Mar 31, 2018
Report on the Audit of the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Sanghvi Movers Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, the Statement of Changes in Equity and the Statement of Cash Flow for the year then ended, and summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Ind AS 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 Ind AS financial statements that give a true and fair view of the state of affairs, profit/loss and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the Ind AS financial statements 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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS 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 Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We are also responsible to conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entityâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditorâs report. However, future events or conditions may cause an entity to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31 March 2018, its loss and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
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 Ind AS financial statements; Refer Note 24 to the Ind AS financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts; Refer Note 22 to the Ind AS financial statements.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The disclosures in the financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made since they do not pertain to the financial year ended 31 March 2018. However amounts as appearing in the audited Standalone Ind AS financial statements for the period ended 31 March 2017 have been disclosed.
Annexure A to the Independent Auditorsâ Report - 31 March 2018
With reference to the Annexure referred to in paragraph 1 in Report on Other Legal and Regulatory Requirements of the Independent Auditorsâ Report to the members of the Company on the Ind AS financial statements for the year ended 31 March 2018, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets by which its fixed assets are verified in a phased manner every year. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its fixed assets. No material discrepancies were noticed on such verification.
(c) The title deeds of the immovable properties are held in the name of the Company.
(ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable and therewere no material discrepancies noted during such verification.
(iii) The Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, paragraph 3(iii) of the Order is not applicable to the Company.
(iv) According to the information and explanations given to us, the Company has not granted any loans, made any investments, or provided any guarantees, and security to which the provisions of section 185 and 186 of the Companies Act, 2013 apply. Accordingly, paragraph 3(iv) of the Order is not applicable to the Company.
(v) The Company has not accepted any deposits in accordance with the provisions of section 73 to 76 of the Act and the rules framed thereunder.
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the services rendered by the Company.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Provident fund, Employeesâ state insurance, Income tax, Sales tax, Service tax, Duty of customs, Value added tax, Goods and Services Tax and other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of Duty of excise.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident fund, Employeesâ state insurance, Income tax, Sales tax, Service tax, Duty of customs, Value added tax, Goods and Services Tax and other material statutory dues were in arrears as at 31 March 2018, for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of Income tax, Service tax, Sales tax, Duty of customs and Value added tax which have not been deposited by the Company with appropriate authorities on account of any disputes except for the following:
Name of the statute |
Nature of dues |
Amount (INR lakhs) |
Amount paid under protest (INR lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Income Tax - TDS Demands |
3.03 |
- |
2007-18 |
Commissioner of Income Tax Appeals |
Income Tax Act, 1961 |
Income Tax -Disallowance |
27.93 |
27.93 |
2014-15 |
Commissioner of Income Tax Appeals |
Maharashtra Value Added Tax Act, 2002 |
Sales tax demand on crane hiring services |
582.31 |
15.00 |
April 2009 to March 2010 |
Joint Commissioner Sales Tax Appeals, Pune |
Maharashtra Value Added Tax Act, 2002 |
Sales tax demand on crane hiring services |
915.97 |
30.79 |
April 2008 to March 2009 |
Sales Tax Tribunal, Mumbai |
Central Sales Tax Act, 1956 |
Sales tax demand on crane hiring services |
11,110.47 |
373.34 |
April 2008 to March 2009 |
Sales Tax Tribunal, Mumbai |
The Finance Act, 1994 |
Service tax on services to SEZ units |
237.48 |
19.59 |
2009-2012 |
Customs, Excise & Service Tax Appellate Tribunal, Mumbai |
Maharashtra Value Added Tax Act, 2002 |
Sales tax demand on crane hiring services |
1,120.38 |
April 2007 to March 2008 |
Joint Commissioner of Sales Tax, Pune |
|
Central Sales Tax Act, 1956 |
Sales tax demand on crane hiring services |
6,417.80 |
April 2007 to March 2008 |
Joint Commissioner of Sales Tax, Pune |
|
Central Sales Tax Act, 1956 |
Sales tax demand on crane hiring services |
7,738.16 |
April 2010 to March 2011 |
Joint Commissioner of Sales Tax, Pune |
|
Maharashtra Value Added Tax Act, 2002 |
Sales tax demand on crane hiring services |
1,136.84 |
April 2010 to March 2011 |
Joint Commissioner of Sales Tax, Pune |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to the banks. The Company did not have any loan or borrowings from government or any debentures outstanding during the year.
(ix) In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were raised. The Company had not raised money by way of further public offer (including debt instruments) during the year.
(x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations given to us, the managerial remuneration is paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company as per the Act. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) In our opinion and according to the information and explanations given to us, all transactions with related parties are in compliance with section 177 and 188 of the Act and the details, as required by the applicable accounting standards have been disclosed in the Ind AS financial statements.
