Mar 31, 2019
Report on the Standalone Indian Accounting Standard ( Ind AS) Financial Statements
Opinion
1. We have audited the accompanying Standalone Ind AS financial statements of DUNCAN ENGINEERING LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2019, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS financial statements give the information required by the Companies Act 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2019, its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
2. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the âCode of Ethicsâ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Key Audit Matters
3. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the financial year ended March 31, 2019. These matters were addressed in the context of our audit of the Standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined that there are no key audit matters to communicate in our report.
Information Other than the Financial Statements and Auditor''s Report Thereon
4. The Company''s Board of Directors is responsible for the other information. The other information comprises of the Board''s Report including its Annexures, and other report placed by the management before the members. Our opinion on the Standalone Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone Ind AS financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Ind AS Financial Statements
5. The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), 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) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Ind AS financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Ind AS Financial Statements
6. Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Ind AS financial statements.
7. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the Standalone Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the Standalone Ind AS financial statements, including the disclosures, and whether the Standalone Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
8. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor''s Report) Order, 2016, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (hereinafter referred to as the âOrderâ), we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
10. 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 (including Other Comprehensive Income), Statement of Changes in Equity and Statement of Cash Flow dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2019 from being appointed as a director in terms of Section 164 (2) of the Act;
f) With respect to the adequacy of internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate Report in Annexure B to this report.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its Standalone Ind AS financial statements - Refer Note No. 31 to the Standalone Ind AS financial statements;
ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company. There has been no delays in transferring amounts, to the Investor Education and Protection Fund by the Company
ANNEXURE - A TO THE INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 9 of the Independent Auditors'' Report of even date to the members of DUNCAN ENGINEERING LIMITED on the Standalone Ind AS financial Statements as of and for the year ended March 31, 2019)
We report that:
i. In respect of its fixed assets:
a) According to information and explanations given to us, the Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) As explained to us, fixed assets of the Company have been physically verified during the year by the management . As informed to us, no material discrepancies have been noticed on such physical verification. In our opinion, the frequency is reasonable having regard to the size of the Company and the nature of its assets.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of the immovable properties are held in the name of the Company.
ii. As explained to us, physical verification has been conducted by the management at reasonable intervals during the year in respect of inventory of raw materials, work in progress, finished goods and by products. The discrepancies noticed on physical verification of inventories as compared to book records were not material and have been properly dealt with in the books of account.
iii. In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to Companies, firms, Limited Liability partnerships or other parties covered in the register maintained under Section 189 of the Companies Act. Therefore, the provision of clause 3(iii), (iii)(a), (iii)(b) and (iii)(c) of the said Order are not applicable to the company.
iv. As informed to us, the company has not granted any loans or made any investment, or provided any guarantees or security to the parties covered under section 185 and 186. Therefore the provision of clause 3(iv) of the said Order are not applicable to the company.
v. According to the information and explanation given to us, the Company has not accepted any deposits from the public within the meaning of sections 73 to 76 of the Act and the rules framed thereunder.
vi. We have broadly reviewed the books of accounts maintained by Company in respect of product, where pursuant to the rule made by the Central Government of India the maintenance of cost records has been prescribed under section 148 (1) of the Companies Act 2013 and are of the opinion that, prima facie ,the prescribed 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. According to the information and explanations given to us and the records of the Company examined by us:
a) The Company is generally regular in depositing undisputed statutory dues including Provident fund, Employees'' state insurance, Income Tax, Sales tax, Service Tax, Goods and Service tax, Customs Duty, Cess and other material statutory dues, as applicable, to the appropriate authorities
b) According to the records and information and explanations given to us no undisputed amount payable in respect of Provident fund, Employees'' state insurance, Income Tax, Sales Tax, Service Tax, Goods and Service tax, Customs Duty, Excise Duty, Cess and other material statutory dues is outstanding as at March 31,2019, for a period of more than six months from the date they became payable.
c) There are no dues of Income tax, Sales tax, Service tax, Goods and Service tax, Customs duty, Excise duty and Cess which have not been deposited with the appropriate authorities on account of any dispute, except as stated below :
Name of the Statute |
Nature of dues |
Amount (Rs.) |
Period to which the amount relates |
Forum where the dispute is pending |
Central Excise Act, 1944 |
Excise Duty |
713,907 |
2005-06 |
High Court, Mumbai |
Central Excise Act, 1944 |
Excise Duty |
2,739,813 |
2009-10 |
The Addl Commissioner of Central Excise, Mumbai III |
Central Excise Act, 1944 |
Excise Duty |
110,413 |
2012-13 |
Dy. Commissioner of Central Excise, Pune |
viii. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not defaulted in repayment of loans or borrowings to any financial institution, bank or Government. The Company had neither any outstanding debenture at the beginning of the year nor has it issued any debenture during the year.
ix. According to the information and explanation given to us by the management, the Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. The Company had not availed term loans from Bank. Thus, the provisions of clause 3(ix) of the order are not applicable to the Company.
x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, the provision of clause 3(xii) of the Order are not applicable to the company.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with related parties are in compliance with the provisions of sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the Ind AS financial statements as required under the applicable Indian Accounting Standards
xiv. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, the provisions of the clause 3(xiv) of the Order are not applicable to the company.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of the clause 3(xv) of the Order are not applicable to the company.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.Accordingly, the provisions of the clause 3(xvi) of the Order are not applicable to the company.
