Mar 31, 2018
We have audited the accompanying Ind AS financial statements of Srikalahasthi Pipes Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), and Cash Flow Statement and the Statement of changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory notes for the year ended on that date (hereinafter referred to as âInd AS financial statementsâ).
Managementâs Responsibility for the Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 (â the Actâ) with respect to the preparation of these Ind As financial statements that gives a true and fair view of the state of affairs (financial position), Profit or loss (financial performance including other comprehensive income), cash flows and changes in Equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that gives a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the Accounting and Auditing Standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS financial statements that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at March 31, 2018, its Profit and other comprehensive income, its Cash Flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
Further to our comments in the annexure referred to in the paragraph above, as required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b. In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards (Ind AS) specified under section 133 of the Act;
e. On the basis of the 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;
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. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting; and
g. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. Impact of pending litigations (Other than those already recognised in the accounts) on the financial position of the Company have been disclosed in the Ind AS financial statement as required in terms of the Ind AS and provisions of the Companies Act, 2013;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts- Refer Note no. 35 to the Ind AS financial statements;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
i. a. The Company has maintained proper records showing full particulars, including quantitative details and situations of fixed assets.
h. The Company has a program of verification to cover all the items of fixed assets in a phased manner which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. Pursuant to this program, certain fixed assets have been physically verified by the management during the year. According to the information and explanation given to us, no material discrepancies were noticed on such verifications.
i. According to the information and explanations given to us, the records examined by us and based on the conveyance deeds provided to us, we report that, the title deeds, comprising all the immovable properties of land and building which are freehold, are held in the name of the Company as on the balance sheet date.
ii. a. As informed, the inventories of the Company except for materials in transit have been physically verified by the management during the year. In our opinion and according to the information and explanations given to us, the frequency of such verification is reasonable.
b. As the Companyâs inventory of raw materials comprises mostly of bulk materials such as coal, coke, iron ore, etc. requiring technical expertise for quantification, the Company has hired an independent agency for the physical verification of the stock of these materials. Considering the above, in our opinion, the procedures for 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.
iii. The Company has not granted any loans secured or unsecured to companies, firms or parties covered in the register maintained under Section 189 of the Act. Accordingly, clause 3 (iii) of the Order is not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
v. The Company has not accepted any deposits during the year and does not have any unclaimed deposits as at March 31, 2018 from public covered under Sections 73 to 76 or any other relevant provisions of the Act and rules framed thereunder and therefore the provisions of clause 3(v) of the Order is not applicable to the company
vi. We have broadly reviewed the books of account maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 148 (1) of the Act in respect of the Companyâs products to which the said rules are made applicable and are of the opinion that prima facie, the prescribed records have been maintained. We have however not made a detailed examination of the said records with a view to determine whether they are accurate or complete.
vii. a. According to the information and explanations given to us, during the year, the Company has generally been regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education Protection fund, Employeesâ State Insurance, Income Tax, Sales Tax, Wealth Tax, Service tax, Custom Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues as applicable to it.
b. There were no undisputed amounts payable in respect of Provident Fund, Investor Education Protection fund, Employeesâ State Insurance, Income Tax, Sales Tax, Wealth Tax, Service tax, Custom Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrear as at March 31, 2018 for a period of more than six months from the date they become payable.
c. According to the information and explanations given to us, the details of disputed dues of sales tax, income tax, customs duty, wealth tax, excise duty, service tax, and Cess, if any, as at March 31, 2018, are as follows:
Name of the Statute |
Nature of Dues |
Amount (INR in lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
The Central Excise Actâ 1944 |
Excise Duty |
55.01 |
2006-2007 2007-2008 2015-2016 |
Commissioner (Appeals) |
Central Sales Tax |
Sales Tax |
151.60 |
2000-2001 2010-2011 |
High Court |
480.27 |
2003-2004 2004-2005 2005-2006 |
Sales Tax Appellate Tribunal |
||
Andhra Pradesh General Sales Tax Act, |
Sales Tax |
498.09 |
2013-2014 2014-2015 |
Appellate Deputy Commissioner |
1957 |
608.95 |
1999-2000 2000-2001 2003-2004 |
Sales Tax Appellate Tribunal |
|
10.59 |
2004-2005 |
High Court |
||
Andhra Pradesh Value Added Tax Act, 2005 |
Value Added Tax |
18.16 |
2012-2013 2014-2015 |
Appellate Deputy Commissioner |
271.71 |
2005-2006 2007-2008 2011-2012 2013-2014 |
Sales Tax Appellate Tribunal |
||
Income Tax Act, 1961 |
Income Tax |
37.72 |
2003-2004 2004-2005 |
High Court |
viii. In our opinion and on the basis of information and explanations given to us by the management, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions, banks or debenture holders.
ix. In our opinion and according to the information and explanations given to us, the company did not raise any money by way of initial public offer or further public offer (including debt instruments) or term loans during the year. However, term loans raised in earlier years have been utilised for the purpose for which it was raised.
x. During the course of our examination of books of account carried out in accordance with generally accepted auditing practices in India, we have neither come across any incidence of fraud on or by the Company nor have we been informed of any such cases by the management.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. The Company is not a Nidhi company and hence reporting under paragraph 3(xii) of the Order is not applicable to the Company.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has raised on private placement of Equity Shares by raising INR 25,000.00 lakhs through Qualified Institutions Placement (âQIPâ) by allotting 69,34,812 Equity Shares at a price of INR 360.50 per share. The QIP placement is in compliance with section 42 of the Companies Act, 2013. Further the Company has disclosed the end use of money received from QIP in Note No. 46 of the Ind AS financial statements and the same has been verified by us. Other than this, the company not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information and explanations given to us and as represented to us by the management and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
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 Srikalahasthi Pipes Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control 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. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs 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) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the Ind AS 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, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Lodha & Co
Chartered Accountants
Firmâs ICAI Registration No.:301051E
Place: Chennai R. P. Singh
Date: April 28, 2018 Partner
Membership No: 52438
Mar 31, 2017
INDEPENDENT AUDITOR''S REPORT
To,
The Members of Srikalahasthi Pipes Limited
Report on the Indian Accounting Standards (Ind AS) Financial Statements
We have audited the accompanying Ind AS financial statements of SRIKALAHASTHI PIPES LIMITED ("the Company" or "SPL") which comprise the Balance Sheet as at 31st March 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of cash flows and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information (herein after referred to as "Ind AS Financial Statements").
