Auditor Report of Shreyas Intermediates Ltd.
Mar 31, 2015
We have audited the accompanying financial statements of M/s. SHREYAS
INTERMEDIATES LIMITED, which comprise the Balance Sheet as at March
31,2015, the Statement of Profit and Loss and the Cash Flow Statement
for the period from October 1,2014 to March 31,2015, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the accuracy and
completeness of the accounting records relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143 (10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give true
and fair view in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion
on whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31 st March, 2015, and its profit and its cash flows for the period
from October 1,2014 to March 31,2015.
Emphasis of matters
We draw attention to the following notes in Note 24 attached to the
financial statements. Our opinion is not qualified in respect of these
matters.
iv. Notes 24C (1) regarding Company being declared within the purview
of the Sick Company's definition and the BIFR Regulations and the
application with the board and other matters referred to there under.
v. Notes 24 C (2) regarding Secured Loans from Financial Institutions
and other matters as referred to there under.
vi. Notes 24 C (3) regarding Fixed Assets and other matters as referred
to there under.
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 Section
143(11) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid 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 March 31,2015, and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2015,
from being appointed as a director in terms of Section 164(2) of the
Act.
(f) With respect to 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 -
Refer Note 24 B (12) to the financial statements;
ii. The Company has made provisions as required under the applicable
law or accounting, standards, for material foreseeable losses if any,
on long-term contracts including derivative contracts.
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
(Referred to in paragraph 1 of our report of even date)
i. In respect of its fixed assets:
a The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b The Company has a program of verification of fixed assets to cover
all the items in a phased manner 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 program, certain fixed assets
were physically verified by the Management during the year. According
to the information and explanations given to us no material
discrepancies were noticed on such verification.
ii. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the period. As explained to
us, the inventories were physically verified during the year by the
Management. In our opinion, having regard to the nature and location of
the stocks, the frequency of verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
vii. 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, 2013.
viii. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures,
commensurate with the size of the Company and the nature of its
business for the purchase of stores, raw materials including
components, plants and machinery, equipment and other assets and for
the sale of goods. During the course of our audit, 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
weakness in the internal control procedures.
ix. The company has not accepted any deposits from the public within
the meaning of Section 73 and 74 of the Act and the Rules framed there
under to the extent notified. According to the information and
explanations given to us, no order has been passed by the Company Law
Board or the National Company Law Tribunal or the Reserve Bank of India
or any Court or any other Tribunal
x. We are informed by the Company that maintenance of cost records
have not been prescribed under clause (d) of sub-section (i) of Section
209 of the Act.
vii. According to the information and explanations given to us, in
respect of statutory dues:
a. The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Income-tax, Sales Tax, Wealth
Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and
other material statutory dues applicable to it with the appropriate
authorities.
b. There were no undisputed amounts payable in respect of Provident
Fund, Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other
material statutory dues in arrears as at March 31, 2015 for a period of
more than six months from the date they became payable.
c. Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Value Added Tax and Cess which have not been
deposited as on March 31,2015 on account of disputes are given below
Name of the Statute Forum where
(Nature of Dues) Dispute is pending
The Central Excise Act, 1944 CESTAT
The Central Excise Act, 1944 CESTAT
The Central Excise Act, 1944 CESTAT
The Central Excise Act, 1944 CESTAT
The Central Excise Act, 1944 CESTAT
The Securitization & Reconstruction Of Debt Recovery
Financial Assets And Enforcement Of Tribunal
Securities Act, 2002 [SARFAESI] Act, 2002
Name of the Statute Period to which the amount
(Nature of Dues) relates Amount involved
The Central Excise Act, 1944 July 2007 to October 2008
The Central Excise Act, 1944 6th Nov 2009 to 25th Nov 2009
The Central Excise Act, 1944 2005-06 to 2008-2009
The Central Excise Act, 1944 Jan 2005- Dec 2010
The Central Excise Act, 1944 Jan 2005-Dec 2010
The Securitization & Reconstruction May 2009 to 25/11/2010
Of Financial Assets And Enforcement
Of Securities Act, 2002 [SARFAESI]
Act, 2002
Name of the Statute (Rs. In Lacs)
(Nature of Dues)
The Central Excise Act, 1944 Rs. 164.71
The Central Excise Act, 1944 Rs. 129.16
The Central Excise Act, 1944 Rs. 127.48
The Central Excise Act, 1944 Rs. 32.21
The Central Excise Act, 1944 Rs. 2.45
The Securitization & Reconstruction Rs. 41.38
Of Financial Assets And Enforcement
Of Securities Act, 2002 [SARFAESI]
Act, 2002
d. The Company has been generally regular in transferring amounts to
the Investor Education and Protection Fund in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and Rules
made there under within time.
viii. The accumulated losses of the company as at the end of the year
exceed fifty percent of its net worth. The company has also incurred
cash losses during the financial year covered by our audit and in the
preceding financial year as well.
ix. Based on our audit procedures and as per the information and
explanations given to us by the management, the company had approached
the financial institutions with a settlement scheme which has been duly
approved by both the lending bankers. Bank of Baroda had approved a One
Time Settlement option in respect of its dues by assigning its entire
dues to Invent ARC. Furthermore State Bank of India had also assigned
their dues on Security Realization basis to Invent ARC. The company is
in the process of executing the said scheme of settlement and the board
has expressed its utmost commitment to resolve the issue accordingly.
Refer Note 24C (2) to the financial statements;
x. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks and financial institutions.
xi. In our opinion and according to the information and explanation
given to us, the term loans have been applied for the purpose for which
they were raised.
xii. In our opinion and according to the information and explanation
given to us, no material fraud on or by the company has been noticed or
reported during the course of our audit.
