and the rules framed there under and we are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
(vii) (a) The Company is generally regular in
depositing with appropriate authorities, undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and any other material statutory dues applicable to it, however, there have been slight delay in few cases / delays in deposit have not been serious.
AND
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and any other material statutory dues applicable to it, were outstanding, at the year end, for a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, the dues outstanding with respect to, income tax, sales tax, service tax, value added tax, customs duty, excise duty on account of any dispute, are as follows:
Name of the Statute |
Nature of dues |
Amount (Rs, Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise |
Excise Duty |
815.99 |
2001-2002 |
Supreme |
Act 1944 |
and Penalties |
Court |
||
Central Sales |
Central Sales |
648.18 |
1998-1999 |
Central Sales |
Tax Act,1956 |
Tax |
Tax Act,1956 |
||
APVAT Act, |
Sales Tax |
1.77 |
1999-2000 |
High Court |
2005 |
and Penalty |
|||
Central Excise |
Excise Duty |
29.78 |
2001 to 2003 |
CESTAT, |
Act 1944 |
and Penalties |
Bangalore |
||
Central Excise Act 1944 |
Excise Duty Penalties and Interest |
19.28 |
2008-2009 |
Commissioner Appeals, Kochi |
Income Tax Act, 1961 |
Income Tax |
351.53 |
AY 2009-10 to 2010-11 |
ITAT Chennai |
Central Excise Act 1944 |
Cenvat Credit |
204.73 |
2017-18 |
Assistant Commissioner, Pollachi |
(viii) According to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to financial institution(s), bank(s), government(s) or dues to debenture holder(s).
(ix) In our opinion and according to the information and explanations given to us, the Company has utilized the money raised by way of term loans during the year for the purposes for which they were raised. The Company did not raise any money by way of Initial Public Offer or further public offer (including debt instruments) during the year.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud by the Company or any fraud on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such instance by the management.
(xi) According to the information and explanations given to us, managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Therefore, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanation given to us, all transactions entered into by the Company with the related parties are in compliance with Sections 177 and 188 of Act, where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Therefore, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him during the year.
(xvi) According to the information and explanation given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE 2 TO THE INDEPENDENT AUDITOR''S REPORT
[Referred to in paragraph 2 under ''Report on Other Legal and Regulatory Requirements'' in the Independent Auditor''s Report of even date to the members of Precot Meridian Limited on the standalone financial statements for the year ended 31stMarch 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)
We have audited the internal financial controls over financial reporting of Precot Meridian Limited (âthe Companyâ) as of 31st March 2018 in conjunction with our audit of the standalone 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 (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 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 (the âGuidance Noteâ) 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 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 judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
For Haribhakti & Co. LLP
Chartered Accountants ICAI
Firm Reg.No.: 103523W/W100048
Kaushik Sidartha
Place : Coimbatore Partner
Date : 21-May-2°18 M.No.: 217964
Mar 31, 2016
To the Members of Precot Meridian Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Precot Meridian Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls and ensuring their operating effectiveness and the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the standalone 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 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 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, its loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditors'' Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in "Annexure 1", 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 information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books,
c. The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of written representations received from the directors as on March 31, 2016, and 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 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 "Annexure 2".
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 2.29 on Contingent Liabilities to the standalone 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 -Refer Note 2.04 to the standalone financial statements;
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure I to the Independent Auditor''s Report
[Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' in the Independent Auditor''s Report of even date to the members of Precot Meridian Limited on the standalone financial statements for the year ended 31st March 2016.
i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) During the year, all the fixed assets have not been physically verified by the management. However, there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets.
c) The title deeds of immovable properties recorded as fixed assets in the books of account of the Company are held in the name of the Company.
ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. As informed, no material discrepancies were noticed on physical verification carried out during the year.
iii) As informed, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly, paragraph 3 (iii)(a), 3 (iii)(b) and 3 (iii)(c) of the Order are not applicable to the Company.
iv) Based on information and explanation given to us in respect of loans, investments, guarantees and securities, the Company has complied with the provisions of Section 185 and 186 of the Act.
v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 of the Act and the rules framed there under.
vi) We have broadly reviewed the books of account maintained by the Company in respect of products where the maintenance of cost records has been specified by the Central Government under sub-section (1) of Section 148 of the Act and the rules framed there under and we are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
vii) a) The Company is generally regular in depositing with appropriate authorities, undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and any other material statutory dues applicable to it, however, there have been slight delay in few cases.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and any other material statutory dues applicable to it, were outstanding, at the year end, for a period of more than six months from the date they became payable.
b) According to the information and explanation given to us, the dues outstanding with respect to, income tax, sales tax, service tax, value added tax, customs duty, excise duty on account of any dispute, are as follows:
Name of the Statute |
Nature of dues |
Amount (Rs. lacs) |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise Act 1944 |
Excise Duty and Penalties |
432.74 |
2001-2002 |
Supreme Court |
Central Sales Tax Act,1956 |
Central Sales Tax |
648.18 |
1998-99 & 1999-2000 |
Madras High Court |
Central Excise Act 1944 |
Excise Duty and Penalties |
29.78 |
2001 to 2003 |
CESTAT, Bangalore |
Central Excise Act 1944 |
Excise Duty, Penalties and Interest |
22.31 |
2008-2009 |
Commissioner Appeals, Kochi |
Service Tax |
Service Tax, Penalties and Interest |
9.49 |
2007-08 |
CESTAT |
Income Tax Act,1961 |
Income Tax |
371.42 |
AY 2009-10 to AY 2010-11 |
ITAT Chennai |
TNVAT Act, 2006 |
Sales Tax and Penalty |
4.18 |
2014-15 |
Joint Commissioner (Appeals), Coimbatore |
ESI Act ,1948 |
Employees State Insurance |
15.50 |
2014-15 |
District Court, Palakkad |
viii) According to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to financial institution(s), bank(s), government(s) or dues to debenture holder(s).
ix) In our opinion and according to the information and explanations given to us, the Company has utilized the money raised by way of term loans during the year for the purposes for which they were raised. The company did not raise any money by way of Initial Public Offer or further public offer including debt instruments during the year.
x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud by the Company or any fraud on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such instance by the management.
xi) According to the information and explanations given to us, managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Therefore, paragraph 3(xii) of the Order is not applicable to the Company.
xiii) According to the information and explanation given to us, all transactions entered into by the Company with the related parties are in compliance with Sections 177 and 188 of Act, where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.
xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Therefore, paragraph 3(xiv) of the Order is not applicable to the Company.
xv) According to the information and explanations given to us, the Company has not entered into any noncash transactions with directors or persons connected with him during the year.
xvi) According to the information and explanation given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE 2 TO THE INDEPENDENT AUDITOR''S REPORT
[Referred to in paragraph 2 under ''Report on Other Legal and Regulatory Requirements'' in the Independent Auditor''s Report of even date to the members of Precot Meridian Limited on the standalone financial statements for the year ended 31st March 2016.]
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Precot Meridian Limited ("the Company") as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India ("ICAI"). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
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 (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 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 ICAI.
For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Reg.No.: 103523W
C S Sathyanarayanan
Place : Coimbatore Partner
Date : 28-May-2016 M. No.: 028328
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Precot Meridian Limited ("the Company"), which comprise the balance
sheet as at March 31, 2015, the statement of profit and loss, the cash
flow statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls
and ensuring their operating effectiveness and the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the standalone financial statements that give a true
and fair view and are free from material misstatement, whether due to
fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the standalone financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the standalone financial statements. The
procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the standalone
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 financial
statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on whether the company has in place an
adequate internal financial controls system over financial reporting
and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by the company's
directors, as well as evaluating the overall presentation of the
standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the company as
at 31st March, 2015, its loss and its cash flows for the year ended on
that date.