Management''s Responsibility for the 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 ("the Act") with respect to the preparation of these Ind AS Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making 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 accounting records, relevant to the preparation and presentation of the Ind AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these Ind AS Financial Statements based on our audit. We have taken into account the provisions of the Act, and the Rules made there under including the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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 Ind AS Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS Financial Statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company''s preparation of the Ind AS Financial Statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the Ind AS Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind-AS Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March, 31, 2017, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matter
The financial information of the Company for the year ended March 31, 2016 and the transition date opening balance sheet as at April 1, 2015 included in these Ind AS financial statements, are based on the previously issued statutory financial statements for the years ended March 31, 2016 and March 31, 2015 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by us, on which we expressed an unmodified opinion dated May 9, 2016 and April 30, 2015 respectively.
The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to the Ind AS have been audited by us.
Our opinion is not qualified in respect of this matter. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. the Balance Sheet, Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d. in our opinion, the aforesaid Ind AS Financial Statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with relevant rule issued there under;
e. on the basis of the written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of
Section 164 (2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B"; and
g. with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) the Company has disclosed the impact, if any, of pending litigations as at March 31, 2017 on its financial position in its Ind AS Financial Statementsâ Refer Note 36;
ii) the Company has made provision as at March 31, 2017, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivate contracts â Refer Note 35;
iii) there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
iv) the Company has provided requisite disclosures in its Ind AS Financial Statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November 2016 to 30 December 2016 and these are in accordance with the books of accounts maintained by the Company. Refer Note 46 to the Ind AS Financial Statements.
i) In respect of its Fixed Assets:
a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) As explained to us, the fixed assets have been physically verified by the management during the year as per a detailed program drawn for the said purpose, which in our opinion is reasonable having regard to the size of the Company and nature of its size. In our opinion, the periodicity and procedures of such physical verifications are reasonable having regard to the size of the Company and nature of its assets.
c) The title deeds of immovable properties, as disclosed in Note 5 on Property, Plant and Equipment to the financial statements, are held in the name of the Company, except for two free hold lands having original cost of Rs. 5851.77 lakhs and net book value of Rs. 5851.77 lakhs for which registration is pending in the name of the company, accordingly, title deeds are not available for the same.
ii) The management has conducted physical verification of inventories during the year at reasonable intervals, except the materials in transit/ materials lying with third parties. According to the information and explanations given to us, no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Therefore, the provisions of clause 3(iii), (iii)(a), (iii)(b) and (iii) (c) of the said Order are not applicable to the Company.
(iv) According to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made. However, as per information and explanation given to us, the Company has not given any guarantee or provided security in connection with a loan taken by anybody corporate or person.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the cost records maintained by the Company relating to its products for which maintenance of cost records has been specified by the Central Government under Section 148(1) of the Companies Act, 2013 and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have, however not made a detailed examination of the records with a view to determining whether they are accurate or complete.
(vii) With respect to Statutory Dues:
(a) According to the information and explanations given to us and the records of the Company examined by us, the Company is generally regular in depositing the undisputed statutory dues including provident fund, employees state insurance, income-tax, sales-tax, wealth-tax, service-tax, duty of customs, duty of excise, cess and other material statutory dues as applicable to it, with the appropriate authorities and there were no undisputed statutory dues outstanding as at 31st March, 2017 for a period exceeding six months from the date they became payable.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to banks. The Company has no borrowings from financial institutions, government or by way of debentures.
(b) According to the information and explanations given to us, there are no dues of Wealth tax, Service tax and Cess which have not been deposited on account of any dispute and the following are the details of dues of Sales tax, Income tax and Excise duty that have not been deposited on account of disputed matters pending before appropriate authorities as at 31st March, 2017:
Name of the Statute |
Nature of Dues |
Amount (in Rs. lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
APGST Act, 1957 |
Sales Tax |
67.52* |
1999-00 |
Sales Tax Appellate Tribunal |
-do- |
-do- |
40.51* |
1 999-00 |
-do- |
-do- |
-do- |
194.70* |
2002-03 |
-do- |
APVAT Act, 2005 |
VAT |
35.68 |
2011-12 |
-do- |
-do- |
-do- |
278.43 |
2014-15 |
ADC Kurnool |
Central Sales Tax Act, 1956 |
Sales Tax |
158.71* |
2000-01 |
Sales Tax Appellate Tribunal |
-do- |
-do- |
41.60 |
2000-01 |
High Court of Andhra Pradesh |
-do- |
-do- |
202.99 |
2003-04 |
Sales Tax Appellate Tribunal |
-do- |
-do- |
1 96.24 |
2004-05 |
-do- |
Income Tax Act, 1961 |
Income Tax |
10.87* |
2003-04 |
High Court of Andhra Pradesh |
-do- |
-do- |
1.85 |
2004-05 |
-do- |
Central Excise Act, 1944 |
Central Excise |
3.76 |
2015-16 |
Commissioner Appeals, Guntur |
Karnataka Forest Amendment Act, 2016 |
Forest Development Fee |
780.77 |
2016-17 |
High Court of Karnataka |
*Stay of collection granted for the demands.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. The term loans availed by the Company during the year are applied for the purposes for which they are raised.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3
(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the Ind AS financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Referred to in Paragraph 2(f) under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date to the members of Srikalahasthi Pipes Limited for the year ended March 31, 2017. Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Srikalahasthi Pipes Limited ("the Company") as of March 31, 2017 in conjunction with our audit of the Ind AS Financial Statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' 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 "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India.
Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
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 March 31, 2017, based on "the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For K. R. BAPUJI & Co.
