Mar 31, 2015
We have audited the accompanying financial statements of Ramsarup
Industries limited, which comprise the Balance Sheet as at March 31,
2015, and the Statement of profit and loss and Cash Flow Statement for
the year then, ended and a summary of significant accounting policies
and other explanatory information.
Management's Responsibility for the Financial Statements
the Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. this responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our Audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. the
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company's preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by 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 on the financial
statements.
Basis for Qualified opinion:-
1) the Company has four manufacturing units at Kalyani, Shyamnagar,
Kharagpur and Durgapur, all of which are under the suspension of work
for the last few years and they are under the symbolic /physical
possession of lenders due to default of payment of the outstanding
loans. Detail physical verifications of fixed assets and inventories
could not be conducted by the management. We have also not been able to
obtain sufficient appropriate audit evidences (SAAe) in respect of
existence and valuation of fixed assets and inventories lying in these
factories.
2) Borrowings from banks and financial institutions have been
classified as nonperforming assets by the lenders. no balance
confirmation of the outstanding loan could be obtained nor any bank
statement has been provided by them. In absence of the same, we are
unable to confirm the accuracy of the balances appearing in the books
of account. As the borrowings have been considered as npA, no interest
has been charged by the banks since then. During the year the company
has provided interest on these borrowings up to 1st quarter June 2014
but interest of Rs. 395.84 crore for the three quarters from 1st July
to 31st March, 2015 has not been provided.
3) the net worth of the company has been fully eroded and therefore the
company filed an application before the ld. BIFR which is still
pending. the Company's ability to continue the business is
significantly dependent upon the viability of the restructuring plan to
be approved by the ld. BIFR.
Qualified Opinion:-
In our opinion and to the best of our information and according to the
explanations given to us, except for the possible effects of the matter
described in the basis for qualified opinion paragraph, 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 principle generally accepted in India of the state of
affairs of the company as at 31st March 2015, and its loss and its Cash
flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (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 paragraphs 3 and 4 of the order,
to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and except for the matters described in the basis for
Qualified opinion paragraph, obtained all the information and
explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit;
b) except for the possible effects of the matter described in the basis
for Qualified opinion paragraph above, 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) except for the possible effects of the matter described in the basis
for Qualified opinion paragraph, in our opinion, the Balance Sheet,
Statement of profit and loss, and Cash Flow Statement comply with the
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e) the matter described in the basis for Qualified opinion paragraph
above, in our opinion, may have an adverse effect on the functioning of
the Company.
f) on the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
g) the Qualification relating to the maintenance of accounts and other
matters connected therewith are as stated in the basis for qualified
opinion paragraph above.
h) With respect to other matters to be included in the Auditor's Report
in accordance with Rule 11 of the Companies (Audit and Auditors) Rule
2014,in our opinion and to the best of our information and according to
the explanations given to us:
i) A number of litigations have been filed by some of the lender banks
and creditors of the company against which primary liabilities stands
provided in the books except for other claims and interest thereon.
Apart from these various statutory / non-statutory liabilities as
stated in note no 33 of financial statement have not been provided for
although the financial impact thereon have been disclosed.
ii) the Company is carrying on infrastructure work at Rajasthan wherein
substantial delay has happened for various reasons in execution of the
contract. this may lead to cancellation of contract and losses so
incurred will be ascertained at the relevant time. total outstanding
work contract is estimated to the tune of Rs 40 crore against which the
Bank Guarantee is covered by Rs. 1.37 crore. there are no outstanding
derivative contracts in the Company.
iii) there has been some delay in transferring amounts required to be
transferred to the Investor education & protection Fund by the Company.
Following are the instances of delay in transferring amounts, to the
Investor education & protection Fund by the Company.
Nature Amount Due for Transfer Actual Transfer
Final Dividend
for 05-06 Rs.46,455.00 Sept 2013 28.05.2014
Interim
Dividend
for 05-06 Rs 2,38,034.80 Sept 2013 14.06.2014
ANNEXURE TO THE AUDITOR'S REPORT
the Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the year ended
31st March 2015,We report that:
i) In respect of its Fixed Assets:
a) the Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) the Company had a regular program of physical verification of fixed
assets, and these were being verified in a phased manner over a period
of three years, but due to suspension of work in all its manufacturing
units it has not been possible for the company during the year, to have
physical verification done.
c) no fixed assets have been disposed off during the year.
ii) In respect of its Inventories:
a) As explained to us the Inventories could not be physically verified
by the management due to suspension of its manufacturing units. the
Stock has been taken on the basis of previous period with estimated
realizable value for deterioration in quality due to efflux of time.
b) the Company has been maintaining proper records of its inventories
but in absence of physical verifications of inventories, actual
comparison with book records have not been possible.
iii) As informed to us, the Company during the year has not granted any
loan, secured or unsecured to companies, firms or other parties covered
in register maintained under section 189 of the Companies Act, 2013.
Accordingly, the provisions of sub clause (iii) (b) & (c) of the
Companies (Auditors Report) order, 2013 (as amended) are not
applicable.
iv) In our opinion and according to the information & explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of Inventory, Fixed Assets and also for the sale of goods.
During the course of our Audit no major weakness has been noticed in
the internal control system in respect of these areas.
v) According to the information and explanation given to us, the
Company has not accepted any deposit from the public; therefore the
provisions of clause (v) of the order are not applicable to the
company.
vi) We have broadly reviewed the Books of Accounts maintained by the
company in respect of generation of electricity where pursuant to the
rules made by the Central Government of India, the maintenance of Cost
Records have been prescribed u/s 148(1) of the Act and are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have not, however, made a detailed examination
of the records with a view to determine whether they are accurate or
complete.
vii) In respect of Statutory Dues:
a) According to the information and explanations given to us and on the
basis of records of the Company, amount deducted / accrued in the books
of accounts in respect of undisputed statutory dues including provident
Fund, Income tax, Sales tax, Wealth tax, Service tax, Duty of Customs,
Value Added tax,Cess and other material statutory dues have been
regularly deposited with appropriate authorities during the year except
the delays as below:
Statement of arrears of Statutory Dues outstanding for more than six
months up to 31.03.2015:
Sl. Name of Statute Amount (Rs in lacs)
No.