Emphasis of Matter
Attention is invited to note no. 2.34 of standalone financial
statements on discontinuance of application of Accounting Standards 30
& 32 on Financial Instruments with effect from financial year 2014-15.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditors' Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure, a
statement on the matters specified in paragraphs 3 and 4 of the Order,
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
purposes of our audit;
b. In our opinion, proper books of account as required by law have
been kept by the company so far as it appears from our examination of
those books.
c. The balance sheet, the statement of profit and loss, and the cash
flow statement dealt with by this report are in agreement with the
books of account.
d. In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under section 133 of the
Act read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of directors,
none of the directors is disqualified as on March 31, 2015 from being
appointed as a director in terms of Section 164 (2) of the Act;
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) The company has disclosed the impact of pending litigations on its
financial position in its standalone financial statements - Refer Note
2.29 on contingent liabilities to the standalone 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 - Refer Note 2.05
to the standalone financial statements;
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 Independent Auditor's Report
[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' in the Independent Auditor's Report of even date to the
members of Precot Meridian Limited on the standalone financial
statements for the year ended 31.3.2015]
i) (a) The company has maintained proper
records showing full particulars, including quantitative details and
situation of fixed assets.
(b) During the year, the fixed assets of the company have been
physically verified by the management and as informed, no material
discrepancies were noticed on such verification. In our opinion, the
frequency of verification is reasonable having regard to the size of
the company and the nature of its assets.
ii) a) The inventory (excluding stock lying with
third parties) has been physically verified by the management during
the year. In respect of inventory lying with third parties, these have
substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
c) The company is maintaining proper records of inventory. As informed
no material discrepancies were noticed on physical verification carried
out during the year.
iii) As informed, the company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under Section 189 of the Act. Accordingly, the provisions
stated in paragraph 3 (iii)(a) and 3 (iii)(b) of the Order are not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its business
for the purchase of inventory and fixed assets and for the sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system of the company.
v) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the provisions of sections 73 to 76 of the Act and the rules
framed there under.
vi) The Central Government of India has not prescribed the maintenance
of cost records for any of the products of the company under sub-
section (1) of section 148 of the Act and the rules framed there under.
vii) a) The company is regular in depositing with
appropriate authorities, undisputed statutory dues including provident
fund, employees' state insurance, income tax, sales tax, wealth tax,
service tax, value added tax, customs duty, excise duty, cess and any
other material statutory dues applicable to it.
and
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees'
state insurance, income tax, sales tax, wealth tax, service tax, value
added tax, customs duty, excise duty, cess and any other material
statutory dues applicable to it, were outstanding, at the year end, for
a period of more than six months from the date they became payable.
b) According to the information and explanation given to us, the dues
outstanding with respect to, income tax, sales tax, wealth tax, service
tax, value added tax, customs duty, excise duty, cess and any other
material statutory dues applicable to it, on account of any dispute,
are as follows:
Name of the Amount period to Forum where
Statute Nature of dues (Rs lacs) which the dispute is pending
amount relates
Central Excise Excise Duty and 432.74 2001-2002 Supreme Court
Act 1944 Penalties
Central Sales Central Sales Tax 648.18 1998-99 & Madras High Court
Tax Act,1956 1999-2000
Central Excise Excise Duty and 29.78 2001 to 2003 CESTAT, Bangalore
Act 1944 Penalties
Central Excise Excise Duty, 22.87 2008-2009 Commissioner
Act 1944 Penalties and Appeals, Kochi
Interest
Service Tax Service Tax, 9.49 2007-08 Tribunal
Penalties and
Interest
Income Tax Income Tax 547.50 AY 2009-10 to CIT (Appeals)
Act,1961 AY 2011-12 Coimbatore
Income Tax Income Tax 725.06 AY 1994-95 High Court
Act,1961 and (234 B waiver AY 1995-96 Chennai and
interest u/s 220(2) AY 1997-98 Income Tax Tribunal
AY 2005-06 Chennai
c) According to the information and explanations given to us, there has
been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the company.
viii) The company does not have accumulated losses at the end of the
financial year nor has incurred cash losses in the current and
immediately preceding financial year.
(ix) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to financial
institution(s), bank(s) or debenture holder(s).
(x) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which the loans were
obtained.
(xii) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of any such instance by the management.