Chartered Accountants
(Firm''s Registration No. 000395S)
P. R. SATISH
Place: Chennai (Partner)
Date: May 12, 2017 (Membership No. 219432)
Mar 31, 2016
To,
The Members of
Srikalahasthi Pipes Limited
Report on the financial Statements
We have audited the accompanying financial statements of Srikalahasthi Pipes Ltd. ("the Company"), which comprise the Balance
Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act")
with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in
India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report
under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial
statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in
order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness
of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the
financial statements.
opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial
statements give the information required by the Act in the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, and its
profit and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("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, a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement
with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as director in terms of Section 164
(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating
effectiveness of such controls, refer to our separate Report in "Annexure B".
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 â Refer Note 28.1 to the financial statements;
ii. The Company has made provision, as required under the applicable law and accounting standards, for material foreseeable
losses, if any, on long-term contracts and the Company is not required to make provision for losses on derivative contracts â
Refer Note 37 to the financial statements;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund
by the Company.
(i) With respect to Fixed Assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets have been physically verified by the management during the year as per a detailed
program drawn for the said purpose, which in our opinion is reasonable having regard to the size of the Company and nature of its
assets. In our opinion, the periodicity and procedures of such physical verifications are reasonable having regard to the size of
the Company and nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company,
the title deeds of immovable properties are held in the name of the Company.
(ii) As explained to us, the management has conducted physical verification of inventories during the year at reasonable
intervals, except the materials in transit/materials lying with third parties. According to the information and explanations
given to us, no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to
companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the
Companies Act, 2013.
(iv) According to the information and explanations given to us, the Company has not given any loans, investments, guarantees, and
security covered under the provisions of section 185 and 186 of the Act, accordingly, clause (iv) of para 3 of the Order is not
applicable to the company.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the cost records maintained by the Company relating to its products for which maintenance of cost
records has been specified by the Central Government under Section 148(1) of the Companies Act, 2013 and are of the opinion that
prima facie, the prescribed accounts and records have been made and maintained. We have, however not made a detailed examination
of the records with a view to determining whether they are accurate or complete.
(vii) With respect to Statutory Dues:
(a) According to the information and explanations given to us and the records of the Company examined by us, the Company is
generally regular in depositing the undisputed statutory dues including provident fund, employees state insurance, income-tax,
sales-tax, wealth-tax, service-tax, duty of customs, duty of excise, cess and other material statutory dues as applicable to it,
with the appropriate authorities and there were no undisputed statutory dues outstanding as at 31st March, 2016 for a period
exceeding six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of Wealth tax, Service tax and Cess which have
not been deposited on account of any dispute and the following are the details of dues of Sales tax, Income tax and Excise duty
that have not been deposited on account of disputed matters pending before appropriate authorities as at 31st March, 2016
Name of the
Statute Nature of Dues Amount Period to which
(in Rs.
lakhs) the amount
relates
APGST Act, 1957 Sales Tax 67.52* 1999-00
-do- -do- 40.51* 1999-00
-do- -do- 194.70* 2002-03
APVAT Act, 2005 Interest
on tax 22.46* 2012-13
-do- VAT 1.37 2013-14
Central Sales
Tax Act, Sales Tax 158.71* 2000-01
1956
-do- -do- 41.60 2000-01
-do- -do- 202.99 2003-04
-do- -do- 196.24 2004-05
-do- -do- 8.50 2011-12
-do- -do- 2.09 2012-13
Income Tax
Act, 1961 Income Tax 10.87* 2003-04
-do- -do- 1.85 2004-05
Central
Excise Act, Central
Excise & 174.75 2007-08 &
2008-09
1944 Interest
Name of the Forum where dispute is pending
Statute
APGST ACT Sales Tax Appellate
1957 Tribunal
-do- -do-
-do- -do-
APVAT Act 2005 ADC(CT)
-do- Sales Tax Appellate Tribunal
Central Sales Tax Sales Tax Appellate Tribunal
Act
-do- High Court of Andhra Pradesh
-do- Sales Tax Appellate Tribunal
-do- -do-
-do- ADC, Kurnool
-do- ADC, Kurnool
Income tax Act 1961 High Court of Andhra Pradesh
-do- -do-
Central excise act 1944 CESTAT, Bangalore
*Stay of collection granted for the demands.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment
of dues to banks. The Co mpany has no borrowings from financial institutions, government or by way of debentures.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and
term loans during the year.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers
or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of
the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals
mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company.
Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company,
transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such
transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the
Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during
the year.
(xv) According to the information and explanations given to us and based on our examination of the
records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him.
Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
We have audited the internal financial controls over financial reporting of Srikalahasthi Pipes Limited ("the Company") as of
March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal
control over financial reporting criteria established by the Company considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including
adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy
and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the
Companies Act, 2013.
Auditors'' 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 "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10)
of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India.
Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained
and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system
over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed
risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the
Company''s internal financial controls system over financial reporting.
Meaning of Internal financial Controls over financial Reporting
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 March 31, 2016, based on
"the internal control over financial reporting criteria established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India.
For K. R. BAPUJI & Co.
Chartered Accountants
(Firm''s Registration No. 000395S)
P. R. SATISH Place: Chennai (Partner)
Date: 09/05/2016 (Membership No. 219432)
Mar 31, 2015
We have audited the accompanying financial statements of SRIKALAHASTHI
PIPES LIMITED ("the Company") which comprise the Balance Sheet as at
31st March 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year ended on that date and a summary of significant
accounting policies and other explanatory information.
management''s responsibility for THE financial STATEMENTS
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including Accounting Standards specified
under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014. This responsibility also includes maintenance
of adequate accounting records in accordance with the provisions of the
Act for safeguarding the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgements and estimates that
are reasonable and prudent; and design, implementation and maintenance
of internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of 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.
auditors'' responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.We have taken into account the provisions
of the Act, the accounting and auditing standards and matters which are
required to be included in the audit report under the provisions of the
Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors'' 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 Company has in place an adequate internal
financial control system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31stMarch, 2015;
ii) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1) As required by the Companies (Auditor''s Report) Order, 2015("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2) As required by Section 143(3) of the Act, we report that:
a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) the Balance Sheet, 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 specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e) on the basis of written representations received from the directors
as on 31stMarch 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31stMarch 2015 from being
appointed as a director in terms of Section 164(2) of the Act; and
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 - Refer Note 27 to the
financial statements;
ii) the Company has made provision, as required under the applicable
law and accounting standards, for material foreseeable losses, if any,
on long-term contracts and the Company is not required to make
provision for losses on derivative contracts - Refer Note 37 to the
financial statements;
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date to the members
of Srikalahasthi pipes Limited for the year ended 31st March, 2015.