i) excise Duty Demand for F.Y. 2010-11 307.50
ii) eSI Contribution 6.49
iii) professional tax 1.55
Total 315.54
b) the disputed statutory dues that have not been deposited{net of
Amount paid under protest} on account of disputed matter pending before
appropriate authorities are as under:
Sl. Name of Statute Nature of Dues Amount
No. (Rs. in Lacs)
1 West Bengal Sales Sales tax 59.41
tax Act, 1994
2 West Bengal Sales Sales tax 3,576.58
tax Act, 1994
3 West BengaL VAt tax VAt 4,015.57
Act, 2003
4 West Bengal VAt tax VAt 16.24
Act, 2003
5 West Bengal VAt tax VAt 701.99
Act, 2003
6 West Bengal VAt tax VAt 696.60
Act, 2003
7 West Bengal VAt tax VAt 1,433.79
Act, 2003
8 West Bengal VAt tax VAt 2,613.51
Act, 2003
9 West Bengal VAt tax VAt 1,550.63
Act, 2003
10 Central Sales tax
Sales tax 51.68
Act,1956
11 Central Sales Sales tax 200.63
tax Act, 1956
12 Central Sales Sales tax 306.17
tax Act, 1956
13 Central Sales Sales tax 1,033.76
tax Act, 1956
14 Central Sales Sales tax 865.41
tax Act, 1956
15 Central Sales Sales tax 71.23
tax Act, 1956
16 Central Sales Sales tax 172.03
tax Act, 1956
17 Central Sales Sales tax 5.63
tax Act, 1956
18 employee State ESI 26.03
Insurance
19 employee State ESI 6.54
Insurance
20 provident Fund
Act PF 19.90
21 Service tax Act Service tax 4422.54
Name of the statue Period to which Forum where
amount relates dispute is pending
WestBengal sales
Tax Act, 1994 Various Years from Appellate &
1994-95 to1999-00 Revisional Board
West Bengal Sales 2004-05 Appellate &
tax Act, 1994 Revisional Board
West Bengal Sales 2005-06 Appellate &
tax Act, 1994 Revisional Board
West BengaL VAT TAX 2006-07 Appellate &
Act,2003 Revisional Board
West Bengal VAT TAX 2007-08 Appellate &
Act, 2003 Revisional Board
West Bengal VAT TAX 2008-09 Appellate &
Act, 2003 Revisional Board
West Bengal VAT TAX 2009-10 Appellate &
Act, 2003 Revisional Board
West Bengal VAT TAX 2010-11 Appellate &
Act, 2003 Revisional Board
West Bengal VAT TAX 2011-12 Appellate
Act, 2003 Forum CD-01
Central Sales tax various from
1994 -95 to 1999-00
Act,1956
Appellate &
Revisional Board
various fyear from
Central Sales 2000- 01 & 2003-04
tax Act, 1956 kolkata high court
Central Sales
2004-05 & 2005-06 Appellate &
tax Act, 1956 Revisional Board
Central Sales 2006-07 &2007- 08 Appellate &
tax Act, 1956 Revisional Board
Central Sales 2008-09 Appellate &
tax Act, 1956 Revisional Board
Central Sales 2009-10 Appellate
tax Act, 1956 Revisional Board
Central Sales 2010- 11 Appallate&
tax Act, 1956 Revisional Board
Central Sales 2012- 12 Appelate &
from CD -01
tax Act, 1956
employee state
insurance various year from
2002-03to 2006-07 EI- court
employee State 2001- 02tand 2002-03
insurance EI court
provident fund act, Various Years from Assistant / Regional
2009-10 to2013-14 p. F. Commissioner
Service tax Act Various Years from Service tax
2007-08 to2011-12 Commissionerate
(Kol) (CBeC)
Sl. Name of Statute Nature of Dues Amount
No. (Rs. in Lacs)
22 Commissioner of excise Duty 467.85
Central excise
23 Commissioner of excise Duty 15.00
Central excise
24 Commissioner of excise Duty 454.28
Central excise
25 Commissioner of excise Duty 620.43
Central excise
26 Income tax Act,
1961 Income tax 417.67
27 Income tax Act,
1961 Income tax 1141.81
28 Income tax Act,
1961 Income tax 674.30
29 Wealth tax Act,
1957 Wealth tax 1.66
Name of the statue Period to which Forum where
amount relates dispute is pending
2008-09 the Customs,
Commissioner of excise and
central exercersise Service tax Appellate
tribunal
Commissioner of
Central excise 2009-10 the Customsexcise
and Service tax Appellate
tribunal
Commissioner of
Central excise 2010-11 the Customs,excise and
Service tax Appellate
tribunal
Commissioner of
Central excise 2011-12 the Customs,excise and
Service tax Appellate
tribunal
Income tax Act, A.Y. 2007-08 C I t (A)
1961
Income tax Act, A.Y. 2008-09 C I t (A)
1961
Income tax Act, A.Y. 2010-11 C I t (A)
1961
Wealth tax Act, A.Y. 2010-11 C I t (A)
1957
c) According to the information and explanations given to us the
amounts which are required to be transferred to Investor education and
protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under has been
transferred to such fund within time except the followings:-
Nature Amount Due for Transfer Actual Transfer
Final Dividend
for 05-06 Rs 46,455.00 Sept 2013 28.05.2014
Interim Dividend
for 05-06 Rs2,38,034.80 Sept 2013 14.06.2014
viii) the Company has accumulated losses of Rs.1, 63,727 lacs (p.Y 1,
45,425/- lacs) at the end of the year, due to which the net Worth of
the company has fully eroded. the Company has incurred Cash losses of
Rs. 12,961 lacs during the financial year covered by the audit and in
the immediately preceding financial year, Rs. 45,759 lacs.
ix) Based on our Audit procedure and on the basis of information and
explanations given us, we are of the opinion that the company has
defaulted in the entire payment of loans and Interest to the Banks &
Financial Institutions etc.
x) According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
xi) Based on information and explanation given to us by the management
no term loans has been raised during the year and earlier term loans
outstanding are stated in financial statement.
xii) Based upon the audit procedures performed and information and
explanation given by the management, we report that no material fraud
on or by the company has been noticed or reported during the course of
our audit.
For P. K. Lilha & Co.
