Mar 31, 2018
INDEPENDENT AUDITORâS REPORT
To The Members of
SUDITI INDUSTRIES LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of SUDITI INDUSTRIES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement, the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, the financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (âInd ASâ) specified under Section 133 of the Act, read with Rulesmade thereunder. 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Ind AS specified under Section 133 of the Act, of the state of affairs (financial position) of the Company as at 31stMarch, 2018, the âprofitâ (financial performance including other comprehensive income), itâs cash flows and the changes in equity for the year ended on that date.
Other Matters
The Company had prepared separate sets of standalone financial statements for the year ended 31st March 2016 and 31st March 2017 in accordance with Accounting Standards prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) and other accounting principles generally accepted in India, which were audited by the predecessor auditor whose report dated May 29, 2017 expressed an unmodified opinion. These standalone financial statements have been adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have been audited by us. Our opinion is not modified in respect of this matter. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016, issued by the Central Government of India in terms of subsection (11) of Section 143 of the Act, (hereinafter referred to as the âOrderâ) and on the basis of such checks of the books of accounts 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 hereto, a statement on the matters specified in the paragraphs 3 and 4 of the said Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone 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 31st March,2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial control 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 Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Companyâs pending litigation comprise of proceedings pending with Sales Tax Authorities. The Company has reviewed all its pending litigations and proceedings and disclosed the contingent liabilities in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial position. (refer Note No:48.1 for details on contingent liabilities)
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
ANNEXURE A TO THE INDEPENDENT AUDITORSâ REPORT
The Annexure referred to in our Independent Auditorsâ Report to the members of Suditi Industries Limited (âthe Companyâ) for the year ended March 31, 2018, we report that:
1) a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets except for assets under installation.
b. All the fixed assets have not been physically verified by the management during the year but there is a regular program of verification 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 verification.
c. According to the information & explanation given to us and on the basis of our verification, title deeds of all immovable properties are held in the name of the Company.
2) As explained to us, the inventories of the company have been physically verified during the year by the management and no material discrepancies were noticed on such verification as compared to book records. In our opinion, the frequency of verification is reasonable.
3) According to the information & 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. In view of the foregoing, the provisions of clause 3 (iii) (a), (b) and (c) of the said order are not applicable.
4) The Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of investments and has not provided any loans, guarantees, and security as per the provisions of section 185 and 186 of the Companies Act, 2013.
5) During the year, the Company has not accepted any deposits from the Public within the meaning of Sections 73 to 76 of the Companies Act, 2013 and the rules framed there under as also the directives issued by the Reserve Bank of India. The Company has complied with the applicable statutory provisions. The Company has not received any order passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal.
6) Provisions of Section 148 on Maintenance of Cost Records do not apply to the Company since the prescribed limits have not been crossed for the applicability of cost audit & maintenance of Cost Records.
7) 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 undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities. There were no dues outstanding as on the last day of the financial year for a period of more than six months from the date they became payable.
b. According to the books of accounts and records as produced and examined by us in accordance with the generally accepted auditing practices in India, as at 31st March 2018, the following are the particulars of dues that have not been deposited on account of dispute:
Name of the Statute |
Name of dues |
Amount (Rs. in lacs) |
Forum where dispute is pending |
Financial year to which the amount relates |
|
B.S.T. ACT, 1959 |
BST |
51.01 |
Asst. Commissioner, Sales Tax, |
1996-97 |
|
C.S.T ACT,1956 |
CST |
14.16 |
Asst. Commissioner, Sales Tax, |
1996-97 |
|
MVAT ACT, 2002 |
VAT |
110.77 |
Deputy Commissioner of Sales Tax |
2005-06 |
|
MVAT ACT, 2002 |
VAT |
19.98 |
Deputy Commissioner of Sales Tax |
2009-10 |
|
C.S.T ACT,1956 |
CST |
37.15 |
Deputy Commissioner of Sales Tax |
2009-10 |
|
C.S.T ACT,1956 |
CST |
43.71 |
Deputy Commissioner of Sales Tax |
2010-11 |
|
MVAT ACT,2002 |
VAT |
5.90 |
Deputy Commissioner of Sales Tax |
2011-12 |
|
C.S.T ACT,1956 |
CST |
30.32 |
Deputy Commissioner of Sales Tax |
2011-12 |
|
MVAT ACT,2002 |
VAT |
78.54 |
Deputy Commissioner of Sales Tax |
2012-13 |
|
C.S.T ACT,1956 |
CST |
16.60 |
Deputy Commissioner of Sales Tax |
2012-13 |
|
MVAT ACT,2002 |
VAT |
10.85 |
Deputy Commissioner of Sales Tax |
2013-14 |
|
C.S.T ACT,1956 |
CST |
26.18 |
Deputy Commissioner of Sales Tax |
2013-14 |
8) Based on our audit procedures and according to the information and explanations given to us, we are of the
opinion that the Company has not defaulted in repayment of loans or borrowings to financial institution, bank, Government or debenture holders.