ANNEXURE - B TO THE INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 10(f) of the Independent Auditor''s Report of even date to the members of DUNCAN ENGINEERING LIMITED on the Standalone Ind AS financial Statements as of and for the year ended March 31, 2019)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
1. We have audited the internal financial controls over financial reporting of DUNCAN ENGINEERING LIMITED (âthe Companyâ) as of March 31, 2019 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
MANAGEMENT''S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
2. The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
AUDITOR''S RESPONSIBILITY
3. Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
6. A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that:
a. Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
b. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
c. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31,2019, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Singhi & Co.
Chartered Accountants
Firm''s registration number: 302049E
Sudesh Choraria
Partner
Membership Number: 204936
Place : Noida
Dated: May 06, 2019
Mar 31, 2018
Report on the Standalone Indian Accounting Standard (Ind AS) Financial Statements
1. We have audited the accompanying Standalone Ind AS Financial Statements of Duncan Engineering Limited (Formerly known as Schrader Duncan Limited) (''the Company''), which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Ind AS Financial Statements
2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (''the Act'') with respect to the preparation of these standalone Ind AS Financial Statements that give a true and fair view of the financial position, financial performance (including Other Comprehensive Income) and cash flows and change in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rule, 2015 (as amended) 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 judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these standalone Ind AS Financial Statements based on our audit. We have taken into account the provisions of the Act and Rule made thereunder including the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS Financial Statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS Financial Statements. The procedures selected depend on the auditors'' 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 Company''s 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 Company''s Directors, as well as evaluating the overall presentation of the Ind AS Financial Statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS Financial Statements.
Opinion
6. In our opinion and to the best of our information and according to the explanation given to us, the aforesaid Standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2018 and its profit (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
7. As required by the Companies (Auditor''s Report) Order, 2016 (''the Order'') issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the Order.
8. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 (including Other Comprehensive Income), the Cash Flow Statement and the statement of change in Equity dealt with by this report are in agreement with the books of account;
d) In our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the Indian Accounting Standards specified under Section 133 of the Act;
e) On the basis of the written representations received from the directors as on 31st March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the company and operating effectiveness of such controls, refer to our separate report in ''Annexure B''; and
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Ind AS financial statements as stated in Note 36 to the Standalone Ind AS Financial Statements.
ii. The Company did not have any long term contract including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, to the Investor Education and Protection Fund by the Company.
iv. The disclosure requirements relating to holdings as well as dealings in specified bank notes were applicable for the period from 8th November 2016 to 30th December 2016, which are not relevant to these financial statements. Hence, reporting under this clause is not applicable.
ANNEXURE - A TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 7 with the heading ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
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) As explained to us, fixed assets of the Company have been physically verified during the year by the management, As informed, no material discrepancies have been noticed on such physical verification. In our opinion, the frequency of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. As explained to us, physical verification of inventories has been conducted by the management at reasonable intervals during the year. The discrepancies noticed on physical verification of inventories as compared to book records were not material and have been properly dealt with in the books of account.
iii. As informed to us, the Company has not granted any loan secured or unsecured to Companies, firm or other parties covered in the register maintained under Section 189 of the Companies Act.
iv. In our opinion and according to the information and explanations given to us, the Company has not granted any loan, provided guarantees or security to the parties covered under section 185 of the Act. The Company has not granted loan, provided guarantee and made investment under section 186 of the Act. Accordingly, paragraph 3(iv) of the Order is not applicable.
v According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of sections 73 to 76 of the Act and the rules framed thereunder.
vi. We have broadly reviewed the books of accounts maintained by the Company in respect of products where, pursuant to rules made by the Central Government of India, the maintenance of cost records has been prescribed under Sub section (1) of Section 148 of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such records with a view to determine whether they are accurate or complete.
vii. According to the information and explanations given to us and the records of the Company examined by us:
a) The Company is generally regular in depositing the dues in respect of undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income tax, Sales tax, Service Tax, Goods and Service Tax, Custom Duty, cess and other statutory dues, as applicable, to the appropriate authorities.
b) According to the records and information and explanations given to us no undisputed amount payable in respect of Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Goods and Service Tax, Customs Duty, Cess and other material statutory dues is outstanding as at 31st March 2018, for a period of more than six months from the date they became payable.
c) There are no dues of Income tax, sales tax, Wealth tax, Service tax, Customs duty, Excise duty and Cess which have not been deposited with the appropriate authorities on account of any dispute, except as mentioned below:
Name of the statue |
Nature of dues |
Amount (Rs.) |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise Act, 1944 |
Excise Duty |
713,907 |
2005-06 |
High Court, Mumbai |
Central Excise Act, 1944 |
Excise Duty |
2,739,813 |
2009-10 |
The Additional Commissioner of Central Excise, Mumbai III |
Central Excise Act, 1944 |
Excise Duty |
110,413 |
2012-13 |
Deputy Commissioner of Central Excise, Pune |
viii. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not defaulted in repayment of loans or borrowings to any financial institution, bank or Government. The Company had neither any outstanding debenture at the beginning of the year nor has it issued any debenture during the year.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. According to the information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained.
x According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the Ind AS Financial Statements as required by the applicable Indian accounting standards.
xiv. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
ANNEXURE - B TO THE INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 8 (f) with the heading ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Act'')
1. We have audited the internal financial controls over financial reporting of Duncan Engineering Limited (Formerly known as Schrader Duncan Limited) (''the Company'') as of 31st March 2018 in conjunction with our audit of the Ind AS Financial Statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
2. The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the ''Guidance Note'') and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Singhi & Co.
Chartered Accountants
Firm Registration No: 302049E
Nikhil Singhi
Place: Pune Partner
Date: 25th May,2018 Membership No. 061567
Mar 31, 2017
TO THE MEMBERS OF DUNCAN ENGINEERING LIMITED (Formerly known as Schrader Duncan Limited)
Report on the Financial Statements
1. We have audited the accompanying financial statements of Duncan Engineering Limited (Formerly known as Schrader Duncan Limited) (''the Company''), which comprise the Balance Sheet as at 31st March 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (''the Act'') with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting 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 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.
