Mar 31, 2018
INDEPENDENT AUDITOR''S REPORT
To
The Members of
Rama Phosphates Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Rama Phosphates Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s 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 including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India. This responsibility also includes the 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 the 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 internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provision of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India,
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2018;
(b) in the case of the Statement of Profit and Loss, of the Profit including Other Comprehensive Income for the year ended on that date;
(c) in the case of the Statement of Changes in Equity, of the changes in equity for the year ended on that date; and
(d) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date. Emphasis of Matter
We draw your attention to the following matters:
Without qualifying the report we like to draw your attention to the Note 35(ii)(d)(i) regarding loans and advances of Rs 305.27 lacs granted to a company in earlier years which being doubtful of recovery is already provided for. In view of the provision of Section 186(7) of the Companies Act 2013, the Company has accounted for interest in respect of this advance. However the recovery of this interest being unlikely the same has been written off.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016("the Order") issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the "AnnexureA", a statement on the matters specified in paragraph 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity 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 Indian Accounting Standards specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015;
e. On the basis of written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, we report that 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 operating effectiveness of such controls, refer to our separate report in '' ''Annexure B"; and
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014,as amended, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - (refer note no. 34 of the financial statement),
ii) The Company did not have any long term contracts including derivatives contract for which there were any material foreseeable losses,
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the
For Khandelwal & Mehta LLP |
|
Chartered Accountants |
|
Firm Regn. No. W100084 |
|
S. L. Khandelwal |
|
Place : Mumbai |
(Partner) |
Date: May 26, 2018 |
M.No. 101388. |
Annexure A to the Independent Auditors'' Report
The Annexure referred to in our report to the members of Rama Phosphates Limited (''the Company'') for the year Ended on 31a March, 2018. We report
i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) The Management of the Company has physically verified the fixed assets at reasonable intervals. The discrepancies, if any, noticed during such verification have been suitably adjusted in the books of account. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii) a) According to the information and explanations given to us, the management has conducted physical verification of the inventories at reasonable intervals.
b) In our opinion and according to the information and explanations given to us, the procedures followed by the management for physical verification of inventory are reasonable and adequate in relation to the size of the Company and the nature of the business.
c) No material discrepancies have been noticed on physical verification of the stocks as compared to book records in so far as it appears from our examination of the books.
iii) a) According to the information and explanations given to us, the company has granted unsecured interest bearing loan of ? 15 lacs to a company covered in the register maintained under section 189 of the Companies Act, 2013, and the same is recovered during the year. The terms and conditions of the loan granted are not prejudicial to the interest of the company.
b) The repayment of principal and payment of interest are on demand and there is no schedule of repayment stipulated. Since there is no schedule of repayment, the same are treated as regular.
c) Since the company has granted the loan, payable on demand basis, there is no amount overdue for more than ninety days. Hence the steps for recovery of overdue amount are not applicable.
iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made and the Company has not provided any guaranty or security.
v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public.
vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 148(1) of the Act, and are of the opinion that prima facie the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii) a) According to the records of the Company, undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Goods and Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other statutory dues have been regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of aforesaid dues were outstanding as at 31 st March, 2018 for a period of more than six months from the date it became payable, that:
b) According to the records of the Company and information and explanations given to us the following are the dues of Sales Tax, Duty of Excise, Value Added Tax and Entry Tax on account of disputes:
Name of the Statue |
Nature of the Dues |
Rs in lacs |
Period to which the amount relates |
Forum where dispute is pending |
MP Commercial Tax Act, 1994 |
Sales Tax |
3.58 |
F.Y. 2001-02 |
Appellate Board, Indore. |
MP Commercial Tax Act, 1994 |
Sales Tax |
6.47 |
F.Y. 1994-95 |
Hon''ble M.P High Court, Indore. |
Madhya Pradesh Entry Tax, 1 976 |
Entry Tax |
1.22 |
F.Y. 2003-04, 2004-05, 2005-06, 2006-07 |
Appellate Board, Indore. |
Central Sales Tax Act, 1956 |
Central Sales Tax |
115.89 |
F.Y. 2003-04, 2004-05, |
Hon''ble M.P. High Court, Indore. |
Central Sales Tax Act,1956 |
Central Sales Tax |
109.75 |
F.Y. 2011-12 |
Appeal before Additional Commissioner, Indore. |
Central Sales Tax Act,1956 |
Central Sales Tax |
0.38 |
F.Y. 2013-14 |
Appellate Board, Indore. |
Madhya Pradesh Entry Tax, 1 976 |
Entry Tax |
157.71 |
F.Y. 2007-08 |
Hon''ble Supreme Court. |
Name of the Statue |
Nature of the Dues |
Rs in lacs |
Period to which the amount relates |
Forum where dispute is pending |
Madhya Pradesh Value Added Tax, 2002 |
VAT Tax |
12.16 |
F.Y. 2010-11 & 2012-13 |
Appellate Board, Indore. |
Madhya Pradesh Value Added Tax, 2002 |
VAT Tax |
9.26 |
F.Y. 2013-14 |
Appeal before Additional Commissioner, Indore. |
Madhya Pradesh Value Added Tax, 2002 |
VAT Tax |
0.42 |
F.Y. 2015-16 |
Appeal before Additional Commissioner, Indore. |
According to the information and explanations given to us and the records of the Company examined by us, there are no dues of Income Tax, Wealth Tax, Service Tax, Custom Duty, Cess which have not been deposited on account of any dispute.