For Haribhakti & Co. LLP
Chartered Accountants
Firm Reg.No.: 103523W
C S Sathyanarayanan
Place : Coimbatore Partner
Date : 15th May 2015 M.No.: 028328
Mar 31, 2014
We have audited the accompanying financial statements of Precot
Meridian Limited (''the Company''), which comprise the Balance Sheet as
at March 31, 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"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors'' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Act.
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
Annexure to Independent Auditors'' Report
[Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' in the Independent Auditors'' Report of even date to the
members of Precot Meridian Limited on the financial statements for the
year ended31s''March 2014]
i. a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The fixed assets of the company have been physically verified by the
management during the year and no material discrepancies between the
book records and the physical inventory have been noticed. In our
opinion, the frequency of verification is reasonable.
c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the company during the year.
ii. a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification carried
out at the end of the year.
iii. a) As informed, the Company has not, granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly,
the provisions stated in paragraph 4 (iii) (b), (c) and (d) of the
order are not applicable.
b) As informed, the Company has not, taken any loans, secured or
unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions stated in paragraph 4 (iii)(f)and (g) of
the order are not applicable.
iv. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct weakness
in internal control system of the company.
v. a) According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 that need to be
entered into the register maintained under section 301 have been so
entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs have been entered
into during the financial year at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of Sections 58A and 58AA of the Act and the rules
framed there under.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act and we are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained.
ix. a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including investor education and
protection fund, income-tax, sales-tax, wealth- tax, service tax,
customs duty, excise duty, cess and other material statutory dues
except incase of provident fund and employees'' state insurance where
there were slight delays in a few cases.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable,
c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of the Amount Period to Forum where
Statute Nature of
dues (lacs) which the dispute is pending
amount
relates
Central
Excise Excise Duty
and Penalties 432.74 2001-2002 Supreme Court
Act 1944
Central
Sales Central Sales
Tax 648.18 1998-99 & Madras High Court
Tax Act,
1956 1999-2000
Central
Excise Excise Duly
and
Penalties 29.78 2001 to
2003 CESTAT,Bangalore
Act 1944
Central
Excise Excise Duty,
Penalties and 29.97 2008-2009 Commissioner
Appeals,
Act 1944 Interest Kochi
ServiceTax Service Tax
& Penalties 13.38 2004-05 Assistant
Commissioner
of Central Excise
(Appeals)
ServiceTax Service Tax,
Penalties and 9.49 2007-08 Tribunal
Interest
IncomeTax IncomeTax 547.50 AY2009-10
to CIT(Appeals)
Act.1961 AY 2011-12 Coimbatore
IncomeTax Income Tax
(234 B waiver 725.06 AY1994-95 High Court
Act, 1961 and interest
u/s 220(2) AY 1995-96 Chennaiand
AY 1997-98 Income Tax Tribunal
AY 2005-06 Chennai
x. The company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
xii. According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted loans & advances on the basis of security by way of pledge of
shares, debentures and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
(xiii) of paragraph 4 of the Companies (Auditor''s Report) Order, 2003
(as amended) are not applicable to the Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and
other investments. Accordingly, the provisions of clause (xiv) of
paragraph 4 of the Companies (Auditor''s Report) Order, 2003 (as
amended) are not applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
company, for loans taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of the company.
xvi. In our opinion, the term loans have been applied for the purpose
for which the loans were raised.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we are of
the opinion that the funds raised on short term basis amounting to Rs.
1535 lacs have been temporarily used for long term investments. The
company has invested the money for its technical textiles project.
xviii. According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301
oftheAct.
xix. According to the information and explanations given to us, no
debentures have been issued by the company during the year.
xx. The Company has not raised money by way of public issue during the
year.
xxi. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
For Haribhakti & Co.,
Chartered Accountants
Firm Reg.No.: 103523W
C S Sathyanarayanan
Place : Coimbatore Partner
Date : 30th May 2014 M.No.: 028328
Mar 31, 2012
1. We have audited the attached Balance Sheet of Precot Meridian
Limited (the Company) as at March 31st, 2012,the Statement of Profit
and Loss and the Cash Flow Statement for the year ended on that date,
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, (as
amended), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of The Companies Act, 1956' (the 'Act')
and on the basis of such checks of the books and records of the company
as we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the paragraph 3 above, we report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii. The balance sheet, statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
account;
iv. In our opinion, the balance sheet, statement of profit and loss and
cash flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
v. On the basis of the written representations received from the
directors, as on March 31st, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31st, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956. vi.