9) According to the information and explanations given to us and based on the records and documents produced before us, in our opinion, the term loans have been applied for the purposes for which they were obtained. During the year, the Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments).
10) During the course of our examination of the books of accounts and records of the Company, carried out by us in accordance with the generally accepted auditing practices in India, we have neither come across any instance of fraud on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of such case by the management.
11) According to the information and explanations given to us and based on the records and documents produced before us, managerial remuneration has been paid by the Company in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
12) The Company is not a Nidhi Company and in view of the foregoing, the question of reporting on Clause 3 (xii) of the said order does not arise.
13) According to the information & explanations given to us, transactions with related parties are in compliance with sections 177 and 188 of Companies Act, 2013 and the details have been disclosed in the standalone Financial Statements, as required by the applicable Ind AS.Refer note no.45.1 in standalone financial statements for details.
14) According to the information and explanations given to us and based on the records and documents produced before us, the company has not made any preferential allotment or private placement. However, during the year. the Company has issued three unsecured fully convertible debentures (FCDs) at a price of Rs. 150 lakhs per FCD having face value of Rs. 150 lakhs carrying NIL coupon rate each fully paid up aggregating Rs. 450 lakhs by way of a preferential allotment on private placement basis to HT Media Limited (other than promoter or promoter group). The FCDs shall be converted into equity shares at the end of 18 months from the date of allotment (20th March 2018) at a price computed in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.
15) As per the information & explanations given to us, the company has not entered into any non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable.
16) As per the information & explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Suditi Industries Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone 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 âinternal 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 Indiaâ. 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) 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 auditorâs judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 standalone 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 companyâs assets that could have a material effect on the standalone 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, 2018, based on âthe 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 Indiaâ.
For Chaturvedi & Partners
Chartered Accountants
(Firm Registration No.: 307068E)
(Khyati M Shah) Partner
Membership No. 117510
Place : Mumbai
Date: May 30, 2018
Mar 31, 2016
SUDITI INDUSTRIES LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of SUDITI INDUSTRIES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, the financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31stMarch, 2016, the âprofitâ and cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016, issued by the Central Government of India in terms of subsection (11) of Section 143 of the Act, (hereinafter referred to as the âOrderâ) and on the basis of such checks of the books of accounts 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 hereto, a statement on the matters specified in the paragraphs 3 and
4 of the said Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone 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 a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial control 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 Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Companyâs pending litigation comprise of proceedings pending with Sales Tax Authorities. The Company has reviewed all its pending litigations and proceedings and disclosed the contingent liabilities in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial position. (refer Note No:46 for details on contingent liabilities)
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
The Annexure referred to in our Independent Auditorsâ Report to the members of Suditi Industries Limited (âthe Companyâ) for the year ended March 31, 2016, we report that:
1) a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets except for assets under installation.
b. All the fixed assets have not been physically verified by the management during the year but there is a regular program of verification 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 verification.
c. According to the information & explanation given to us and on the basis of our verification, title deeds of all immovable properties are held in the name of the Company.
