Mar 31, 2018
INDEPENDENT AUDITORâS REPORT
TO THE MEMBERS OF SKM EGG PRODUCTS EXPORT (INDIA) LIMITED Report on the Standalone Ind AS financial statements
We have audited the accompanying standalone Ind AS financial statements of M/s. SKM EGG PRODUCTS EXPORT (INDIA) LIMITED, (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (Including Other Comprehensive Income), Statement of changes in equity, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âstandalone Ind AS financial statementsâ).
Managementâs Responsibility for the Standalone Ind AS financial statements:
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS 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 specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility:
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, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal 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 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 standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion:
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matters:
We did not audit the financial statements / information of 1 branch (Foreign branch) (In Russia) included in the standalone Ind AS financial statements of the Company whose financial statements / financial information reflect total assets of Rs.11,03,93,372/- as at 31 st March, 2018 and total revenues of Rs.44,22,56,360/- for the year ended on that date, as considered in the standalone Ind AS financial statements. The financial statements/information of this branch has been furnished to us and our opinion is based on those Financial Statements received from the Branch Office and certified by the Management. Our opinion is not qualified / modified in respect of this matter.
Report on Other Legal and Regulatory Requirements:
1)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 and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.
c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account and with the returns received from the branches not visited by us.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder.
e) On the basis of written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of Section 164(2) of the Act except the Director Shri.B.Ramakrishnan bearing Director Identification Number (DIN:00182214).
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Aâ; 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 - Also Refer Note number 2(ii) of Notes on Accounts 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.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company except for a sum of Rs. 12.12 lakhs, which are held in abeyance due to pending legal cases.
2) As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ), 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 âAnnexure - Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
TO THE INDEPENDENT AUDITORSâ REPORT ON THE STANDALONE FINANCIAL STATEMENTS OF SKM EGG PRODUCTS EXPORT (INDIA) LIMITED
Referred to in paragraph 1 (f) under Report on Other legal and Regulatory Requirements of our Report of even date
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of M/s. SKM EGG PRODUCTS EXPORT (INDIA) LIMITED,(â7Ae Companyâ) as of 31 March 2018 in conjunction with our audit of the Standalone Ind As financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls:
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility:
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting:
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion:
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
TO THE INDEPENDENT AUDITORâS REPORT ON THE STANDALONE INDAS FINANCIAL STATEMENTS OF SKM
EGG PRODUCTS EXPORT (INDIA) LIMITED
Referred to in Paragraph 2 under the Heading of âReport on Other Legal and Regulatory Requirementsâ section of our report of even date
As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we report that,
1. a. The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.
b. The fixed assets have been physically verified by the management at reasonable intervals and no material
discrepancies were noticed on such verifications.
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.
2. The Management has conducted physical verification of inventory at reasonable intervals and no material discrepancies were noticed on physical verification.
3. The Company during the year has not granted any secured or unsecured loans to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act.
4. The Company during the year has not granted any loans, or made any investments, or given any security or guarantees and hence Section 185 and 186 of the Companies Act, 2013 are inapplicable.
5. The Company has not accepted any deposits from the public and hence this clause is inapplicable.
6. The Central Government has specified the maintenance of Cost Records under sub-section (1) of section 148 of the Companies Act, and such accounts and records have been made and maintained.
7. a. According to the records of the company, the company is regular in depositing undisputed statutory dues including provident fund, employee state insurance, income-tax, sales-tax, service Tax, duty of customs, duty of excise, value added tax, cess and other statutory dues, to the extent applicable, with the appropriate authorities. According to the information and explanation given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2018 for a period of more than six months from the date they became payable.
b. Disputed dues of income-tax, sales-tax, service Tax, duty of customs, duty of excise, value added tax, cess and other statutory dues, if any, pending as at 31st March, 2018 are given below:
Nature of the Statute |
Nature of dues |
Forum where the dispute is pending |
Period to which the amount relates |
Amount (Rs) |
The Income Tax Act, 1961 |
Income Tax |
Commissioner of Income Tax (Appeals), Coimbatore |
2013-14 (April, 2013 to March, 2014) |
2,25,20,850/- |
Central Excise |
Excise Duty |
CESTAT, Chennai |
April, 2011 to March, 2012 |
37,883/- |
Act, 1944 |
Excise Duty |
CESTAT, Chennai |
November, 2011 to March, 2014 |
5,58,757/- |
Service Tax |
High Court of Madras |
January, 2005 to April, 2006 |
2,00,863/- |
|
Finance Act, 1994 |
Service Tax |
High Court of Madras |
July, 2005 to March, 2008 |
33,19,232/- |
Service Tax |
CESTAT, Chennai |
April, 2006 to March, 2015 |
12,89,582/- |
|
Service Tax |
Deputy Commissioner of Central Excise, Salem |
April, 2014 to September, 2014 |
7,36,203/- |
|
Service Tax |
Deputy Commissioner of Central Excise, Salem |
August, 2012 to March, 2015 |
43,96,748/- |
8. The company has not defaulted in repayment of loans or borrowings to Financial Institutions, banks or government.
9. The company during the year has not raised any money through Initial or Further Public Offer (including debt instruments) and hence this clause is inapplicable in as much as it deals with raising of money through public offer and its subsequent application. Based on our audit procedures, we are of opinion that, term loans borrowed by the company were applied for the purposes for which those are raised.
10. According to the information and explanation given to us and from the audit procedures adopted by us, we are of opinion that, no fraud by the company or no fraud on the company by its officers or employees has been noticed or reported during the year.
11. The managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the companies Act,2013.
12. The Company is not a âNidhi companyâ and hence the Nidhi Rules, 2014 are inapplicable and consequently this clause is inapplicable to the company.
13. According to the information and explanation given to us, all transactions with the related parties are in compliance with Section 177 and 188 of the Companies Act, 2013, wherever applicable and the details have been disclosed in the financial statements as required by the applicable accounting standards.
14. The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence this clause is inapplicable to the company.
15. According to the information and explanation given to us and from our audit observation, we are of opinion that, the company has not entered into any non-cash transactions with its directors or persons connected with them and hence Section 192 of the Companies Act, 2013 and this clause are inapplicable to the company.
16. The company is not a Non-banking financial company and hence the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and hence the requirement to get registered under Reserve Bank of India Act, 1934 does not arise.