(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partially convertible debentures during the year.
(xv) According to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with them during the year. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company.
(xvi) In our opinion and according to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Referred to in paragraph 2(f) in Report on Other Legal and Regulatory Requirements of the Independent Auditorsâ Report to the members of Sanghvi Movers Limited on the Ind AS financial statements for the year ended 31 March 2018.
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 with reference to financial statements of Sanghvi Movers Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the Ind AS 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 with reference to financial statements 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 (âthe Guidance Noteâ) issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of 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 Act.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, 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 ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements 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 with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, 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 with reference to financial statements.
Meaning of Internal Financial Controls with reference to Financial Statements
A companyâs internal financial controls with reference to financial statements 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 controls with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of the management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to Financial Statements
Because of the inherent limitations of internal financial controls with reference to financial statements, 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 with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements 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 with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at 31 March 2018, based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.
For B S R & Co. LLP
Chartered Accountants
Firm Registration No: 101248W/ W-100022
Swapnil Dakshindas
Place: Pune Partner
Date: 25 May 2018 Membership No: 113896
Mar 31, 2017
Report on the IND AS Financial Statements
We have audited the accompanying IND AS financial statements of Sanghvi Movers Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2017, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the IND AS 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 Ind AS financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the IND AS 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 IND AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the IND AS financial statements 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 IND AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the IND AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the IND AS 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 IND AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the IND AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the IND AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid IND AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the IND AS, of the state of affairs (financial position) of the Company as at 31 March 2017, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
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 âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required bylaw 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, the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid IND AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
e) On the basis of the written representations received from the Directors as on 31 March 2017 taken on record by the Board of Directors, none of the Directors is disqualified as on 31 March 2017 from being appointed as a Director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Aâ.
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 IND AS financial statements - Refer Note 24 to the IND AS financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts. Refer to Note 16 to the IND AS financial statements;
iii. There has been no delay in transferring amounts, required to be transferred by the Company during the year to the Investor Education and Protection Fund by the Company; and
iv. The Company has provided requisite disclosures in the IND AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November, 2016 to 30 December, 2016 and these are in accordance with the books of account maintained by the Company. Refer to Note 29 to the IND AS financial statements.
Annexure B to the Independent Auditorsâ Report - 31 March 2017
With reference to the Annexure referred to in paragraph 1 in Report on Other Legal and Regulatory Requirements of the Independent Auditorsâ Report to the members of the Company on the Ind AS financial statements for the year ended 31 March 2017, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets by which its fixed assets are verified in a phased manner every year. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its fixed assets. No material discrepancies were noticed on such verification.
(c) The title deeds of the immovable properties are held in the name of the Company.
(ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable and there were no material discrepancies noted during such verification.
(iii) The Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly, paragraph 3(iii) of the Order is not applicable to the Company.
(iv) According to the information and explanations given to us, the Company has not granted any loans, made any investments, or provided any guarantees, and security to which the provisions of Section 185 and 186 of the Companies Act, 2013 apply. Accordingly, paragraph 3(iv) of the Order is not applicable to the Company.
(v) The Company has not accepted any deposits in accordance with the provisions of Section 73 to 76 of the Act and the rules framed thereunder.
(vi) The Central Government has not prescribed the maintenance of cost records under Section 148(1) of the Act, for any of the services rendered by the Company.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Provident fund, Employeesâ state insurance, Income tax, Sales tax, Service tax, Duty of customs, Value added tax and other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities except for few instances relating to Service tax aggregating Rs. 46.62 lakhs wherein there have been delays ranging from 31 to 92 days. As explained to us, the Company did not have any dues on account of Duty of excise.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident fund, Employeesâ state insurance, Income tax, Sales tax, Service tax, Duty of customs, Value added tax and other material statutory dues were in arrears as at 31 March 2017, for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of Income tax, Service tax, Sales tax, Duty of customs and Value added tax which have not been deposited by the Company with appropriate authorities on account of any disputes except for the following:
Name of the statute |
Nature of dues |
Amount (Rs. lakhs) |
Amount paid under protest (Rs. lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Income Tax -TDS Demands |
6.24 |
- |
2007-17 |
Assessing Officer of Income Tax, Pune |
Income Tax Act, 1961 |
Income Tax -Disallowances |
117.43 |
117.43 |
2012-13 |
Commissioner of Income Tax Appeals, Pune |
Gujarat Value Added Tax Act, 2003 |
Sales tax demand on crane hiring services |
124.75 |
- |
June 2008 to March 2009 |
Gujarat Value Added Tax Tribunal |
Maharashtra Value Added Tax Act, 2002 |
Sales tax demand on crane hiring services |
582.31 |
15.00 |
April 2009 to March 2010 |
Joint Commissioner Sales Tax Appeals, Pune |
Maharashtra Value Added Tax Act, 2002 |
Sales tax demand on crane hiring services |
915.97 |
30.79 |
April 2008 to March 2009 |
Sales Tax Tribunal, Mumbai |
Central Sales Tax Act, 1956 |
Sales tax demand on crane hiring services |
11,110.47 |
373.34 |
April 2008 to March 2009 |
Sales Tax Tribunal, Mumbai |
The Finance Act, 1994 |
Service tax on services to SEZ units |
261.20 |
19.59 |
2009-2012 |
Customs, Excise & Service Tax Appellate Tribunal, Mumbai |
Maharashtra Value Added Tax Act, 2002 |
Sales tax demand on crane hiring services |
1,120.38 |
- |
April 2007 to March 2008 |
Joint Commissioner of Sales Tax, Pune |
Central Sales Tax Act, 1956 |
Sales tax demand on crane hiring services |
6,417.80 |
- |
April 2007 to March 2008 |
Joint Commissioner of Sales Tax, Pune |
Central Sales Tax Act, 1956 |
Sales tax demand on crane hiring services |
7,738.16 |
- |
April 2010 to March 2011 |
Joint Commissioner of Sales Tax, Pune |
Maharashtra Value Added Tax Act, 2002 |
Sales tax demand on crane hiring services |
1,136.84 |
- |
April 2010 to March 2011 |
Joint Commissioner of Sales Tax, Pune |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to the banks. The Company did not have any loan or borrowings from financial institutions, government or any debentures outstanding during the year.
(ix) In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were raised. The Company had not raised money by way of further public offer (including debt instruments) during the year.
(x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations given to us, the managerial remuneration is paid or provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company as per the Act. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) In our opinion and according to the information and explanations given to us, all transactions with related parties are in compliance with Section 177 and 188 of the Act and the details, as required by the applicable accounting standards have been disclosed in the Ind AS financial statements.
(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partially convertible debentures during the year.
(xv) According to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with them during the year. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company.
(xvi) In our opinion and according to the information and explanations given to us, the Company is not required to register under Section 45-IA of the Reserve Bank of India Act, 1934.
For BSR& Co. LLP
Chartered Accountants
Firm Registration No: 101248W/W-100022
Vijay Mathur
Partner
Membership No.: 046476
Place : Mumbai
Date : 30May2017
Mar 31, 2014
We have audited the accompanying financial statements of Sanghvi Movers
Limited ("the Company") which comprise the Balance Sheet as at 31st
March 2014 and the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September 2013
of the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i. in the case of the Balance Sheet, of the state of affairs of the
company as at 31st March 2014;
ii. in the case of the Statement of Profit and Loss, of the loss 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (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 the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, the statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act, 1956 read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act, 2013; and
e. on the basis of written representations received from the directors
at on 31 March 2014 and taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
Annexure to the Independent Auditors'' Report  31st March 2014
[Referred to in the Independent Auditors'' Report to the Members of
Sanghvi Movers Limited (''the Company'') on the financial statements for
the year ended 31st March 2014]
We report as follows:
1 (a) The Company has maintained proper records showing full
particulars including quantitative details and situation
of fixed assets.
(b) The Company has a regular program of physical verification of its
fixed assets, by which all fixed assets are verified in a phased manner
over a period of two years. In our opinion, the periodicity of physical
verification is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noticed on
such verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern assumption.
2 (a) The inventory has been physically verified by management during
the year. In our opinion, the frequency of such verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and have been properly dealt with in
the books of accounts.
3 (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered
in the register maintained under section 301 of the Act. Accordingly,
paragraphs 4(iii) (a) to 4(iii) (d) of the Order are not applicable.
(b) The Company has availed unsecured loans from three parties covered
in the register maintained under section 301 of the Act. The maximum
amount outstanding during the year and the year-end balance of this
loan was Rs. 196,200,000.
(c) In our opinion the rate of interest and other terms and conditions
on which the aforesaid loans have been taken are not, prima facie,
prejudicial to the interests of the Company.
(d) In the case of the aforesaid loans, there was no principal amount
repayable during the current financial year. The Company has been
regular in repayment of interest as per the terms of the agreement.
4 In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchases of
certain items of inventories are for the Company''s specialised
requirements and similarly certain services rendered are for the
specialised requirements of the buyers and suitable alternative sources
are not available to obtain comparable quotations, there is an adequate
internal control system commensurate with the size of the Company and
the nature of its business with regard to the purchase of inventories
and fixed assets and with regard to rendering of services. The
Company''s activities do not involve sale of goods. In our opinion and
according to the information and explanations given to us, there is no
continuing failure to correct major weaknesses in internal control
system.