viii) On the basis of our examination of the books and according to the information and explanations given to us, during the year, there are no defaults in repayment of dues to financial institutions, banks, Government or debenture holders.
ix) The Company has not raise any money by way of initial public offer or further public offer (including debt instruments). The Term loans availed by the company were duly applied for the purposes for which those are raised.
x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards
xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
For Khandelwal & Mehta LLP |
|
Chartered Accountants |
|
FirmRegn. No. W100084 |
|
S. L. Khandelwal |
|
Place : Mumbai. |
(Partner) |
Date: May 26, 20 18 |
M.No. 101388. |
Annexure - ''B'' to the Independent Auditor''s report of even date on the Financial Statements of Rama Phosphates Limited
Report on the Internal Financial Controls 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 Rama Phosphates Limited ("the Company") as of 31st March, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAF). 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, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 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 Institute of Chartered Accountants of India.
For Khandelwal & Mehta LLP |
|
Chartered Accountants |
|
FirmRegn. No. W100084 |
|
S. L. Khandelwal |
|
Place : Mumbai. |
(Partner) |
Date: May 26, 20 18 |
M.No.101388 |
Mar 31, 2016
To
The Members of
Rama Phosphates Limited Report on the Financial Statements
We have audited the accompanying financial statements of Rama Phosphates Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs 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 financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these 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 provision of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statement.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India,
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2016;
(b) in the case of the Statement of Profit and Loss, of the Profit for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Emphasis of Matter
We draw your attention to the following matters:
Without qualifying the report we like to draw your attention to the Note 29(b) regarding loans and advances of '' 305.27 lacs granted to a Company in earlier years which being doubtful of recovery is already provided for. In view of the provision of Section 186(7) of the Companies Act 2013, the Company has accounted for interest in respect of this advance. However the recovery of this interest being unlikely the same has been written off. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section
(11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraph 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and operating effectiveness of such controls, refer to our separate report in ââAnnexure Bâ; and
g. with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - (refer note no. 32 of the financial statement).
ii) The Company did not have any long term contracts including derivatives contract for which there were any material foreseeable losses; and
iii) There has been no delay in transferring amounts, required to be transferred, if any, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in our report to the members of Rama Phosphates Limited (âthe Companyâ) for the year Ended on 31st March, 2016. We report that:
i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) The Management of the Company has physically verified the fixed assets at reasonable intervals. The discrepancies, if any noticed during such verification have been suitably adjusted in the books of account. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii) a) According to the information and explanations given to us, the management has conducted physical verification of the inventories at reasonable intervals.
b) In our opinion and according to the information and explanations given to us, the procedures followed by the management for physical verification of inventory are reasonable and adequate in relation to the size of the Company and the nature of the business.
c) No material discrepancies have been noticed on physical verification of the stocks as compared to book records in so far as it appears from our examination of the books.
iii) According to the information and explanations given to us and on the basis of our examination of books of account, the Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Therefore, the provisions of clauses 3(iii)(a) and (iii)(b) and (iii)(c) of the said order are not applicable to the Company.
iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made and the Company has not provided any guaranty or security.
v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public.
vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 148(1) of the Act, and are of the opinion that prima facie the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii) a) According to the records of the Company, undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income
Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other statutory dues have been regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of aforesaid dues were outstanding as at 31st March, 2016 for a period of more than six months from the date it became payable b) According to the records of the Company and information and explanations given to us the following are the dues of Sales Tax, Duty of Excise, Value Added Tax on account of disputes:
(Rs, in lacs)
Central Excise Act, 1944 |
Excise duty |
161.72 |
F.Y. 2005-06 |
CESTAT- New Delhi |
Central Excise Act-1944 |
Excise Duty |
6.62 |
F.Y. 2001-02 & 2002-03 |
Commissioner Appeal, Bhopal |
MP Commercial Tax Act, 1994 |
Sales Tax |
3.58 |
F.Y. 2001-02 |
Appellate Board, Indore. |
MP Commercial Tax Act, 1994 |
Sales Tax |
6.47 |
F.Y. 1994-95 |
Hon''ble M.P. High Court, Indore |
Madhya Pradesh Entry Tax, 1976 |
Entry Tax |
1.22 |
F.Y. 2003-04, 2004-05, 2005-06, 2006-07 |
Appellate Board, Indore. |
Central Sales Tax Act,1956 |
Central Sales Tax |
225.63 |
F.Y. 2003-04, 2004-05, 2011-12, |
Hon''ble M.P. High Court, Indore |
Central Sales Tax Act,1956 |
Central Sales Tax |
12.99 |
F.Y. 2009-10, 2013-14 |
Appeal before Additional Commissioner, Indore |
Central Sales Tax Act,1956 |
Central Sales Tax |
12.21 |
F.Y. 2008-09 |
Appellate Board, Indore. |
Madhya Pradesh Entry Tax, 1976 |
Entry Tax |
157.71 |
F.Y. 2007-08 |
Hon''ble Supreme Court |
Madhya Pradesh Value Added Tax, 2002 |
VAT Tax |
12.17 |
F.Y. 2010-11 & 2012-13 |
Appellate Board, Indore. |
Madhya Pradesh Value Added Tax, 2002 |
VAT Tax |
9.26 |
F.Y. 2013-14 |
Appeal before Additional Commissioner, Indore |
According to the information and explanations given to us and the records of the Company examined by us, there are no dues of Income Tax, Wealth Tax, Service Tax, Custom Duty, Cess which have not been deposited on account of any dispute.
viii) On the basis of our examination of the books and according to the information and explanations given to us, during the year, there are no defaults in repayment of dues to financial institutions, banks, Government or debenture holders.
ix) The Company has not raise any money by way of initial public offer or further public offer (including debt instruments). The Term loans availed by the Company were duly applied for the purposes for which those are raised.
x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards
xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Rama Phosphates Limited (âthe Companyâ) as of 31st March, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs 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 Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Dayal and Lohia
Chartered Accountants
(Firm Registration No.102200W)
(Anil Lohia)
Place: Mumbai Partner
Date : 19th May, 2016 Membership No.031626
Mar 31, 2015
Report on the Financial Statements
We have audited the accompanying financial statements of Rama
Phosphates Limited ("the company"), which comprise the Balance Sheet as
at 31st March 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes the
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 the 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 internal financial controls, that
were operating effectively for ensuring the accuracy and completeness
of the accounting records relevant to the preparation and presentation
of the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provision of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial controls relevant
to the Company's preparation of the financial statements that give true
and fair view in order to design audit procedures that are appropriate
in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India,
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) in the case of the Statement of Profit and Loss, of the Loss 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.
Emphasis of Matter
We draw your attention to the following matters:
Without qualifying the report we like to draw your attention to the
Note 30(b) regarding loans and advances of Rs. 305.27 lacs granted to a
company in earlier years which being doubtful of recovery is already
provided for. In view of the provision of Section 186(7) of the
Companies Act 2013, the Company has accounted for interest in respect
of this advance. However the recovery of this interest being unlikely
the same has been written off.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of sub-
section (11) of section 143 of the Act, we give in the annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
Directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its
financial position in note 33 to the financial statements.
ii) The Company did not have any long term contracts including
derivatives contract for which there were any material foreseeable
losses.
iii) There were no amounts which were required to be transferred to
Investor Education & Protection Fund by the Company.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
The Annexure referred to in our report to the members of Rama
Phosphates Limited ('the Company') for the year Ended on 31st March,
2015.
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The Management of the Company has physically verified the fixed
assets in accordance with its policy of physical Verification at
reasonable intervals. The discrepancies, if any noticed during such
Verification have been suitably adjusted in the books of account.
ii) a) According to the information and explanations given to us, the
management has conducted physical Verification of the inventories at
reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedures followed by the management for physical
Verification of inventory are reasonable and adequate in relation to
the size of the Company and the nature of the business.
c) No material discrepancies have been noticed on physical Verification
of the stocks as compared to book records in so far as it appears from
our examination of the books.
iii) a) The company has not granted any loans to parties covered in the
register maintained under section 189 of the Act. b&c) Since no loans
have been granted to parties covered in the register maintained under
section 189 of the Act, the question of receipt of principle and
interest, and overdue amounts does not arise.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business with regard to
purchase of inventory, fixed assets and for sale of goods and services.