N.PRASANNA VENKATESAN
CHARTERED ACCOUNTANT
Membership No.235530
Date : 28.05.2018
Place : Erode
Mar 31, 2016
We have audited the accompanying standalone financial statements of M/s. SKM EGG PRODUCTS EXPORT (INDIA) LIMITED, (Registered Office at 185, Chennimalai Road, Erode - 638 001), which comprise the Balance Sheet as at March 31, 2016, 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 Standalone Financial Statements:
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone 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 specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility:
Our responsibility is to express an opinion on these 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 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 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 accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion:
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016; and its Profit and its Cash flows for the year ended on that date.
Other Matters:
We did not audit the financial statements / information of 1 branch (Foreign branch)(In Russia) included in the standalone financial statements of the Company whose financial statements / financial information reflect total assets of Rs. 2,49,96,705 as at 31st March, 2016 and total revenues of Rs.94,41,476 for the year ended on that date, as considered in the standalone financial statements. The financial statements/information of this branch has been furnished to us and our opinion is based on those Financial Statements received from the Branch Office and certified by the Management. Our opinion is not qualified / modified in respect of this matter.
Report on Other Legal and Regulatory Requirements:
I. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ), 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 âAnnexure - Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. ii. 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 and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.
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 and with the returns received from the branches not visited by us.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards notified 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, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as adirector in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; 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 Also Refer Note No.2(ii) and 2(vii) of Notes on Accounts 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, required to be transferred, to the Investor Education and Protection Fund by the Company.
As required by the Companies (Auditor''s Report) Order, 2016(âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we report that,
1. a. The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.
b. The fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verifications.
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.
2. The Management has conducted physical verification of inventory at reasonable intervals and no material discrepancies were noticed on physical verification.
3. The Company during the year has not granted any secured or unsecured loans to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies act.
4. The Company during the year has not granted any loans, or made any investments, or given any security or guarantees and hence Section 185 and 186 of the Companies Act, 2013 are inapplicable.
5. The Company has not accepted any deposits from the public and hence this clause is inapplicable.
6. The Central Government has specified the maintenance of Cost Records under sub-section (1) of section 148 of the Companies Act, and such accounts and records have been made and maintained.
7. a. According to the records of the company, the company is regular in depositing undisputed statutory dues including provident fund, employee state insurance, income-tax, sales-tax, wealth tax, service Tax, duty of customs, duty of excise, value added tax, cess and other statutory dues, to the extent applicable, with the appropriate authorities. According to the information and explanation given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2016 for a period of more than six months from the date they became payable.
b. Disputed dues of income-tax, sales-tax, wealth tax, service Tax, duty of customs, duty of excise, value added tax, cess and other statutory dues, if any, pending as at 31st March, 2016 are given below:
Particulars |
Period to which it Relates |
Amount Due to be paid |
Forum where the appeal is preferred |
Excise Duty |
Jan 2008 to March 2013 |
Rs. 12,71,172/- |
CESTAT, Chennai against the order of the Commissioner of Central Excise, Salem. |
Excise Duty |
April - 2008 to March 2013 |
Rs. 2,88,889/- |
CESTAT, Chennai against the order of the Commissioner of Central Excise, Salem. |
Excise Duty |
Nov - 2011 to March 2014 |
Rs. 8,52,621/- |
CESTAT, Chennai against the order of the Commissioner of Central Excise, Salem |
Service Tax |
July 2005 to March 2008 |
Rs. 33,19, 232/- |
High Court of Madras |
Service Tax |
April 2006 to March 2014 |
Rs. 9,17,745/- |
CESTAT, Chennai against the order of the Commissioner of Central Excise, Salem |
Service Tax |
January- 2005 to March 2006 |
Rs. 2,00,863/- |
High Court of Madras. |
Income Tax |
Asst. Year 2008-09 |
Rs. 2,44,15,573/- (Net of Recovery adjustment) |
Income Tax Appellate Tribunal, Chennai - Stay granted by the Madras High court |
Income Tax |
Asst. Year 2009-10 |
Rs. 1,51,47,747/-(Net of Payments) |
Income Tax Appellate Tribunal, Chennai - Stay granted by the Additional commissioner of Income Tax till 31.3.2017 |
The amount required to be transferred to Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under has been transferred to such fund within time.
8. The company has not defaulted in repayment of loans or borrowings to Financial Institutions, banks or government.
9. The company during the year has not raised any money through Initial or Further Public Offer (including debt instruments) and hence this clause is inapplicable in as much as it deals with raising of money through public offer and its subsequent application. Based on our audit procedures, we are of opinion that, term loans borrowed by the company were applied for the purposes for which those are raised.
10. According to the information and explanation given to us and from the audit procedures adopted by us, we are of opinion that, no fraud by the company or no fraud on the company by its officers or employees has been noticed or reported during the year.
11. The managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the companies Act,2013.
12. The Company is not a âNidhi companyâ and hence the Nidhi Rules, 2014 are inapplicable and consequently this clause is inapplicable to the company
13. According to the information and explanation given to us, all transactions with the related parties are in compliance with Section 177 and 188 of the Companies Act, 2013, wherever applicable and the details have been disclosed in the financial statements as required by the applicable accounting standards.
14. The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence this clause is inapplicable to the company.
15. According to the information and explanation given to us and from our audit observation, we are of opinion that, the company has not entered into any non-cash transactions with its directors or persons connected with them and hence Section 192 of the Companies Act, 2013 and this clause are inapplicable to the company.
16. The company is not a Non-banking financial company and hence the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and hence the requirement to get registered under Reserve Bank of India Act, 1934 does not arise.
For N.C. RAJAGOPAL & CO.,
Chartered Accountants
N.C.VIJAY KUMAR ,
(PARTNER)
Membership No.208276.
Firm Regn. No: 003398S
Place : Erode
Date : 25.05.2016
Mar 31, 2015
We have audited the accompanying standalone financial statements of
M/s. SKM EGG PRODUCTS EXPORT (INDIA) LIMITED, (Registered Office at
185, Chennimalai Road, Erode - 638 001), 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 lor the Standalone Financial Statements:
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
Accounting Standards specified under Section 133 of the Act read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility:
Our responsibility is to express an opinion on these 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
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 a 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 Holding Company has an adequate internal financial controls
system over financial reporting in place and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015; and its Profit and its Cash flows for the year
ended on that date.
Other Matters
We did not audit the financial statements / information of 1 branch
(Foreign branch)(In Russia) included in the standalone financial
statements of the Company whose financial statements / financial
information reflect total assets of Rs.15,42,080 as at 31st March, 2015
and total revenues of Rs.2,46,020 for the year ended on that date, as
considered in the standalone financial statements. The financial
statements/information of this branch have been furnished to us and our
opinion is based on those Financial Statements received from the
I. 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.
ii. 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 and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us.