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the fixed assets have been physically verified
by the management during the year as per a detailed program drawn for
the said purpose, which in our opinion is reasonable having regard to
the size of the Company and nature of its assets. In our opinion, the
periodicity and procedures of such physical verification is reasonable
having regard to the size of the Company and nature of it assets.
ii) a) As explained to us, the management has conducted physical
verification of inventories during the year at reasonable intervals,
except the materials in transit/ materials lying with third parties.
b) The procedures of physical verification of inventories followed by
the management were reasonable and adequate in relation to the size of
the Company and nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iii) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under section
189 of the Companies Act, 2013.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. We have not observed any major weakness in the internal
control system during the course of the audit.
v) The Company has not accepted any deposits from the public.
vi) We have broadly reviewed the cost records maintained by the Company
relating to its products for which maintenance of cost records has been
specified by the Central Government under Section 148(1) of the
Companies Act, 2013 and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained. We have,
however not made a detailed examination of the records with a view to
determining whether they are accurate or complete.
vii) a) According to the information and explanations given to us and
the records of the Company examined by us, the Company is generally
regular in depositing the undisputed statutory dues including provident
fund, employees state insurance, income-tax, sales-tax, wealth-tax,
service-tax, duty of customs, duty of excise, cess and other material
statutory dues as applicable to it,with the appropriate authorities and
there were no undisputed statutory dues outstanding as at 31stMarch,
2015 for a period exceeding six months from the date they became
payable.
b) According to the information and explanations given to us, there are
no dues of Wealth tax, Service tax and Cess which have not been
deposited on account of any dispute and the following are the details
of dues of Sales tax, Income tax and Excise duty that have not been
deposited on account of disputed matters pending before appropriate
authorities as at 31st March, 2015:
Amount period to
which the
Name of the Nature of Dues (In Rs. amount
Statute lakhs) relates
APGST Act, 1957 Sales Tax 67.52* 1999-00
-do- -do- 40.51* 1999-00
-do- -do- 194.70* 2002-03
-do- -do- 10.59 1999-00
APVAT Act, 2005 Interest on tax 22.46* 2012-13
-do- VAT 27.7C 2005-06 &
2006-07
-do- VAT 19.37 2012-13
Central Sales Tax Act, Sales Tax 158.71* 2000-01
1956
-do- -do- 41.60 2000-01
-do- -do- 202.99 2003-04
-do- -do- 196.24 2004-05
Income Tax Act, 1961 Income Taxt 10.87* 2003-04
-do- -do- 1.85 2004-05
Central Excise Act, Central Excise & 174.75 2007-08 &
1944 Interest 2008-09
Service tax under Service tax 47.47 2012-13
Finance Act, 1994
Forum where the dispute is
Name of the pending
Statute
APGST Act, 1957 Sales Tax Appellate Tribunal
-do- -do-
-do- -do-
-do- High Court of Andhra Pradesh
APVAT Act, 2005 ADC(CT)
-do- ADC(CT)
-do- ADC(CT)
Central Sales Tax Act, Sales Tax Appellate Tribunal
1956
-do- High Court of Andhra Pradesh
-do- Sales Tax Appellate Tribunal
-do- -do-
Income Tax Act, 1961 High Court of Andhra Pradesh
Court
-do- -do
Central Excise Act, CESTAT, Bangalore
1944
Service tax under Commissioner - Appeals
Finance Act, 1994
*Stay of collection granted for the demands.
c) According to the information and explanations given to us, the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 and rules made there under has been transferred to
such fund within time.
viii)The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks. The Company has no borrowings from financial institutions or by
way of debentures.
x) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
xi) In our opinion and according to the information and explanations
given to us, on overall basis, the term loans have been applied for the
purposes for which they were obtained.
xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For K.R. Bapuji & Co.
Chartered Accountants
Firm Registration Number: 000395S
Dheeraj Agarwal
Place : Chennai Partner
Date : 30th April 2015 Membership Number: 219788
Mar 31, 2014
We have audited the accompanying financial statements of Lanco
Industries Limited ("the Company") which comprise the Balance Sheet as
at 31st March 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year ended on that date and a summary of signifcant
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 principles generally accepted in India including
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in
respect of Section 133 of the Companies Act, 2013. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is suffcient and
appropriate to provide a basis for our audit opinion.
opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014 ;
ii) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
report on otHer legal anD regulatory requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004
("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 specifed in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 read with
the General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act,
2013.; and
e) On the basis of written representations received from the directors
as on 31st March 2014, and taken on record by the Board of Directors,
none of the directors is disqualifed as on 31st March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to the independent auditors'' report
Referred to in paragraph 1 under the heading of "report on other legal
and regulatory requirements" of our report of even date to the members
of lanco industries limited for the year ended 31st march, 2014.
i) In respect of its Fixed Assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) As explained to us, the fixed assets have been physically verifed by
the management during the year as per a detailed program drawn for the
said purpose, which in our opinion is reasonable having regard to the
size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verifcation.
c) The fixed assets disposed off during the year do not constitute a
substantial part of the fixed assets, and therefore, there is no affect
on the going concern status of the Company.
ii) In respect of its Inventories:
a) As explained to us, the management has conducted physical
verifcation of inventories during the year, except the materials in
transit/materials lying with third parties. In our opinion, the
frequency of the said verifcation is reasonable.
b) The procedures of physical verifcation of inventories followed by
the management were reasonable and adequate in relation to the size of
the Company and nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material
Discrepancies were noticed on physical verification.
iii) According to the information and explanations given to us, the
Company has neither granted nor taken any loans, secured or unsecured
to /from companies, frms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly,
clauses (iii) (a) to (iii) (g) of paragraph 4 of the Order are not
applicable.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and for the sale of goods and
services. We have not observed any major weakness in the internal
control system during the course of the audit.