During the course of our audit, no major weaknesses have been noticed
in the internal control system.
v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
vi) We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 148(1) of the Act,
and are of the opinion that prima facie the prescribed cost records
have been made and maintained. We have, however, not made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
vii) a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Employee's State Insurance, Sales Tax,
Income Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Value
Added Tax, Cess and other statutory dues have been regularly deposited
with the appropriate authorities. According to the information and
explanations given to us, no undisputed amounts payable in respect of
aforesaid dues were outstanding as at 31st March, 2015 for a period of
more than six months from the date they became payable.
b) According to the records of the Company and information and
explanations given to us the following are the dues of Sales Tax,
Income Tax & Excise Duty on account of disputes.
Name of the Statue Nature of the Rs. in lacs
Dues
Income Tax Act-1961 Income Tax 701.17
Central Excise Act 1944. Excise duty 161.72
Central Excise Act 1944. Excise duty 6.62
MP Commercial Tax Act, 1994 Sales Tax 3.58
MP Commercial Tax Act, 1994 Sales Tax 6.47
Madhya Pradesh Entry Tax, 1976 Entry Tax 1.21
Central Sales Tax Act, 1956 Central Sales Tax 115.88
Madhya Pradesh Entry Tax, 1976 Entry Tax 157.71
Madhya Pradesh Value Added VAT Tax 5.55
Tax, 2002
Madhya Pradesh Value Added VAT Tax 15.48
Tax, 2002
Name of the Statute Period to which the Forum where dispute is
amount relates pending
Income Tax Act-1961 F.Y. 2010-11 &
F.Y. 2011-12 CIT(Appeals)
Central Excise Act 1944 F.Y. 2005-06 CESTAT - New Delhi
Central Excise Act 1944 F.Y. 2001-02 &
F.Y. 2002-03 Commissioner Appeal,
Bhopal
MP Commercial Tax
Act, 1994 F.Y. 2001-02 Appellate Board, Bhopal
MP Commercial Tax
Act, 1994 F.Y. 1994-95 Hon'ble M.P. High
Court, Indore
Madhya Pradesh Entry
Tax, 1976 F.Y. 2003-04,
2004-05, Appellate Board, Bhopal
2005-06, 2006-07
Central Sales Tax Act,
1956 F.Y. 2003-04 &
2004-05 Hon'ble M.P.High
Court, Indore
Madhya Pradesh Entry
Tax 1976 F.Y. 2007-08 Hon'ble Supreme Court
Madhya Pradesh Value
Added Tax, 2002 F.Y. 2010-11 Appellate Board, Bhopal
Madhya Pradesh Value
Added Tax, 2002 F.Y. 2012-13 Appeal before
Additional Commissioner
According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of Wealth Tax,
Service Tax, Custom Duty, Value Added Tax or Cess which have not been
deposited on account of any dispute.
c) There were no amounts which were required to be transferred to
Investor Education & Protection Fund by the Company.
viii) The Company does not have any accumulated losses as at the end of
the financial year. The Company has incurred a cash loss ofRs. 604.02
Lacs during the year and has not incurred any cash loss in the
immediately preceding financial year.
ix) On the basis of our examination of the books 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 as at the Balance Sheet date.
x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by other parties
from any bank or financial institution.
xi) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, term loans
availed during the year by the Company were, prima facie, applied for
the purposes 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
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For Dayal and Lohia
Chartered Accountants
Firm's Regn. No. 102200W
(Anil Lohia)
Place - Mumbai Partner
Date - 28th May, 2015 Membership No. 031626
Mar 31, 2014
We have audited the accompanying financial statements of Rama
Phosphates Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2014 and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India, subject to:
Note 30b - regarding interest free advance made to a related party
(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 Loss 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 Companies Act, 1956;
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 Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT
(Referred to in our Report of even date to the members of Rama
Phosphates Limited on the financial statements for the year ended 31st
March 2014.)
1. In respect of its Fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situations of fixed assets;
b) Management has carried out physical verification of fixed assets and
no material discrepancy has been noticed on such verification.
c) The Company has not disposed off any substantial part of fixed
assets so as to affect its going concern.
2. In respect of its inventories:
a) The inventories have been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of stocks
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) No material discrepancies have been noticed on physical verification
of stocks as compared to book records in so far as it appears from our
examination of the books.
3. a) According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured to the
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
Accordingly sub clause (b), (c) and (d) are not applicable.
b) The company has an outstanding loan from one party covered under the
register maintained under section 301 of the Companies Act, 1956,
amounting to Rs. 148.07 lacs of which Rs. 31.79 lacs was repaid during
the year.
c) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions are
prima facie not prejudicial to the interest of the Company.
d) The payments of Principal amount and interest relating to this loan
are regular.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and nature of its business with regard to
purchase of inventory, fixed assets and for sale of goods and services.
During the course of our audit, no major weakness has been noticed in
the internal controls.