For LAYERED KHAN & ASSOCIATES
Chartered Accountants
Sayeed Khan
Proprietor
Place: Mumbai
Date: 28th AUGUST, 2015
Sep 30, 2014
We have audited the accompanying financial statements of M/s. SHREYAS
INTERMEDIATES LIMITED, which comprise the Balance Sheet as at September
30, 2014, the Statement of Profit and Loss and the Cash Row Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and
financial performance of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the 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 September 30th, 2014;
b) in the case of the Profit and Loss Account, of the Loss for the year
ended on that date; and
c) in the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
Emphasis of matters
We draw attention to the following notes in Note 25 attached to the
financial statements. Our opinion is not qualified in respect of these
matters.
i. Notes 25 B (1) regarding Company being declared within the purview
of the Sick Company''s definition and the BIFR Regulations and the
application with the board and other matters referred to thereunder.
ii. Notes 25 B (2) regarding Secured Loans from Financial Institutions
and other matters as referred to thereunder. Report on Other Legal and
Regulatory Requirements
1. As required by the Companies (Auditor''s Report) order 2003, issued
by the Central Government on India in terms of section 227 (4A) of the
Companies Act, 1956 (The Act) and on the basis of such checks as we
considered appropriate and according to the information and
explanations given to us during the course of audit, we enclose herein
the annexures a statement on the matters specified in paragraphs 4 and
5 of the said order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 read with the
General Circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act 2013;
and;
e) on the basis of written representations received from the directors
as on September 30th, 2014, and taken on record by the Board of
Directors, none of the directors is disqualified as on September 30th,
2014, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT
(Referred to in paragraph 1 of our report of even date)
As required by the Companies (Auditors'' Report) Order 2003 issued by
the Company Law Board in terms of Section 227 (4A) of the Companies
Act, 1956 and on the basis of such checks, as we considered
appropriate, we further report that:
1. in respect of its fixed assets :
a. The company has maintained records showing particulars including
quantitative details and situation of fixed assets on the basis of
available information.
b. As explained to us, the fixed assets have been physically verified
by the management during the period in a phased periodical manner of
over two years, which in our opinion is reasonable, having regard to
the size of the company and nature of its assets. No material
discrepancies were noticed on such physical verification.
c. During the period, the company has not disposed off any
substantial, major part of its fixed assets.
2. In respect of its inventories :
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the period.
b. In our opinion and according to the information and explanation
given to us, the procedures of 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. No material
discrepancies were noticed on such physical verification.
c. The company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
company to/ from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956, we
report that :
a. The company has not granted any loans, secured or unsecured during
the period.
b. The terms of Secured Loans had been re-negotiated in the earlier
years and the company has sought a restructuring of the same from
Financial Institutions under the Corporate Debt Restructuring Scheme
(CDR), however according to the explanations given to us, the banks had
not implemented the said scheme and the company had been following up
with the CDR to operationalize the above scheme. The Bank of Baroda has
sold its part of the loan in March 2014 to Invent ARC Ltd and the SBI
has assigned its loan also to the Invent ARC. The secured creditor now
is Invent ARC instead of the Banks.
c. During the period company had taken unsecured loans aggregating to
Rs. 985.73 Lacs from 3 parties being companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act.
d. In our opinion and according to information and explanations given
to us, the rate of interest and other terms and conditions are not
prima facie prejudicial to the interest of the Company.
e. In respect of loans as referred to in Para(c) above, there were no
schedules as regards to repayments of principal amount and interest
thereon, therefore we are not in a position to make any comments asto
whether or not the Company was regular in payment of the principal or
the interest amount.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures,
commensurate with the size of the Company and the nature of its
business for the purchase of stores, raw materials including
components, plants and machinery, equipment and other assets and for
the sale of goods. During the course of our audit, 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
weakness in the internal control procedures.
5. In respect of transactions covered under section 301 of the
companies act, 1956 :
a. Based on the audit procedures applied by us, to the best of our
knowledge and belief and according to the information and explanations
given to us, we are of the opinion, that the transactions that need to
be entered in to the registers maintained under section 301 of the
Companies Act, 1956 have been so entered.
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 &
exceeding the value of Rs. 5,00,000/- in respect of any party during
the year have been made at prices which are reasonable having regards
to prevailing market prices at relevant time.
6. The Company has not accepted any deposit, within the meaning of
section 58A of the Companies Act, 1956 and the rules framed there
under.
7. In our opinion, the Company has an adequate interned audit system
commensurate with the size and nature of its business.
8. We are informed by the Company that maintenance of cost records
have not been prescribed under clause (d) of sub-section (i) of Section
209 of the Act.
9. In respect of statutory dues :
a. According to the records of the Company, the Company has been
regular in depositingits statutory dues during the year with the
appropriate authorities.
b. According to the information and explanations to us, there are no
dues in respect of the Income Tax, Wealth Tax, Custom Duty, Excise Duty
and Cess which have not been deposited on account of dispute other than
listed herein below:-
According to the records of the company there are no dues of Sales Tax,
Income Tax, Customs, Wealth Tax, Excise Duty, Cess which have not been
deposited on account of dispute except pending cases against the
company for the period 2005-06 to 2008-2009 under The Central Excise
Act, 1944 towards Excise Duty pending involving a demand of Rs. 127.00
Lacs for EOU unit with an equivalent penalty demand for the period
2005-06 to 2008-2009.. The company has preferred an appeal with the
CESTAT challenging the above penal levies and has been sanctioned a
stay towards the above demand.
The company has also not provided for the payment of deferred Sales tax
due for payment in the accounts during the year under consideration. In
our opinion the short term liabilities and the losses for the year
remain understated by the amount of such pro-rata installment due on
account of the repayment of the Deferred Sales Tax benefit availed by
the company in the earlier years.
10. The accumulated losses as at the end of the year exceed fifty
percent of its net worth. The company has also incurred cash losses
during the financial year covered by our audit and in the preceding
financial year as well.