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 and with the returns received from the branches not
visited by us.
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards notified 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 - Also Refer Note
No.2(ii) and 2(vii) of Notes on Accounts 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, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
Referred to in Paragraph I under the Heading of "Report on Other
Legal and Regulatory Requirements" of our report of even date
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 report
that,
1. a. The Company is maintaining proper records showing full
particulars including quantities details and situation of fixed assets.
b. The fixed assets have been physically verified by the management at
reasonable intervals and no material discrepancies were noticed on such
verifications.
2. a. The Management has conducted physical verification of inventory
at reasonable intervals.
b. The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. The Company during the year has not granted any secured or unsecured
loans to companies, firms or other parties covered in the Register
maintained under Section 189 of the Companies act.
4. There is an adequate internal control system commensurate with the
size of the company and the nature of its business, for the purchase of
inventory, fixed assets and for the sale of goods and services and
there is no continuing failure to correct major weaknesses in internal
control system.
5. The Company has not accepted any deposits from the public and hence
this clause is inapplicable.
6. The Central Government has specified the maintenance of Cost Records
under sub-section (1) of section 148 of the Companies Act, and such
accounts and records have been made and maintained.
7 a.According to the records of the company, the company is regular in
depositing undisputed statutory dues including provident fund, employee
state insurance, income-tax, sales-tax, wealth tax, service Tax, duty
of customs, duty of excise, value added tax, cess and other statutory
dues, to the extent applicable, with the appropriate authorities.
According to the Information and explanation given to us, no undisputed
amounts payable in respect of the aforesaid dues were outstanding as at
31st March, 2015 for a period of more than six months from the date
they became payable.
b. Disputed dues of income-tax, sales-tax, wealth tax, service Tax,
duty of customs, duty of excise, value added tax, cess and other
statutory dues, if any, pending as at 31st March, 2015 are given below:
Particulars Period to which it Relates Amount Due to be paid
Excise Duty May 2004 to March 2013 Rs. 14,78,171/-
Excise Duty April-2013 to March-2014 Rs. 6,27,888/-
Excise Duty April - 2008 to March 2013 Rs. 2,88,889/-
Excise Duty November 2011 to March 2013 Rs. 3,67,953/-
Excise Duty April-2013 to March 2014 Rs. 4,84,668/-
Service Tax January 2005 to April 2006 Rs. 2,00,863/-
Service Tax July 2005 to March 2008 Rs. 33,19,232/-
Service Tax April 2006 to March 2012 Rs. 4,42,879/-
Service Tax April- 2012 to March 2013 Rs. 1,62,264/-
Income Tax Asst.Year 2008-09 Rs.2,70,07,726/-
(Net of Recovery)
Income Tax Asst.Year 2009-10 Rs.2,22,73,500/-
(Net of Payments)
Particulars Forum where the appeal is preferred
Excise Duty CESTAT, Chennai against the order of
the Commissioner of Central Excise,Salem
Excise Duty Commissiner of Central Excise,
Customs & Service Tax (Appeals), Salem
Excise Duty CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem
Excise Duty CESTAT, Chennai against the order of the
Commissioner of Central Excise,Salem
Excise Duty Commissiner of Central Excise, Customs
& Service Tax (Appeals), Salem
Service Tax High Court of Madras
Service Tax High Court of Madras
Service Tax CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem
Service Tax Commissiner of Central Excise, Customs
& Service Tax (Appeals)Salem
Income Tax Income Tax Appellate Tribunal, Chennai -
Stay granted by the Madras
High court for the Ay 2008-2009.
Income Tax Income Tax Appellate Tribunal,
Chennai - Stay granted by the AO.
The amount required to be transferred to Investor Education and
Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 ( 1 of 1956) and rules made there under has been
transferred to such fund within time.
1. The company does not have any accumulated losses as at 31st March
2015 and had not incurred cash losses during the financial year ended
on that date and also in the immediately preceding financial year.
2. The company has not defaulted in repayment of dues to Financial
Institution or banks.
3. According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
4. Based on our audit procedures, we are of opinion that, term loans
borrowed by the company were applied for the purposes for which the
loans were obtained.
5. According to the information and explanation given to us from the
audit procedures adopted by us, we are of opinion that, no fraud on or
by the company has been noticed or reported during the year.
For N.C. RAJAGOPAL & CO.,
Chartered Accountants N.C.VIJAY KUMAR,
(PARTNER)
Place- Erode Membership No.208276.
Date: 20.05.2015 Firm Regn No: 003398S
Mar 31, 2014
We have audited the accompanying financial statements of M/s. SKM EGG
PRODUCTS EXPORT (INDIA) LIMITED, (Registered Office at 185, Chennimalai
Road, Erode 638 001), which comprise the Balance Sheet as at March
31,2014, and the Statement of Profit and Loss and Cash Flow for the
year 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 and in accordance with the accounting principles
generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of thefinancial statements.
We believe thatthe audit evidence we have obtained is sufficient and
appropriate to provide a basisfor 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 Statement of Profit and Loss Account, of the
profit forthe year ended on that date.
c) in the case of Cash Flow Statement, of the Cash flows forthe year
ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of sub-section
(4A) of section 227 of the Act, we give in the annexure a statement on
the matters specified in the paragraphs 4 and 5 of the said order.
2. As required by section 227(3) of the Act, we reportthat:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary forthe 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 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
underthe 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.
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.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules underthe said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
OTHERMATTER
We did not audit the Financial Statements/ Financial Information of the
Foreign Branch, which have been only compiled and not audited by other
Auditors whose Financial Statements/Financial Information reports have
been furnished to us and our opinion is based on the Compiled Financial
Statement received from the Branch Office.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
Referred to in Paragraph I under the Heading ol "Report on Other Legal
and Regulatory Requirements" of our report of even date
As required by the Companies (Auditors'' report) Order, 2003, made by
the central Government under section 227 (4 A) of the Companies Act,
1956, we state that:
1. a. The Company has maintained proper records showing full
particulars including quantities details and situation of fixed assets.
b. The fixed assets have been physically verified by the management at
reasonable intervals and no material discrepancies were noticed on such
verifications
c. Fixed assets of a substantial part, affecting the going concern,
have not been disposed off during the year.
2. a. The Management has carried out physical verification of inventory
at reasonable intervals.
b. The procedure of verification of inventory followed by the
Management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
c. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. a. The Company during the year has not granted any secured or
unsecured loans to Companies, firms or other parties
covered in the Register maintained under Section 301 of the Companies
act, 1956.
b. The Company during the year has taken Unsecured loan during the year
and the details are as below. (in Rs.)