5. During the year the Company has not entered into any contract
referred to in section 301 of the companies Act, 1956.
6. According to the information and explanation given to us, the
company has not accepted any deposits u/s 58A, 58AA or any other
relevant provisions of the Companies Act, 1956, during the year.
7. In our opinion, the Company has an internal audit system
commensurate with the size and the nature of the 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 under section 209(1)(d) of the Companies
Act, 1956 in respect of the Company''s Products to which the said rules
are made applicable, and are of the opinion that prima facie, the
prescribed accounts have been made and maintained. We have, however not
made a detailed examination of the records with a view to determine
whether they are accurate.
9. a) According to the records of the Company, there were no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employee''s State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
any other statutory dues outstanding as on 31st March, 2014, for a
period of more than six months from the date they became payable.
b) According to the records of the Company and information and
explanations given to us the following dues of sales tax, income tax,
wealth tax, service tax, custom duty, excise duty have not been
deposited on account of disputes: -
Name of the Statue Nature of the Rs. in lacs Period to
Dues which the
amount
relates
Income Tax Act-1961 Income Tax 691.19 F.Y.2010-11
Central Excise Act, 1944 Excise duty 161.72 F.Y.2005-06
Central Excise Act, 1944 Cenvat 44.41 F.Y.2001-02
MP Commercial Tax Act, 1994 Sales Tax 3.58 F.Y. 2001-02
MP Commercial Tax Act, 1994 Sales Tax 6.47 F.Y. 1994-95
Central Sales Tax Act, 1956 Central Sales 4.07 F.Y. 2001-02
Tax
Madhya Pradesh Entry Entry Tax 1.21 F.Y. 2003-04
Tax,1976 2004-05,
2005-06,
2006-07
Central Sales Tax Act, 1956 Central Sales 115.88 F.Y. 2003-04
Tax & 2004-05
Madhya Pradesh Entry Entry Tax 157.71 F.Y. 2007-08
Tax,1976
Madhya Pradesh Value VAT Tax 5.55 F.Y. 2010-11
Added Tax, 2002
Name of the Statue Forum where dispute is
pending
Income Tax Act-1961 CIT(Appeals)
Central Excise Act, 1944 CESTAT - New Delhi
Central Excise Act, 1944 Additional Commissioner -
Central Excise, Indore
MP Commercial Tax Act, 1994 Appellate Board, Bhopal
MP Commercial Tax Act, 1994 Hon''ble M.P. High Court, Indore
Central Sales Tax Act, 1956 Appellate Board, Bhopal
Madhya Pradesh Entry Appellate Board, Bhopal
Tax,1976
Central Sales Tax Act, 1956 Hon''ble M.P.High Court, Indore
& 2004-05
Madhya Pradesh Entry Hon''ble Supreme Court
Tax,1976
Madhya Pradesh Value Appellate Board, Bhopal
Added Tax, 2002
10. The Company does not have accumulated losses as at the end of the
year and the Company has not incurred cash losses during the current
and immediately preceding financial year.
11. According to the information and explanation given to us we are of
the opinion that the company has not defaulted in repayment of dues to
bank.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures or any other securities.
13. In our opinion, the Company is not a Chit Fund, Nidhi or Mutual
Fund/Society and therefore the provisions of clause 4 (xiii) of the
order are not applicable.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the order are not applicable.
15. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institution.
16. In our opinion and on the basis of information and explanations
given to us, term loans availed by the Company were, prima facie,
applied by the Company for the purpose for which the loans were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, during the
year no funds raised on short term basis have been used for long term
investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued debentures during the year.
20. The Company has not raised any money by public issue during the
year.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief no fraud on or by the Company, has
been noticed or reported during the year.
For Dayal and Lohia
Chartered Accountants
(Firm Registration No.102200W)
(Sunil Khandelwal)
Place : Mumbai Partner
Date : 27th May, 2014 M.No.: 101388
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying fnancial statements of Rama Phosphates
Limited ("the Company"), which comprise the Balance Sheet as at March
31,2013, and the Statement of Proft and Loss and Cash Flow Statement
for the year then ended, and a summary of signifcant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these fnancial
statements that give a true and fair view of the fnancial position,
fnancial performance and cash fows 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 fnancial 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 fnancial
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 fnancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the fnancial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the fnancial 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 fnancial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the fnancial statements.
We believe that the audit evidence we have obtained is suffcient 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 fnancial 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 and subject to: Note 29b  regarding interest free advance made
to a related party
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement of Proft and Loss, of the proft for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash fows 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 specifed 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 Proft 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 Proft and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualifed as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notifcation as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in our Report of even date to the members of Rama
Phosphates Limited on the fnancial statements for the year ended 31st
March, 2013.)