Chartered Accountants
FRn: 307008e
C.A. C.S. Agrawal
place: Kolkata Partner
Date:30.05.2015 Membership no. : 059534
Mar 31, 2014
We have audited the accompanying financial statements of Ramsarup
Industries Limited, 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, 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 of the Companies Act, 1956 ("the Act"). (Which
continue to be applicable in respect of section 133 of the Companies
Act, 2013 in terms of General Circular 15/2013 dated 13th September
2013 of the Ministry of Corporate Affairs) and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an opinion on the
effectiveness of the entity''s Internal Control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements .We
believe that the Audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion subject to our
observation mentioned hereinafter.
Without qualifying our opinion, attention is drawn to the following
points :
i) As the company has been in default in making the payment of
installments and servicing of loan etc to all Banks and Financial
institutions, as such confirmations & other statements from them have
also not been received. Physical verification of fixed assets and also
of inventories in the accounts could not be verified during the year by
the management as all the manufacturing units were not in operation and
the physical / symbolic possession of all the manufacturing units have
been taken over by some of the lenders bank, which has been challenged
by the management, before the Ld. Debts Recovery Tribunal II Kolkata .
ii) It has been informed by some of the lenders bank that they have
assigned their debts due from the Company to some Asset Reconstruction
Companies but in absence of full details regarding the transactions no
accounting effect have been given in the books of accounts.
iii) As stated in Note 35, the Company''s net-worth has been fully
eroded. Taken together these conditions indicate, the existence of a
material uncertainty that may cast significant doubt about the
Company''s ability to continue as a going concern, which is dependent on
establishing profitable operations in line with the Company''s business
plans, as well as satisfactory settlement of disputes/litigation in
favor of the Company. Moreover, the Company made a reference to the
Hon''ble Board for Industrial & Financial Reconstruction (BIFR) pursuant
to the provisions of Sick Industrial Companies (Special Provisions)
Act, 1985 (SICA) which has since been abated in accordance with the
third proviso of Sec 15(1) of the SICA. Being aggrieved by the order of
the Hon''ble BIFR the company has filed an appeal before Hon''ble AAIFR
which is still pending.
These mitigating factors have been more fully discussed in Notes 33, 34
and 35 to be accompanying Financial Statements, in view of which the
accompanying Financial Statement have been prepared under the Going
Concern assumption and consequently no adjustments if any have been
made to the carrying values of assets and liabilities.
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 subject to the above
give a true and fair view in conformity with the accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) In the case of 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'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act (hereinafter referred to as "the Order"), and
on the basis of such checks of the books and records of the company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards notified under
the Act, (Which continue to be applicable in respect of section 133 of
the Companies Act, 2013 in terms of general circular 15/2013 dated 13th
September 2013 of the Ministry of Corporate Affairs) subject to Note No
37 on Impairment of Assets.
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 paragraph 1 under the head "Report on Other Legal and
Regulatory Requirements" of our report of even date)
i) In respect of its Fixed Assets:-
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The Company had a regular program of physical verification of fixed
assets, and these were being verified in a phased manner over a period
of three years, but due to suspension of work in all its manufacturing
units it has not been possible for the company during the year to have
physical verification done.
c) No Fixed Assets have been disposed off during the year.
ii) In respect of its Inventories :-
a) As explained to us the Inventories could not be physically verified
by the management due to suspension of its man- ufacturing units. The
Stock has been taken on the basis of previous period with estimated
market value of all the inventories.
b) The Company has been maintaining proper records of its inventories
and in absence of physical verifications of inven- tories, actual
comparison with book records have not been possible.
iii) In respect of the loans, secured or un-secured, granted or taken
by the company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956 :-
a-d) As informed to us the Company has not granted any loan, secured or
unsecured to companies, firms or other par- ties covered in register
maintained under section 301 of the Companies Act, 1956, accordingly,
the provisions of sub clause (iii) (b) to (d) of the Companies
(Auditors Report) Order, 2003 (as amended) are not applicable.
e) The company during the year also has continued to consider the
amount as unsecured loan which were credited by the company on account
of sale proceeds of the Company''s share pledged by the promoter/
promoter companies & others against credit facilities taken. This
amount is payable to them, which were due to default in payment was
sold/ invoked by the lenders. As such there are no other terms &
conditions for repayment of this amount, this has been deemed as free
of interest and prima facie not prejudicial to the interest of the
company.
f) The Company during the year has taken/credited a sum of Rs. 24.19
Lacs which has also been treated as unsecured loans repayable on demand
from five body corporates under same group and a Director of the
company. There are no other terms and conditions for repayment of this
amount and this has been deemed as free of interest and therefore prima
facie not prejudicial to interest of the company.
g) In respect of the said loan the maximum amount outstanding at any
time during the year amounts to Rs. 4386.05 lacs and the year end
balance is Rs. 4331.77 lacs.
iv) In our opinion and according to the information & explanations
given to us, there is adequate internal control system com- mensurate
with the size of the company and the nature of its business for the
purchase of Inventory, Fixed Assets and also for the sale of goods.
During the course of our Audit no major weakness has been noticed in
the internal control system in respect of these areas.
v) a) According to the information and explanations given to us, we are
of the opinion that the particulars of contract or
arrangements referred to in section 301 of the Act, that need to be
entered in to the register have been so entered. b) In our opinion and
according to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements
exceeding the value of Rupees Five Lacs have been entered during the
year at prices which are reasonable having regard to the prevailing
market prices at the relevant time.
vi) According to the information and explanation given to us, the
Company has not accepted any deposit from the public; therefore the
provisions of clause (vi) of paragraph 4 of the order are not
applicable to the company.
vii) In our opinion, the Company has an Internal Audit System
commensurate with its size and nature of its business.
viii) We have broadly reviewed the Books of Accounts maintained by the
company in respect of generation of electricity where pursuant to the
rules made by the Central Government of India, the maintenance of Cost
Records have been prescribed U/s 209(1)(d) of the Act and are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have not, however, made a detailed examination
of the records with a view to determine whether they are accurate or
complete.