Opening Amount Repayment
Name of the LenderS Balance as on Borrowed made during
01.04.2013 during the year the year
SKM Maeilanandhan 6,00,00,000 - 6,00,00,000
SKM Universal
Marketing 43900000 - -
Company India
Limited 4,39,00,000 - -
SKM Shree Shivkumar 4,95,00,000 6,00,00,000 -
NAME OF THE LENDERS Closing BALANCE interest
31.03.2014 PaymentS
SKM Maeilanandhan NIL 62,72,878
SKM Universal
Marketing 4.39.00. 000 52,67,998
Company India
Limited
SKM Shree Shivkumar 10.95.00.000 68,67,122
c. The rate of Interest and other terms and conditions of the above
loan taken by the company are prima-facie not prejudicial to
theinterestof the company
4. In our opinion and according to the Explanation and Information
given to us there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services andthere isno continuingfailure to correct major weaknesses in
internal control system.
5. a. The particulars of contracts or arrangements referred to in
Section 301 of the Companies Act, 1956, have been entered in the register maintained under that section.
b. Transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable, having regard to the
prevailing marker prices at the relevant time.
6. The Company has not accepted any deposits from the public.
7. In our opinion the company has an internal audit system commensurate
with its size and nature of its business.
8. The Central Government has prescribed maintenance of Cost Records
under section 209(1)(d) of the Companies Act and such accounts and
records have been made and maintained.
9. a. According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and
Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues, to the
extent applicable, have been generally regularly deposited with the
appropriate authorities. According to the information and explanation
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at March 31,2014 for a period of more than six
months from the date they became payable.
b. According to the information and explanation given to us, there are
no undisputed amounts payable, in respect of Income Tax, Wealth Tax,
Service Tax, Sales Tax, Customs duty and Cess, were in arrears as at
March 31,2014 for a period of more than six months from the date they
become payable except the following payments, the details for which are
given below:
Particulars Period to which it Relates Amount Due to be paid
Excise Duty May 1997 to June 1999 Rs.7,32,445/-
Duty - Rs.23,156/-
Excise Duty August 2002 to April 2003 Interest - Rs.2 605/-
Excise Duty April 2003 to April 2004 Rs. 64,288/-
Excise Duty May 2004 to March 2005 Rs. 49,650/-
Excise Duty June 2005 to May 2006 Rs. 29,230/-
Excise Duty June 2006 to Feb 2007 Rs. 54,245/-
Excise Duty March 2007 to December 2007 Rs. 73,874/-
Excise Duty Jan 2008 to June 2008 Rs. 45,034/-
Excise Duty July 2008 to March 2009 Rs. 58,364/-
Excise Duty April 2009 to November 2009 Rs. 83,904/-
Excise Duty Dec 2009 to July 2010 Rs.1,46,423/-
Excise Duty Aug 2010 to Jan 2011 Rs. 1,19,853/-
Excise Duty Feb 2011 to Oct 2011 Rs. 2,07,324/-
Excise Duty Nov 2011 to May 2012 Rs. 2,09,114/-
Excise Duty Nov 2011 to May 2012 Rs. 73,907/-
Excise Duty April 2011 to March 2012 Rs. 37,883/-
Excise Duty June 2012 to Mar 2013 Rs. 2,94,046/-
Excise Duty June 2012 to Mar 2013 Rs. 4,01,156/-
Service Tax Jan 2005 to June 2005 Rs. 98,400/-
Service Tax July 2005 to December 2005 Rs.3,10,489/-
Service Tax July 2005 to March 2006 Rs.1,01,786/-
Service Tax January 2006 to March 2006 Rs. 4,82,328/-
Service Tax April 2006 to September 2006 Rs. 1,97,293/-
Service Tax October 2006 to Dec. 2006 Rs. 3,63,898/-
Service Tax January 2007 to March 2007 Rs. 4,36,775/-
Service Tax April 2007 to September 2007 Rs. 4,89,366/-
Service Tax Oct 2007 to Jan 2008 Rs. 4,33,443/-
Service Tax Feb 2008 to March 2008 Rs. 6,05,640/-
Service Tax April 2006 to March 2011 Rs. 3,63,489/-
Service Tax April 2011 to March 2012 Rs. 79,390/-
Income Tax Asst.Year 2008-09 Rs 2,70,07,726/-
(Net of Recovery)
Income Tax Asst.Year 2009-10 R.s 2,82,73,500/-
(Net of Payments)
Paticular Forum where the appeal is preferred
Excise Duty High Court of Madras
Excise Duty CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem
Excise Duty High Court, Chennai against the order of the
CESTAT,Chennai
Excise Duty CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem
Excise Duty CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem
Excise Duty CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem
Excise Duty CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem.
Excise Duty Commissioner of Central Excise Appeals, Salem.
Excise Duty Commissioner of Central Excise Appeals, Salem.
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem
Excise Duty CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem
Excise Duty CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Service Tax CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem
Service Tax High Court of Madras (Stayed the Proceedings)
Service Tax High Court of Madras
Service Tax High Court of Madras (Stayed the Proceedings)
Service Tax High Court of Madras
Service Tax High Court of Madras
Service Tax High Court of Madras
Service Tax High Court of Madras
Service Tax High Court of Madras
Service Tax High Court of Madras
Service Tax CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem
Service Tax Commissioner of Central Excise,Customs &
Service Tax (Appeals), salem
Income Tax Income Tax Appellate Tribunal, Chennai - Stay
granted by the Madras High court for the
Ay 2008-2009.
Income Tax Income Tax Appellate Tribunal, Chennai -
Stay granted by the AO.
10. Based on our Audit Procedures and on the basis of information and
explanation given to us by the Management, we are of the opinion that
the Company has not defaulted in repayment of dues to banks.
11. In our opinion and on the basis of information and explanation
given to us by the Management, no loans and advances have been granted
on the basis of security by way of pledge of shares, debentures and
other securities and hence maintenance of adequate documents and
records for such cases does not arise.
12. The Company has no Accumulated losses as on March 31st 2014 and has
not incurred cash losses during the financial year ended on that date
and also in the immediately preceding financial year.
13. According to the information and explanation given to us by the
Management, the Company has not given any guarantee for loans taken by
others from banks orfinancial institutions.
14. The company is not a chit fund, Nidhi or Mutual benefit Society.
Hence the requirement of item (xiii) of paragraph 4 of the Order is not
applicable to the company.
15. In our opinion, the company is not dealing in or trading in shares,
Securities, Debentures and other Investments. Accordingly the
provisions of clause 4[xiv] of the companies [Auditor''s Report] Order
2003 are not applicable to the company.