1. In respect of its Fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situations of fxed assets on the
basis of available information;
b) Management has certifed that they have carried out physical
verifcation of fxed assets and no material discrepancies noticed on
such verifcation. have been dealt with in the books of accounts.
c) The Company has not disposed off any substantial part of fxed assets
so as to affect its going concern.
2. In respect of its inventories:
a) The inventories have been physically verifed by the management
during the year. In our opinion, the frequency of verifcation is
reasonable.
b) In our opinion, the procedures of physical verifcation of stocks
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) No material discrepancies have been noticed on physical verifcation
of stocks as compared to book records in so far as it appears from our
examination of the books.
3. a) According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured to the
companies, frms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly sub clause
(b), (c) and (d) are not applicable.
e) The company has an outstanding loan from one party covered under the
register required to be maintained under section 301 of the Companies
Act, 1956, amounting to Rs. 185.40 lacs of whichRs. 37.33 lacs was repaid
during the year.
f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions are
prima facie not prejudicial to the interest of the Company.
g) The payments of Principal amount and interest relating to this loan
are regular.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and nature of its business with regard to
purchase of inventory, fxed assets and for sale of goods and services.
During the course of our audit, no major weakness has been noticed in
the internal controls.
5. During the year the Company has not entered into any contract
referred to in section 301 of the companies Act, 1956.
6. According to the information and explanation given to us, the
company has not accepted any deposits u/s 58A, 58AA or any other
relevant provisions of the Companies Act, 1956, during the year.
7. In our opinion, the Company has an internal audit system
commensurate with the size and the nature of the 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 under section 209(1)(d) of the Companies
Act, 1956 in respect of the Company''s Products to which the said rules
are made applicable, and are of the opinion that prima facie, the
prescribed accounts have been made and maintained. We have, however not
made a detailed examination of the records with a view to determine
whether they are accurate.
9. a) According to the records of the Company, there were no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employee''s State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
any other statutory dues outstanding as on 31st March, 2013, for a
period of more than six months from the date they became payable.
10. The Company does not have accumulated losses as at the end of the
year and the Company has not incurred cash losses during the current
and immediately preceding fnancial year.
11. According to the information and explanation given to us we are of
the opinion that the company has not defaulted in repayment of dues to
bank.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures or any other securities.
13. In our opinion, the Company is not a Chit Fund, Nidhi or Mutual
Fund/Society and therefore the provisions of clause 4 (xiii) of the
order are not applicable.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the order are not applicable.
15. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or fnancial
institution.
16. In our opinion and on the basis of information and explanations
given to us, term loans availed by the Company were, prima facie,
applied by the Company for the purpose for which the loans were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, during the
year no funds raised on short term basis have been used for long term
investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued debentures during the year.
20. The Company has not raised any money by public issue during the
year.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief no fraud on or by the Company, has
been noticed or reported during the year.
For Dayal and Lohia
Chartered Accountants
(Firm Registration No.102200W)
(CA Anil Lohia)
Place : Mumbai Partner
Date : May 17, 2013 M.No.: 31626
Mar 31, 2012
We have audited the attached Balance Sheet of Rama Phosphates Limited
as at 31st March, 2012 and the Statement of Profit and Loss for the
year ended on that date and also the Cash Flow Statement for the year
ended on that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
1. We conducted our audit in accordance with the 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 check basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
2. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) Order, 2004 issued by the
Central Government of India in terms of section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to above, we report
that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of accounts as required by the law have
been kept by the Company so far as it appears from our examination of
the 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 Statement of Profit and Loss, Balance Sheet, and
the Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956;
e) In our opinion and based on the information and explanations given
to us, none of the directors are disqualified as on 31st March, 2012
from being appointed as directors in terms of clause (g) of sub-section
(1) of section 274 of the Companies Act, 1956;
Further in our opinion and to the best of our information and according
to the explanations given to us, the said accounts read together with
the notes thereon, give the information required by the Companies Act,
1956, in the manner so required and subject to:
1. Note - 7a regarding non-disclosure of amounts overdue to micro,
small and medium enterprises.
2. Note - 29b regarding interest free advance made to a related party;
give a true and fair view:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012; and
ii. in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 2 of our Report of even date on the accounts
of Rama Phosphates Limited for the year ended 31st March, 2012.)
1. In respect of its Fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situations of fixed assets on the
basis of available information;
b) Management has certified that they have carried out physical
verification of fixed assets and no material discrepancies have been
noticed on such verification.
c) The Company has not disposed off any substantial part of fixed
assets so as to affect its going concern.