ix) a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Sales Tax, Income Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other
statutory dues have been delayed for more than six months in depositing
with appropriate authorities during the year as detailed below :
Statement of arrears of Statutory Dues outstanding for more than six
months upto 31.03.2014 :
Name of Statute Amount (Rs. in lacs)
Provident Fund Contributions 4.88
ESI Contribution 7.04
Professional Tax 1.41
Excise Duty Demand for F.Y. 2010-11 307.50
Total 320.83
b) The disputed statutory dues that have not been deposited on account
of disputed matter pending before appropriate authorities are as under
:
Name of Statute Nature of Dues Amount Period to which the
Rs.in Lacs amount relates
West Bengal Sales Sales Tax Various Years from
Tax Act,1994 59.41 1994-95 to 1999-00
West Bengal Sales Sales Tax 2004-05
Tax Act,1994 3,576.58
West BengalVAT VAT 2005-06
TaxAct, 2003 4,015.57
West Bengal Sales VAT 2006-07
Tax Act, 2003 16.24
West BengalVAT VAT 2007-08
Tax Act,2003 701.99
West Bengal VAT VAT 2008-09
Tax Act, 2003 696.60
West Bengal VAT VAT 1,433.79 2009-10
Tax Act, 2003
West Bengal VAT VAT 2,613.51 2010-11
Tax Act, 2003
Central Sales Sales Tax Various Years from
TaxAct,1956 51.68 1994-95 to 1999-00
Central Sales Sales Tax Various Years from
TaxAct, 1956 200.63 2000-01 to 2003-04
Central Sales Sales Tax 2004-05 & 2005-06
Tax Act, 1956 306.17
Central Sales Sales Tax 2006-07 & 2007-08
TaxAct, 1956 1,033.76
Central Sales Sales Tax 2008-09
TaxAct, 1956 865.41
Central Sales Sales Tax 71.23 2009-10
Tax Act, 1956
Central Sales Sales Tax 172.03 2010-11
TaxAct, 1956
Commissioner of Excise Duty 467.85 2008-09
Central Excise
Commissioner of Excise Duty 15.00 2009-10
Central Excise
Commissioner of Excise Duty 454.28 2010-11
Central Excise
Commissioner of Excise Duty 620.43 2011-12
Central Excise
Income Tax Income Tax 470.04 F.Y. 2009-10
Act, 1961 A.Y. 2010-11
Employee ESI 26.03 Various Years from
State Insurance 2002-03 to 2006-07
Employee ESI 6.54 2001-02 and 2002-03
State Insurance
Providend Fund Act PF 23.32 Various Years from
2006- 07 to 2013-14
Service Tax Act Service Tax 4,519.87 Various Years from
2007- 08 to 2011-12
Name of Statute Forum dispute is pending
West Bengal Sales Appellate & Revisional Board
Tax Act,1994
West Bengal Sales Appellate & Revisional Board
Tax Act,1994
West BengalVAT Appellate & Revisional Board
TaxAct, 2003
West Bengal Sales Appellate & Revisional Board
Tax Act, 2003
West BengalVAT Appellate & Revisional Board
Tax Act,2003
West Bengal VAT Appellate & Revisional Board
Tax Act, 2003
West Bengal VAT Appellate & Revisional Board
Tax Act, 2003
West Bengal VAT Under Appeal -Forum CD-01
Tax Act, 2003
Central Sales Appellate & Revisional Board
TaxAct,1956
Central Sales Kolkata High Court
TaxAct, 1956
Central Sales Appellate & Revisional Board
Tax Act, 1956
Central Sales Appellate & Revisional Board
TaxAct, 1956
Central Sales Appellate & Revisional Board
TaxAct, 1956
Central Sales Appellate & Revisional Board
Tax Act, 1956
Central Sales Under Appeal -Forum CD-01
TaxAct, 1956
Commissioner of The Customs, Excise and Service Tax
Central Excise Appellate Tribunal
Commissioner of The Customs, Excise and Service Tax
Central Excise Appellate Tribunal
Commissioner of The Customs, Excise and Service Tax
Central Excise Appellate Tribunal
Commissioner of The Customs, Excise and Service Tax
Central Excise Appellate Tribunal
Income Tax Deputy Commissioner of Income Tax
Act, 1961
Employee EI Court
State Insurance
Employee EI Court
State Insurance
Providend Fund Act Assistant / Regional P.F
Commissioner
Service Tax Act Service Tax Commis-sionerate (Kol)
s
x) The Company has accumulated losses of Rs.1,45,425 Lacs (P.Y 96,525/-
Lacs) at the end of the year, due to which the Net Worth of the company
has completely eroded. The Company has incurred Cash Losses of Rs.
45,759 Lacs during the financial year covered by the audit and in the
immediately preceding financial year, there was Cash Loss of Rs. 39,821
Lacs.
xi) Based on our Audit procedure and on the basis of information and
explanations given us, we are of the opinion that the company has
defaulted in the entire payment of Loan to Bank & Financial
Institutions as per Balance Sheet.
xii) According to the information and explanation given to us, the
company has not granted loans or advances on the basis of security by
way of pledge of shares, debentures and other securities, accordingly
paragraph 4 (xii) of the Order is not appli- cable.
xiii) In our opinion the company is not a Chit Fund/Nidhi/Mutual
Benefit Fund/Society. Therefore the provisions of clause 4(xiii) of the
order are not applicable to the company.
xiv) As informed and explained to us, the company has not dealt/traded
in shares, securities, debentures and other investments during the
year.
xv) According to the information and explanation given to us, there is
no guarantee given by the company for the loans taken by others, from
Banks or Financial institutions.
xvi) Based on information and explanation given to us by the management
no term loan was raised during the year.
xvii) According to the information & explanations given to us and on
overall examination of the balance sheet of the company we
are of the opinion that the company has neither borrowed loans from
banks nor taken unsecured loans. Loan from Banks
has increased due to interest on loan paid subsequent invocations of
Bank Guarantees issued by them and interest thereon.
xviii) During the year the company has not made preferential allotment
of Shares to parties and companies covered in the regis- ter maintained
under Section 301 of the Companies Act, 1956.
xix) The Company has not issued any secured Debenture during the year,
hence the questions of charge does not arise.
xx) The Company has not raised any money by way of public issue during
the year.
xxi) Based upon the audit procedures performed and information and
explanation given by the management, we report that no material fraud
on or by the company has been noticed or reported during the year ended
31st March, 2014.
For P.K. LILHA & CO.
Chartered Accountants
FRN : 307008E
CA C.S. Agrawal
Place : Kolkata Partner
Date : 21st May 2014 Membership No. : 059534
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Ramsarup
Industries Limited, which comprise the Balance Sheet as at March
31,2013, 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, 19S6 ("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.