2) As explained to us, the inventories of the company have been physically verified during the year by the management and no material discrepancies were noticed on such verification as compared to book records. In our opinion, the frequency of verification is reasonable.
3) According to the information & 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. In view of the foregoing, the provisions of clause 3 (iii) (a), (b) and (c) of the said order are not applicable.
4) The Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of investments and has not provided any loans, guarantees, and security as per the provisions of section 185 and 186 of the Companies Act, 2013.
5) During the year, the Company has not accepted any deposits from the Public within the meaning of Sections 73 to 76 of the Companies Act, 2013 and the rules framed there under as also the directives issued by the Reserve Bank of India. The Company has complied with the applicable statutory provisions. The Company has not received any order passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal.
6) We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the Rules made by the Central Government, the maintenance of cost records has been prescribed under section 148(1) of the Act, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determining whether they are accurate or complete.
7) 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 undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities. However, during the year there have been occasional delays in depositing Provident Fund, Service Tax & Sales Tax but there were no dues outstanding as on the last day of the financial year for a period of more than six months from the date they became payable.
b. According to the books of accounts and records as produced and examined by us in accordance with the generally accepted auditing practices in India, as at 31st
March 2016, the following are the particulars of dues that have not been deposited on account of dispute:
Name of the Statute |
Name of dues |
Amount (Rs. in lacs) |
Forum where dispute is pending |
|
Sales Tax |
Demand raised |
Asstt. |
||
as per assessment |
Commissioner |
|||
order forâ1996-97, |
65.18 |
of Sales Tax, |
||
1997-98 |
14.88 |
(Appeals), |
||
& revised |
Mumbai STAT |
|||
order for 1998-99 |
80.23 |
(Appeals) |
8) Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of loans or borrowings to financial institution, bank or Government. The Company did not have any debentures outstanding during the year.
9) According to the information and explanations given to us and based on the records and documents produced before us, in our opinion, the terms loans have been applied for the purposes for which they were obtained. During the year, the Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments).
10) During the course of our examination of the books of accounts and records of the Company, carried out by us in accordance with the generally accepted auditing practices in India, we have neither come across any instance of fraud on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of such case by the management.
11) According to the information and explanations given to us and based on the records and documents produced before us, managerial remuneration has been paid by the Company in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
12) The Company is not a Nidhi Company and in view of the foregoing, the question of reporting on Clause 3 (xii) of the said order does not arise.
13) According to the information & explanations given to us, transactions with related parties are in compliance with sections 177 and 188 of Companies Act, 2013 and the details have been disclosed in the standalone Financial Statements, as required by the applicable accounting standards. Refer note no. 43 in standalone financial statements for details.
14) According to the information and explanations given to us and based on the records and documents produced before us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15) As per the information & explanations given to us, the company has not entered into any non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable.
16) As per the information & explanations given to us, 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 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 Suditi Industries Limited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone 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 âinternal 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 Indiaâ. 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) 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 auditorâs judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 standalone 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 companyâs assets that could have a material effect on the standalone 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 âthe 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 Indiaâ.
For Chaturvedi & Co.
Chartered Accountants
(Firm Registration No.: 302137E)
(S.N. Chaturvedi)
Partner
(Membership No.: 040479)
Place : Mumbai
Date: May 30, 2016
Mar 31, 2015
We have audited the accompanying financial statements of Suditi
Industries 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 then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these 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, but not for
the purpose of expressing an opinion on whether the Company has
in place an adequate internal financial controls system over financial
reporting and the operating effectiveness of such controls. An
audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates
made by the Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, 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, 2015 in
supersession of the Companies (Auditor's Report) Order, 20O3, ("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
hereto, a statement on the matters specified in the paragraphs 3 and 4
of the said Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company's pending litigation comprise of proceedings pending
with Sales Tax Authorities. The Company has reviewed all its pending
litigations and proceedings and disclosed the contingent liabilities in
its financial statements. The Company does not expect the outcome of
these proceedings to have a material impact on its financial position
(Refer Note no. 46 for details on contingent liabilities).
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in our report to the members of Suditi
Industries Limited ("the Company") for the year ended 31st March, 2015.