2. In respect of its inventories:
a) The inventories have been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of stocks
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) No material discrepancies have been noticed on physical verification
of stocks as compared to book records in so far as it appears from our
examination of the books.
3. a) According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured to the
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
Accordingly sub clause (b), (c) and (d) are not applicable.
e) The company has an outstanding loan from one party covered under the
register required to be maintained under section 301 of the Companies
Act, 1956, amounting to Rs. 419.63 lacs of which Rs. 234.23 lacs was repaid
during the year.
f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions are
prima facie not prejudicial to the interest of the Company.
g) The payments of Principal amount and interest relating to this loan
are regular.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and nature of its business with regard to
purchase of inventory, fixed assets and for sale of goods and services.
During the course of our audit, no major weakness has been noticed in
the internal controls.
5. During the year the Company has not entered into any contract
referred to in section 301 of the Companies Act, 1956.
6. According to the information and explanation given to us, the
company has not accepted any deposits u/s 58A, 58AA or any other
relevant provisions of the Companies Act, 1956, during the year.
7. In our opinion, the Company has an internal audit system
commensurate with the size and the nature of the 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 under section 209(1)(d) of the Companies
Act, 1956 in respect of the Company's Products to which the said
rules are made applicable, and are of the opinion that prima facie, the
prescribed accounts have been maintained. We have, however not made a
detailed examination of the records with a view to determine whether
they are accurate.
9. a) According to the records of the Company, there were no undisputed
amounts payable in respect of Provident Fund, Investor Education and
Protection Fund, Employee's State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other
statutory dues outstanding as on 31st March, 2012, for a period of more
than six months from the date they became payable, except entry tax
demand of Rs. 135.78 lacs outstanding since 2007 - 2008 & Central Sales
Tax demand of Rs. 12.29 lacs outstanding since 1995 - 96.
b) According to the records of the Company and information and
explanations given to us there are no dues of sales tax, income tax,
wealth tax, service tax, custom duty, excise duty on account of any
disputes, except as given below: -
Statue Rs. In Lacs Forum where dispute is Pending
Excise Duty 168.34 CESTAT - New Delhi
Service Tax 44.41 Additional Commissioner -
Central Excise, Indore
MP Commercial Tax 89.78 Appellate Board, Bhopal
MP Commercial Tax 6.47 Hon'ble M. P. High Court, Indore
Central Sales Tax 55.61 Appellate Board, Bhopal
Rajasthan Sales Tax 704.23 Hon'ble Rajasthan High Court,
Jodhpur
Entry Tax 1.21 Appellate Board, Bhopal
Central Sales Tax 115.88 Hon'ble M. P. High Court, Indore
10. The Company does not have accumulated losses as at the end of the
year and the Company has not incurred cash losses during the current
and immediately preceding financial year.
11. According to the information and explanation given to us we are of
the opinion that the company has not defaulted in repayment of dues to
bank.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures or any other securities.
13. In our opinion, the Company is not a Chit Fund, Nidhi or Mutual
Fund/Society and therefore the provisions of clause 4 (xiii) of the
order are not applicable.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the order are not applicable.
15. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institution.
16. In our opinion and on the basis of information and explanations
given to us, term loans availed by the Company were, prima facie,
applied by the Company for the purpose for which the loans were
obtained.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, during the
year no funds raised on short term basis have been used for long term
investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued debentures during the year.
20. The Company has not raised any money by public issue during the
year.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief no fraud on or by the Company, has
been noticed or reported during the year.
For Dayal and Lohia
Chartered Accountants
(Firm Registration No.102200W)
(CA Anil Lohia)
Place : Mumbai Partner
Date : 30th May, 2012. M.No.: 31626
Mar 31, 2010
We have audited the attached Balance Sheet of Rama Phosphates Limited
as at 31st March, 2010 and the Profit and Loss Account for the period
ended on that date, and also 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.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test check basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) Order, 2004 issued by the
Central Government of India in terms of section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of accounts as required by the law have
been kept by the Company so far as it appears from our examination of
the books.
c) The Balance Sheet, the Profit and Loss Account and the Cash Flow
statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Profit and Loss Account and Balance Sheet comply
with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956;
e) In our opinion and based on the information and explanations given
to us, none of the directors are disqualified as on 31st March, 2010
from being appointed as directors in terms of clause (g) of sub-
section (1) of section 274 of the Companies Act, 1956;
f) Without qualifying our report, we draw your attention to note number
4 with regard to recognition of deferred tax asset.
Further in our opinion and to the best of our information and according
to the explanations given to us, the said accounts read together with
the notes thereon, give the information required by the Companies Act,
1956, in the manner so required and subject to:
1. Note - 13 regarding non-disclosure of amounts overdue to micro,
small and medium enterprises.