v) In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
a) According to the information and explanations given to us, we are of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of the Act have been entered in the register required
to be maintained under that section.
b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements referred to
in v (a) above and the value aggregating to more than Rupees five Lakhs
in respect of each such party, have been made at the prices which are
reasonable having regard to prevailing market prices.
vi) The Company has not accepted any deposits from the public.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii) We have broadly reviewed the books of account maintained by the
Company relating to its products, where, pursuant to the Rules made by
the Central Government of India, the maintenance of cost records has
been prescribed under Section 209(1) (d) of the Companies Act, 1956 and
are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained. We have, however not made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
ix) In respect of statutory dues
a) According to the information and explanations given to us and the
records of the Company examined by us, the Company is generally regular
in depositing the undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income- tax, sales-tax, wealth-tax, service-tax, customs duty, excise
duty, cess and other material statutory dues as applicable, with the
appropriate authorities and there were no undisputed dues outstanding
as at 31st March, 2014 for a period exceeding six months from the date
they became payable.
b) According to the information and explanations given to us, there are
no dues of Wealth tax, Service tax and Cess which have not been
deposited on account of any dispute and the following are the details
of dues of Sales tax, Income tax and Excise duty that have not been
deposited on account of disputed matters pending before appropriate
authorities as at 31st March, 2014:
period to
Nature of amount which the
Name of the statute Dues (rs. in lakhs) amount
relates
Sales Tax
APGST Act, 1957 67.52* 1999-00
-do- -do- 40.51* 1999-00
-do- -do- 194.70* 2002-03
Interest on
APVAT Act, 2005 22.46* 2012-13
tax
Central Sales Tax Act, Sales Tax 158.71* 2000-01
1956
-do- -do- 41.60 2000-01
Income Tax Act, 1961 Income Tax 10.87 2003-04
-do- -do- 1.85 2004-05
Central Excise Act, Central Excise 2007-08 &
174.75
1944 & Interest 2008-09
Name of the Statute Forum where the dispute is pending
APGST Act, 1957 Sales Tax Appellate Tribunal
-do- -do-
-do- -do-
APVAT Act, 2005 ADC (CT)
Central Sales Tax Act, 1956 Sales Tax Appellate Tribunal
-do- High Court of Andhra Pradesh
Income Tax Act, 1961 High Court of Andhra Pradesh
-do- -do-
Central Excise Act, 1944 CESTAT, Bangalore
* Stay of collection granted for the demands.
x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year and
in the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions and banks. The Company did not have outstanding
dues to debenture holders.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund/ nidhi/ mutual benefit fund
/ society.
xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
xv) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
xvi) In our opinion and according to the information and explanations
given to us, on overall basis, the term loans have been applied for the
purposes for which they were obtained.
xvii) According to the information and explanations given to us and on
an overall examination of balance sheet of the Company, funds raised on
short-term basis have not been used for long-term investment.
xviii) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the register
maintained under section 301 of the Act.
xix) During the year, the Company did not have any outstanding
debentures.
xx) The Company has not raised any money through a public issue during
the year.
xxi) During the course of our examination of the books and other
records of the Company carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanations given to us, no instance of fraud on or by the Company
was reported during the year, nor have we been informed of such case by
the management.
For K.R. Bapuji & co.
Chartered Accountants
Firm Registration Number: 000395S
K.R. Bapuji
Place: Chennai Partner
Date: 3rd May 2014 Membership Number: 021169
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of LANCO
INDUSTRIES LIMITED ("the Company") which comprise of the Balance Sheet
as at 31st March, 2013, the Statement of Profit and Loss and the Cash
Flow Statement for the year ended on that date 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 principles generally accepted in India including
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 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 the
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 aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with accounting principles generally
accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2013;
ii) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and iii) in the case of the Cash Flow
Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004
("the Order"), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 oi the Order.
2. As required by Section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books; 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; in our opinion,
c) the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement comply with the Accounting Standards referred in
sub-section (3C) of Section 211 of the Act;
d) on the basis of written representations received from the directors
of the Company as on 31st March, 2013 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March,
2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date.
i) In respect of its fixed Assets
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) As explained to us, the fixed assets have been physically verified
by the management during the year as per a detailed program drawn for
the said purpose, which in our opinion is reasonable having regard to
the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
c) The fixed assets disposed off during the year do not constitute a
substantial part of the fixed assets, and therefore, there is no affect
on the going concern status of the Company.
ii) In respect of its inventories
a) As explained to us, the management has conducted physical
verification of inventories during the year, except the materials in
transit and the materials lying with third parties. In our opinion, the
frequency of the said verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management were reasonable and adequate in relation to the size of
the Company and nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iii) According to the information and explanations given to us, the
Company has neither granted nor taken any loans, secured or unsecured
to /from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly,
clauses (iii)(a) to (iii)(g) of paragraph 4 of the Order are not
applicable.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of the said areas.
v) In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that Section.
b) In our opinion and according to the information and explanations
given to us, there were no transactions made in pursuance of contracts
or arrangements referred to in v(a) above and exceeding the value of
Rupees five lakhs with any such party.
vi) The company has not accepted any deposits from the public.