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
a) in the case of the balance sheet, of the state of affairs of the
Company as at March 31st, 2012;
b) in the case of the statement of profit and loss account, of the loss
for the year ended on that date; and
c) in the case of cash flow statement, of the cash flows for the year
ended on that date.
Annexure to Auditors' Report
(Referred to in paragraph 3 of the Auditors Report of even date to the
members of Precot Meridian Limited on the financial Statement for the
year ended 31st March, 2012)
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets of the company have been physically verified by
the management during the year and no material discrepancies between
the book records and the physical inventory have been noticed. In our
opinion, the frequency of verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the company during the year.
2. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification carried
out at the end of the year.
3. (a) As informed, the Company has not, during the year, granted any
loans, secured or unsecured to companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956. Accordingly, the provisions stated in paragraph 4
(iii)(b),(c) and (d) of the order are not applicable.
(b) As informed, the Company has not, during the year, taken any loans,
secured or unsecured from companies, firms or other parties covered in
the register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions stated in paragraph 4 (iii) (f)and (g) of
the order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct weakness
in internal control system of the company.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 that need to be
entered into the register maintained under section 301 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs have been entered
into during the financial year at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of Sections 58A and 58AA of the Act and the rules
framed there under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act and we are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained.
9. (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees- state insurance,
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty, cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of Nature of Amount of Period to Forum where
the Statute the dues demand which dispute is
(Rs. lacs) (Rs. lacs) amount pending
relates
Central Excise Excise Duty 432.74 2000-01; Supreme Court
Act 1944 and Penalties 2001-02
Central Excise Excise Duty 12148 2001-02; Madras High
Act 1944 and Penalties 2008-10 Court
Tamil Nadu Sales Tax 12.61 1994-95; Madras High
General Sales 1998-99 Court
tax 1959
Central Excise Excise Duty 24.63 2007-08; Commissioner
Act 1944 and Penalties 2008-09 appeals, Kochi
Central Excise Excise Duty 29.78 2000-01; CESTAT,
Act 1944 and Penalties 2002-03 Bangalore
Service Tax Service Tax 2.07 1997-98 Commissioner
appeals,
AP VAT 2005 Sales Tax 24.77 1999-00; AP Sales tax
2004-05; Appellate
Tribunal
Central Sales Central 648.18 1998-99; Assessing
Tax 1956 sales Tax 1999-00; officer, Stay
obtained from
Chennai High
Court
Service Tax Service Tax 7.38 2006-07; CESTAT
Service Tax Service Tax 13.38 2003-04; Additional
Penalties 2004-05; Commissioner
of Central
Excise
(Appeals)
Service Tax Service Tax 1.36 2009-10 Commissioner
Income Tax Income Tax 1418.00 1992 to Commissioner
Act, 1961 2009
10. In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth. The company has incurred cash
losses during the financial year covered by our audit and there were no
cash loss in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted loans & advances 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, the provisions of clause (xiii) of
paragraph 4 of the Companies (Auditor's Report) Order, 2003 (as
amended) are not applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause (xiv) of paragraph 4 of the Companies (Auditor's
Report) Order, 2003 (as amended) are not applicable to the Company.
15. In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
company, for loans taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of the company.
16. In our opinion, the term loans have been applied for the purpose
for which the loans 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. According to the information and explanations given to us, the
company has made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act. In our opinion, the price at which shares have been issued is not
prejudicial to the interest of the company.
19. According to the information and explanations given to us, no
debentures have been issued by the company during the year.
20. The Company has not raised money by way of public issue during the
year.