16. As per the information and explanations given to us, Term Loans
borrowed by the company were applied for the purposes for which the
loans were obtained.
17. As per the information and explanations given to us, funds raised
on short Term basis have not been used for Long Term Investments.
18. On the basis of the information and explanations furnished by the
company no fraud on or by the Company has been noticed or reported
during the year.
19. According to the information and explanations given to us no
preferential allotment of shares has been made by the company to
companies, firms, or parties listed in the register maintained under
section 301 of the Companies Act 1956.
20. The company has not issued any debentures. Hence the requirement of
clause (xix) of paragraph 4 of the Order is not applicable to
thecompany.
21. During the period covered by our audit report, the company has not
raised any money by public issue.
For N.C. Rajagopal & Co.
Chartered Accountants
N.C. Vijay Kumar
Partner
Place : Erode Membership No.208276
Date : 30.07.2014 FRN : 003398S
Mar 31, 2013
We have audited the accompanying financial statements of M/s. SKM EGG
PRODUCTS EXPORT (INDIA) LIMITED, (Registered Office at 185, Chennimalai
Road, Erode  638 001), which comprise the Balance Sheet as at March
31, 2013, and the Statement of Profit and Loss and Cash Flow for the
year 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; and
b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date;
c) in the case of Cash Flow Statement, of the Cash flows for the year
ended on that date
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the annexure a
statement on the matters specified in the 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 and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Other Matter:
We did not audit the Financial Statements/ Financial Information of the
Foreign Branch, which have been only compiled and not audited by other
Auditors whose Financial Statements/Financial Information reports have
been furnished to us and our opinion is based on the Compiled Financial
Statement received from the Branch Office.
ANNEXURE
As required by the Companies (Auditors'' report) Order, 2003, made by
the Central Government under section 227 (4 A) of the Companies Act,
1956, we state that:
1. a. The Company has maintained proper records showing full
particulars including quantities details and situation
of fixed assets.
b. The fixed assets have been physically verified by the management at
reasonable intervals and no material discrepancies were noticed on such
verifications
c. Fixed assets of a substantial part, affecting the going concern,
have not been disposed off during the year.
2. a. The Management has carried out physical verification of
inventory at reasonable intervals.
b. The procedure of verification of inventory followed by the
Management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
c. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on
physical verification.
3. a. The Company during the year has not granted any secured or
unsecured loans to Companies, firms or other
parties covered in the Register maintained under Section 301 of the
Companies act, 1956.
b. The Company during the year has taken Unsecured loan during the
year and the details are as below.
Name of the Lenders Opening Amount Repayment
Balance Borrowed Made
as on uring the During the
01.04.12
1 SKM. Maeilanandhan NIL 6,70,00,000 70,00,000
2 SKM Universal 4,39,00,000 20,00,000 20,00,000
Marketing Company
India Limited
3 SKM Shree Shivkumar 5,00,00,000 30,00,000 35,00,000
Name of the Lenders Closing Interest
Balance as on Payment
31.03.2013
1 SKM. Maeilanandhan 6,00,00,000 28,99,068
2 SKM Universal 4,39,00,000 56,62,175
Marketing Company
India Limited
3 SKM Shree Shivkumar 4,95,00,000 65,33,207
c. The rate of Interest and other terms and conditions of the above
loan taken by the company are prima-facie not prejudicial to the
interest of the company.
4. In our opinion and according to the Explanation and Information
given to us there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services and there is no continuing failure to correct major weaknesses
in internal control system.
5. a. The particulars of contracts or arrangements referred to in
Section 301 of the Companies Act, 1956, have
been entered in the register maintained under that section.
b. Transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable, having regard to the
prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public.
7. In our opinion the company has an internal audit system
commensurate with its size and nature of its business.
8. The Central Government has prescribed maintenance of Cost Records
under section 209(1)(d) of the Companies Act and such accounts and
records have been made and maintained.
9. a. According to the records of the company, Undisputed Statutory
dues including Provident Fund, Investor
Education and Protection Fund, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other material
statutory dues, to the extent applicable, have been generally regularly
deposited with the appropriate authorities. According to the
information and explanation given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at March 31, 2013
for a period of more than six months from the date they became payable.
b. According to the information and explanation given to us, there are
no undisputed amounts payable, in respect of Income Tax, Wealth Tax,
Service Tax, Sales Tax, Customs duty and Cess, were in arrears as at
March 2013, for a period of more than six months from the date they
become payable except the following payments, the details for which are
given below:
Particulars Period to Which Amount Due
it Relates to be Paid
Excise Duty 1.8.2002 to Duty Rs. 23,156/-
30.04.2003 Interest Rs.2,605/-
Excise Duty April 2003 to Rs. 64,288/-
April 2004
Excise Duty May 2004 to Rs.49,650/-
March 2005
Excise Duty June 2005 to Rs.29,230/-
May 2006
Excise Duty June 2006 to Rs.54,245/-
Feb 2007
Excise Duty March 2007 to Rs.73,874/-
Dec 2007
Excise Duty January 2008 to Rs.45,034/-
June 2008
Excise Duty July 2008 to Rs.58,364/-
March 2009
Excise Duty April 2009 to Rs.83,904/-
Nov 2009
Excise Duty Dec 2009 to Rs.1,46,423/-
July 2010
Excise Duty Aug 2010 to Rs.1,19,853/-
Jan 2011
Excise Duty Feb 2011 to Rs.2,07,324/-
Oct 2011
Excise Duty Nov 2011 to Rs.2,09,114/-
May 2012
Excise Duty April 2011 to Rs.37,883/-
March 2012
Excise Duty April 2008 To Rs.2,51,006/-
March 2013
Service Tax Jan 2005 to Rs.98,400/-
June 2005
Service Tax July 2005 to Rs.3,10,489/-
Dec 2005
Service Tax July 2005 to Rs.1,01,786/-
March 2006
Service Tax Jan 2006 to Rs.4,82,328/-
March 2006
Service Tax April 2006 to Rs. 1,97,293/-
Sep 2006
Service Tax Oct 2006 to Rs. 3,63,898/-
Dec 2006
Service Tax Jan 2007 to Rs. 4,36,775/-
March 2007
Service Tax April 2007 to Rs. 4,89,366/-
Sep 2007
Service Tax Oct 2007 to Rs.4,33,443/-
Jan 2008
Service Tax Feb 2008 to Rs.6,05,640/-
March 2008
Service Tax April 2006 to Rs.3,63,489/-
March 2011
Service Tax April 2011 to Rs.79,390/-
March 2012
Income Tax Asst.Year Rs.88,98,293/-
2007-08
Income Tax Asst.Year Rs.2,70,07,726/-
2008-09 (Net of Recovery)
Particulars Forum where the appeal is preferred
Excise Duty CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem.