11. Based on our audit procedures and the information and explanations
given by the management, we are of the opinion that the Secured loans
due payable by the company as at 30/09/2014, are as per the details
tabulated hereunder:-
Name of the Institution/Purpose Amount in Rs Lacs
Secured Loans For Fixed Assets 10,619.79
Other Secured Loans 3,295.82
Interest due payable 9,05.98
TOTAL AMOUNT 14,821.59 *
* Bank of Baroda & The State Bank of India had transferred their
respective assets to an Assets Reconstruction Company. The company
remains committed to settle the issue amicably and has approached the
Financial Institutions with a proposal for settlement of the dues on
reasonable terms, the same remains under consideration andis under
process with the concerned authorities.
12. According to the information and explanations given to us, the
company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures or other securities.
13. Clause (xiii) of the Order is not applicable to the company as the
company is not a Chit Fund Company or Nidhi or Mutual Benefit Fund or
Society.
14. During the year the company has no transactions in respect of
dealing in shares, securities, debentures and other investments. All
shares, debentures and other securities have been held by the company
in its own name.
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 and according to the information and explanation
given to us, the term loans have been applied for the purpose for which
they were raised.
17. Based on the information and explanations given to us and on an
overall examination of the balance sheet of the Company as on 30th
September, 2014, in our opinion, 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
during the year.
19. The company has not issued any debentures during the year.
20. During the year, the company has not raised any money by public
issue.
21. In our opinion and according to the information and explanation
given to us, no material fraud on or by the company has been noticed or
reported during the course of our audit.
For SAYEED KHAN & ASSOCIATES
Chartered Accountants
Sayeed Khan
Proprietor
Place: Mumbai
Date: 5th March, 2015
Sep 30, 2013
We have audited the attached Balance Sheet of M/s. SHREYAS
INTERMEDIATES LIMITED as at 30th September 2013 and Profit and Loss
account of the company for the year ended 30th September 2013, annexed
thereto. These financial statements are the responsibility of the
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. These accounting 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 the 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 statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
We report as follows:
1. As required by the Companies (Auditor''s Report) Order 2003 issued
by the Central Government, in terms of Section 227(4A) of the Companies
Act, 1956, we annex hereto a statement of the matters specified in
paragraphs 4 & 5 of the said order. -
2. Without qualifying our opinion, we draw attention to the following
notes to the financial statements;
i.The company was referred under the Corporate Debt Restructuring
Scheme in the earlier years wherein a scheme had been approved and
sanctioned in consonance with the agreement of the Financial
Institutions, however the banks have not implementedthe said scheme.
ii. During the year the company has provided for losses on account of
devaluations in the stockswhich have occurred due to Production Trials
undertaken in earlier years to the tune ofRs.2456.99 Lacs. The loss
pertains to earlier years and in the opinion of the management, the
stocks were to be subjected to further processing and the quality shall
be duly optimized for resale however during the year the same has been
written off by the management. (Refer to Note 25 Part A (A) to the
financial statements).
Hi. The company has not provided for the payment of deferred Sales tax
due for payment in the accounts during the year under consideration. In
our opinion the short term liabilities and the losses for the year
remain understated by the amount of such pro-rata installment due on
account of the repayment of the Deferred Sales Tax benefit availed by
the company in the earlier years.
iv. No provisions have been made by the company for liability towards
Gratuity and Leave Encashment payable to employees on retirement since
the same are accounted for on cash basis. The same is not in consonance
with the provisions ofAS-15 "Accounting for Retirement Benefits in
Financial Statements" issued by the Institute of Chartered Accountants
of India.
3. Further to our comments in annexure referred to in paragraph (1)
above:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of the
books;
c. The Balance Sheet, Profit & loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d. In our opinion, the Profit & Loss Account and the Balance Sheet
comply with the Accounting Standards as referred to in Section 211 (3
C) of Companies Act, 1956 except to the extent of non- provision of the
retirement benefits to the employees as required by AS 15 "Accounting
for retirement benefits in the financial statements of employer."
e. On the basis of representations received from Directors of the
company and information and explanation given to us,
we report that no directors are disqualified from being appointed as
director of the company under clause (g) of sub- section (1) of Section
274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to Us, the said accounts read with the notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view;
i. In the case of the Balance Sheet of the State of affairs of the
Company as at 30* September 2013 and
ii. In the case of the Profit & Loss Account, of the Loss of the
Company for the year ended 30th September, 2013
ANNEXURE TO THE AUDITOR''S REPORT
(Referred to in paragraph 1 of our report of even date)
As required by the Companies (Auditors'' Report) Order 2003 issued by
the Company Law Board in terms of Section 227 (4A) of the Companies
Act, 1956 and on the basis of such checks, as we considered
appropriate, we further report that:
1. The company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. The
Management at reasonable intervals has physically verified the fixed
Assets. No discrepancies were noticed upon such verification. "
2. The management has conducted physical verification at reasonable
intervals in respect of finished goods, stores and spare parts and raw
materials.
3. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
4. In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory.
During the year the company has provided for losses on account of
devaluations in the stocks which have occurred due to Production Trials
undertaken in earlier years to the tune of Rs.2456.99 Lacs. The loss
pertains to earlier years and in the opinion of the management, the
stocks were to be subjected to further processing and the quality shall
be duly optimized for resale however during the year the same has been
written off by the management. (Refer to Note 25 Part A (4) to the
financial statements).
5. The Company has taken unsecured loans aggregating to Rs. 981.78
Lacsfrom companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956 and/or from the
Companies under the same management as defined under Sub Section (1B)
of section 370 of the Companies Act, 1956.
6. According to the explanations given to us, in our opinion, the
terms and conditions of the unsecured loans taken from companies listed
in the register maintained u/s 301 of the Companies Act, 1956 are not,
prima-facie, prejudicial to the interest of the company.