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
For Haribhakti & Co., For K S G Subramanyam & Co.,
Chartered Accountants Chartered Accountants
Firm Reg.No.: 103523W Firm Reg.No.: 004151S
C S Sathyanarayanan K Baskaran
Partner Partner
M.No.; 028328 M.No.: 022883
Place : Coimbatore
Date : 30th May 2012
Mar 31, 2011
We have audited the attached Balance Sheet of Precot Meridian Limited
as at March 31, 2011 and also the Profit and Loss account and the cash
flow statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditor's Report) Order, 2003, (as
amended), issued by the Central Government of India in terms of
subsection (4A) of section 227 of The Companies Act, 1956', we give in
the Annexure a statement on the matters specified in paragraph 4 and 5
of the said Order.
Further to our comments in the paragraph 3 above, we report that:
1) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
2) 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;
3) The Balance Sheet and the Profit and Loss Account and cash flow
statement dealt with by this report are in agreement with the books of
account;
4) In our opinion the Balance Sheet and Profit and Loss Account and
cash flow statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956.
5) On the basis of the written representation received from the
Directors, as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2011 from being appointed as a Director in terms of Clause
(g) of Sub-section (1) of Section 274 of the Companies Act, 1956.
6) In our opinion and to the best of our information, and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011,
b) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date, and
c) In the case of cash flow statement, of the cash flows for the year
ended on that date.
Annexure to Auditors' Report
1. a. The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. The assets have been physically verified by the management in
accordance with a phased programme of verification which in our opinion
is reasonable having regard to the size of the company and the nature
of its business. The frequency of verification is reasonable and the
discrepancies noticed on such physical verification were not material
and have been properly dealt with in the books of account.
c. In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the company during the year.
2. a. The inventory has been physically verified by
the management during the year. In our opinion, the frequency of
verification is reasonable.
b. The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification carried
out at the end of the year.
3. a. As informed, the Company has not, during the
year, granted any loans, secured or unsecured to companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act, 1956. Accordingly, the provisions stated in
paragraph 4 (iii)(b),(c) and (d) of the order are not applicable.
b. As informed, the Company has not, during the year, taken any loans,
secured or unsecured from companies, firms or other parties covered in
the register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions stated in paragraph 4 (iii)(f)and (g) of
the order are not applicable.
4 In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct weakness
in internal control system of the company.
5. a. According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 that need to be
entered into the register maintained under section 301 have been so
entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs have been entered
into during the
financial year at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of Sections 58A and 58AA of the Act and the rules
framed there under.
7. In our opinion, the company has an internal audit system
commensurate with its size and the nature of its business.
8. We have broadly reviewed the books of account maintained by the
company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act and we are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained.
9. a. The Company is regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees' state
insurance, income-tax, sales-tax, wealth- tax, service tax, customs
duty, excise duty, cess and other material statutory dues applicable to
it.Further, since the Central Government has till date not prescribed
the amount of cess payable under section 441A of the Companies Act,
1956, we are not in a position to comment upon the regularity or
otherwise of the company in depositing the same.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
c. According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of Nature of Amount of Amount Period Forum where
the Statute the dues demand paid to which dispute is
(Rs. in
lakhs) (Rs. in
lakhs) the amount pending
relates
Central
Excise Excise
Duty and 115.90 30.00 2001-2002 Madras High
Court
Act. 1944 Penalties
Central
Excise Excise
Duty and 432.74 - 2000-01 to Supreme
Court
Act, 1944 Penalties 2001-02
Central
Excise Excise
Duty and 5.58 - 2006-09 to Madras High
court
Act. 1944 Penalties 2009-10
Central
Excise Excise
Duty and 16.64 - 2007-08 to Commissioner
appeals,
Act. 1944 Penalties 2008-09 Kochi
Central
Excise Excise
Duty and 0.70 - 2007-08 to Commissioner
appeals,
Act, 1944 Penalties 2008-09 Kochi
Central
Excise Excise
Duty and 29.78 - 2000-01 to CESTAT,
Bangalore
Act. 1944 Penalties 2002-03
Central
Excise Excise
Duty and 6.52 - 2008-09 Commissioner
appeals,
Act, 1944 Penalties Kochi
Service Tax Service
Tax and 13,38 - 2003-04 and Additional
Commissioner
of
Penalties 2004-05 Central
Excise
(Appeals)