Excise Duty CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem.
Excise Duty Commissioner of Central Excise Appeals, Salem.
Excise Duty Commissioner of Central Excise Appeals, Salem.
Excise Duty Commissioner of Central Excise Appeals, Salem.
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Service Tax CESTAT,Madras
Service Tax High Court of Madras
Service Tax High Court of Madras
Service Tax High Court of Madras
Service Tax High Court of Madras
Service Tax High Court of Madras
Service Tax High Court of Madras
Service Tax High Court of Madras
Service Tax High Court of Madras
Service Tax High Court of Madras
Service Tax CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem
Service Tax Commissioner of Central Excise,Customs &
Service Tax (Appeals), salem
Income Tax Income Tax Appellate Tribunal, Chennai Stay
application is filed before the statutory
authorities.
Income Tax Income Tax Appellate Tribunal, Chennai  Stay granted
by the Madras High court for the Ay 2008-2009.
10. Based on our Audit Procedures and on the basis of information and
explanation given to us by the Management, we are of the opinion that
the Company has not defaulted in repayment of dues to Financial
Institution or banks.
11. In our opinion and on the basis of information and explanation
given to us by the Management, no loans and advances have been granted
on the basis of security by way of pledge of shares, debentures and
other securities and hence maintenance of adequate documents and
records for such cases does not arise.
12. The Company has no Accumulated losses as on March 31st 2013 and
has not incurred cash losses during the financial year ended on that
date but incurred cash loss of Rs. 8.14 Crores in the immediately
preceding financial year.
13. According to the information and explanation given to us by the
Management, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
14. The company is not a chit fund, Nidhi or Mutual benefit Society.
Hence the requirement of item (xiii) of paragraph 4 of the Order is not
applicable to the company.
15. In our opinion, the company is not dealing in or trading in
shares, Securities, Debentures and other Investments. Accordingly the
provisions of clause 4[xiv] of the companies [Auditor''s Report] Order
2003 are not applicable to the company.
16. As per the information and explanations given to us, Term Loans
borrowed by the company were applied for the purposes for which the
loans were obtained.
17. As per the information and explanations given to us, funds raised
on short Term basis have not been used for Long Term Investments.
18. On the basis of the information and explanations furnished by the
company no fraud on or by the Company has been noticed or reported
during the year.
19. According to the information and explanations given to us no
preferential allotment of shares has been made by the company to
companies, firms, or parties listed in the register maintained under
section 301 of the Companies Act 1956.
20. The company has not issued any debentures. Hence the requirement
of clause (xix) of paragraph 4 of the Order is not applicable to the
company.
21. During the period covered by our audit report, the company has not
raised any money by public issue.
For N.C. RAJAGOPAL & CO.,
CHARTERED ACCOUNTANTS,
N.C. VIJAY KUMAR
PARTNER
Membership No.208276
FRN : 003398S
Place : Erode
Date : 09.08.2013
Mar 31, 2012
We have audited the attached Balance Sheet of SKM EGG PRODUCTS EXPORT
(INDIA) LIMITED, 185, Chennimalai Road, Erode - 638 001 as at 31st
March 2012 and also the Profit and Loss Account for the year ended on
that date annexed thereto and cash flow statement for the period ended
on that date. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with audit 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.
1. As required by the Companies (Auditor's Report) Order, 2003 (As
Amended) issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, we enclose in the Annexure a
Statement on the matters specified in paragraphs 4 & 5 of the said
order.
2. Further to our comments in the 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 where 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 it appears from our examination of
the books.
c. The Balance sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of accounts.
d. On the basis of written confirmation received from the directors as
on 31.03.2012 and taken on record by the Board of Directors, we report
that none of the Directors are disqualified as on 31.03.2012 from being
appointed as a director in terms of clause (g) of sub section (i) of
section 274 of the Companies Act 1956.
e. In our opinion the profit and loss account and balance sheet comply
with the accounting standards referred to in sub section (3C) of
Section 211 of the Companies Act 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said profit& loss account and the
balance sheet read together with the notes thereon give the information
required by the companies Act 1956 in the manner as required and give a
true and fair view in conformity with the accounting principles
generally accepted in India :-
i. In the case of the Profit and Loss Account, of the Loss for the
period ended 31st March 2012 and
ii. In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March 2012
iii. In the case of cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE
As required by the Companies (Auditors' report) Order, 2003, made by
the central Government under section 227 (4 A) ot the Companies Act,
1956, we state that:
1. a. The Company has maintained proper records showing full
particulars including quantities details and situation of fixed assets.
b. The fixed assets have been physically verified by the management at
reasonable intervals and no material discrepancies were noticed on such
verifications
c. Fixed assets of a substantial part, affecting the going concern,
have not been disposed off during the year.
2. a. The Management has carried out physical verification of
inventory at reasonable intervals.
b. The procedure of verification of inventory followed by the
Management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
c. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. a The Company has not granted any secured or unsecured loans to
Companies, firms or other parties covered in the Register maintained
under Section 301 of the Companies act, 1956.
b. The Company during the year has taken Unsecured loan of Rs.0.55
Crores from the Managing Director Sri SKM. Shree Shivkumar and the
interest on the loan being Rs. 0.74 Crores. The Balance outstanding as
on 31.3.2012 is Rs.5 Crores. Also the company during the years has
taken Rs.3.83 Crores from SKM Universal Marketing Company (Opening
Balance) Outstanding Rs. 2.5 Crores and the interest on the loan being
Rs.0.40 Crores and after repayment of Rs. 1.94 Crores the balance as on
31.3.2012 is Rs. 4.39 Crores.
c. The rate of Interest and other terms and conditions of the above
loan taken by the company are prima-facie not prejudicial to the
interest of the company
4. In our opinion and according to the Explanation and Information
given to us there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services and there is no continuing failure to correct major weaknesses
in internal control system.
5. a. The particulars of contracts or arrangements referred to in
Section 301 of the Companies Act, 1956, have been entered in the
register maintained under that section.
b. Transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable, having regard to the
prevailing marker prices at the relevant time.
6. The Company has not accepted any deposits from the public.
7. In our opinion the company has an internal audit system
commensurate with its size and nature of its business.
8. We have been informed that the Central Government has not
prescribed maintenance of Cost Records under section 209(1) (d) of the
Companies Act, 1956.