Therefore, the provisions clause (vi) of paragraph 4 of the Order are
not applicable to the Company.
vii) In our opinion, the Company''s internal audit system is
commensurate with its size and nature of its business.
viii) We have broadly reviewed the books of account maintained by the
Company relating to its products, where, pursuant to the Rules made by
the Central Government of India, the maintenance of cost records has
been prescribed under Section 209(1 )(d) of the Companies Act, 1956 and
are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
ix) In respect of statutory dues
a) According to the information and explanations given to us and the
records of the Company examined by us, the Company is generally regular
in depositing the undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income-tax, sales-tax, wealth-tax, service-tax, customs duty, excise
duty, cess and other material statutory dues as applicable, with the
appropriate authorities and there were no undisputed dues outstanding
as at 31st March, 2013 for a period exceeding six months from the date
they became payable.
b) According to the information and explanations given to us, the
disputed dues of sales tax, income-tax, customs duty, wealth-tax,
excise duty, service-tax and cess, if any, that have not been deposited
on account of disputed matters pending before appropriate authorities
as at 31st March, 2013 are as follows:
Name of the Amount
Nature of dues
Satute (Rs. In lakhs)
APGST Act, 1957 Sales tax 67.52*
-do- -do- 40.51*
-do- -do- 259.59*
APVATAct,2005 Interest on tax 39.30
Central Sales
Tax Sales tax 158.70*
Act, 1956
-do- -do- 41.60
Income Tax
Act, Income tax 10.87
1961
-do- -do- 1.85
Central Excise Central Excise & 8.26
Act, 1944 Interest
Name Period to which Forum where the
the amount
relates dispute ,s pending
APVATAct,2005 1999-00 Sales Tax Appellate Tribunal, A.P.
1999-00 -do-
2002-03 -do-
2012-13 ADC(CT)
Central Sales 2000-01 Sales Tax Appellate Tribunal, A.P.
2000-01 A.P High Court
2003-04 A.P. High Court
2004-05 -do-
Central Sales 2007-08 CESTAT, Bangalore
*Stay of collection granted for the demands.
x) The Company''s accumulated losses at the end of the financial year
are less than fifty percent of its net worth but it has not incurred
cash losses in the current and immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions and banks. The Company did not have outstanding
dues to debenture holders.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable.
xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments. Therefore, the provisions
of clause (xiv) of paragraph 4 of the Order are not applicable.
xv) According to the information and explanations given to us, the
Company has not given guarantees for loans taken by others from Banks
or Financial Institutions.
xvi) In our opinion and according to the information and explanations
given to us, on overall basis, the term loans have been applied for the
purposes for which they were obtained.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance sheet of the Company, we report
that the Company has used short term funds to the extent of Rs. 3655.11
lakhs for long term investment towards capital works.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) During the year, the Company has not made any issue of debentures.
Accordingly, clause (xix) of paragraph 4 of the Order is not
applicable.
xx) The Company has not raised any money through a public issue during
the year. Accordingly, the provisions of clause (xx) of paragraph 4 of
the Order are not applicable.
xxi) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
For K.R. Bapuji & Co.
Chartered Accountants
Firm Registration No. 000395S
K.R. Bapuji
Place: Chennai Partner
Date: 6th May, 2013 Membership No. 021169
Mar 31, 2012
1. We have audited the attached Balance Sheet of LANCO INDUSTRIES
LIMITED ("the Company") as at 31st March, 2012 and also the Statement
of Profit and Loss and the Cash Flow Statement for the year ended on
that date and Summary of significant accounting policies and other
explanatory information annexed thereto. These financial statements are
the responsibility of the Company's management. Our responsibility is
to express an opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (CARO)
(as amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956 and on the
basis of such examination of the books and records of the Company as we
considered appropriate and the information and explanations given to us
during the course of the audit, we enclose in the Annexure a statement
on the matters specified in the paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d) in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred in sub-section (3C) of Section 211 of the
Companies Act, 1956;
e) on the basis of written representations received from the Directors
of the company as on 31st March, 2012 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March, 2012
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and Other Notes (Note No. 1 to 43) give
the information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
ii) in the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the fixed assets have been physically verified
by the management during the year as per a detailed program drawn for
the said purpose, which in our opinion is reasonable having regard to
the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
c) The fixed assets disposed off during the year do not constitute a
substantial part of the fixed assets, and therefore, there is no affect
on the going concern status of the Company.
ii) a) As explained to us, the management has conducted physical
verification of inventories during the year, except the materials in
transit and the materials lying with third parties. In our opinion, the
frequency of the said verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management were reasonable and adequate in relation to the size of
the Company and nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iii) According to the information and explanations given to us, the
company has neither granted nor taken any loans, secured or unsecured
to /from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly,
clauses (iii)(a) to (iii)(g) of paragraph 4 of CARO are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of the said areas.
v) a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that Section.
b) In our opinion and according to the information and explanations
given to us, there were no transactions made in pursuance of contracts
or arrangements referred to in v(a) above and exceeding the value of
Rupees five Lakhs with any such party.
vi) The company has not accepted any deposits from public covered under
Sections 58A, 58AA or any other relevant provisions of the Companies
Act, 1956 and Rules framed there under.
vii) In our opinion, the Company's internal audit system is
commensurate with its size and nature of its business.
viii) We have broadly reviewed the books of account maintained by the
Company relating to its products, where, pursuant to the Rules made by
the Central Government of India, the maintenance of cost records has
been prescribed under Section 209(1)(d) of the Companies Act, 1956 and
are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
ix) a) According to the information and explanations given to us and
the records of the Company examined by us, the Company is generally
regular in depositing the undisputed statutory dues including provident
fund, investor education and protection fund, employees state
insurance, income-tax, sales-tax, wealth-tax, service- tax, customs
duty, excise duty, cess and other material statutory dues as applicable
with the appropriate authorities and there were no undisputed dues
outstanding as at 31st March, 2012 for a period exceeding six months
from the date they became payable.
b) According to the information and explanations given to us, the
disputed dues of sales tax, income-tax, customs duty, wealth-tax,
excise duty, service-tax and cess, if any, that have not been deposited
on account of disputed matters pending before appropriate authorities
as at 31st March, 2012 are as follows:
Name of the Amount Period to which Forum where the
Nature of
dues the amount
statute (Rs. In
Lakhs) dispute is
pending
relates
APGST Act,
1957 Sales tax 67.52* 2002-03 Sales Tax
Appellate
Tribunal, A.P.
40.51* 1999-00 -do-
259.59* 1999-00 -do-
Central
Sales Tax Sales tax 158.70* 2000-01 Sales Tax
Appellate
Tribunal, A.P.
Act, 1956
Income tax
Act, Income tax 10.87 2003-04 A.P. High Court
1961 1.85 2004-05 -do-
Central
Excise Central
Excise & 8.26 2007-08 CESTAT, Bangalore.