We report that:
1) In respect of Fixed Assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets except for
the assets under installation.
b) All the assets have not been physically verified by the management
during the year but there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
2) In respect of Inventories:
a) As explained to us the inventories of the company have been
physically verified during the year by the management. In our opinion,
the frequency of verification is reasonable.
b) In our opinion and according to information and explanations given
to us, the physical verification of inventories followed by management
is reasonable and adequate in relation to the size of the Company and
nature of its business.
c) According to the information and explanations given to us, the
Company has maintained proper records of inventories. As explained to
us, there were no material discrepancies noticed on physical
verification of inventories as compared to book records.
3) The Company has neither granted any loans to, nor taken any loans
from, companies, firms or other parties covered in the register
maintained under section 189 of the Comp a n i e s Act, 2013. In view
of the foregoing, the question of reporting on Clause 3 (iii) of the
said order does not arise.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of fixed assets and with regard to
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
5) The Company has not accepted deposits from the Public within the
meaning of Sections 73 to 76 of the Companies Act, 2013 and the rules
framed there under.
6) We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 148(1) of the
Companies Act, 2013 and are of the opinion that, prima facie, the
prescribed cost records have been maintained. However, we are not
required to and have not carried out any detailed examination of such
accounts and records.
7) a) According to the books of account and records as
produced and examined by us in accordance with the generally accepted
auditing practice in India, in our opinion, there have been occasional
delays in depositing Profession Tax, Service Tax and TDS. However,
there were no dues outstanding at the year end. Other statutory dues as
applicable have been deposited in time with the appropriate
authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
wealth tax, service tax, customs duty, value added tax, cess and other
material statutory dues
were in arrears as at 31st March, 2015 for a period of six months from
the date they became payable.
b) According to the books of accounts and records as produced and
examined by us in accordance with the generally accepted auditing
practices in India, as at 31st March 2015, the following are the
particulars of dues that have not been deposited on account of any
dispute.
Name of Nature of Amount Forum where
the Statute Dues (Rs. in lacs) dispute is pending
Demand raised
as per
Assessment Asst. Commissioner,
Sales Tax Order - Sales Tax,
1997-98 14.88 (Appeals) Mumbai
1996-97 65.18 STAT (Appeals)
Revised order
for - 1998-99 80.23
c) According to the information and explanation given to us, there were
no amounts required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder.
8) The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
9) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and banks.
The Company did not have any Debentures outstanding during the year.
10) According to the information and explanations given to us, the
Company has not given guarantees for loans taken by others from Banks &
Financial Institutions. Hence, in our opinion, clause (x) of paragraph
3 of the Companies (Auditors Report) Order, 2015 is not applicable to
the Company.
11) During the current year, the Company had taken a further
disbursement amounting to Rs. 9.12 lakhs out of a previously sanctioned
term loan of Rs. 37.50 lakhs. On the basis of the records examined by
us and according to the information and explanation given to us, the
said proceeds were utilized for the purpose for which the loan was
obtained. Further, during the year the Company has paid interest and
installments as per sanction terms.
12) During the course of our examination of the books of accounts and
records of the Company, carried out by us in accordance with the
generally accepted auditing practices in India, we have neither come
across any instance of fraud on or by the Company, noticed or reported
during the year, nor have we been informed of such case by the
management.
For CHATURVEDI & CO.
Chartered Accountants
( Firm Registration No.: 302137E)
(S N Chaturvedi)
Partner
(Membership No.: 040479)
Place: Mumbai
Date: May 29, 2015
Mar 31, 2014
We have audited the accompanying financial statements of ''Suditi
Industries Limited'' ("the Company") which comprises the Balance
Sheet as at March 31,2014, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s 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 notified under the Companies Act, 1956
("the Act") read with the General Circular 15/2013 dated 13th
September 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity''s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
b) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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 Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act, 1956 read with the General Circular
15/ 2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act, 2013;
e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
The Annexure referred to in our report to the members of Suditi
Industries Limited ("the Company") for the year ended 31st March,
2014. We report that:
1) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets except for the assets under installation.
b) All the assets have not been physically verified by the management
during the year but there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
c) As the assets disposed during the year are not very significant, it
does not have any bearing on the going concern assumption followed by
the company.