Attention of the members is invited to note 35 of the Notes on Accounts
regarding the financial statements of the company having been prepared
ongoing concern basis notwithstanding the fact that its Net Worth is
completely eroded. The appropriateness of the said basis is interalia
dependent on the company''s ability to infuse requisite funds for
meeting its obligation, rescheduling its debts resuming normal
operation of its manufacturing facilities which are not in operation as
mentioned in note 34.
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 subject to the above
read with the notes specially Note No. 35, 36,37 and 38 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, 2013;
b) In the case of the Profit and Loss Account, 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.
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 S 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, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified 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.
i) In respect of its Fixed Assets :-
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The Company had a regular program of physical verification of fixed
assets, and these were being verified in a phased manner over a period
of three years, but due to suspension of work in all its manufacturing
units it has not been possible for the company during the year to have
physical verification done.
c) Fixed Assets disposed off during the year were not substantial and
therefore it does not affect the going concern assumption.
ii) In respect of its Inventories:
a) As explained to us the Inventories could not be physically verified
by the management due to suspension of its manufacturing units. The
Stock has been taken on the basis of previous period with estimated
market value., of all the inventories.
b) The Company has been maintaining proper records of its inventories
and in absence of physical verifications of inventories, actual
comparison with book records have not been possible.
iii) In respect of the loans, secured or un-secured, granted or taken
by the company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:-
a-d) As informed to us the Company has not granted any loan, secured or
unsecured to companies, firms or other parties covered in register
maintained under section 301 of the Companies act,1956,accordingly, the
provisions of sub clause (iii) (b) to (d) of the Companies (Auditors
Report) order, 2003 (as amended) are not applicable.
e) The company during the year also has continue to consider the amount
as unsecured loan which were credited by the company on account of sale
proceeds of the Company''s share pledged by the promoter/ promoter
companies/Associates & others against credit facilities taken. This
amount is payable to them, which were due to default in payment was
sold/invoked by the lenders. As such there are no other terms &
conditions for repayment of this amount, this has been deemed as free
of interest and prima facie not prejudicial to the interest of the
company.
f) The Company during the year has taken a sum of Rs. 5.03 Lacs as
unsecured loans repayable on demand from a body corporate under group
companies. There are no other terms and conditions for repayment of
this amount and this has been deemed as free of interest and therefore
prima facie not prejudicial to interest of the company.
g) In respect of the said loan the maximum amount outstanding at any
time during the year amounts to Rs. 681.34 lacs and the year end
balance is Rs. 681.07 lacs.
iv) In our opinion and according to the information & explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of Inventory, Fixed Assets and also for the sale of goods.
During the course of our Audit no major weak fess has been noticed in
the internal control system in respect of these areas.
v) a) According to the information and explanations given to us, we are
of the opinion that the particulars of contract or arrangements
referred to in section 301 of the Act, that need to be entered in to
the register have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rupees Five Lacs have been entered
during the year at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
vi) According to the information and explanation given to us, the
Company has not accepted any deposit from the public; therefore the
provisions of clause (vi) of paragraph 4 of the order are not
applicable to the company.
vii) In our opinion, the Company has an Internal Audit System
commensurate with its size and nature of its business.
viii) We have broadly reviewed the Books of Accounts maintained by the
company in respect of generation of electricity where pursuant to the
rules made by the Central Government of India, the maintenance of Cost
Records have been prescribed U/s 209(l)(d) of the Act and are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have not, however, made a detailed examination
of the records with a view to determine whether they are accurate or
complete.
ix) a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Sales Tax, Income Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and any other statutory dues have
been delayed for more than six months in depositing with appropriate
authorities during the year as detailed below : *
Statement of arrears of Statutory Dues outstanding for more than six
months up to 31.03.2013 :
S.
No. Name of Statute Amount (Rs in lacs)
i) Provident Fund Contributions 7.21
ii) ESI Contribution 5.18
iii) Income Tax Deducted at source (TDS) . 35.38
iv) Income Tax Collected at Source (TCS) 0.58
v) Professional Tax 0.97
vi) Excise Duty Demand for F.Y. 2010-11 307.50
Total 356.82
b) The disputed statutory dues that have not been deposited on account
of disputed matter pending before appropriate authorities are as under:
SI
No. Name of Statute Nature of
Dues Amount Period to
which the Forum Where
(Rs In
Lacs) amount
relates Dispute is
Pending
1 West Bengal
Sales Sales Tax 59.41 Various
Years from Appellate &
Tax Act, 1994 1994-95 to
1999-00 Revisional
Board
2 West Bengal
Sales Sales Tax 3,576.58 2004-05 Appellate &
Tax Act, 1994 Revisional
Board
3 West Bengal
VAT VAT 4,015.57 2005-06 Appellate &
Tax Act, 2003 Revisional
Board
4 " West Bengal
VAT VAT 16.24 2006-07 Appellate &
Tax Act''2003 Revisional
Board
5 West Bengal
VAT VAT 701.99 2007-08 Appellate &
Tax Act''2003 Revisional
Board
6 West Bengal
VAT VAT 696.60 2008-09 Appellate &
Tax Act''2003 Revisional
Board
7 Central Sales Sales Tax 51.68 Various
Years from Appellate &
Tax Act, 1956 1994-95 to
1999-00 Revisional
Board
8 Central Sales Sales Tax 200.63 Various
Years from Kolkata High
Court
Tax Act, 1956 2000-01 to
2003-04
9 Central Sales Sales Tax 306.17 2004-05 &
2005-06 Appellate &
Tax Act, 1956 * Revisional
Board
10 Central Sales Sales Tax 1,033.76 2006-07 &
2007-08 Appellate &
Tax Act, 1956 Revisional
Board
11 Central Sales Sales Tax 865.41 2008-09 Appellate &
Tax Act, 1956 Revisional
Board
12 Commissioner of Excise Duty 467.85 2008-09 The Customs,
Excise
Central Excise and Service
Tax
Appellate
Tribunal.
13 Commissioner of Excise Duty 15.00 2009-10 The Customs,
Excise
Central Excise and Service
Tax
Appellate
Tribunal.
14 Commissioner of Excise Duty 454.28 2010-11 The Customs,
Excise
Central Excise and Service
Tax
Appellate
Tribunal.
15 Commissioner of Excise Duty 620.43 2011-12 The Customs,
Excise
Central Excise and Service
Tax
Appellate
Tribunal.