2. Note - 16 regarding certain interest free advances made to related
parties;
give a true and fair view:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010; and
ii. in the case of the Profit and Loss Account, of the profit of the
Company for the period ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
period ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 2 of our Report of even date on the accounts
of Rama Phosphates Limited for the period ended 31st March, 2010.)
1. In respect of its Fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situations of fixed assets on the
basis of available information;
b) Management has certified that they have carried out physical
verification of fixed assets and no material discrepancies have been
noticed on such verification.
c) The Company has not disposed off any substantial part of fixed
assets so as to affect its going concern.
2. In respect of its inventories:
a) The inventories have been physically verified by the management
during the period. In our opinion, the frequency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of stocks
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) No material discrepancies have been noticed on physical verification
of stocks as compared to book records in so far as it appears from our
examination of the books.
3. a) According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured to the
companies, firms or other parties covered in the register required to
be maintained under section 301 of the Companies Act, 1956. Accordingly
sub clause (b), (c) and (d) are not applicable.
b) The company had taken temporary interest free loans from one party
covered under register required to be maintained under section 301 of
the Companies Act, 1956, amounting to Rs.10 lacs which was repaid
during the period.
c) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions are
prima facie not prejudicial to the interest of the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and nature of its business with regard to
purchase of inventory, fixed assets and for sale of goods and services.
During the course of our audit, no major weakness has been noticed in
the internal controls.
5. In respect of transactions covered under section 301 of the
Companies Act, 1956, according to the information and explanations
given to us, there are no contracts or arrangements that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956.
6. According to the information and explanation given to us, the
company has not accepted any deposits u/s 58A, 58AA or any other
relevant provisions of the Companies Act, 1956, during the period.
7. In our opinion, the Company has an internal audit system
commensurate with the size and the nature of the 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 under section 209(1)(d) of the Companies
Act, 1956 in respect of the CompanyÃs Products to which the said rules
are made applicable, and are of the opinion that prima facie, the
prescribed accounts have been maintained. We have however not made a
detailed examination of the records with a view to determine whether
they are accurate.
9. a) According to the records of the Company, there were no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, EmployeeÃs State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
any other statutory dues outstanding as on 31st March, 2010, for a
period of more than six months from the date they became payable,
except entry tax demand of Rs 135.78 lacs outstanding since 2007 -
2008, Central sales tax demand of Rs 12.29 lacs outstanding since 1995
- 96.
b) According to the records of the Company and information and
explanations given to us there are no dues of sales tax, income tax,
wealth tax, service tax, custom duty, excise duty on account of any
disputes, except as given below: -
Statute Rs. In lacs Forum where dispute is Pending
Excise Duty 238.3 CESTAT - New Delhi
Service Tax 44.41 Additional Commissioner -
Central Excise, Indore
Service Tax 17.41 Commissioner - Central Excise,
Udaipur
MP Commercial Tax 3.58 M.P Commissioner Appeal, Bhopal
MP Commercial Tax 6.47 M.P. High Court, Indore
MP Commercial Tax 86.18 Appellate Board, Bhopal
Central Sales Tax 55.61 Appellate Board, Bhopal
Rajasthan Sales Tax 704.23 Rajasthan High Court, Jodhpur
Entry Tax 0.30 Appellate Board, Bhopal
Entry Tax 0.31 Dy. Commissioner of Appeal, Indore
Entry Tax 0.66 Dy. Commissioner of Appeal, Indore
Central Sales Tax 144.39 M.P.High Court
10. The accumulated losses of the Company are more than fifty percent
of its Net worth and the company has not incurred cash losses in the
current and immediately preceding financial year.
11. On the basis of our examination of books and according to
information and explanations given to us, the loans from
Banks/Institutions have been restructured as per the Corporate Debt
Restructuring package sanctioned to the Company, as a consequence there
of, there is no default.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures or any other securities.
13. In our opinion, the Company is not a Chit Fund, Nidhi or Mutual
Fund/Society and therefore the provisions of clause 4 (xiii) of the
order are not applicable.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the order are not applicable.
15. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institution.
16. In our opinion and on the basis of information and explanations
given to us, term loans availed by the Company were, prima facie,
applied by the Company for the purpose for which the loans were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, during the
period no funds raised on short term basis have been used for long term
investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register required to be maintained
under section 301 of the Companies Act, 1956.
19. The Company has not issued debentures during the period.
20. The Company has not raised any money by public issue during the
period.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief no fraud on or by the Company, has
been noticed or reported during the period.
For Dayal and Lohia
Chartered Accountants
(Firm Registration No.102200W)
(Anil Lohia)
Place:Mumbai Partner
Date :13th August, 2010 (Membership No.: 31626)
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