2) a) The inventory has been physically verified by the management at
reasonable intervals during the year.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company is maintaining proper records of inventory. No material
discrepancies have been noticed on physical verification of stocks as
compared to book records.
3) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms, or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems 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.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control system.
5) 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 Companies Act, 1956 have
been entered in the register required to be maintained under that
section.
b) As regards transactions made in pursuance of contracts or
arrangement entered into the registers maintained under Section 301 and
exceeding the value of rupees five lac in respect of any party during
the year, in our opinion and according to the information and
explanation given to us, have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6) The company has not accepted any deposits during the year from the
public within the meaning of the provisions of section 58A and 58AA or
any other relevant provisions of the Companies Act, 1956 and rules
framed thereunder.
7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8) 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 209 (1) (d) of the Companies
Act, 1956. We are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9) a) According to the books of account and records as produced and
examined by us in accordance with the generally accepted auditing
practice in India, in our opinion, there have been occasional delays
in depositing Profession Tax, Employees State Insurance and Income
Tax. However, there were no dues outstanding at the year end. Other
statutory dues as applicable have been deposited in time with the
appropriate authorities.
b) According to the books of accounts and records as produced and
examined by us in accordance with the generally accepted auditing
practices in India, as at 31st March, 2014, the following are the
particulars of dues that have not been deposited on account of any
dispute.
Name of Nature of Dues Amount Forum where
the Statute (Rs.in lacs) dispute is pending
Sales Tax Demand raised as per
Assessment Order - Asst. Commissioner
1997- 98 14.88 Sales Tax,
1996-97 65.18 (Appeals) Mumbai
Revised order for - STAT (Appeals)
1998- 99 80.23
10) The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11) According to the records examined by us and the information and
explanation given to us, the company has not defaulted in repayment of
dues to any financial institution or Bank as at the Balance Sheet date.
12) 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.
13) In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to
the company.
14) In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the Company.
15) 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.
16) On the basis of the records examined by us and according to the
information and explanation given to us, the Company had received a
sanction for Term loan- II of Rs. 37.50 lakhs and had taken a
disbursement of Rs.4.62 lakhs in the previous year. During the current
financial year, a further disbursement of Rs. 1.49 lakhs has been taken
and utilized for the purposes for which it was obtained. Further,
during the year the Company has paid interest and installments as per
sanction terms.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report
that, prima facie, no funds raised on short-term basis have been used
for long-term investment.
18) During the year the company has not made preferential allotment of
shares to parties and companies covered in the register maintained
under section 301 of the Act.
19) During the period covered under audit, the company has not issued
any debentures.
20) During the year 2012-13, the Company had raised monies by way of
Rights issue of equity shares. The management has disclosed the end use
of monies raised by way of Rights issue of equity shares to the
existing shareholders in note no. 3(e). We have verified the said
disclosure.
21) During the course of our examination of the books and records of
the company, carried out in accordance with generally accepted auditing
practices in India and according to the information and explanation
given to us, we have neither come across any instance of fraud or by
the company, noticed or reported during the year, nor have we been
informed of such case by the management.
For CHATURVEDI & CO.
Chartered Accountants
(Registration No.302137E)
(S.N.Chaturvedi)
Place : Mumbai Partner
Date : 27th May, 2014 (Membership No. 040479)
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of SUDITI
INDUSTRIES LIMITED, which comprise the Balance Sheet as at 31st
March,2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2 The Comsany s Management is responsible for the preparation of these
financial satements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956 ("the Act") and in accordance with the
accounting principles preparation and presentation of the financial
statements that give a true and Fairview and are free from material
rind statement, whether duet fraud or error.
Auditors'' Responsibility
3. Our responsibity is to express an opinion on these financial
statements based on our audio. We conducted our Audi in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
lethal requirements and pl an and perform the audit to obtain
reasonable assurance about whether the financial statement sari free
from material statement.