9. a. According to the records of the company, Undisputed Statutory
dues including Provident Fund, Investor Education and Protection Fund,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other material statutory dues, to the extent applicable,
have been generally regularly deposited with the appropriate
authorities. According to the information and explanation given to us,
no undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2012 for a period of more than six months
from the date they became payable.
b. According to the information and explanation given to us, there are
no undisputed amounts payable, in respect
Period to which Amount Due
Particulars it Relates to be paid
Excise Duty 1.8.2002 to Duty Rs. 23,156/-
30.04.2003 Interest Rs. 2,605/-
Excise Duty April 2003 to Rs. 64,288/-
April 2004
Excise Duty May 2004 to Rs.49,650/-
March 2005
Excise Duty June 2005 to Rs.29,230/-
May 2006
Excise Duty June 2006 to Rs.54,245/-
Feb 2007
Excise Duty March 2007 to Rs.73,874/-
Dec 2007
Excise Duty January 2008 to Rs.45,034/-
June 2008
Excise Duty July 2008 to Rs.58,364/-
March 2009
Excise Duty April 2009 to Rs.83,904/-
Nov 2009
Excise Duty Dec 2009 to Rs.1,46,423/-
July 2010
Excise Duty Aug 2010 to Rs.1,19,853/-
Jan 2011
Excise Duty Feb 2011 to Rs.2,07,324/-
Oct 2011
Service Tax Jan 2005 to Rs. 98,400/-
June 2005
Service Tax July 2005 to Rs.3,10,489/-
Dec 2005
Particulars Forum where the appeal is preferred
Excise Duty CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem.
Excise Duty CESTAT, Chennai against the order of the
Commissioner of Central Excise, Salem
Excise Duty Commissioner of Central Excise, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem.
Excise Duty Commissioner of Appeal, Salem.
Excise Duty Commissioner of Appeal, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Excise Duty Commissioner of Central Excise Appeals, Salem
Service Tax CESTAT, Madras.
Service Tax High Court of Madras.
Period to which Amount Due
Particulars it Relates to be paid
Service Tax July 2005 to Rs.1,01,786/-
March 2006
Service Tax Jan 2006 to Rs.4,82,328/-
March 2006
Service Tax April 2006 to Rs.1,97,293/-
Sep 2006
Service Tax Oct 2006 to Rs.3,63,898/-
Dec 2006
Service Tax Jan 2007 to Rs.4,36,775/-
March 2007
Service Tax April 2007 to Rs.4,89,366/-
Sep 2007
Service Tax Oct 2007 to Rs.4,33,443/-
Jan 2008
Service Tax Feb 2008 to Rs.6,05,640/-
March 2008
Income Tax Asst. Year 2007-08 Rs.88,98,293/-
Income Tax Asst. Year 2008-09 Rs.2,70,07,726/-
(Net of Recovery)
Particulars Forum where the appeal is preferred
Service Tax High Court of Madras.
Service Tax High Court of Madras.
Service Tax High Court of Madras.
Service Tax High Court of Madras.
Service Tax High Court of Madras.
Service Tax High Court of Madras.
Service Tax High Court of Madras.
Service Tax High Court of Madras.
Income Tax Income Tax Appellate Tribunal, Chennai (Special Bench)
Income Tax Income Tax Appellate Tribunal, Chennai (Special Bench)
- Stay granted by the Madras High court for the
Ay 2008-2009 and stay granted by AO for the
AY 2007-2008.
of Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs duty and
Cess, were in arrears as at March 2012, for a period of more than six
months from the date they become payable except the following payments,
the details for which are given below:
10. Based on our Audit procedures and on the basis of information and
explanation given to us by are the Management, we are of the opinion
that the Company has not defaulted in repayment of dues to Financial
Institution or banks.
11. In our opinion and on the basis of information and explanation
given to us by the Management, no loans and advances have been granted
on the basis of security by way of pledge of shares, debentures and
other securities and hence maintenance of adequate documents and
records for such cases does not arise.
12. The Company does not have any Accumulated losses. The Company has
incurred cash loss of Rs.8.14 crores during the year covered by our
audit and the immediately preceding financial year.
13. According to the information and explanation given to us by the
Management, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
14. The company is not a chit fund, Nidhi or Mutual benefit Society.
Hence the requirement of item (xiii) of paragraph 4 of the Order is not
applicable to the company.
15. In our opinion, the company is not dealing in or trading in
shares, Securities, Debentures and other Investments. Accordingly the
provisions of clause 4[xiv] of the companies [Auditor's Report] Order
2003 are not applicable to the company.
16. As per the information and explanations given to us, Term Loans
borrowed by the company were applied for the purposes for which the
loans were obtained.
17. As per the information and explanations given to us, funds raised
on short Term basis have not been used for Long Term Investments.
18. On the basis of the information and explanations furnished by the
company no fraud on or by the Company has been noticed or reported
during the year.
19. According to the information and explanations given to us no
preferential allotment of shares has been made by the company to
companies, firms, or parties listed in the register maintained under
section 301 of the Companies Act 1956.
20. The company has not issued any debentures. Hence the requirement of
clause (xix) of paragraph 4 of the Order is not applicable to the
company.
21. During the period covered by our audit report, the company has not
raised any money by public issue.
For N.C. RAJAGOPAL & CO.,
Chartered Accountants,
Place : Erode N.C. SAMPATH
Date : 06.08.2012 (PARTNER)
Membership No.009592.
Mar 31, 2010
We have audited the attached Balance Sheet of SKM EGG PRODUCTS EXPORT
(INDIA) LIMITED, 185, Chennimalai Road, Erode à 638001 as at 31st March
2010 and also the Profit and Loss Account for the year ended on that
date annexed thereto and cash flow statement for the period ended on
that date. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with audit 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.
1. As required by the Companies (Auditors Report) Order, 2003 (As
Amended) issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, we enclose in the Annexure a
Statement on the matters specified in paragraphs 4 & 5 of the said
order.
2. Further to our comments in the 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 where 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 it appears from our examination of
the books.
c. The Balance sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of accounts.
d. On the basis of Written confirmation received from the directors as
on 31.03.2010 and taken on record by the Board of Directors, we report
that none of the Directors are disqualified as on 31.03.2010 from being
appointed as a director in terms of clause (g) of sub section (i) of
section 274 of the Companies Act 1956.
e. In our opinion and to the best of our information and according to
the explanations given to us, the said profit & loss account and the
balance sheet read together with the notes thereon give the information
required by the companies Act 1956 in the manner as required and give a
true and fair view in conformity with the accounting principles
generally accepted in India :- i. In the case of the Profit and Loss
Account, of the Profit for the period ended 31st March 2010
ii. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2010 and
iii. In the case of cash flow statement, of the cash flows for the
year ended on that date.