16 Income Tax Income Tax 400.15 F.Y. =
2009-10 Assistant
Act, 1961 Commissioner
of Income Tax
Total 13,481.75
x) The Company has accumulated losses of Rs. 96,525 lacs at the end of
the year, due to which the Net Worth of the company has completely
eroded. The Company has incurred Cash Losses of Rs. 39,821 lacs during
the financial year covered by the audit and in the immediately
preceding financial year, there was Cash Loss of Rs. 34,958 lacs.
xi) Based on our Audit procedure and on the basis of information and
explanations given us, we are of the opinion that the company has
defaulted in the payment of the financial institutions and bank. The
details of such defaults are mentioned in Note nos. 5.2 of the attached
financial statement.
xii) According to the information and explanation given to us, the
company has not granted loans or advances on the basis of security by
way of pledge of shares, debentures and other securities, accordingly
paragraph 4 (xii) of the Order, is not applicable.
xiii) In our opinion the company is not a Chit Fund/Nidhi/Mutual
Benefit Fund/Society. Therefore the provisions of clause 4(xiii) of the
order are not applicable to the company.
xiv) As informed and explained to us, the company has not dealt/traded
in shares, securities, debentures and other investments during the
year.
xv) According to the information and explanation given to us, there is
no guarantee given by the company for the loans taken by others, from
Banks or Financial institutions.
xvi) Based on information and explanation given to us by the management
no term loan was raised during the year.
xvii) According to the information & explanations given to us and on
overall examination of the balance sheet of the company we are of the
opinion that the company has borrowed loans from banks and taken
unsecured loans for the purpose of long term & short term utilization.
However the amount has more been invested in fixed assets/CWIP, of
which the amount is not ascertainable.
xviii) During the year the company has not made preferential allotment
of Shares to parties and companies covered in the register maintained
under Section 301 of the Companies Act, 1956.
xix) The Company has not issued any secured Debenture during the year,
hence the questions of charge does not arise.
xx) The Company has not raised any money by way of public issue during
the year.
xxi) Based upon the audit procedures performed and information and
explanation given by the management, we report that no material fraud
on or by the company has been noticed or reported during the year ended
31st March, 2013.
For P.K. UlHA & Co.
Chartered Accountants
FRN. No.: 307008E
(CA. C.S. Agrawal)
Place: Kolkata Partner
Dated : 30th May, 2013 M.No.59534
Mar 31, 2011
1.We have audited the attached Balance Sheet of RAMSARUP INDUSTRIES
LIMITED as at 31st March 201 I, the Profit b& Loss Account and also
the Cash Flow Statement for the year ended on that date both annexed
thereto. These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with 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 basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) Amendment order 2004, issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956,and on the basis of such checks as we considered
appropriate and according to the information and explanation given to
us, we enclose in the Annexure a statement on the matters specified in
Paragraphs 4 & 5 of the said order to the extent applicable to the
Company.
4. Further to our comments in the Annexure referred to in paragraph 3
above we report that::
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by the report are in agreement with the books of account.
d) In our opinion the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
Accounting standards referred to in section 21 I (3C) of the Companies
Act, 1956.
e) On the basis of written representation received from the Directors,
and taken on record by the Board of Directors. we report that none of
the Director of the Company is disqualified as on 3 I st March 201 I
from being appointed as a Director under Clause (g) of Sub-section (I)
of Section 274 of the Companies Act, 1956.
d) In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts reac together with
Significant Accounting Policies (Schedule 21) and Notes thereon
(Schedule 22). With specific reference to:-
i) Note No. 10, of Schedule 22 in contravention to clause 17 of AS - I
6 'Borrowing Costs' Interest on borrowed funds for the period beyond
stipulated date of commissioning of the project pursuant to an
inordinate interruption in the activities pertaining to creation of the
asset is being included in Capital Work in Progress, instead of
charging the same in the Profits Loss Account.
ii) Attention is also drawn to note no (I), (2), (4), (II), (13), (14)
& [15] subject to which it gives the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India.
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011
b) In the case of the Profit & Loss Account, 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 the date.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph (3) of the Auditor's Report of even date)
a) In respect of toFixed Assets :-
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The Company has a regular programme of physical venfication of fixed
assets, these are verified in a phased manner over a penned of three
years. In accordance with this programme certain fixed assets were
verified dunning the year and no maternal discrepancies were noticed on
such verification. In our opinion, this pandect- of physical
verification is reasonable having regard to the size of the company and
the nature of the assets.
c) Fixed Assets disposed off dung the year were not substantial and
therefore do not affect the going concern assumption.
i) In respect of the Inventories :-
a) As explained to us the Inventions have been physically verified by
the management at reasonable intervals. In our opinion the frequency of
venfication is reasonable.
b) The procedure of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and nature of to business.
c) The Company has maintained proper records of its inventories and no
material discrepancies were noticed on physical venfication of
inventories as compared to the book records.
ii) In respect of the loans, secured or un-secured, granted or taken
by the company to from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:-
a-d) As informed to us the Company has not granted any loan, secured or
unsecured to companies, firms or other parties covered in register
maintained under section 301 of the Companies act, 1956, accordingly,
the provisions of sub clause (iii) (b) to (d) of the Companies (Auditors
Report) order, 2003 (as amended) are not applicable.
e) The company during the year has considered the amount as unsecured
loan which were credited by company on account of sale proceeds of the
company's share pledged by the promoter/promoter companies/Associates &
others against credit facilities taken. This amount is payable to them,
which due to default in payment was sold evoked by the lenders. As such
there are no other terms & conditions for repayment of this amount, this
has been deemed as free of interest and prima facie not prejudicial to
the interest of the company.
f) In respect of the said loan four companies are involved in adduct to
Managing Director of the company and the maximum amount outstanding at
anytime dung the year amounts to Rs.4358.25 lacs and the year end
balance is also same as above.
v) In our opinion and according the information & explanations given
to us, there is adequate internal control system commensurate with the
size of the company and the nature of its business for the purchase of
Inventor/, Fixed Assets and also for the sale of goods. Dung the course
of our And* no major weakness has been noticed in the internal control
system in respect of these areas.
v) a) According to the information and explanations given to us, we are
of the opinion that the particulars of contract or arrangements
referred to in section 301 of the Act, that need to be entered in to the
register have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rupees Five Lacs have been entered
dung the year at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
vi) According to the information and explanation given to us, the
Company has not accepted any deposit from the public: therefore the
provisions of clause (vi) of paragraph 4 of the order are not applicable
to the company.