4. An audit involves performing obtain audit evidence about assessment
of the risks of material misstaterrien to the financial statements,
whether due to fraud or error. In making those risk assessments, the
includes evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Management, overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis forour audit opinion.
Opinion
6. In our opini on 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
atrue and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March, 2013.
(b) In the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227 (4A)
of the Act, we give in the Annexure a Statement on the Matter Specified
in Paragraphs 4 and 5 of the Order.
B. 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 purposes of our
audit
(b) In our otiricin proper bocks of accurate as requiredbrtaw have been
kept by he Company so far sit appears from our Tehama hat ion 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 comply with the Accounting Standards
referred to in Section 211 (3C) of the Act.
(e) on the basis of the written representations received from the
directors as on 31st March, 2013 taken on recrod 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 Section 274 (1)(g) of
the Act.
ANEXURE TO THE AUDITORS'' REPORT
Referred to in paragraph 3 of our Report of even date
1) a) The Company has mint attained proper recon reds soon in full
b) All the assets have not been physically verified by the management
during the year but there is on regular program grad
2) a) The owe company physically very feed by the management at
reasonable intervals during the year.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company is maintaining proper records of inventory. No material
discrepancies have been noticed on physical verification of stocks as
compared to book records.
3) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms, or other parties listed in the
registermaintainedundcrsection301 of the Companies Act, 1956.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems 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.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control system.
5) 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 Companies Act, 1956 have been entered
in the register required to be maintained under that section.
b) As regards transactions made in pursuance of contracts or
arrangement entered into the registers maintained under Section 301 and
exceeding the value of rupees five lac in respect of any party during
the year, in our opinion and according to the information and
explanation given to us, have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6) The company has not accepted any deposits during the year from the
public within the meaning of the provisions of section 58A and 58AA or
any other relevant provisions of the Companies Act, 1956 and rules
framed thereunder.
7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8) 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 209 (1) (d) of the Companies
Act, 1956. We are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9) a) According to the books of account and records as produced and
examined by us in accordance with the generally accepted auditing
practice in India, in our opinion, there have been occasional delays in
depositing Profession Tax, Employees State Insurance and Income Tax.
However, there were no dues outstanding at the year end. Other
statutory dues as applicable have been deposited in time with the
appropriate authorities,
b) According to the books of accounts and records as produced and
examined by us in accordance with the generally accepted auditing
practices in India, as at 31", 2013, the following are the particulars
of dues that have not been deposited on account of any dispute.
Name Nature of Dues Amount Forum where
the Statute (Rs. in
lacs) dispute is pending
Central On account of
interpretation Commissioner
Excise Act, of exemption
notification of (Appeals)
1944 Excise duty for the
period
(a) March, 2002 to 3378
November, 2002
(b) December, 2002 to 6.34
January, 2003
(c) September, 1998 to 0.73
September, 1999
Income Tax Demand raised for 515.17 Income Tax
A.Y.2008-09 Tribunal
Sales Tax Demand raised as per Asst.
Assessment Order- Commissioner,
1997-98 14.88 Sales Tax
1996-97 65.17 (Appeals) Mumbai
Revised order for-1998-99 80.23 STAT (Appeals)
10) The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11) According to the records examined by us and the information and
explanation given to us, the company has not defaulted in repayment of
dues to any financial institution or Bank as at the Balance Sheet date.
12) 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.
13) In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
14) In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
15) 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.
16) On the basis of the records examined by us and according to the
information and explanation given to us, the Company has availed Term
loan -I of Rs. 113 lakhs sanctioned by Indian Overseas Bank (IOB) and
the same has been utilized for the purposes it was obtained. Further,
Term loan- II amounting to Rs.37.50 lakhs was sanctioned by IOB from
which a sum of Rs.4.62 lakhs has been disbursed and utilized for the
purposes it was obtained.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report
that, prima facie, no funds raised on short-term basis have been used
for long-term investment.
18) During the year the company has not made preferential allotment of
shares to parties and companies covered in the register maintained
under section 301 of the Act.