Auditorâs Responsibility
3. 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 thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statement.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
6. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2017 and its loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2016 (''the Order'') issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the Order.
8. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account;
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of the written representations received from the directors as on 31st March 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st 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 ''Annexure B''; and
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements as stated in Note 26 to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in the financial statement as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. Based on the audit procedures performed and relying on management representation we report that the disclosures are in accordance with the books of accounts maintained in accordance with books of accounts by the Company as stated in Note 27.14 to the financial Statements.
ANNEXURE - A TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 7 with the heading ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
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) As explained to us, fixed assets have been physically verified during the year by the management in phased manner, to be covered in a period of three years and no material discrepancies have been noticed on such physical 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) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. As explained to us, physical verification has been conducted by the management at reasonable intervals during the year in respect of inventory of raw materials, stores and spare parts, work-in-process and finished goods in the Company''s possession. The existence of stocks lying with third parties as at 31st March, 2017 has been evidenced based on confirmations or statements of account received in most cases. The discrepancies noticed on physical verification of inventories as compared to book records were not material and have been properly dealt with in the books of account.
iii. As informed to us, the Company has not granted any loans, secured or unsecured to Companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act.
iv. In our opinion and according to the information and explanations given to us, the Company has not granted any loan, provided guarantees or security to the parties covered under section 185 of the Act. The Company has not granted loan, provided guarantee and made investment under section 186 of the Act. Accordingly, paragraph 3(iv) of the Order is not applicable.
v. According to the information and explanation given to us, the Company has not accepted any deposits from the public within the meaning of sections 73 to 76 of the Act and the rules framed there under.
vi. We have broadly reviewed the books of accounts maintained by the Company in respect of products where, pursuant to rules made by the Central Government of India, the maintenance of cost records has been prescribed under Sub section (1) of Section 148 of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such records with a view to determine whether they are accurate or complete.
vii. According to the information and explanations given to us and the records of the Company examined by us:
a) The Company is generally regular in depositing amounts deducted/accrued in the books of accounts in respect of undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Investor Education and Protection Fund, Income tax, Sales tax, Service Tax, Custom Duty, Excise Duty, cess and other statutory dues, as applicable, to the appropriate authorities.
According to the records and information and explanations given to us no undisputed amount payable in respect of Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues is outstanding as at 31st March 2017, for a period of more than six months from the date they became payable.
b) There are no dues of Income tax, sales tax, Wealth tax, Service tax, Customs duty, Excise duty and Cess which have not been deposited with the appropriate authorities on account of any dispute, except as mentioned below:
Name of the statue |
Nature of dues |
Amount (Rs.) |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise Act, 1944 |
Excise Duty |
713,907 |
2005-06 |
High Court, Mumbai |
Central Excise Act, 1944 |
Excise Duty |
2,739,813 |
2009-10 |
The Additional Commissioner of Central Excise, Mumbai III |
Central Excise Act, 1944 |
Excise Duty |
110,413 |
2012-13 |
Deputy Commissioner of Central Excise, Pune |
Central Sales Tax Act, 1956 |
Sales Tax & Interest |
2,125,410 |
2012-13 |
Deputy Commissioner of Sales Tax |
viii. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not defaulted in repayment of loans or borrowings to any financial institution, bank or Government. The Company had neither any outstanding debenture at the beginning of the year nor has it issued any debenture during the year.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. According to the information and explanation given to us by the management, term loans were applied for the purpose for which the loans were obtained.
x According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
ANNEXURE - B TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 8 (f) with the heading ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Act'')
1. We have audited the internal financial controls over financial reporting of Duncan Engineering Limited (Formerly known as Schrader Duncan Limited) (''the Company'') as of 31st March 2017 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
2. The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the ''Guidance Note'') and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Singhi & Co.
Chartered Accountants
Firm Registration No: 302049E
Nikhil Singhi
Place: Mumbai Partner
Date: 17th May, 2017 Membership No. 061567
Mar 31, 2015
We have audited the accompanying financial statements of Schrader
Duncan Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the 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
provision of the Act for safeguarding of the assets of the company and
for preventing and detecting fraud 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
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give true and fair view in
order to design audit procedure 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 Company's Directors,
as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India, of the state of affairs of the Company as at 31st March 2015,
and its profit/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 Companies Act, 2013, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on March 31, 2015 taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
27 of the Financial Statements;
ii. The Company does not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITOR'S REPORT
1. a) According to the information and explanations given to us, the
company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
b) As explained to us, physical verification of fixed assets is being
conducted by the management in phased manner, to be covered in a period
of three years. No material discrepancies were noticed on such
verification. In our opinion the frequency of verification is
reasonable.
2. a) According to the information and explanations given to us,
physical verification has been conducted by the management at reasonable
intervals during the year in respect of inventory of raw materials,
stores and spare parts, work-in-process and finished goods in the
Company's possession. The existence of stocks lying with third parties
as at 31 March 2015 has been evidenced based on confirmations or
statements of account received in most cases. In our opinion, the
frequency of physical 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) According to the information and explanations given to us and on the
basis of our examination of the records of inventories, we are of the
opinion that the Company is maintaining proper records of inventories.
The discrepancies noticed on physical verification of inventories as
compared to book records were not material and have been properly dealt
with in the books of account.
3. As informed to us, the Company has not granted any loans, secured
or unsecured to Companies, firms or other parties covered in the
register maintained under Section 189 of the Companies Act.