vii) In our opinion, the Company has an Internal Audit System
commensurate with its size and nature of its business.
viii) We have broadly reviewed the Books of Accounts maintained by the
company in respect of generation of electrify and some of the steel
products where pursuant to the rules made by the Central Government of
India, the maintenance of Cost Records have been prescribed U/s 209(
l)(d) of the Act and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
x) a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Employees State Insurance, Sales Tax,
Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess
and any other statutory dues have been delayed for more than six months
under following heads in depositing with appropriate authorities during
the year :-
Statement of arrears of Statutory Dues outstanding for more than six
months up to 3 1.03.2011 :-
S. No. Name of Statute Amount
(Rs in lacs)
i) Provident Fund 102.55
ii) ESI 25.04
iii) Tax Deducted at source 203.23
iv) Tax Collected at Source 0.38
v) Professional Tax 2.46
vi) Income Tax (A.Y 2010-1 I) 574.55
vii) Excise Duty 307.50
Total 1215.71
b) The disputed statutory dues that have not been deposited on account
of disputed matter pending before appropriate authorities are as under:
Sl No. Name of Statute Nature of Dues Amount
(Rs In Lacs)
1 west Bengal Sales Sales Tax 59.41
Tax Act, 1994
2 West Bengal Sales Sales Tax 1461.79
Tax Act, 1994
3 West Bengal Sales sales Tax 3576.58
Tax Act, 1994
4 West Bengal VAT VAT 4015.57
Tax Act, 2003
5 Central Sales sales tax 5768
Tax Act, 1956
6 Central Sales Sales Tax 200.63
Tax Act, 1956
7 Central Sales Sales Tax 306.17
Tax Act, 1956
9671.83
Name of statute Period to which the Forum Where
amount relates Dispute is Pending
West Bengal Sales Various Years from Appellate &
Tax Act, 1994 1994-95 to 1999-00 Revisional Board
West Bengal Sales Various Years from West Bengal
Tax Act, 1994 2000-01 to 2003-04 Taxation Tribunal
West Bengal Sales 2004-05 Appellate &
Tax ACT, 1994 Revisional Board
West Bengal Vat 2005-06 Appellate &
Tax Act, 2003 Revisional Board
Central Sales Various Years from Appellate &
Tax Act, 1956 1994-95 to 1999-00 Revisional Board
Central Sales Various Years from Kolkata High Court
Tax Act, 1956 2000-01 to 2003-04
Central Sales 2004-05 & 2005-06 Appellate
Revisional Board
x) The Company has accumulated losses of Rs.15,247 lacs after adjusting
General Reserve of Rs.1,900 lacs at the end of the year, which is not
more than 50% of its Net Worth. The Company has incurred Cash Losses of
Rs.24,622 lacs during the financial year covered by the audit but in
the immediately preceding financial year, there was no Cash Loss.
xi) Based on our Audit procedure and on the basis of information and
explanations given us, we are of the opinion that the company has
defaulted in the payment of the financial institutions and bank and the
loan/cash credit have become overdue. The detailed of such loans are
mentioned in note-2 of schedule 22 of the attached financial statement.
n addition to this the company has defaulted in repayment of dues to
non convertible debenture holder of the company to the extent of
Rs40crores.
xii) According to the information and explanation given to us, the
company has not granted loans or advances on the basis of security by
way of pledge of shares, debentures and other securities, accordingly
paragraph 4 (xii) of the Order is not applicable.
xiii) In our opinion the company is not a Chit Fund/Nidhi/Mutual
Benefit Fund/Society Therefore the provisions of clause 4(xiii) of the
order are not applicable to the company.
xiv) As informed and explained to us, the company has not dealt Abraded
in shares, securities, debentures and other investments during the
year.
xv) According to the information and explanation given to us, there is
no guarantee given by the company for the loans taken by others, from
Banks or Financial institutions.
xvi) The term loans outstanding at the beginning of the year and those
raised during the year have been applied for the purpose for which they
were raised.
xvii) According to the information & explanations given to us and on
overall examination of the balance sheet of the company we are of the
opinion that the company has borrowed loans from banks and also
unsecured loans for the purpose of long term & short term utilization.
However the amount has more been invested in fixed assets/CWIR of which
the amount is not ascertainable.
xviii) During the year the company has not made preferential allotment
of Shares to parties and companies covered in the register maintained
under Section 301 of the Companies Act, 1956.
xix) The Company has not issued any secured Debenture during the year,
hence the questions of charge does not arise.
xx) The Company has not raised any money by way of public issue during
the year.
xxi) Based upon the audit procedures performed and information and
explanation given by the management, we report that no material fraud
on or by the company has been noticed or reported during the year ended
31st March, 2011.
For P. K. LILHA & Co.
Chartered Accountants
Registration No. : 307008E
(CAP.K.LILHA)
Place :Kolkata Partner
Dated: 17th April, 2012 M.No.M092
Mar 31, 2010
1. We have audited the attached Balance Sheet and Profit & Loss
Account of RAMSARUP INDUSTRIES LIMITED as at 31st March, 2010 and also
the Cash Flow Statement for the year ended on that date both annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these finan- cial statements based on our audit.
2. 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 basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) Amendment order 2004,
issued by the Central Government of India in terms of Section 227(4A)
of the Companies Act, 1956, and on the basis of such checks as we
considered appropriate and according to the information and explanation
given to us, we enclose in the Annexure a statement on the matters
specified in Paragraphs 4 & 5 of the said order to the extent
applicable to the Company.
4. Further to our comments in the Annexure referred to in Paragraph 3
above we report that :
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by the report are in agreement with the books of account.
d) In our opinion the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
Accounting standards referred to in Section 211(3C) of the Companies
Act, 1956.
e) On the basis of written representation received from the Directors,
and taken on record by the Board of Directors, we report that none of
the Director of the Company is disqualified as on 31st March 2010 from
being appointed as a Director under Clause (g) of Sub- Section (1) of
Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts read together with
Significant Accounting Policies and Notes thereon as per Schedule 21 &
Schedule 22 respectively, give the information requi- red by the
Companies Act, 1956 in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India.