19) During the period covered under audit, the company has not issued
any debentures.
20) During the year the Company has raised monies by way of Rights
issue of equity shares. We have verified the end use of monies raised
by way of Rights issue of equity shares to the existing shareholders
and the same has been disclosed in note no. 3(e)
21) During the course of our examination of the books and records of
the company, carried out in accordance with generally accepted auditing
practices in India and according to the information and explanation
given to us, we have neither come across any instance of fraud or by
the company, noticed or reported during the year, nor have we been
informed of such case by the management.
For CHATURVEDI & CO.
Chartered Accountants
(Registration No.302137E)
(S.N.Chaturvedi)
Place : Mumbai Partner
Date : May 29,2013 Membership No. 040479
Mar 31, 2012
1) We have audited the attached Balance Sheet of SUDITI INDUSTRIES
LIMITED as at 31st March, 2012, the Statement of Profit and loss and
also the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
3 We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3) As required by the Companies (Auditor's Report) Order, 2003,and the
Companies (Auditor's Report) (Amendment) Order, 2004 issued by the
Central Government of India in terms of sub-section (4A) of section 227
of the Companies Act, 1956, we enclose in the Annexure, a statement on
the matters specified in paragraph 4 & 5 of the said Order.
4) Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, the Company has kept proper books of account as
required by law so far as appears from our examination of those books;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
statement dealt with by this report are in agreement with the books of
account;
e) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
e) On the basis of written representations received from the directors, as
on 31st March, 2012 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as at 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 and management representations made to us, (he
said financial statements read together with the accounting policies
and other notes thereon and attached thereto 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 ol affairs of the
company as at 31 stMarch, 2012
ii) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
iii) In the case of the Cash Flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 3 of our Report of even date
1) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets except for the assets under installation.
b) All the assets have not been physically verified by the management
during the year but there is a regular program o( verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
c) As the assets disposed during the year are not very significant, it
does not have any bearing on the going concern assumption followed by
the company.
3 a) The inventory has been physically verified during the year by the
management at reasonable intervals during the year.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company is maintaining proper records of inventory. No material
discrepancies have been noticed on physical verification of stocks as
compared to book records.
3) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms, or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems 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.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control system.
5) 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 Companies Act, 1956 have been entered
in the register required to be maintained under that section,
b) As regards transactions made in pursuance of contracts or
arrangement entered into the registers maintained under Section 301 and
exceeding the value of rupees five lace in respect of any party during
the year, in our opinion and according to the information and
explanation given to us, have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6) The company has not accepted any deposits during the year from the
public within the meaning of the provisions of section 58A and 58AA or
any other relevant provisions of the Companies Act, 1956 and rules
framed there under.
7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8) 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 209 (1) (d) of the Companies
Act, 1956. We are of the opinion that prima [ace the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
91 a) According to the books of account and records as produced and
examined by us in accordance with the generally accepted auditing
practice in India, in our opinion, there have been occasional delays in
depositing Profession Tax, Employees State Insurance and Income Tax.
However, there were no dues outstanding at the year end. Other
statutory dues as applicable have been deposited in time with the
appropriate authorities,
b) According to the books of accounts and records as produced and
examined by us in accordance with the generally accepted auditing
practices in India, as at 31 stMarch 2012, the following are the
particulars ol dues that have not been deposited on account of any
dispute.
Name of the Nature of Dues Amount Forum
Statute (Rs.in lacs) where
dispute is
pending
Central On account of
interpretation of Commissioner
Excise Act, exemption notifi
cation of Excise (Appeals)
1944 duty for the
period
(a) March, 2002
to 33.78
November, 2002
(b) December,
2002 to 6.34
January, 2003
(c) September,
1998 to 0.73
September, 1999
Income Demand raised
for A.Y.2008-09 615.17 Commissioner
Tax of Income Tax
Sales Tax Demand raised
as per Asst.
Assessment
Order - Commissioner
1997-98 11.42 Sales Tax,
1996-97 65.17 (Appeals)
Revised order
for - Mumbai
1998-99 80.23
10) The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11) According to the records examined by us and the information and
explanation given to us, the company has not defaulted in repayment of
dues lo any financial institution or Bank as at the Balance Sheet date.