7. The terms of Secured Loans had been re-negotiated in the earlier
years and the company has sought a restructuring of the same from
Financial Institutions under the Corporate Debt Restructuring Scheme
(CDR), however according to the explanations given to us, the banks
have not implemented the said scheme and the company has been following
up with the CDR to. operationalize the above scheme. Thus no provisions
have been made in the books of accounts of the company under the said
scheme so approved and sanctioned as the same has not been implemented
during the year.
8. There is no overdue amount of loans taken or granted to companies,
firms or parties listed in the register maintained u/s 301 of the
Companies Act, 1956.
9. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures,
commensurate with the size of the Company and the nature of its
business for the purchase of stores, raw materials including
components, plants and machinery, equipment and other assets and for
the sale of goods. During the course of our audit, 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
weakness in the internal control procedures.
10. Based on the audit procedures applied by us, to the best of our
knowledge and belief and according to the information and explanations
given to us, we are of the opinion, that the transactions that need to
be entered in to the registers maintained under section 301 of the
Companies Act, 1956 have been so entered.
11. 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 &
exceeding the value of Rs. 5,00,000/- in respect of any party during
the year have been made at prices which are reasonable having regards
to prevailing market prices at relevant time.
12. The Company has not accepted any deposit, within the meaning of
section 58A of the Companies Act, 1956 and the rules framed there
under.
13. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
14. As informed to us, the company has not appointed a Cost auditor
pursuant to the order made by the Central government for the
maintenance of cost records u/s 209 (1) (d) of the Companies Act, 1956
is respect of the company''s products.
15. According to the records of the Company, the Company has been
regular in depositing its statutory dues during the year with the
appropriate authorities.
16. According to the information and explanations to us, there are no
dues in respect of the Income Tax, Wealth Tax, Custom Duty, Excise Duty
and Cess which have not been deposited on account of dispute other than
listed herein below:-
Undisputed dues pertaining to the Sales Tax pending payment as on date
is as tabulated below:
Sales Tax payable Amount
For FY 2009-2010 Rs. 3.15 Lacs
For FY 2011-2012 Rs. 33.43 Lacs
For FY 2012-2013 Rs. 18.28 Lacs
For FY 2013-2014 Rs. 30.22 Lacs
Total Sales Tax Due Rs. 85.07 Lacs
According to the records of the company there are no dues of Sales Tax,
Income Tax, Customs, Wealth Tax, Excise Duty, Cess which have not been
deposited on account of dispute except pending cases against the
company for the period 2005-06 to 2008-2009 under The Central Excise
Act, 1944 towards Excise Duty pending before the CESTAT involving a
demand of Rs. 127.00 Lacs for EOU unit with an equivalent penalty
demand, the Company has to pay 100.00 Lacs against this and for the
period 2005-06 to 2008-2009 under The Central Excise Act, 1944 towards
Excise Duty pending before the CESTAT involving a demand of Rs. 129.00
Lacs for DTA Unit with an equivalent penalty demand. The company has
preferred an appeal with the CESTA T challenging the above penal
levies.
The company has also not provided for the payment of deferred Sales tax
due for payment in the accounts during the year under consideration. In
our opinion the short term liabilities and the losses for the year
remain understated by the amount of such pro-rata installment due on
account of the repayment of the Deferred Sales Tax benefit availed by
the company in the earlier years.
17. The accumulated losses as at the end of the year exceed fifty
percent of its net worth. The company has also incurred cash losses
during the financial year covered by our audit and in the preceding
financial year the company has also incused cash losses.
18. According to the information and explanations given to us, the
company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures or other securities.
19. 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.
20. To the best of our knowledge and belief and according to the
information and explanations given to us by the management, the term
loans and other loans availed by the company were, prima-facie applied
by the company for the purposes for which the same were obtained.
21. According to the information and explanations given to us and on
overall examination of the Balance Sheet and the Cash Flow of the
company, we report that no funds raised on short-term basis have been
used for long-term investments. No long-term funds have been used to
finance short-term assets except working capital.
However during the earlier years, the company has converted the sums of
unpaid accumulated interests due on Long Term and Short Term Loans into
Secured Term'' Loans and the above scheme has been duly approved and
sanctioned by the Banking Institutions under the scheme of Corporate
Debt Restructuring Scheme.
22. The company has not made any preferential allotment of shares
during the year.
23. The company has not issued any debentures during the year.
24. During the year, the company has not raised any money by public
issue.
25. 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 SAYEED KHAN & ASSOCIATES
Chartered Accountants
Sayeed Khan
Proprietor
Place :Mumbai
Date: 9th January 2014
Sep 30, 2012
We have audited the attached Balance Sheet of M/s. SHREYAS
INTERMEDIATES LIMITED as at 30th September 2012 and Profit and Loss
account of the company for the year ended 30* September 2012, annexed
thereto. These financial statements are the responsibility of the
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. These accounting 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 the 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 statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
We report as follows:
1. As required by the Companies (Auditor''s Report) Order 2003 issued
by the Central Government, in terms of Section 227(4A) of the Companies
Act, 1956, we annex hereto a statement of the matters specified in
paragraphs4 & 5 of the said order
2. Without qualifying our opinion, we draw attention to the following
notes to the financial statements;
i. The company was referred under the Corporate Debt Restructuring
Scheme wherein a scheme had been approved and sanctioned in consonance
with the agreement of the Financial Institutions, however during the
year, the banks have not implemented the said scheme and the company
has been following up with the CDR to operationalize the above scheme.
ii. The company has not provided for any losses on account of
devaluations in the stocks which have occurred due to Production Trials
undertaken in earlier years. In the opinion of the management, the
stocks do not conform to optimal quality levels expected and have been
thus rendered to slow movement, however as explained by the management
the stocks shall be subjected to further processing and the quality
shall be duly optimized.
iii. The Company has not provided for the payment of deferred Sales tax
due for payment in the accounts during the year under consideration. In
our opinion the short term liabilities and the losses for the year
remain understated by the amount of such pro-rata installment due on
account of the repayment of the Deferred Sales Tax benefit availed by
the company in the earlier years.
iv. No provisions have been made by the company for liability towards
Gratuity and Leave Encashment payable to employees on retirement since
the same are accounted for on cash basis. The same is not in consonance
with the provisions of AS-15 "Accounting for retirement Benefits in
Financial Statements" issued by the Institute of Chartered Accountants
of India.