Act,1944 Interest
* Stay of collection granted for the demands.
x) The Company has no accumulated losses as at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions and banks. The Company did not have outstanding
dues to debenture holders.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause (xiii) of
paragraph 4 of CARO are not applicable.
xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments. Therefore, the provisions
of clause (xiv) of paragraph 4 of CARO are not applicable.
xv) According to the information and explanations given to us, the
Company has not given guarantees for loans taken by others from Banks
or Financial Institutions.
xvi) In our opinion and according to the information and explanations
given to us, on overall basis, the term loans have been applied for the
purposes for which they were obtained.
xvii) Based on the information and explanations given to us and on an
overall examination of the cash flow statement and the Balance Sheet of
the Company, in our opinion, the funds raised by the Company on short
term basis have prima facie not been used for long term investment.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) During the year, the Company has not made any issue of debentures.
Accordingly, clause (xix) of paragraph 4 of CARO is not applicable.
xx) The Company has not raised any money through a public issue during
the year. Accordingly, the provisions of clause (xx) of paragraph 4 of
CARO are not applicable.
xxi) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
For K.R. Bapuji & Co.
Chartered Accountants
Firm Registration No. 000395S
K.R. Bapuji
Place: Chennai Partner
Date: 27th April, 2012 Membership No. 021169
Mar 31, 2011
1. We have audited the attached Balance Sheet of Lanco Industries
Limited ("the CompanyÃ) as at 31st March, 2011 and also the Proft and
Loss Account and the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and Significant estimates made
by the management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (CARO)
(as amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956 and on the
basis of such examination of the books and records of the Company as we
considered appropriate and the information and explanations given to us
during the course of the audit, we enclose in the Annexure a statement
on the matters specifed in the paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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
those books;
c) the Balance Sheet, the Proft and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, the Proft and Loss Account and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred in sub-section (3C) of Section 211 of the
Companies Act, 1956;
e) on the basis of written representations received from the Directors
of the Company as on 31st March, 2011 taken on record by the Board of
Directors, none of the Directors is disqualifed as on 31st March, 2011
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Notes as per Schedule 17, give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
ii) in the case of the Proft and Loss Account, of the proft of the
Company for the year ended on that date;
and iii) in the case of the Cash Flow Statement, of the cash fows of
the Company for the year ended on that date.
annexure to auditors report re: Lanco industries Limited
(Referred to in paragraph 3 of our report of even date)
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fxed
assets.
b) As explained to us, the fxed assets have been physically verifed by
the management during the year as per a detailed program drawn for the
said purpose, which in our opinion is reasonable having regard to the
size of the Company and nature of its assets. No material discrepancies
were noticed on such physical verifcation.
c) The fxed assets disposed off during the year, in our opinion, do not
constitute as substantial part of the fxed assets of the Company and
such disposal, in our opinion, has not affected the going concern
status of the Company.
ii) a) As explained to us, the management has conducted physical
verifcation of inventories during the year, except the materials in
transit and the materials lying with third parties. In our opinion, the
frequency of the said verifcation is reasonable.
b) The procedures of physical verifcation of inventories followed by
the management were reasonable and adequate in relation to the size of
the Company and nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verifcation.
iii) According to the information and explanations given to us, the
company has neither granted nor taken any loans, secured or unsecured
to / from companies, frms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly,
clauses (iii)(a) to (iii)(g) of paragraph 4 of CARO are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business, for the
purchase of inventory, fxed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of the said areas.
v) a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that Section.
b) In our opinion and according to the information and explanations
given to us, there were no transactions made in pursuance of contracts
or arrangements referred to in v(a) above and exceeding the value of
Rupees fve lakhs with any such party.
vi) The company has not accepted any deposits from public covered under
Sections 58A, 58AA or any other relevant provisions of the Companies
Act, 1956 and Rules framed there under.
vii) In our opinion, the Companys internal audit system is
commensurate with its size and nature of its business.
viii) We have broadly reviewed the books of account maintained by the
Company relating to the products, where, pursuant to the Rules made by
the Central Government of India, the maintenance of cost records has
been prescribed under Section 209(1)(d) of the Companies Act, 1956 and
are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
ix) a) According to the information and explanations given to us and
the records of the Company examined by us, the Company is generally
regular in depositing the undisputed statutory dues including provident
fund, investor education and protection fund, employees state
insurance, income-tax, sales-tax, wealth-tax, service-tax, customs
duty, excise duty, cess and other material statutory dues as applicable
with the appropriate authorities and there were no undisputed dues
outstanding as at 31st March, 2011 for a period exceeding six months
from the date they became payable.
b) According to the information and explanations given to us, the
disputed dues of sales tax, income-tax, customs duty, wealth-tax,
excise duty, service-tax and cess, if any, that have not been deposited
on account of disputed matters pending before appropriate authorities
as at 31st March, 2011 are as follows:
amount
Sl. nature of period to which it forum where
the
name of the
Statute (rs. in
no. dues relates dispute is
pending
lakhs)
1. Central Sales
Tax Sales tax 308.85 2000-01 A.P. Sales Tax
Appellate Tribunal
Act, 1956 47.70 2005-06
2. APGST Act,
1957 -do- 67.52 2002-03 Sales Tax Appellate
Tribunal
3. Income tax
Act 1961 Income-tax 56.11 2003-04 A.P. High Court
3.65 2004-05 -do-
0.14 2006-07 Commissioner of
Income tax
(Appeals)
4. Central
Excise Act, Central
Excise 17.38 2005-06 Commissioner
(Appeals) 1944
Duty/
Interest
8.26 2007-08 CESTAT
x) The Company has no accumulated losses as at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions and banks or debenture holders.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
beneft fund/society. Therefore, the provisions of clause (xiii) of
paragraph 4 of CARO are not applicable.
xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments. Therefore, the provisions
of clause (xiv) of paragraph 4 of the CARO are not applicable.
xv) According to the information and explanations given to us, the
Company has not given guarantees for loans taken by others from Banks
or Financial Institutions.
xvi) In our opinion and according to the information and explanations
given to us, on overall basis, the term loans have been applied for the
purposes for which they were obtained.
xvii) Based on the information and explanations given to us and on an
overall examination of the cash fow statement and the Balance Sheet of
the Company, in our opinion, the funds raised by the Company on short
term basis have prima facie not been used for long term investment.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) During the year, the Company has not made fresh issue of
debentures. Accordingly, clause (xix) of paragraph 4 of CARO is not
applicable.
xx) The Company has not raised any money through a public issue during
the year. Accordingly, the provisions of clause (xx) of paragraph 4 of
the CARO are not applicable.
xxi) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
For K.r. Bapuji & co.