Service Tax Service
Tax 1.36 - 2009-10 Commissioner
Service Tax Service
Tax 7.38 7.38 2006-07 CESTAT
Service Tax Service
Tax 4.04 - 1997-98 Commissioner
appeals,
Kochi
Central
Sales Central
Sales Tax 20.00 - 2002-03 to Kerala High
Court
Tax, 1956 2003-04
Central
Sales Central
Sales Tax 648.18 - 1998-99 to Assessing
Officer, Stay
Tax, 1956 1999-00 obtained from
Chennai
High Court
Tamil Nadu Sales tax 12,61 12.61 1994-95 to Madras High
court
General
Sales 1998-99
tax 1959
AP VAT
2005 Sales Tax 24.73 24.73 1999-00 to AP Sales Tax
Appellate
2004-05 Tribunal
10. The company does not have any accumulated losses as at 31.03.2011.
The company has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or nidhi or mutual
benefit fund/ society and hence the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the company.
14. The company is not dealing in or trading in shares, securities,
debentures and other investments and hence the provisions of clause
4(xiv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
15. In our opinion and according to the information and explanations
given to us, the Company has not given guarantees for loans taken by
others from banks or financial institutions during the year.
16. In our opinion, the term loans have been applied for the purpose
for which the loans were raised.
17. According to the information and the 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. According to the information and explanation given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained u/s 301 of the
Companies Act, 1956.
19. According to the information and explanations given to us, no
debentures have been issued by the company during the year.
20. The Company has not raised money by way of public issue during the
year.
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
For Haribhakti &Co., For K S G Subramanyam & Co.,
Chartered Accountants Chartered Accountants
Firm Reg.No.: 103523W Firm Reg.No.: 004151S
C S Sathyanarayanan K Baskaran
Partner Partner
M.No. : 028328 M.No.: 022883
Place : Coimbatore
Date : 27th May 2011
Mar 31, 2010
We have audited the attached Balance Sheet of Precot Meridian Limited,
Coimbatore, as at 31a March, 2010 and also the Profit and Loss Account
for the year ended on that date annexed thereto and the cash flow
statement for the period 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. We conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the over all financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of subsection (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraph 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
1. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
2. 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.
3. The Balance Sheet and the Profit and Loss Account dealt with by this
report are in agreement with the books of account.
4. In our opinion the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
5. On the basis of the written representation received from the
Directors, as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2010 from being appointed as a Director in terms of Clause
(g) of Sub- section (1) of Section 274 of the Companies Act, 1956.
6. In our opinion and to the best of our information, and according to
the explanations given to us, the said financial statements, read
together with the attached schedules, Significant accounting policies
and notes forming part of accounts, give 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:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2010,
b) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date, and
c) In the case of cash flow statement, of the cash flows for the year
ended on that date.
Annexure to Auditors Report
1. a. The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed assets.
b. The assets have been physically verified by the management in
accordance with a phased programme of verification which in our opinion
is reasonable having regard to the size of the company and the nature
of its business. The frequency of verification is reasonable and the
discrepancies noticed on such physical verification were not material
and have been properly dealt with in the books of account.
c. The company has not disposed off a substantial part of its fixed
assets during the year and the going concern assumption of the company
is not affected.
2. a. The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b. The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c. The company has maintained proper records of inventory and the
discrepancies noticed on physical verification as compared to book
records were not material and have been appropriately dealt with in the
books of account.
3. a. The company has not, during the year, taken any loans, secured
or unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act.
b. The company has not, during the year, granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act. In respect of loans
already granted by the company the terms and conditions are not
prejudicial to the interest of the company.
4 There are adequate internal control systems commensurate with the
size of the company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
During the course of our audit, we have not observed any major
weaknesses in internal control system.