3. Further to our comments in annexure referred to in paragraph (1)
above:
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, except for the non-provision devaluation of stocks,
proper books of accounts as required by law have been kept by the
company so far as appears from our examination of the books;
c) The Balance Sheet, Profit & loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Profit & Loss Account and the Balance Sheet
comply with the Accounting Standards as referred to in Section 211(3 C)
of Companies Act, 1956 except to the extent of non- provision of the
retirement benefits to the employees as required by AS 15 "Accounting
retirement benefits in the financial statements of employer."
e) On the basis of representations received from Directors of the
company and information and explanation given to us, we report that no
directors are disqualified from being appointed as director of the
company under clause (g) of sub-section (1) of Section 274 of the
Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view;
i. In the case of the Balance Sheet of the State of affairs of the
Company as at 15th September 2012 and
ii. In the case of the Profit & Loss Account, of the Loss of the
Company for the year ended 30th September, 2012
As required by the Companies (Auditors'' Report) Order 2003 issued by
the Company Law Board in terms of Section 227 (4A) of the Companies
Act, 1956 and on the basis of such checks, as we considered
appropriate, we further report that:
1. The company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. The
Management at reasonable intervals has physically verified the fixed
Assets. No discrepancies were noticed upon such verification.
2. The management has conducted physical verification at reasonable
intervals in respect of finished goods, stores and spare parts and raw
materials.
3. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
4. In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of
inventory. however the management has not initiated any process to
identify nor has provided for any losses on account of devaluations in
the stocks which have occurred due to Production Trials undertaken in
earlier years. In the opinion of the management, the stocks do not
conform to optimal quality levels expected and have been thus rendered
to slow movement, however as explained by the management the stocks
shall be subjected to further processing and the quality shall be duly
optimized.
5. The Company has taken unsecured loans aggregating to Rs. 963.02
Lacs from companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956 and/or from the
Companies under the same management as defined under Sub Section (1B)
of section 370 of the Companies Act, 1956.
6. According to the explanations given to us, in our opinion, the
terms and conditions of the unsecured loans taken from companies listed
in the register maintained u/s 301 of the Companies Act, 1956 are not,
prima- facie, prejudicial to the interest of the company.
7. The terms of Secured Loans have been re-negotiated in the earlier
years and the company has sought a restructuring of the same from
Financial Institutions under the Corporate Debt Restructuring Scheme
(CDR), however according to the explanations given to us, the banks
have not implemented the said scheme and the company has been following
up with the CDR to operationalize the above scheme. Thus no provisions
have been made in the books of accounts of the company under the said
scheme so approved and sanctioned as the same has not been implemented
during the year.
8. There is no overdue amount of loans taken or granted to companies,
firms or parties listed in the register maintained u/s 301 of the
Companies Act, 1956.
9. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures,
commensurate with the size of the Company and the nature of its
business for the purchase of stores, raw materials including
components, plants and machinery, equipment and other assets and for
the sale of goods. During the course of our audit, 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
weakness in the internal control procedures.
10. Based on the audit procedures applied by us, to the best of our
knowledge and belief and according to the information and explanations
given to us, we are of the opinion, that the transactions that need to
be entered in to the registers maintained under section 301 of the
Companies Act, 1956 have been so entered.
11. 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 &
exceeding the value of Rs. 5,00,000/- in respect of any party during
the year have been made at prices which are reasonable having regards
to prevailing market prices at relevant time.
12. The Company has not accepted any deposit, within the meaning of
section 58A of the Companies Act, 1956 and the rules framed there
under.
13. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
14. As informed to us, the company has not appointed a Cost auditor
pursuant to the order made by the Central government for the
maintenance of cost records u/s 209 (1)(d) of the Companies Act, 1956
is respect of the company''s products.
15. According to the records of the Company, the Company has been
regular in depositing its statutory dues during the year with the
appropriate authorities.
16. According to the information and explanations to us, there are no
dues in respect of the Income Tax, Wealth Tax, Custom Duty, Excise Duty
and Cess which have not been deposited on account of dispute other than
listed here in below:-
undisputed dues pertaining to the Sales Tax pending payment as on date
is as tabulated below:
Sales Tax payable for quarter ended Rs.49.40 Lacs
December 2010 till September 2011
Total Sales Tax Due Rs. 49.40 Lacs
According to the records of the company there are no dues of Sales Tax,
Income Tax, Customs, Wealth Tax, Excise Duty, Cess which have not been
deposited on account of dispute except pending cases against the
company for the period 2005-06 to 2008-2009 under The Central Excise
Act, 1944 towards Excise Duty pending before the CESTAT involving a
demand of Rs. 127.00 Lacs for EOU unit with an equivalent penalty
demand, the Company has pay 100.00 Lacs against this and for the period
2005-06 to 2008-2009 under The Central Excise Act, 1944 towards Excise
Duty pending before the CESTAT involving a demand of Rs, 129.00 Lacs for
DTA Unit with an equivalent penalty demand. The company has preferred
an appeal with the CESTAT challenging the above penal levies.
The company has also not provided for the payment of deferred Sales tax
due for payment in the accounts during the year under consideration. In
our opinion the short term liabilities and the losses for the year
remain understated by the amount of such pro-rata installment due on
account of the repayment of the Deferred Sales Tax benefit availed by
the company in the earlier years.