Chartered Accountants
Firm Registration No. 000395S
Dheeraj agarwal
Place: Chennai Partner
Date: 7th May, 2011 Membership No. 219788
Mar 31, 2010
1. We have audited the attached Balance Sheet of Lanco Industries
Limited ("the Company") as at 31st March, 2010 and also the Profit and
Loss Account and the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956 (hereinafter
referred to as the said Order) and on the basis of such examination
of the books and records of the Company as we considered appropriate
and the information and explanations given to us during the course of
the audit, we enclose in the Annexure a statement on the matters
specified in the paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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
those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred in sub-section (3C) of Section 211 of the Companies
Act, 1956;
e) On the basis of written representations received from the directors
of the Company and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31st March, 2010 from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
f) Subject to Note No. 4 of Schedule 17 i.e. provision for commission
payable to the Managing Director aggregating to Rs. 200 lakhs, pending
approval of the Company in general meeting, in our opinion and to the
best of our information and according to the explanations given to us,
the said accounts read together with the Significant Accounting
Policies and other notes thereon, give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010,
ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT Re: Lanco Industries Limited (Referred to
in paragraph 3 of our report of even date)
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the fixed assets have been physically verified
by the management during the year as per a detailed program drawn for
the said purpose, which in our opinion is reasonable having regard to
the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
c) No substantial part of the fixed assets of the Company has been
disposed off during the year.
ii) a) As explained to us, the management has conducted physical
verification of inventories during the year, except the materials lying
with third parties. In our opinion, the frequency of the said
verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management were reasonable and adequate in relation to the size of
the Company and nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of inventories.
The discrepancies noticed on physical verification of inventories as
compared to book records were not material.
iii) a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Accordingly, clause (b), (c) and (d) of
paragraph 4 of the Order are not applicable.
b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured from companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Accordingly, clause (f) and (g) of
paragraph 4 of the Order are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of the said areas.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in internal control system of the
Company.
v) (a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that Section.
b) In our opinion and according to the information and explanations
given to us, there were no transactions made in pursuance of contracts
or arrangements referred to in v(a) above and exceeding the value of
Rupees five lakhs with any such party.
vi) The Company has not accepted any deposits from public covered under
Sections 58A, 58AA or any other relevant provisions of the Companies
Act, 1956 and Rules framed thereunder.
vii) In our opinion, the Companys internal audit system is
commensurate with its size and nature of its business.
viii) We have broadly reviewed the books of account maintained by the
Company relating to the products, where, pursuant to the Rules made by
the Central Government of India, the maintenance of cost records has
been prescribed under Section 209(1 )(d) of the Companies Act, 1956 and
are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
ix) a) According to the information and explanations given to us and
the records of the Company examined by us, the Company is generally
regular in depositing the undisputed statutory dues including provident
fund, investor education and protection fund, employees state
insurance, income-tax, sales-tax, wealth-tax, service-tax, customs
duty, excise duty, cess and other material statutory dues as applicable
with the appropriate authorities and there were no undisputed dues
outstanding as at 31st March, 2010 for a period exceeding six months
from the date they became payable.
b) According to the information and explanations given to us, the
disputed dues of sales tax, income-tax, customs duty, wealth-tax,
excise duty, service-tax and cess, if any, that have not been deposited
on account of disputed matters pending before appropriate authorities
as at 31st March, 2010 are as follows:
Sl. Nature of Amount Period to which it
Name of the Statute (Rs. in
No. dues relates
lakhs)
1. Central Sales Tax Sales tax 97.61 1999-00
Act, 1956 47.70 2005-06
2. APGST Act, 1957 -do- 67.52 2002-03
3. Income-tax Act 1961 Income-tax 56.11 2003-04
3.65 2004-05
0.14 2006-07
4. Central Excise Act, Central Excise17.00 2005-06
1944 Duty/Interest 43.00 2006-07 to
2008-09
16.50 2007-08
Name of the Statue Forum where the
dispute is pending
Central Sales Tax
Act, 1956 Sales Tax Appellate Tribunal
APGST Act, 1957 Sales Tax Appellate Tribunal
Income-tax Act 1961 Income Tax Appellate Tribunal
-do-
Commissioner of Income-tax (Appeals)
Central Excise Act,
1944 Commissioner (Appeals)
-do-
CESTAT
x) The Company has no accumulated losses as at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions and banks or debenture holders.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments. Therefore, the provisions
of clause (xiv) of paragraph 4 of the Order are not applicable to the
Company.
xv) According to the information and explanations given to us, the
Company has not given guarantees for loans taken by others from Banks
or Financial Institutions.
xvi) In our opinion and according to the information and explanations
given to us, on overall basis, the term loans have been applied for the
purposes for which they were obtained.
xvii) Based on the information and explanations given to us and on an
overall examination of the cash flow statement and the Balance Sheet of
the Company, in our opinion, the funds raised by the Company on short
term basis have prima facie not been used for long term investment.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) According to the information and explanations given to us, during
the year, the Company has fully redeemed the secured debentures and
there was no fresh issue of debentures during the year. Accordingly,
the provisions of clause (xix) of paragraph 4 of the Order are not
applicable to the Company.
xx) The Company has not raised any money through a public issue during
the year. Accordingly, the provisions of clause (xx) of paragraph 4 of
the Order are not applicable to the Company.
xxi) Based on the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For K.R. Bapuji & Co.
Firm Registration No. 000395S
Chartered Accountants
K.R. Bapuji
Place: Chennai Partner
Date: 28th April, 2010 Membership No. 21169