5. a. The particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section. b. In our
opinion and according to the information and explanations given to us,
the transactions made in pursuance of contracts or arrangements entered
in the register maintained u/s 301 of the Companies Act, 1956 and
exceeding the value of rupees five lacs in respect of any party during
the year have been made at prices which are reasonable having regard to
the prevailing market prices at the relevant time.
6. The company has not taken or renewed any deposits from the public
during the year.
7. The company has an internal audit system commensurate with its size
and the nature of its business.
8. We have broadly reviewed the books of account maintained by the
company pursuant to the Rules made by the Central Government for the
maintenance of cost records u/s 209(1 )(d) of the Companies Act, 1956
and are of the opinion that prima facie the prescribed accounts and
records have been made and maintained.
9. a. The company is regular in depositing with the appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income-tax, Sales-tax, Service Tax, Custom Duty, Excise Duty, cess and
any other statutory dues applicable to it. According to the information
and the explanations given to us, no undisputed amounts payable in
respect of the above statutory dues were in arrears, as at 31.03.2010,
for a period of more than six months from the date they became payable.
b. The details of disputed statutory dues are given below:
Name of Nature of Amount of
the Statute the dues demand
(Rs, in lakhs)
Central Excise Excise Duty 115.90
Act, 1944 and Penalties
Central Excise Excise Duty 432.74
Act, 1944 and Penalties
Central Excise Excise Duty 6.24
Act, 1944 and Penalties
Central Excise Excise Duty 29.78
Act, 1944 and Penalties
Central Excise Excise Duty 4.00
Act, 1944 and Penalties
Service Tax Service Tax 13.38
and Penalties
Service Tax Service Tax 1.36
Central Sales Central Sales 15.36
Tax, 1956 Tax
Central Sales Central Sales 648.18
Tax, 1956 Tax
Name of Amount Period Forum where
the Statute paid to which dispute is
(Rs in lakhs) the amount pending
relates
Central Excise 30.00 2001-2002 High Court
Act,1944
Central Excise - 2000-01 to Supreme Court
Act,1944 2001-02
Central Excise - 2003-04 Central Excise
Act,1944
and Service tax
Appellate Tribunal
Central Excise - 2008-09 Central Excise and
Act,1944
Service tax
Appellate Tribunal
Central Excise - 2008-09 Deputy Commissioner of
Act,1944
to 2009-10 Central Excise
(Appeals)
Service Tax - 2003-04 to Additional
Commissioner of
2004-05 Central Excise
(Appeals)
Service Tax - 2009-10 Commissioner
Central Sales - 2002-03 Commissioner.
Tax,1956
Interim
to 2003-04 Stay obtained from
Kerala High Court
Central Sales - 1998-99 to Stay obtained from
Tax,1956
1999-00 Chennai High Court
10. The company does not have any accumulated losses as at 31.03.2010.
The company has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
11. The company has not defaulted in repayment of dues to financial
Institutionsor banks.
12. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The company is not a chit fund or nidhi or mutual benefit fund/
society and hence the provisions of clause 4(xiii) of the Companies
(Auditors Report) Order, 2003 are not applicable to the company.
14. The company is not dealing in or trading in shares, securities,
debentures and other investments and hence the provisions of clause
4(xiv) of the Companies (Auditors Report) Order, 2003 are not
applicable to the company.
15. The Company has not given guarantees for loans taken by others
from Banks or Financial Institutions.
16. The company has applied the term loans for the purposes for which
they were raised.
17. According to the information and the explanations given to us and
on an overall examination of the source and application of the funds of
the company, we report that no funds raised on short- term basis have
been used for long- term investments by the company.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained u/s 301 of the
Companies Act, 1956.
19. The company has not issued any debentures.
20. During the year, the company has not raised monies by public
issue.
21. According to the information and the explanations given to us and
the books and records examined by us, there are no frauds on or by the
company that has been noticed or reported during the year.
For Suri & Co., For K S G Subramanyam & Co.,
Chartered Accountants Chartered Accountants
Reg.No:004283S Reg.No:004151S
C.S.Sathyanarayanan K.Baskaran
Partner M.NO: 028328 Partner M.NO: 022883
Place : Coimbatore.
Date : 29.05.2010