4. In our opinion and according to the information and explanation
given to us, the internal control procedures are adequate and
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 sale of goods and rendering of services. During the
course of our audit we have not observe any continuing failure to
correct major weakness in the internal controls.
5. According to the information and explanation given to us, the
Company has not accepted any deposits from the public within the
meaning of sections 73 to 76 of the Act and the rules framed
thereunder.
6. We have broadly reviewed the books of account maintained by the
company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under Sub section (1) of Section 148 of the Act, and are of
the opinion that, prima facie, the prescribed accounts and records have
been made and maintained. However, we have not made a detailed
examination of such records with a view to determine whether they are
accurate or complete.
7. According to the information and explanations given to us and
records of the Company examined by us in respect of statutory dues:
a) The company is generally regular in depositing the dues in respect
of undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues.
According to the information and explanations given to us no undisputed
amount payable in respect of Provident Fund, Investor Education and
Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues is outstanding as at 31st March 2015, for a
period of more than six months from the date they became payable.
b) There are no dues of Income tax, sales tax, Wealth tax, Service tax,
Customs duty, Excise duty and Cess which have not been deposited with
the appropriate authorities on account of any dispute, except as
mentioned below:
Name of Nature of dues Amount Period to which
the statue (Rs.) the amount relates
Central Excise Act, Excise Duty 7,13,907 2005-2006
1944
Central Excise Act, Excise Duty 27,39,813 2009-2010
1944 Service Tax 5,13,837
Central Sales Tax Sales Tax and 16,03,537 2005-2006
Act, 1956 Penalty
Central Sales Tax Sales Tax and 50,76,342 2010-2011
Act, 1956 Penalty
Name of Forum where
the statue dispute is pending
Central Excise Act, High Court, Mumbai
1944
Central Excise Act, The Additional
1944 Commissioner of Central
Excise, Mumbai III
Central Sales Tax Deputy Commissioner of
Act, 1956 Sales Tax
Central Sales Tax Deputy Commissioner of
Act, 1956 Sales Tax
c) The company has transferred to investor education and protection
fund in accordance to the relevant provision of the companies Act, 1956
(1 of 1956) and rules made thereunder within time.
8. In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth as at March 31, 2015 and however
the company has incurred cash losses during the financial year but has
not incurred in immediately proceeding year.
9. According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to its bankers during
the year.
10. 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 during the year.
11. In our opinion as per the explanations and information provided by
the management, the term loans have been applied, on an overall basis,
for the purposes for which they were obtained.
12. According to the information and explanations given to us and
based on examination of books of accounts of the company, no fraud on
or by the company has been noticed or reported during the course of
audit.
For Singhi & Co.
Chartered Accountants
Firm registration No: 302049E
Nikhil Singhi
Place: Mumbai Partner
Date: May 11, 2015 (Membership No. 061567)
Mar 31, 2014
We have audited the accompanying financial statements of Schrader
Duncan Limited. ("the Company"), which comprise the Balance Sheet as at
March 31,2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
the Accounting Standards 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 ("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 :
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("theOrder") 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 under provisions of section 227(3) of the Companies Act
1956, 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 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 ("the Act");
e) On the basis of written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT
1. a) According to the information and explanations given to us, the
company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, the fixed assets have been physically verified
by the management during the year and no material discrepancies were
noticed on such verification. In our opinion the frequency of
verification is reasonable.
c) In our opinion and according to the information and explanations
given to us, the company has not disposed off substantial part of fixed
assets during the year.
2. a) According to the information and explanations given to us,
physical verification has been conducted by the management at
reasonable intervals during the year in respect of inventory of raw
materials, stores and spare parts, work-in-process and finished goods
in the Company''s possession. The existence of stocks lying with third
parties as at 31 March 2014 has been evidenced based on confirmations
or statements of account received in most cases. In our opinion, the
frequency of physical 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) According to the information and explanations given to us and on the
basis of our examination of the records of inventories, we are of the
opinion that the Company is maintaining proper records of inventories.
The discrepancies noticed on physical verification of inventories as
compared to book records were not material and have been properly dealt
with in the books of account.
3. a) As informed to us, the Company has not granted any loans,
secured or unsecured to Companies, firms or other parties covered in
the register maintained under Section 301 of the Companies Act 1956.
b) The company had taken unsecured loans from companies, from two
parties covered in the register maintained under section 301 of the
Act, the maximum amount involved during the year being Rs. 20,000,000
and the outstanding amount at the year end is Nil.
c) In our opinion, the rate of interest and other terms and conditions
of such loan are not prima facie prejudicial to the interest of the
company.
d) In respect of the aforesaid loan the company was regular in repaying
the principal amount, as stipulated and was also regular in paying of
interest, as applicable.
4. In our opinion and according to the information and explanation
given to us, the internal control procedures are adequate and
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 sale of goods and rendering of services, except for
certain general information system controls which needs to be
strengthened. During the course of our audit we have not observed any
continuing failure to correct major weakness in the internal controls.
5. a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in section 301 of
the Companies Act, 1956, have been entered in the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956, and exceeding Rs 5 lakhs in respect of any
party during the year, have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. According to the information and explanation given to us, the
Company has not accepted any deposits from the public within the
meaning of sections 58A and 58AA of the Act and the rules framed
thereunder.
7. In our opinion and according to the information and explanation
given to us, the company has an adequate internal audit system
commensurate with the size and the nature of its business.
8. We have broadly reviewed the books of account maintained by the
company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. However, we have not made a
detailed examination of such records with a view to determine whether
they are accurate or complete.
9. According to the information and explanations given to us and
records of the Company examined by us in respect of statutory dues:
a) The company is generally regular in depositing the amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues.