17. The accumulated losses as at the end of the year exceed fifty
percent of its net worth. The company has also incurred cash losses
during the financial year covered by our audit however in the
immediately preceding financial year the company has not incurred cash
losses.
18. According to the information and explanations given to us, the
company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures or other securities.
19. 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.
20. To the best of our knowledge and belief and according to the
information and explanations given to us by the management, the term
loans and other loans availed by the company were, prima-facie applied
by the company for the purposes for which the same were obtained.
21. According to the information and explanations given to us and on
overall examination of the Balance Sheet and the Cash Flow of the
company, we report that no funds raised on short-term basis have been
used for long-term investments. No long-term funds have been used to
finance short-term assets except working capital.
However during the year, the company has sought to convert the sums of
unpaid accumulated interests due on Long Term and Short Term Loans into
Secured Term Loans and the above scheme has been duly approved and
sanctioned by the Banking Institutions under the scheme of Corporate
Debt Restructuring Scheme.
22. The company has not made any preferential allotment of shares
during the year.
23. The company has not issued any debentures during the year.
24. During the year, the company has not raised any money by public
issue.
25. 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 SAYEED KHAN & ASSOCIATES
Chartered Accountants
Place: Mumbai
Date: 2nd March 2013 Sayeed Khan
Proprietor
Sep 30, 2011
We have audited the attached Balance Sheet of M/s. SHREYAS
INTERMEDIATES LIMITED as at 30th September 2011 and Profit and Loss
account of the company for the year ended 30th September 2011, annexed
thereto. These financial statements are the responsibility of the
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. These accounting 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 the 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 statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
We report as follows:
1. As required by the Companies (Auditor's Report) Order 2003 issued
by the Central Government, in terms of Section 227(4A) of the Companies
Act, 1956, we annex hereto a statement of the matters specified in
paragraphs 4 & 5 of the said order
2. Further to our comments in annexure referred to in paragraph (1)
above:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of the
books;
c) The Balance Sheet, Profit & loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Profit & Loss Account and the Balance Sheet
comply with the Accounting Standards as referred to in Section 211(3 C)
of Companies Act, 1956 except to the extent of non- provision of the
retirement benefits to the employees as required by AS 15 "Accounting
for retirement benefits in the financial statements of employer."
e) On the basis of representations received from Directors of the
company and information and explanation given to us, we report that no
directors are disqualified from being appointed as director of the
company under clause (g) of sub-section (1) of Section 274 of the
Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view;
i. In the case of the Balance Sheet of the State of affairs of the
Company as at 30th September 2011 and
ii. In the case of the Profit & Loss Account, of the Loss of the
Company for the year ended 30th September, 2011
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 1 of our report of even date)
As required by the Companies (Auditors' Report) Order 2003 issued by
the Company Law Board in terms of Section 227 (4A) of the Companies
Act, 1956 and on the basis of such checks, as we considered
appropriate, we further report that:
1. The company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. The
Management at reasonable intervals has physically verified the fixed
Assets. No discrepancies were noticed upon such verification.
2. The management has conducted physical verification at reasonable
intervals in respect of finished goods, stores and spare parts and raw
materials.
3. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
4. In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory.
Having regards to the size of the operations of the company and the
nature of the stocks held, the discrepancies noticed on verification
between physical stocks and book records were not material and have
been properly dealt with in the book of accounts.
5. The Company has taken unsecured loans aggregating to Rs. 781.04
Lacs from companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956 and/or from the
Companies under the same management as defined under Sub Section (1B)
of section 370 of the Companies Act, 1956.
6. According to the explanations given to us, in our opinion, the
terms and conditions of the unsecured loans taken from companies listed
in the register maintained u/s 301 of the Companies Act, 1956 are not,
prima- facie, prejudicial to the interest of the company.
7. The terms of Secured Loans have been re-negotiated during the year
and the company has sought a restructuring of the same from Financial
Institutions. According to the explanations given to us, during the
year the company is regular in repaying the principal amounts as per
such negotiated stipulations and has been regular in paying the
interests thereon.
8. There is no overdue amount of loans taken or granted to companies,
firms or parties listed in the register maintained u/s 301 of the
Companies Act, 1956.
9. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures,
commensurate with the size of the Company and the nature of its
business for the purchase of stores, raw materials including
components, plants and machinery, equipment and other assets and for
the sale of goods. During the course of our audit, 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
weakness in the internal control procedures.
10. Based on the audit procedures applied by us, to the best of our
knowledge and belief and according to the information and explanations
given to us, we are of the opinion, that the transactions that need to
be entered in to the registers maintained under section 301 of the
Companies Act, 1956 have been so entered.
11. 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 &
exceeding the value of Rs. 5,00,000/- in respect of any party during
the year have been made at prices which are reasonable having regards
to prevailing market prices at relevant time.
12. The Company has not accepted any deposit, within the meaning of
section 58A of the Companies Act, 1956 and the rules framed there
under.
13. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
14. As informed to us, the Central Government has not prescribed
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956.
15. According to the records of the Company, the Company has been
regular in depositing its statutory dues during the year with the
appropriate authorities and no arrears are pending due to any dispute
with any of the authorities in respect of the company.
16. According to the information and explanations to us, there are no
dues in respect of the Income Tax, Wealth Tax, Custom Duty, Excise Duty
and Cess which have not been deposited on account of dispute.
However undisputed dues pertaining to the Sales Tax pending payment as
on date is as tabulated below:
Sales Tax payable for quarter ended . Rs. 33.43 Lacs
December 2010 till September 2011
Total Sales Tax Due Rs. 33.43 Lacs
17. The accumulated losses as at the end of the year do not exceed
fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year
18. According to the information and explanations given to us, the
company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures or other securities.
19. 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.