5 (a) In our opinion and according to the information and explanations
given to us, the particulars of contracts
andarrangements referred to in section 301 of the Act, have been
entered in the register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs. 5
Lakhs with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time. However, on the basis of information and explanations
provided, the same appear reasonable.
6 The Company has not accepted any deposits from the public.
7 In our opinion, the Company has an internal audit system commensurate
with its size and nature of its business.
8 The Central Government has not prescribed the maintenance of cost
records under section 209 (1) (d) of the Act, for services rendered by
the Company.
9 (a) According to the information and explanations given to us and on
the basis of our examination of the
records, the Company has generally been regular in depositing
undisputed statutory dues including Income tax, Wealth tax, Service
tax, Customs duty, Sales tax, Provident Fund, Employees'' State
Insurance, Professional tax and other material statutory dues during
the year with the appropriate authorities. As explained to us, the
Company did not have any dues on account of Investor Education and
Protection Fund and Excise duty.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Income tax, Wealth tax,
Service tax, Customs duty, Sales tax, Provident Fund, Employees'' State
Insurance, Professional tax and other material statutory dues were in
arrears as at 31st March 2014 for a period of more than six months from
the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Income tax, Wealth tax, Service tax, Sales tax and
Customs duty which have not been deposited by the company with the
appropriate authorities on account of any disputes other than those
stated below:
Name of the Nature of the Amount Amount paid
statute dues (Rs in Lakhs) under protest
(Rs in Lakhs)
Income Tax Act, Income tax  TDS 21.47 _
1961 demands
Income Tax Act, Income tax - 237.47 132.84
1961 Disallowances
Gujarat Value Sales tax demand 124.75 _
Added Tax Act, on crane hiring
2003 services
Maharashtra Sales tax demand 582.31 _
Value Added Tax on crane hiring
Act, 2002 services
The Finance Act, Service tax on 261.20 _
1994 services to SEZ
units
Name of the Period to which Forum where dispute
statute the amount relates is pending
Income Tax Act, 2007-2014 Commissioner of
1961 Income Tax - Appeals, Pune
Income Tax Act, 2008-2011 Commissioner of
1961 Income Tax, Pune
Gujarat Value June 2008 to Gujarat Value
Added Tax Act, March 2009 Added Tax Tribunal
2003
Maharashtra April 2009 to Deputy
Value Added Tax March 2010 Commissioner
Act, 2002 VAT, Pune*
The Finance Act, 2009-2012 Commissioner of
1994 Central Excise, Pune
10 The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash loss in the current
financial year and in the preceding finincial year.
11 In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers. The Company did not have any dues to any financial
institutions or any oustanding debentures during the year.
12 The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13 In our opinion and according to the information and explanations
given to us, the Company is not a chit fund / nidhi / mutual benefit
fund / society.
14 According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
15 According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16 In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purpose for which they were raised.
17 According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that the funds raised on short-term basis have not been used
for long-term investments.
18 The Company has not made any preferential allotment of shares to
companies/firms/other parties covered in the register maintained under
section 301 of the Act.
19 The Company did not have any outstanding 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, no fraud
on or by the Company has been noticed or reported during the course of
our audit.
For B S R & Co. LLP
Chartered Accountants
Firm Registration No. 101248W
Juzer Miyajiwala
Place : Pune Partner
Date : 30th May 2014 Membership No. 047483
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Sanghvi Movers
Limited ("the Company") which comprise the Balance Sheet as at 31 March
2013, the Statement of Profit and Loss and the Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
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:
i. in the case of the Balance Sheet, of the state of affairs of the
company as at 31 March 2013; ii. in the case of the Statement of
Profit and Loss, of the profit for the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows 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"), as amended, 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
sub-section (3C) of Section 211 of the Act; and
e. on the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Act.
Annexure to Independent Auditors'' Report  31 March 2013
[Referred to in Auditors'' Report to the Members of Sanghvi Movers
Limited (''the Company'') on the financial statements for the year ended
31 March 2013] We report as follows:
1 (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of two years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification during the year.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
2 (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of such verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and have been properly dealt with in
the books of account.
3 (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
(b) The Company has availed unsecured loans from three parties covered
in the register maintained under section 301 of the Act. The maximum
amount outstanding during the year was Rs.172,100,000 and the year- end
balance of such loan is Rs.172,100,000.
(c) In our opinion, the rate of interest and other terms and conditions
on which the aforesaid loans have been taken are not, prima facie,
prejudicial to the interests of the Company.
(d) In the case of the aforesaid loans, there was no principal amount
repayable during the current financial year. The Company has been
regular in repayment of interest as per the terms of the agreement.