According to the information and explanations given to us no undisputed
amount payable in respect of Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues is outstanding as at 31st March 2014, for a
period of more than six months from the date they became payable.
b) There are no dues of Income tax, sales tax, Wealth tax, Service tax,
Customs duty, Excise duty and Cess which have not been deposited with
the appropriate authorities on account of any dispute, except as
mentioned below :
Name of Nature of dues Amount Period to which
the statue (Rs.) the amount relates
Central Excise Act, Excise Duty 7,13,907 2005-2006
1944 and Penalty
Central Excise Act, Excise Duty 12,79,873 2009-2010
1944 Service Tax 375,210
Central Sales Tax Sales tax and 20,87,124 2004-2005
Act, 1956 Penalty
Central Sales Tax Sales Tax and 30,97,788 2005-2006
Act, 1956 Penalty
Central Sales Tax Sales Tax and 10,36,432 2008-2009
Act, 1956 Penalty
Central Sales Tax Sales Tax and 9,10,175 2009-2010
Act, 1956 Penalty
Name of Forum where
the statue dispute is pending
Central Excise Act, High Court, Mumbai
1944
Central Excise Act, The Commissioner of
1944 Central Excise (Appeals),
Navi Mumbai
Central Sales Tax Joint commissioner sales
Act, 1956 tax appeals.
Central Sales Tax Maharashtra Sales Tax
Act, 1956 Tribunal Mumbai
Central Sales Tax Maharashtra Sales Tax
Act, 1956 Tribunal Mumbai
Central Sales Tax Maharashtra joint
Act, 1956 Commissioner Sales Tax
Appeals.
10. In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth as at March 31,2014 and it has not
incurred cash losses in the financial year ended on that date.
11. 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 and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. According to the information and explanation given to us, the
Company is not a chit fund or a Nidhi/ mutual benefit fund / Society.
14. According to the information and explanation given to us, the
Company is not dealing in 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 during the year.
16. In our opinion as per the explanations and information provided by
the management, the term loans have been applied, on an overall basis,
for the purposes for which they were obtained.
17. On the basis of overall examination of the balance sheet of the
company, in our opinion, and according to the information and
explanations given to us, there are no funds raised on short-term basis
which have been used for long-term investment.
18. According to the information and explanation given to us, the
company has not made preferential allotment of shares to the parties
and companies covered in the register maintained under section 301 of
the companies Act, 1956 during the year.
19. According to the information and explanation given to us and the
records examined by us, the Company has not issued any debentures
during the year and does not have any debenture outstanding as at the
year end.
20. The Company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us and
based on examination of books of accounts of the company, no fraud on
or by the company has been noticed or reported during the course of
audit.
For Singhi & Co.
Chartered Accountants
Firm registration No: 302049E
Nikhil Singhi
Place: Mumbai Partner
Date: May 22, 2014 (Membership No. 061567)
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Schrader
Duncan Limited, ("the Company"), 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, 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:
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 profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("theOrder") 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 under provisions of section 227(3) of the Companies Act
1956, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Act;
e) On the basis of written representations received from the directors
as on March 31,2013, 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.
ANNEXURE TO THE AUDITOR''S REPORT
1. a) According to the information and explanations given to us, the
company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, the fixed assets have been physically verified
by the management during the year and no material discrepancies were
noticed on such verification. In our opinion the frequency of
verification is reasonable.
c) In our opinion and according to the information and explanations
given to us, the company has not disposed off substantial part of fixed
assets during the year.
2. a) According to the information and explanations given to us,
physical verification has been conducted by the management at
reasonable intervals during the year in respect of inventory of raw
materials, stores and spare parts, work-in-process and finished goods
in the Company''s possession. The existence of stocks lying with third
parties as at 31 March 2013 has been evidenced based on confirmations
or statements of account received in most cases. In our opinion, the
frequency of physical 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) According to the information and explanations given to us and on the
basis of our examination of the records of inventories, we are of the
opinion that the Company is maintaining proper records of inventories.
The discrepancies noticed on physical verification of inventories as
compared to book records were not material and have been properly dealt
with in the books of account.
3. a) As informed to us, the Company has not granted any loans,
secured or unsecured to Companies, firms or other parties covered in
the register maintained under Section 301 of the Companies Act 1956.
b) The company has during the year taken unsecured loans, from two
parties covered in the register maintained under section 301 of the
Act, the maximum amount involved during the year being Rs. 30,000,000
andtheyearend balance of loan being Rs.20,000,000.
c) In our opinion, the rate of interest and other terms and conditions
of such loan are not prima facie prejudicial to the interest of the
company.
d) In respect of the aforesaid loan the company is regular in repaying
the principal amount, as stipulated and is also regular in paying of
interest, as applicable.
4. In our opinion and according to the information and explanation
given to us, the internal control procedures are adequate and
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 sale of goods and rendering of services, except for
certain general information system controls which needs to be
strengthened. During the course of our audit we have not observed any
continuing failure to correct major weakness in internal controls.
5. a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in section 301 of
the Companies Act, 1956, have been entered in the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956, and exceeding Rs 5 lakhs in respect of any
party during the year, have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. According to the information and explanation given to us, the
Company has not accepted any deposits from the public within the
meaning of sections 58Aand 58AAof the Act and the rules framed
thereunder.
7. In our opinion and according to the information and explanation
given to us, the company has an adequate internal audit system
commensurate with the size and the nature of its business.
8. We have broadly reviewed the books of account maintained by the
company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. However, we have not made a
detailed examination of such records with a view to determine whether
they are accurate or complete.