20. To the best of our knowledge and belief and according to the
information and explanations given to us by the management, the term
loans and other loans availed by the company were, prima-facie applied
by the company for the purposes for which the same were obtained.
21. According to the information and explanations given to us and on
overall examination of the Balance Sheet and the Cash Flow of the
company, we report that no funds raised on short-term basis have been
used for long-term investments. No long-term funds have been used to
finance short-term assets except working capital.
However during the year, the company has sought to convert the sums of
unpaid accumulated interests due on Long Term and Short Term Loans into
Secured Term Loans and the above scheme has been duly approved and
sanctioned by the Banking Institutions.
22. The company has not made any preferential allotment of shares
during the year.
23. The company has not issued any debentures during the year.
24. During the year, the company has not raised any money by public
issue.
25. 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 SAYEED KHAN & ASSOCIATES
Chartered Accountants
Place: Mumbai
Date: 21st February 2012
Sayeed Khan
Proprietor
Sep 30, 2010
We have audited the attached Balance Sheet of M/s. SHREYAS
INTERMEDIATES LIMITED as at 30th September 2010 and Profit and Loss
account of the company for the year ended 30th September 2010, annexed
thereto. These financial statements are the responsibility of the
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. These accounting 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 the 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 statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
We report as follows:
1. As required by the Companies (Auditors Report) Order 2003 issued
by the Central Government, in terms of Section 227(4A) of the Companies
Act, 1956, we annex hereto a statement of the matters specified in
paragraphs 4 & 5 of the said order
2. Furtherto our comments in annexure referred to in paragraph (1)
above:
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, except for the non provision of interest payable
and the outstanding balances thereby remaining payable on Bank
Borrowings, proper books of accounts as required by law have been kept
by the company so far as appears from our examination of the books;
(Refer Notes to the Accounts of Schedule O).
c) The Balance Sheet, Profit & loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Profit & Loss Account and the Balance Sheet
comply with the Accounting Standards as referred to in Section 211(3 C)
of Companies Act, 1956 except to the extent of non- provision of the
retirement benefits to the employees as required by AS 15 "Accounting
for retirement benefits in the financial statements of employer."
e) On the basis of representations received from Directors of the
company and information and explanation given to us, we report that no
directors are disqualified from being appointed as director of the.
company under clause (g) of sub-section (1) of Section 274 of the
Companies Act, 1956.
f) In our opinion and to the.best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view;
i. In the case of the Balance Sheet of the State of affairs of the
Company as at 30th September 2010 and ii. In the case of the Profit &
Loss Account, of the Profit of the Company for the year ended 30th
September, 2010
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 1 of our report of even date)
As required by the Companies (Auditors Report) Order 2003 issued by
the Company Law Board in terms of Section 227 (4A) of the Companies
Act, 1956 and on the basis of such checks, as we considered
appropriate, we further report that:
1. The company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. The
Management at reasonable intervals has physically verified the fixed
Assets. No discrepancies were noticed upon such verification.
2. The management has conducted physical verification at reasonable
intervals in respect of finished goods, stores and spare parts and raw
materials.
3. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
4. In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory.
Having regards to the size of the operations of the company and the
nature of the stocks held, the discrepancies noticed on verification
between physical stocks and book records were not material and have
been properly dealt with in the book of accounts.
5. The Company has taken unsecured loans aggregating to Rs. 782.67
Lacs from companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956 and/or from the
Companies under the same management as defined under Sub Section (1B)
of section 370 of the CompaniesAct, 1956.
6. According to the explanations given to us, in our opinion, the
terms and conditions of the unsecured loans taken from companies listed
in the register maintained u/s 301 of the Companies Act, 1956 are not,
prima- facie, prejudicial to the interest of the company.
7. There is no overdue amount of loans taken or granted to companies,
firms or parties listed in the register maintained u/s 301 of the
Companies Act, 1956.
8. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures,
commensurate with the size of the Company and the nature of its
business for the purchase of stores, raw materials including
components, plants and machinery, equipment and other assets and for
the sale of goods. During the course of our audit, 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
weakness in the internal control procedures.
9. Based on the audit procedures applied by us, to the best of our
knowledge and belief and according to the information and explanations
given to us, we are of the opinion, that the transactions that need to
be entered in to the registers maintained under section 301 of the
CompaniesAct, 1956 have been so entered.
10. 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 &
exceeding the value of Rs. 5,00,000/- in respect of any party during
the year have been made at prices which are reasonable having regards
to prevailing market prices at relevant time.
11. The Company has not accepted any deposit, within the meaning of
section 58Aof the Companies Act, 1956 and the rules framed there under.
12. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
13. As informed to us, the Central Government has not prescribed
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956.
14. According to the records of the Company, the Company has been
regular in depositing its statutory dues during the year with the
appropriate authorities and no arrears are pending due to any dispute
with any of the authorities in respect of the company.
15. According to the information and explanations to us, there are no
dues in respect of the Income Tax, Wealth Tax, Sales Tax, Custom Duty,
Excise Duty and Cess which have not been deposited on account of
dispute.
16. The accumulated losses as at the end of the year do not exceed
fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year
17. According to the records and explanations given to us, the company
has defaulted in repaying the principal amounts and the interests as
stipulated to the Banks. The company has not been able to repay the
principal and the interest from March/June, 2010 and the cumulative sum
of defaulted outstanding amount stands at Rs.614.70Lacsasatthe30th
September,2010.
18. According to the information and explanations given to us, the
company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures or other securities.
19. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
Batiks or Financial Institutions during the year.
20. To the best of our knowledge and belief and according to the
information and explanations given to us by the management, the term
loans and other loans availed by the company were, prima-facie applied
by the company for the purposes for which the same were obtained.
21. According to the information and explanations given to us and on
overall examination of the Balance Sheet and the Cash Flow of the
company, we report that no funds raised on short-term basis have been
used for long-term investments. No long-term funds have been used to
finance short-term assets except working capital.