4 In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchase of
certain items of inventories and fixed assets are for the Company''s
specialised requirements and similarly certain services rendered are
for the specialised requirements of the buyers and suitable alternative
sources are not available to obtain comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchase of
inventories and fixed assets and with regard to the rendering of
services. The Company''s activities do not involve sale of goods. In our
opinion and according to the information and explanations given to us,
there is no continuing failure to correct major weaknesses in internal
control system.
5 In our opinion, and according to the information and explanations
given to us, there are no contracts or arrangements the particulars of
which need to be entered into the register maintained under Section 301
of the Act.
6 The Company has not accepted any deposits from the public.
7 In our opinion, the Company has an internal audit system commensurate
with its size and nature of its business.
8 The Central Government has not prescribed the maintenance of cost
records under section 209 (1) (d) of the Act, for services rendered by
the Company.
9 (a) According to the information and explanations given to us and on
the basis of our examination of the records, the Company has been
regular in depositing undisputed statutory dues including Provident
Fund, Employees'' State Insurance, Income tax, Wealth tax, Sales tax,
Service tax, Customs duty and other material statutory dues during the
year with the appropriate authorities. As explained to us, the Company
did not have any dues on account of Investor Education and Protection
Fund and Excise duty.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Employees''
State Insurance, Income tax, Wealth tax, Sales tax, Service tax,
Customs duty and other material statutory dues were in arrears as at 31
March 2013 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there
are no dues of Income tax, Sales tax, Wealth tax, Service tax and
Customs duty which have not been deposited with the appropriate
authorities on account of disputes other than those stated below:
Name of the Nature of the Amount(Rs Amount paid
statute dues in lakhs) under
protest
(Rs in lakhs)
Income Tax Act, Income tax
TDS 37.83
1961 demands
Income Tax Act, Income tax 498.07 381.46
1961 Disallowances
Gujarat Value Sales tax demand 124.75
Added Tax Act, on crane hiring
2003 services
Gujarat Motor RTO tax under 44.46
Vehicles Act, Gujarat Motor
1989 Vehicles Act
NAME Period to which Forum where
the amount dispute
relates is pending
Income Tax Act, 2007-2012 Commissioner of
Income Tax -
Appeals, Pune
Income Tax Act, 2008-2010 Commissioner of
Income Tax -Pune
Income Tax Act, June 2008 to Gujarat Value
March 2009 Added Tax Tribunal
Income Tax Act, N.A. Gujarat High
Court
10 The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11 In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers. The Company did not have any outstanding dues to any financial
institutions or debenture holders during the year.
12 The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13 In our opinion and according to the information and explanations
given to us, the Company is not a chit fund/ nidhi/mutual benefit
fund/society.
14 According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
15 In our opinion and according to the information and explanations
given to us, Company has not given any guarantees for loans taken by
others from banks or financial institutions.
16 In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purpose for which they were raised.
17 According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that the funds raised on short-term basis have not been used
for long- term investments.
18 According to the information and explanations given to us, the
Company has not made preferential allotment of shares to
companies/firms/other parties covered in the register maintained under
section 301 of the Act.
19 The Company did not have outstanding debentures during the year.
20 The Company has not raised any money by public issues during the
year.
21 According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the course of
our audit.
For B S R & Co.
Chartered Accountants
Firm registration no. 101248W
Juzer Miyajiwala
Place : Pune Partner
Date : 27th May 2013 Membership No. 047483
Mar 31, 2012
We have audited the attached Balance Sheet of Sanghvi Movers Limited
('the Company') as at 31 March 2012 and the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date,
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1 As required by the Companies (Auditor's Report) Order, 2003, as
amended,('the Order') issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956
('the Act'), we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
2 Further to our comments in the Annexure referred to in paragraph 1
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 purposes of our
audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Act;
e) on the basis of written representations received from the Directors
of the Company as on31 March 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as at
31 March 2012 from being appointed as a Director in terms of clause (g)
of sub-section (1) of Section 274 of the Act;
f) in our opinion and to the best of our information and according to
the explanations given to us, the said financial statements give the
information required by the Act, in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2012;
(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 of the
Company for the year ended on that date.
[Referred to in paragraph 1 of the Auditors' Report to the Members of
Sanghvi Movers Limited ('the Company') on the financial statements
for the year ended 31 March 2012]
We report as follows:
1 (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of two years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification during the year.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
2 (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of such verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and have been properly dealt with in
the books of account.
3 (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Act.
(b) The Company has availed an unsecured loan from a party covered in
the register maintained under section 301 of the Act. The maximum
amount outstanding during the year was Rs. 64,000,000 and the year-end
balance of such loan is Rs. 21,400,000.
(c) In our opinion, the rate of interest and other terms and conditions
on which the aforesaid loan has been taken are not, prima facie,
prejudicial to the interests of the Company.
(d) In the case of the aforesaid loan, the principal sum and the
interest are repayable on demand.