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010.
ii) In the case of the Profit & Loss Account, of the Profit for the
year ended on that date, and
iii) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on the date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph (3) of the Auditors Report of even date)
i) In respect of its Fixed Assets :
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The Company has a regular programme of physical verification of
fixed assets are verified in a phased manner over a period of three
year. In accordance with this program, certain fixed assets were
verified during the year and no material discrepancies were noticed on
such verification. 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) Fixed Assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
ii) In respect of its Inventories :
a) As explained to us the Inventories have been phy- sically verified
by the management at reasonable intervals. In our opinion the frequency
of verifica- tion is reasonable.
b) The procedure of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
c) The Company has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification of
inventories as compared to the book records.
iii) In respect of the loans, secured or un-secured, granted or taken
by the company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956 :
a-d)As informed to us the Company has not granted any loan, secured or
unsecured to companies, firms or other parties covered in register
maintained under section 301 of the Companies act,1956,accordingly, the
provisions of sub clause
(iii) (b) to (d) of the Companies (Auditors Report) order, 2003 (as
amended) are not applicable.
e) The company during the year has taken unsecured loan from 3 (Three)
companies listed in the register maintained under Section 301 of the
Act. In respect of the said loan the maximum amount outstanding at any
time during the year amounts to Rs. 4,895.00 Lacs and the year end
balance is NIL.
f) In our opinion and according to the information and explanations
given to us, the Loan taken are non bearing interest and other terms
and conditions, are prima-facie not prejudicial to the interest of the
company.
g) The principal amounts, were repayable on demand.
iv) In our opinion and according the information & expla- nations given
to us, there is an adequate internal control system commensurate with
the size of the company and the nature of its business for the purchase
of Inventory, Fixed Assets and also for the sale of goods. During the
course of our Audit no major weakness has been noticed in the internal
control system in respect of these areas.
v) a) According to the information and explanations given to us, we are
of the opinion that the particulars of contract or arrangements
referred to in section 301 of the Act, that need to be entered in to
the register have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rupees Five Lacs have been entered
during the year at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
vi) According to the information and explanation given to us, the
Company has not accepted any deposit from the public; therefore the
provisions of Clause (vi) of Paragraph 4 of the order are not
applicable to the Company.
vii) In our opinion, the Company has an Internal Audit System
commensurate with its size and nature of its business.
viii) We have broadly reviewed the Books of Accounts maintained by the
company in respect of generation of electricity and some of the steel
products where pursuant to the rules made by the Central Government of
India, the maintenance of Cost Records have been prescribed U/s
209(1)(d) of the Act and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
ix) a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Investor Education & protection Fund,
Employees State Insurance, Sales Tax, Income Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and any other statutory dues have
been generally regularly deposited with appropriate authorities during
the year.
b) No undisputed amounts payable were outstanding at the year end, for
a period of more than six months from the date they became payable.
c) The disputed statutory dues aggregating to Rs 5,970.32 lacs, that
have not been deposited on account of disputed matter pending before
appropriate authorities are as under :
Sl Name of Statute Nature Amount
No. of Dues ( Rs In Lacs)
1 West Bengal Sales Sales Tax 59.41
Tax Act, 1994
2 West Bengal Sales Sales Tax 1887.14
Tax Act, 1994
3 West Bengal Sales Sales Tax 3576.58
Tax Act, 1994
4 Central Sales Sales Tax 51.68
Tax Act, 1956
5 Central Sales Sales Tax 200.63
Tax Act, 1956
6 Central Sales Sales Tax 179.66
Tax Act, 1956
Sl Name of Statue Period to which the Forum Where Dispute
No amount relates is Pending
Various Years from Appellate & Revisional
1 West Bengal Sales 1994-95 to 1999-00 Board
Tax Act,1994
2 West Bengal Sales Various Years from West Bengal Taxation
Tax Act,1994
2000-01 to 2003-04 Tribunal
3 West Bengal Sales 2004-05 Appellate & Revisional
Tax Act,1994
Board
4 Central Sales Various Years from Appellate & Revisional
Tax Act,1956
1994-95 to 1999-00 Board
5 Central Sales Various Years from Kolkata High Court
2000-01 to 2003-04
Tax Act,1956
6 Central Sales 2004-05 Appellate & Revisional
Tax Act,1956
Board
x) The Company has no accumulated losses at the end of the year. The
Company has not incurred Cash Losses during the financial year covered
by the audit but in the immediately preceding financial year, there was
Cash Loss of Rs. 8,277.47 Lacs.
xi) Based on our Audit procedure and on the basis of information and
explanations given us, we are of the opinion that the company has
delayed in payment of some of the dues to the financial
institution/Banks but some of them has since been regularized and
others are still in process.
xii) According to the information and explanation given to us, the
company has not granted loans or advances on the basis of security by
way of pledge of shares, debentures and other securities, accordingly
Paragraph 4 (xii) of the Order is not applicable .
xiii) In our opinion the company is not a Chit Fund/Nidhi/ Mutual
Benefit Fund/Society. Therefore the provisions of clause 4(xiii) of the
order are not applicable to the company.
xiv) As informed and explained to us, the company has not dealt/traded
in shares, securities, debentures and other investments during the
year.
xv) According to the information and explanation given to us, there is
no guarantee given by the company for the loans taken by others, from
Banks or Financial institutions.
xvi) The term loans outstanding at the beginning of the year and those
raised during the year have been applied for the purpose for which they
were raised.
xvii) According to the information & explanations given to us and on
overall examination of the balance sheet of the company we are of the
opinion that there are funds raised on short term basis that have,
prima facie, been used for long term investment.
xviii) The Company has made preferential allotment of Preference Shares
(Unlisted) during the year to parties or companies covered in the
register maintained under Section 301 of the Companies Act, 1956 to the
extent of Rs. 912.76 lacs but the prices at which share have been
issued is not prejudicial to the interest of the Company.
xix) The Company has not issued any secured Debenture during the year,
hence the questions of charge does not arise.
xx) The Company has not raised any money by way of public issue during
the year.
xxi) Based upon the audit procedures performed and information and
explanation given by the management, we report that no material fraud
on or by the company has been noticed or reported during the year ended
31st March, 2010.
For P. K. LILHA & Co.
Chartered Accountants
Registration No. : 307008E
CA.P. K. LILHA
Place : Kolkata Par tner
Dated : 31st May, 2010 M.No.11092