9. According to the information and explanations given to us and
records of the Company examined by us in respect of statutory dues:
a) The company is generally regular in depositing the amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues, except dues in respect of sales tax and income
tax, though there have been delays in a few cases. The extent of the
arrears of statutory dues outstanding as at 31 stMarch 2013,
10. In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth as at March 31,2013 and it has not
incurred cash losses in the financial year ended on that date.
11. 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 and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. According to the information and explanation given to us, the
Company is not a chit fund or a Nidhi/ mutual benefit fund /Society.
14. According to the information and explanation given to us, the
Company is not dealing in 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 during the year.
16. In our opinion as perthe explanations and information provided by
the management, the term loans have been applied, on an overall basis,
for the purposes for which they were obtained.
17. On the basis of overall examination of the balance sheet of the
company, in our opinion, and according to the information and
explanations given to us, there are no funds raised on short-term basis
which have been used for long-term investment.
18. According to the information and explanation given to us, the
company has not made preferential allotment of shares to the parties
and companies covered in the register maintained under section 301 of
the companies Act, 1956 during the year.
19. According to the information and explanation given to us and the
records examined by us, the Company has not issued any debentures
during the year and does not have any debenture outstanding as at the
year end.
20. The Company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us and
based on examination of books of accounts of the company, no fraud by
the company and no fraud on the Company has been noticed or reported
during the course of audit.
For SINGHI & CO.
CHARTERED ACCOUNTANTS
FRN: 302049E
Mr. Nikhil Singhi
Partner
(Membership No. 061567)
Place: Mumbai
Date: May 24, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Schrader Duncan
Limited (the "Company") as at March 31,2012, and the related Statement
of Profit and Loss and Cash Flow Statement for the year ended on that
date annexed thereto, which we have signed under reference to this
report. 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
(together the "Order"), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of 'The Companies Act, 1956'
of India (the 'Act') and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
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 purposes of
ouraudit;
(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 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, as on March 31, 2012 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 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 together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Act, 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 March 31,2012;
(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.
Annexure to Auditors' Report
Referred to in paragraph 3 of the Auditors' Report of even date to the
members of Schrader Duncan Limited on the financial statements as of
and for the year ended March 31,2012
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets of the Company have been physically verified by
the Management during the year and no material discrepancies between
the book records and the physical inventory have been noticed. In our
opinion, the frequency of verification is reasonable.
(c) In our opinion, and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the Company during the year.
2. (a) The inventory (excluding stocks with third parties) has been
physically verified by the Management during the year. In respect of
inventory lying with third parties, these have substantially been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, 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) On the basis of ourexamination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
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 taken unsecured loans, from two parties covered in
the register maintained under Section 301 of the Act. The maximum
amount involved during the year and the year-end balance of such loans
aggregated to Rs. 10,000,000 and Nil, respectively.
(c) In our opinion, the rate of interest and other terms and conditions
of such loans are not prima facie prejudicial to the interest of the
Company.
(d) In respect of the aforesaid loans, the Company is regular in
repaying the principal amounts, as stipulated, and is also regular in
payment of interest, as applicable.
4. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services, except for certain general information systems controls which
needs to be strengthened. Further, on the basis of our examination of
the books and records of the Company, and according to the information
and explanations given to us, we have neither come across, nor have
been informed of, any continuing failure to correct major weaknesses in
the aforesaid internal control system.
5. According to the information and explanations given to us, there
have been no contracts or arrangements referred to in Section 301 of
the Act during the year to be entered in the register required to be
maintained under that Section. Accordingly, the question of commenting
on transactions made in pursuance of such contracts or arrangements
does notarise.
6. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
7. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, and 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.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is regular in depositing the undisputed statutory dues, including
provident fund, investor education and protection fund, employees'
state insurance, income tax, wealth tax, service tax, customs duty,
excise duty and other material statutory dues, as applicable, with the
appropriate authorities except dues in respect of sales tax. The extent
of the arrears of statutory dues outstanding as at March 31,2012, for a
period of more than six months from the date they became payable, in
respect of sales tax are as follows:
Name of the Nature of Amount Period to Due Date of
statute dues (Rs.) which the date Payment
amount
relates
Maharashtra Sales tax 3,014,411 2004 -2005, Various Not paid
Value Added (including 2005 - 2006 due dates
Tax Act, and
2005 interest and 2006-2007
penalty)
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
income tax, sales tax, wealth tax, service tax, customs duty and excise
duty as at March 31, 2012 which have not been deposited on account of a
dispute are as follows:
Name of the Nature of dues Amount Period to Forum where
statute (Rs.) which the dispute is
amount pending
relates
Finance Act, Service Tax 1,764,358 1997-98 to Joint Commissioner
1994 2000-01 of Service Tax,
Mumbai
Central
Excise Excise Duty 713,907 2005-2006 High Court, Mumbai
Act, 1944
Cenvat
Credit Cenvat Credit 45,652 2008-2009 Commissioner of
Rules, 2004 on Service tax Central Excise
(Including (Appeals) Mumbai
Penalty)
Cenvat
Credit Cenvat Credit 66,873 April 2009 Commissioner of
Rules, 2004 on Service tax to Central Excise
(Including September (Appeals) Mumbai
penalty) 2009
Central
Sales Sales Tax and 2,087,124 2004-2005 Joint Commissioner
Tax Act, Penalty sales tax appeals
1956
10. The accumulated losses of the Company did not exceed fifty percent
of its net worth as at March 31,2012 and it has not incurred cash
losses in the financial year ended on that date but has incurred cash
losses in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund/
nidhi/ mutual benefit fund/ societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. In our opinion, and 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 during the year.