4 In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchase of
certain items of inventories and fixed assets are for the Company's
specialised requirements and similarly certain services rendered and
goods sold are for the specialised requirements of the buyers and
suitable alternative sources are not available to obtain comparable
quotations, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories and fixed assets and with regard to the
rendering of services and sale of goods. In our opinion and according
to the information and explanations given to us, there is no continuing
failure to correct major weaknesses in internal control system.
5 (a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under that section.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs 5
lakh with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time except for purchase of certain services which are for the
Company's specialized requirements for which suitable alternative
sources are not available to obtain comparable quotations. However, on
the basis of information and explanations provided, the same appear
reasonable.
6 The Company has not accepted any deposits from the public.
7 In our opinion, the Company has an internal audit system commensurate
with its size and nature of its business.
8 The Central Government has not prescribed the maintenance of cost
records under section 209 (1) (d) of the Act, for services rendered by
the Company.
9 (a) According to the information and explanations given to us and on
the basis of our examination of the records, the Company has been
regular in depositing undisputed statutory dues including Provident
Fund, Employees' State Insurance, Income tax, Wealth tax, Sales tax,
Service tax, Customs duty and other material statutory dues during the
year with the appropriate authorities. As explained to us, the Company
did not have any dues on account of Investor Education and Protection
Fund and Excise duty.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Employees'
State Insurance, Income tax, Wealth tax, Sales tax Service tax, Customs
duty and other material statutory dues were in arrears as at 31 March
2012 for a period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us, there
are no dues of Income tax, Sales tax, Wealth tax, Service tax and
Customs duty which have not been deposited with the appropriate
authorities on account of disputes other than those stated below:
Name of the Nature of Amount Period to Forum where dispute is
statute the dues (Rs in
lakhs) which the pending
amount
relates
Income Tax
Act, Income tax
& TDS 161.65 2007-2012 Commissioner of Income
1961 demands Tax -Appeals, Pune
Gujarat
Value Sales tax
demand on 124.75 June 2008 to Gujarat Value Added
Added Tax
Act, crane hiring
services March 2009 Tax Tribunal
2003
Gujarat
Motor RTO tax under 44.46 N.A. Gujarat High Court
Vehicles
Act, Gujarat Motor
1989 Vehicles Act
10 The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11 In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to its
bankers or to any financial institutions. The Company did not have any
outstanding debentures during the year.
12 The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13 In our opinion and according to the information and explanations
given to us, the Company is not a chit fund/nidhi/mutual benefit
fund/society.
14 According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
15 In our opinion and according to the information and explanations
given to us, Company has not given any guarantees for loans taken by
others from banks or financial institutions.
16 In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purpose for which they were raised.
17 According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that the funds raised on shortterm basis have not been used for
long-term investments.
18 According to the information and explanations given to us, the
Company has not made preferential allotment of shares to
companies/firms/other parties covered in the register maintained under
section 301 of the Act.
19 The Company did not have outstanding debentures during the year.
20 The Company has not raised any money by public issues during the
year.
21 According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the course of
our audit.
For B S R & Co.
Chartered Accountants
Place: Mumbai Firm registration no: 101248W
Date: 30th May 2012
Vijay Mathur
Partner
Membership No: 046476
Mar 31, 2011
We have audited the attached Balance Sheet of Sanghvi Movers Limited as
at 31st March 2011 and also the Profit and Loss Account and the Cash
Flow Statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from any 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.
As required by the Companies (Auditor's Report) Order, 2003, issued by
the Central Government in terms of sub- section (4A) of Section 227 of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that -
1) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
2) 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;
3) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account of
the Company;
4) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
5) On the basis of representations made by the Directors of the Company
and taken on record by the Board of Directors, we report that none of
the Directors is disqualified as on 31st March 2011 from being
appointed as a Director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956;
6) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with the Notes forming part thereof, give the information
required by the Companies Act, 1956, in the manner so required and
present a true and fair view in conformity with the accounting
principles generally accepted in India :
a) in the case of Balance Sheet, of the state of affairs of the Company
as at 31st March 2011;
b) in the case of Profit and Loss Account, of the Profit for the year
ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure To The Auditors' Report
On the basis of such checks as we considered appropriate and on the
basis of examination of records and in terms of the information and
explanations given to us, we state that:
(i) (a) The Company has maintained records showing full particulars
including quantitative details of fixed assets, excepting the situation
of movable fixed assets, which change with orders under execution.
(b) The management has a programme of physically verifying major fixed
assets which, in our opinion, is reasonable having regard to the size
of the Company and the nature of its assets. No material discrepancies
were reported on such verification.
(c) The Company has not disposed off substantial part of fixed assets
so as to affect its going concern status.