22. The company has not made any preferential allotment of shares
during the year.
23. The company has not issued any debentures during the year.
24. During the year, the company has not raised any money by public
issue.
25. 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 SAYEED KHAN & ASSOCIATES
Chartered Accountants
Place: Mumbai
Date : 21st December 2010
Sayeed Khan
Proprietor
Sep 30, 2009
We have audited the attached Balance Sheet of M/s. SHREYAS
INTERMEDIATES LIMITED as at 30th September 2009 and Profit and Loss
account of the company for the year ended 30th September 2009, annexed
thereto. These financial statements are the responsibility of the
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We have conducted bur audit in accordance with auditing standards
generally accepted in India. These accounting 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 the 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 statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
We report as follows: 1 s As required by the Companies (Auditors
Report) Order 2003 issued by the Central Government, in terms
of Section 227(4A) of the Companies Act, 1956, we annex hereto a
statement of the matters specified in paragraphs 4 & 5 of the said
order
2. Further to our comments in annexure referred to in paragraph
(1) above:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of
our audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
the books;
c) The Balance Sheet, Profit & loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Profit & Loss Account and the Balance Sheet
comply with the Accounting Standards as referred to in Section
211(3 C) of Companies Act, 1956 except to the extent of non- provision
of the retirement benefits to the employees as required by AS 15 "
Accounting for retirement benefits in the financial statements of
employer."
e) On the basis of representations received from Directors of the
company and information and explanation given to us, we report that
no directors are disqualified from being appointed as director of
the company under Clause(g) of sub-section(1) of Section 274 of the
Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true apd fair view;
I. In the case of the Balance Sheetof the State of affairs of the
Company as at 30th September 2009 and
ii. in the case of the Profit & Loss Account, of the Profit of the
Company for the year ended 30th September, 2009
As required by the Companies (Auditors Report) Order 2003 issued by
the Company Law Board in terms of Section 227 (4A) of the Companies
Act, 1956 and on the basis of such checks, as we considered
appropriate, we further report that:
1. The company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. The
Management at reasonable intervals has physically verified the fixed
Assets>No discrepancies were noticed upon such verification.
2. The management has conducted physical verification at reasonable
intervals in respect of finished goods, stores and spare parts and raw
materials.
3. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
4. In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory.
Having regards to the size of the operations of the company and the
nature of the stocks held, the discrepancies noticed on verification
between physical stocks and book records were not material and have
been properly dealt with in the book of accounts.
5. The Company has taken unsecured loans aggregating to Rs. 721.92
Lacs from companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956 and/or from the
Companies under the same management as defined under Sub Section (1B)
of section 370 of the Companies Act, 1956.
6. According to the explanations given to us, in our opinion, the
terms and conditions of the unsecured loans taken from companies listed
in the register maintained u/s 301 of the Companies Act, 1956 are not,
prima-facie, prejudicial to the interest of the company.
7. According to the explanations given to us, the company is regular
in repaying the principal amounts as stipulated and has been regular in
paying the interests.
8. There is no overdue amount of loans taken or granted to companies,
firms or parties listed in the register maintained u/s 301 of the
Companies Act, 1956.
9. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures,
commensurate with the size of the Company and the nature of its
business for the purchase of stores, raw materials including
components, plants and machinery, equipment and other assets and for
the sale of goods. During the course of our audit, 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
weakness in the internal control procedures.
10. Based on the audit procedures applied by us, to the best of our
knowledge and belief and according to the information and explanations
given to us, we are of the opinion, that the transactions that need to
be entered in to the registers maintained under section 301 of the
Companies Act, 1956 have been so entered.
11. 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 &
exceeding the value of Rs. 5,00,000/- in respect of any party during
the year have.been made at prices which are reasonable having regards
to prevailing market prices at relevant time.
12. The Company has not accepted any deposit, within the meaning of
section 58A of the Companies Act, 1956 and the rules framed there
under.
13. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
14. As informed to us, the Central Government has not prescribed
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956.
15. According to the records of the Company, the Company has regularly
deposited statutory dues during the year with the appropriate
authorities. However in respect of Income Tax, the undisputed dues
remaining outstanding for the Financial Year 2006-2007 stands at Rs.
5.19 Lacs inclusive of Interests and for the Financial Year 2007-2008
stands at Rs. 2.72 Lacs
16. According to the information and explanations to us, (here are no
dues in respect of the Income Tax, Wealth Tax, Sales Tax, Custom Duty,
Excise Duty and Cess which have not been deposited on account
ofdispute.
17. The accumulated losses as at the end of the year do not exceed
fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year
18. Based on the audit procedures applied by us, and according to the
information and explanations given to us by the management, we are of
the opinion that the company has not defaulted in the repayment of dues
to Financial Institutions and Banks.
19. According to the information and explanations given to us, the
company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures or other securities.
20. 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.
21. To the best of our knowledge and belief and according to the
information and explanations given to us by the management, the term
ioaris and other loans availed by the company were, prima-facie applied
by the company for the purposes for which the same were obtained.
22. According to the information and explanations given to us and on
overall examination of the Balance Sheet and the Cash Flow of the
company, we report that no funds raised on short-term basis have been
used for long-term investments. No long-term funds have been used to
finance short-term assets except working capital.
23. The company has made preferential allotment of preference shares
during the year to parties covered in registers maintained u/s 301 of
the Companies Act, 1956. In our opinion, the prices at which the shares
have been issued are reasonable and are comparable with the market
prices and the terms are not prejudicial to the interest of the
company.
24. The company has not issued any debentures during the year. ,
25. During the year, the company has not raised any money by public
issue.
26. 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. .
ForSAYEED KHAN & ASSOCIATES
Chartered Accountants
Place: Mumbai
Date: 31st December 2009 SayeedKhan Proprietor
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