16. In our opinion, and according to the information and explanations
given to us, the term loans have been applied, on an overall basis, for
the purposes for which they were obtained.
17. On the basis of an overall examination of the balance sheet of the
Company, in our opinion, and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The Company has not issued any debentures during the year; and
does not have any debentures outstanding as at the yearend.
20. The Company has not raised any money by public issues during the
year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of any such case by the Management.
For Price Waterhouse & Co.
Firm Registration Number: 007567S
Chartered Accountants
Uday Shah
Place: Mumbai, Partner
Date : May 25,2012 Membership Number F-46061
Mar 31, 2011
1. We have audited the attached Balance Sheet of Schrader Duncan
Limited, (the Company) as at March 31, 2011, the related Profit and
Loss Account and Cash Flow Statement for the year ended on that date
annexed thereto, which we have signed under reference to this report.
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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the 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
(together the Order), issued by the Central Government of India in
terms of sub-section 4A of Section 227 of The Companies Act, 1956 of
India (the Act) and on the basis of such checks of the books and
records of the company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the 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 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the 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, as on March 31,2011 and taken on record by the Board of
Directors, none of the directors of the Company is disqualified as on
March 31,2011 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 together
with the notes thereon and attached thereto give in the prescribed
manner the information required by the Act, 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 March 31,2011;
(ii) in the case of the Profit and Loss Account, 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.
Annexure to Auditors Report
Referred to in paragraph 3 of Auditors Report of even date to the
members of Schrader Duncan Limited on the financial statements for the
year ended March 31, 2011
1 (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets of the Company have been physically verified by
the management during the year and no material discrepancies between
the books records and the physical inventory have been noticed. In our
opinion, the frequency of verification is reasonable.
(c) During the year, a substantial part of fixed assets have not been
disposed of by the Company.
2. (a) The inventory (excluding stocks with third parties) has been
physically verified by the Management during the year. In respect of
inventory lying with third parties, these have substantially been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
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 taken unsecured loans, from one party covered in
the register maintained under Section 301 of the Act. The maximum
amount involved during the year was Rs. 10,000,000 and the year- end
balance of such loan taken was Rs. Nil.
(c) In our opinion, the rate of interest and other terms and conditions
of such loans are not prima-facie prejudicial to the interest of the
Company.
(d) In respect of the aforesaid loans, the Company is regular in
repaying the principal amounts as stipulated and is also regular in
payment of interest, where applicable.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory, fixed assets and sale of goods and
services, except for certain general information systems control which
needs to be strengthened. Further, on the basis of our examination of
the books and records of the Company, and according to the information
and explanations given to us, we have neither come across nor have we
been informed of any continuing failure to correct major weaknesses in
the aforesaid internal control system.
5. 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.
6. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. The Central Government: of India has not prescribed the maintenance
of cost records under clause (d) of sub- section (1) of Section 209 of
the Act for any of the products of the Company.
9. (a) According to the information and explanations given to us and
the records of the company examined by us, in our opinion, the Company
is regular in depositing undisputed statutory dues including investor
education and protection fund, employees state insurance, income-tax,
wealth tax, service tax, customs duty, excise duty and other material
statutory dues as applicable, with the appropriate authorities except
dues in respect of sales tax. The extent of the arrears of statutory
dues outstanding as at March 31,2011, for a period of more than six
months from the date they became payable, in respect of sales tax are
as follows:
Name of the Nature of Amount (Rs.) Period to Due date Date of
statute dues which the Payment
amount
relates
Maharashtra Sales tax 3,014,411 2004-2005, Various Not paid
Value Added (including 2005-2006 due dates
Tax Act, interest and and
2005 penalty) 2006-2007
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty and Cess
as applicable, as at March 31,2011 which have not been deposited on
account of any dispute are as follows-
Name of the Nature of Amount
statute dues (Rs.)
Finance Act, Service Tax 1,764,358
1994
Income Tax Act, Income Tax 5,636,077
1961
Income Tax Act, Income Tax 40,203
1961 (Including
Interest)
Central Excise Excise Duty 713,907
Act, 1944
Cenvat Credit Cenvat Credit 45,652
Rules, 2004 on Service tax
(Including
penalty)
Cenvat Credit Cenvat Credit 66,873
Rules, 2004 on Service tax
(Including
penalty)
Central Sales Tax Sales Tax and 2,087,124
Act, 1956 Penalty
Name of the Period to Forum where dispute
which the is pending amount
relates
Finance Act,
1994 1997-98 to Joint Commissioner of
2000-01 Service Tax, Mumbai
Income Tax Act,
1961 2003-2004 Income. Tax Appellate
Tribunal
Income Tax Act,
1961 2005-2006 Commissioner of Income
Tax (Appeals)
Central Excise
Act, 1944 2005-2006 High Court, Mumbai
Cenvat Credit
Rules, 2004 2008-2009 Commissioner of Central
Excise (Appeals) Mumbai
Cenvat Credit
Rules, 2004 April 2009 to Commissioner of Central
September Excise (Appeals) Mumbai.
2009
Centra! Sales Tax
Act, 1956 2004-2005 Joint Commissioner sales
tax appeals.
10. The accumulated losses of the Company as at March 31, 2011 are not
more than fifty percent of its net worth. Further, the Company has
incurred cash losses during the year however, there were no cash losses
in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the Balance Sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit fund / societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. In our opinion and 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 during the year.
16. In our opinion, and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
17. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to the information and
explanations given to us, funds raised on a short-term basis to the
extent of Rs. 60,297,284 which have been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The Company has not issued debentures during the year.
20. The Company has not raised any money by public issue during the
year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For Price Waterhouse &. Co.