(ii) (a) Physical Verification of inventory was conducted by the
Management at the year end and was test checked by us.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) Records of inventory showing, quantity of receipts, issues and
balances with dates of transactions are maintained. Stocks of inventory
brought forward from last year and purchases made during the year which
are unconsumed at year end have been valued and are properly dealt with
in the books of account.
(iii) (a) Other than unsecured loan of Rs. 640 lakhs taken from a
company listed in the register maintained under section 301 of the
Companies Act, 1956, the Company has not taken or granted any loans
from companies, firms or other parties listed therein.
(b) In our opinion, the rate of interest and other terms and conditions
of the loan taken by the Company are prima facie not prejudicial to the
interest of the Company.
(c) The quantum of the loan which was called back was regularly repaid.
Interest for the year is provided and is yet to be paid.
(d) As on the balance sheet date, no amount was overdue for payment.
(iv) In our opinion, there are generally adequate internal control
procedures commensurate with the size of the company and nature of its
business with regard to the purchase of consumables, stores, spares and
fixed assets. The Company does not sell goods. We have not come across
any instance of major weakness in the said internal controls.
(v) (a) On the basis of audit procedures performed by us, we are of the
opinion that the transactions in which Directors were interested and
which were required to be entered in the register maintained under
section 301 of the Companies Act, 1956, have been so entered.
(b) Based on the information and explanation given to us, in our
opinion, these transactions have been made at reasonable prices having
regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from public, hence
clause (vi) of the Order does not apply.
(vii) In our opinion, the internal audit system is commensurate with
the size of the Company and the nature of its business.
(viii) The Company is not required to maintain cost records under
section 209(1)(d) of the Companies Act, 1956, except for its business
of generation of electricity from wind power. We have broadly reviewed
the prescribed accounts and records maintained.
(ix) (a) The Company has been generally regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Customs Duty and other statutory dues with appropriate
authorities. As per information and explanations given to us, no such
undisputed statutory dues were in arrears as at 31st March 2011 for a
period of more than six months from the date they became payable.
(b) The disputed statutory dues which have not been deposited with the
appropriate authorities are as under :
Nature of Dues Rs.in Lakhs Forum where Dispute is being
Contested
Gujarat Motor Vehicles Tax 44.46 Gujarat High Court
Employees State Insurance 1.75 Industrial Court, Pune
Income Tax à TDS demands 135.11* CIT(Appeals)-V, Pune
Commercial Tax Officer, Gujarat 124.75 # Gujarat Value Added Tax
Tribunal
* These demands have been raised despite of regular payment of TDS.
# Contention of CTO, Gujarat, is that VAT is payable @ 15% on same
revenues on which service tax is being paid.
(x) The Company has not incurred cash loss during the year nor does it
have accumulated losses, hence clause (x) of the Order does not apply.
(xi) The Company has not defaulted in repayment of its dues to any
Bank, there being no borrowings from financial institutions or from
debenture holders.
(xii) The Company has not granted any loans or advances on the pledge
of any securities, hence clause (xii) of the Order does not apply.
(xiii) Clause (xiii) of the Order relating to chit funds does not apply
to the Company.
(xiv) The Company does not deal in shares, securities, debentures and
other investments and accordingly clause (xiv) of the Order does not
apply.
(xv) The Company has not given any guarantee for loans taken by others
from a bank, hence clause (xv) does not apply to the Company.
(xvi) We state that the Company has generally applied the term loans
received for the purposes they were obtained.
(xvii) We state that on an overall basis, no funds raised on short-term
basis have been applied by the Company for long-term investments.
(xviii) During the year under review, no shares were allotted to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
(xix) The Company has not issued any secured debentures and accordingly
clause (xix) of the Order does not apply.
(xx) During the year under review, the Company did not raise any money
by way of a public issue of shares or securities, hence clause (xx) of
the Order does not apply.
(xxi) 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 by the Company during the year.
For L. M. JOSHI & CO.
Chartered Accountants
F. No. 104403W
Prasanna L. Joshi
Pune: Partner
30th May 2011 M. No. 35097
Mar 31, 2010
We have audited the attached Bala nce Sheet of Sanghvi Movers Limited
as at 31 st March, 2010 and also the Profit and Loss Account and the
Cash Flow Statement for the year ended on that date, annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from any 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.