As required by the Companies (Auditors report) Order, 2003, made by
the central Government under section 227 (4 A) of the Companies Act,
1956, we state that:
1. a. The Company has maintained proper records showing full
particulars including quantities details and situation of fixed assets.
b. The fixed assets have been physically verified by the management at
reasonable intervals and no material discrepancies were noticed on such
verifications
c. Fixed assets of a substantial part, affecting the going concern,
have not been disposed off during the year.
2. a. The Management has carried out physical verification of
inventory at reasonable intervals.
b. The procedure of verification of inventory followed by the
Management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
c. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3 a. The Company has not granted any secured or unsecured loans to
Companies, firms or other parties covered in the Register maintained
under Section 301 of the Companies act, 1956.
b. The Company has taken Unsecured loan of Rs. 4.30 crores from
Managing Director and Rs.2.49 Crores from SKM Universal Marketing
Company (India) Limited. The interest paid on the loans being Rs.25.85
lacs/- to the Managing Director and Rs.5.46 Lacs to the SKM Universal
Marketing Company (India) Limited. The Balance outstanding as on
31.3.2010 is Rs.90.89 Lacs in respect of the Managing Director and
Rs.2.49 Crores in respect of SKM Universal Marketing Company (India)
Limited.
c. The rate of Interest and other terms and conditions of the above
loan taken by the company are prima-facie not prejudicial to the
interest of the company.
4. There is an adequate internal control system commensurate with the
size of the Company and the nature of its business for the purchase of
inventory, fixed assets and for the sale of goods and services and
there is no continuing failure to correct major weaknesses in internal
control system.
5. a. The particulars of contracts or arrangements referred to in
Section 301 of the Companies Act, 1956, have been entered in the
register maintained under that section.
b. Transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable, having regard to the
prevailing marker prices at the relevant time.
6. The Company has not accepted any deposits from the public.
7. The company has an internal audit system commensurate with its size
and nature of its business.
8. We have been informed that the Central Government has not
prescribed maintenance of Cost Records under section 209(1)(d) of the
Companies Act, 1956.
9. a. According to the records of the company, Undisputed Statutory
dues including Provident Fund,
Investor Education and Protection Fund, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material
statutory dues, to the extent applicable, have been generally regularly
deposited with the appropriate authorities. According to the
information and explanation given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at March 31, 2010
for a period of more than six months from the date they became payable.
b. According to the information and explanation given to us, there are
no undisputed amounts payable, in respect of Income Tax, Wealth Tax,
Service Tax, Sales Tax, Customs duty and Cess, were in arrears as at
March 2010, for a period of more than six months from the date they
become payable except the following payments, the details for which are
given below:
particulars Period to Amount Due to Forum where the appeal
which it be paid is preferred
Relates
Excise Duty 1.8.2002 to Duty- Rs.23,156/- CESTAT, Chennai the
30.4.2003 Imterest-Rs.2,605/- order of the Commissio
-ner of Central Excise,
Salem
Excise Duty May 2004 to Rs. 49,650/- Commissioner of Centeral
Excise,Salem
Excise Duty June 2006 to Commissioner of Appeal
Feb 2007 Rs. 54,245/- Salem
Excise Duty March 2006 Rs. 73,874/- Commissioner of Appeal
to December Salem
2007
Service Tax April 2006 Rs. 1,97,293/- High Court of Madras
to September
2006
Service Tax October 2006 Rs. 3,63,898/- High Court of Madras
to Decenber
2006
Srvice Tax January 2007 Rs. 4,36,775/- High Court of Madras
to March
2007
Service Tax April 2007 Rs. 4,89,366/- High Court of Madras
to September
2007
Service Tax July 2005 to
December 2005 Rs. 3,10,489/- High Court of Madras
Service Tax January 2006
to March 2006 Rs. 1,01,786/- High Court of Madras
Excise Duty June 2005 to Rs. 29,230/- Commissiner of Central
May 2005 Excise Appeals, Salem
Excise Duty Jan 2008 to
June 2008 Rs. 40,034/- Commssioner of Central
Excise Appeals, Salem
Service Tax Oct 2007 to
Jan 2008 Rs. 4,33,443/- Proceeding stayed by the
Madras High Court Vide
WP No.26418 of 2008
Excise Duty April 2009 Rs. 83,904/- Commissioner of Central
to November Excise Appeals, Salem
2009
Service Tax Feb 2008 to Rs. 6,05,640/- Proceeding stayed by the
March 2008 Madras High Court WP No
17194/2009
Excise Duty July 2008 to
March 2009 Rs. 58,364/- Commissioner of Central
Excise Appeals, Salem
Income Tax Asst. Year
2004-2005 Rs.31,33,992/- Commissioner of Income
Tax Appeals(I),
Coimbatore
Income Tax Asst. Year
2007-2008 Rs.12,42,210/- Commissioner o9f Income
Tax Appeals (I)
Coimbatore
10. The Company has not defaulted in repayment of dues to Fin ancial
Institution or banks.
11. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
and hence maintenance of adequate documents and records for such cases
does not arise.
12. The Company does not have any Accumulated losses. The Company has
not incurred cash losses during the year covered by our audit and the
immediately preceding financial year.
13. The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
14. The company is not a chit fund, Nidhi or Mutual benefit Society.
Hence the requirements of item (xiii) of paragraph 4 of the Order is
not applicable to the company.
15. In our opinion, the company is not dealing in or trading in shares,
Securities, Debentures and other Investments. Accordingly the
provisions of clause 4[xiv] of the companies [Auditors Report] Order
2003 are not applicable to the company.
16. As per the information and explanations given to us, Term Loans
borrowed by the company were applied for the purposes for which the
loans were obtained.
17. As per the information and explanations given to us, funds raised
on short Term basis have not been used for Long Term Investments.
18. On the basis of the information and explanations furnished by the
company no fraud on or by the Company has been noticed or reported
during the year.
19. According to the information and explanations given to us no
preferential allotment of shares has been made by the company to
companies, firms, or parties listed in the register maintained under
section 301 of the Companies Act 1956.
20. The company has not issued any debentures. Hence the requirement of
clause (xix) of paragraph 4 of the Order is not applicable to the
company.
21. During the period covered by our audit report, the company has not
raised any money by public issue.
For N.C. RAJAGOPAL & CO.,
Chartered Accountants,
N.C. SAMPATH
(PARTNER)
Membership No. 009592.
Place : Erode
Date : 30.07.2010