Firm Registration Number: 007567S
Chartered Accountants
Uday Shah
Partner
Membership No. F-46061
Mumbai,
Date: May 18, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Schrader Duncan
Limited, Cthe Company") as at March 31, 2010, the related Profit and
Loss Account and Cash Row Statement for the year ended on that date
annexed thereto, which we have signed under reference to this report.
These financial statements are the responsibility of the Companys
Manage- ment. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the 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
(together the Order*), issued by the Central Government of India in
terms of sub-section 4A of Section 227 of The Companies Act, 1956 of
India (the Act*) and on the basis of such checks of the books and
records of the company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the 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 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the 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, as on March 31, 2010 and taken on record by the Board of
Directors, none of the directors of the Company is disqualified as on
March 31, 2010 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 together
with the notes thereon and attached thereto give in the prescribed
manner the information required by the Act, 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 March 31, 2010;
(ii) in the case of the Profit and 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 that date.
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the management
according to a phased programme designed to cover all the items over a
period of two years, which in our opinion, is reasonable having regard
to the size of the Company and the nature of its assets. Pursuant to
the programme, a portion of the fixed assets has been physically
verified by the Management during the year and no material
discrepancies between the book records and the physical inventory have
been noticed.
(c) During the year, a substantial part of fixed assets have not been
disposed of by the Company.
2. (a) The inventory (excluding stocks with third parties) has been
physically verified by the Management during the
year. In respect of inventory lying with third parties, these have
substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) On the basis of our examination of the Inventory records, in our
opinion, the company is maintaining proper records of inventory except
for pneumatics division in respect of which the Company is in the
process of updating its inventory records, the discrepancies noticed on
physical verification of inventory as compared to book records were hot
material except for pneumatics division in respect of which we are
unable to comment on the extent of discrepancies.
3. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory, fixed assets and sale of goods and
services, except for certain general Information systems control which
needs to be strengthened. Further, on the basis of our examination of
the books and records of the Company, and according to the information
and explanations given to us, we have neither come across nor have we
been informed of any continuing failure to correct major weaknesses in
the aforesaid internal control system.
5. According to the information and explanations given to us, there
have been no contracts or arrangements referred to in Section 301 of
the Act during the year to be entered in the register required to be
maintained under that section. Accordingly, the question of commenting
on transactions made in pursuance of such contracts or arrangements
does not arise.
6. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. The Central Government of India has not prescribed the maintenance
of cost records under clause (d) of sub-section (1) of Section 209 of
the Act for any of the products of the Company.
9. (a) According to the information and explanations given to us and
the records of the company examined by us, in
our opinion, the company is regular in depositing undisputed statutory
dues including investor education and protection fund, employeesstate
insurance, income-tax, wealth tax, service tax, customs duty, excise
duty and other material statutory dues as applicable, with the
appropriate authorities except dues in respect of sales tax. The
extent of the arrears of statutory dues outstanding as at March 31,
2010, for a period of more than six months from the date they became
payable, in respect of sales tax are as follows-
Name of the Nature of Amount (Rs.) Period to Due date Date of
statute dues which the Payment
amount relates
Maharashtra Sales tax 4,200,260 2004-2005, Various Not paid
Value Added (including 2005-2006 due dates
Tax Act,2005 interest and and 2006-2007
penalty)
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty and Cess
as applicable, as at March 31,2010 which have not been deposited on
account of any dispute are as follows-
Name of the Nature of dues Amount Period to which
statute (Rs.) the amount relates
Finance Act, Service Tax 1,764,358 1997-98 to 2000-01
1994
Income Tax Act, Income Tax 6,636,077 2003-2004
1961
Income Tax Act, Income Tax 477,318 2005-2006
1961 Including Interest)
Central Excise Excise Duty 14,836 2005-2006
Act, 1944
Central Excise Excise Duty 352,454 2007-2008
Act, 1944 (Including penalty
and Interest)
Central Excise Excise duty 125,118 2007-2008
Act, 1944 (Including Penalty)
Cenvat Credit Cenvat Credit on 105,652 2008-2009
Rules, 2004 Service tax
(Including penalty)
Cenvat Credit Cenvat Credit on 101,873 April 2009 to
Rules, 2004 Service tax September 2009
(Including penalty)
Central Sales Sales Tax and 3,323,124 2004-2005
Tax Act, 1956 Penalty
Name of the statute Forum where dispute
is pending
Finance Act,1994 Joint Commissioner of
Service Tax, Mumbai
Income Tax Act,1961 Income Tax Appellate
Tribunal
Income Tax Act,1961 Commissioner of Income
Tax (Appeals)
Central Excise,Act, 1944 Custom Excise and Service Tax
Appellate Tribunal, West Zone
Bench, Mumbai.
Central Excise Act, 1944 Commissioner of Central
Excise (Appeals) Mumbai
Central Excise Act, 1944 Commissioner of Central Excise
(Appeals) Mumbai
Cenvat Credit Rules, 2004 Commissioner of Central Excise
(Appeals) Mumbai
Cenvat Credit Rules, 2004 Commissioner of Central Excise
(Appeals) Mumbai.
Central Sales Tax Act, 1956 Appeal to be filed with First
Appellate Authorities.
10. The Company has no accumulated losses as at March 31, 2010 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the Balance Sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit fund / societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. In our opinion and 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 during" the year.
16. In our opinion, and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
17. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short term
basis which have been used for long term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The Company has not issued debentures during the year.
20. The Company has not raised any money by public issue during the
year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For Price Waterhouse & Co.
Firm Registration Number: 007567S Chartered Accountants
Partha Ghosh
Partner
Membership No. F-55913
Mumbal,
Date: May 26, 2010