As required by the Companies (Auditors Report) Order, 2003, issued by
the Central Government in terms of sub- section (4A) of Section 227 of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that -
1) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
2) 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;
3) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account of
the Company;
4) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
5) On the basis of representations made by the Directors of the Company
and taken on record by the Board of Directors , wereport that none of
the Directors is disqualified as on 31 March, 2010 from being appointed
as a Director in terms of clause (g) of sub-section (1) of Section
274 of the Companies Act, 1956;
6) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with the Notes forming part thereof, particularly Note 4
regarding change in accounting policy on stores and spare parts
purchased for repairs and maintenance resulting in an increase in
profit before tax by Rs. 288 Lakhs, give the information required by
the Companies Act, 1956, in the manner so required and present a true
and fair view in conformity with the accounting principles generally
accepted in India :
a) in the case of Balance Sheet, of the state of affairs of the Company
as at 31st March 2010;
b) in the case of Profit and Loss Account, of the Profit for the year
ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
On the basis of such checks as we considered appropriate and on the
basis of examination of records and in terms of the information and
explanations given to us, we state that:
(i) (a) The Company has maintained records showing full particulars
including quantitative details of fixed assets, excepting the situation
of movable fixed assets, which change with orders under execution.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) The Company has not disposed off substantial part of fixed assets
so as to affect its going concern status.
(i) (a) Physical Verification of inventory was conducted by the
Management at the year end and was test checked by us.
(b) The procedures of physical verification of inventory followed by
the management need to be improved to be reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) Records of inventory showing, quantity of receipts, issues and
balances with dates of transactions are maintained. Stocks of inventory
from purchases during the year have been valued and properly dealt with
in the books of account.
(i) (a) Other than a loan of Rs. 70 Lakhs granted to and Rs. 435 Lakhs
taken from a company listed in the register maintained under Section
301 of the Companies Act, 1956, the Company has not taken or granted
any loans from companies, firms or other parties listed therein.
(b) In our opinion, the rate of interest and other terms and conditions
of the loans given and taken by the Company are prima facie not
prejudicial to the interest of the Company.
(c) The payment of interest is regular. The loans have been repaid.
(d) As on the balance sheet date, no amount was due to or by the
Company.
(iv) In our opinion, there are generally adequate internal control
procedures commensurate with the size of the company and nature of its
business with regard to the purchase of consumables, stores, spares and
fixed assets. The Company does not sell goods. We have not come across
any instance of major weakness in the said internal controls.
(v) (a) On the basis of audit procedures performed by us, we are of the
opinion that the transactions in which Directors were interested and
which were required to be entered in the register maintained under
Section 301 of the Companies Act, 1956, have been so entered.
(b) Based on the information and explanation given to us, in our
opinion, these transactions have been made at reasonable prices having
regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from public, hence
clause (vi) of the Order does not apply.
(vi) In our opinion, the internal audit system is commensurate with the
size of the Company and the nature of its business.
(vi) The Company is not required to maintain cost records under Section
209(1)(d) of the Companies Act, 1956, except for its business of
generation of electricity from wind power. We have broadly reviewed the
prescribed accounts and records maintained.
(ix) (a) The Company has been generally regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Customs Duty and other statutory dues with appropriate
authorities. As per information and explanations given to us, no such
undisputed statutory dues were in arrears as at 31st March 2010 for
a period of more than six months from the date they became payable.
(b) The disputed statutory dues which have not been deposited with the
appropriate authorities are as under :
Nature of Dues Rs in Lakhs Forum where Dispute is Pending
Gujarat Motor
Vehicles Tax 44.46 Gujarat High Court
Employees State
Insurance 1.75 Industrial Court, Pune
Income Tax 126.22 CIT(Appeals)-V, Pune
(x) The Company has not incurred cash loss during the year nor does it
have accumulated losses, hence clause (x) of the Order does not apply.
(xi) The Company has not defaulted in repayment of its dues to any
Bank, there being no borrowings from financial institutions or from
debenture holders.
(xii) The Company has not granted any loans or advances on the pledge
of any securities, hence clause (xii) of the Order does not apply.
(xiii) Clause (xiii) of the Order relating to chit funds does not apply
to the Company.
(xiv) The Company does not deal in shares, securities, debentures and
other investments and accordingly clause (xiv) of the Order does not
apply.
(xv) The Company has not given any guarantee for loans taken by others
from a bank, hence clause (xv) does not apply to the Company.
(xvi) We state that the Company has generally applied the term loans
received for the purposes they were obtained.
(xvii) We state that on an overall basis, no funds raised on short-term
basis have been applied by the Company for long-term investments.
(xviii) During the year under review, no shares were allotted to
parties or companies covered in the register maintained under Section
301 of the Companies Act, 1956.
(xix) The Company has not issued any secured debentures and accordingly
clause (xix) of the Order does not apply.
(xx ) During the year under review, the Company did not raise any
money by way of a public issue of shares or securities, hence clause
(xx) of the Order does not apply.
(xxi) 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 by the Company during the year.
ForL.M.JOSHI & CO.
Chartered Accountants
F. No. 104403W
Prasanna L. Joshi
Partner
M.No . 35097
Pune
26 th May, 2010