12) 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.
13) In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
14) In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
15) 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.
16) On the basis of (he records examined by us and according to the
information and explanation given to us, the Company has, during the
year, obtained a sanction for a term loan of Rs. 113 lakhs from Indian
Overseas Bank. Disbursement of the said term loan, in the nature of
reimbursement of expenses incurred by the company towards the project
to the tune of Rs. 21,38,145/-, was received on 29th March, 2012.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report
that, prima facie, no funds raised on short-term basis have been used
for long-term investment.
18) During the year the company has not made preferential allotment of
shares to parties and companies covered in the register maintained
under section 301 of the Act.
19) During the period covered under audit, the company has not issued
any debentures.
20) The company has not raised any money through public issue during
the year.
21) During the course of our examination of the books and records of
the company, carried out in accordance with generally accepted auditing
practices in India and according to the information and explanation
given to us, we have neither come across any instance of fraud or by
the company, noticed or reported during the year, nor have we been
informed of such case by the management.
For CHATURVEDI & COMPANY
Chartered Accountants
(Registration No.302137E)
(S.N. CHATURVEDI)
Place: Mumbai Partner
Date : May 29,2012 Membership No. 040479
Mar 31, 2011
1) We have audited the attached Balance Sheet of SUDITI INDUSTRIES
LIMITED as at 31st March, 2011, the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2) We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by 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,and the
Companies (Auditor's Report) (Amendment) Order, 2004 issued by the
Central Government of India in terms of sub-section (4A) of section 227
of the Companies Act, 1956, we enclose in the Annexure, a statement on
the matters specified in paragraph 4 & 5 of the said Order.
4) Further to our comments in the Annexure referred to above, we report
that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, the Company has kept proper books of account as
required by law so far as appears from our examination of those books;
c) The Balance Sheet, Profit and Loss account and Cash Flow statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss account and Cash
Flow statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.
e) On the basis of written representations received from the directors,
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as at 31 st 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 and management
representations made to us, the said accounts subject to what is stated
in Para 4 above, read together with the 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, 2011
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 Flow for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 3 of our Report of even date
1) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets except for the assets under installation.
b) All the assets have not been physically verified by the management
during the year but there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
c) As the assets disposed during the year is not very significant, it
does not have any bearing on the going concern assumption followed by
the company.
2) a) The inventory has been physically verified during the year
by the management at reasonable intervals during the year.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company is maintaining proper records of inventory. No material
discrepancies have been noticed on physical verification of stocks as
compared to book records.
3) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms, or other parties listed in the
register maintained under section 301 of the companies Act, 1956.
4) In our opinion and according to the information and explanations
given to us, there is 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.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control system.
5) 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 Companies Act, 1956 have
been entered in the register required to be maintained under that
section. b) As regards transactions made in pursuance of contracts or
arrangement entered into the registers maintained under Section 301 &
exceeding the value of rupees five lac in respect of any party during
the year, in our opinion and according to the information and
explanation given to us, have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6) The company has not accepted any deposits during the year from the
public within the meaning of the provisions of section 58A and 58AA or
any other relevant provisions of the Companies Act, 1956 and rules
framed there under.
7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8) 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 209 (1) (d) of the Companies
Act, 1956. We are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9) a) According to the books of account and records as produced
and examined by us in accordance with the generally accepted auditing
practice in India, in our opinion, the Company is regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Custom Duty, Service Tax, Excise duty, Cess and other material
statutory dues as applicable with the appropriate authorities. b)
According to the books of accounts and records as produced and examined
by us in accordance with the generally accepted auditing practices in
India, as at 31st March 2011, the following are the particulars of dues
that have not been deposited on account of any dispute.
Name of Nature of Dues Amount Forum
the (Rs.inlacs) where
Statute dispute is
pending
Central On account of
interpretation Commissioner
Excise Act, of exemption
notification of (Appeals)
1944 Excise duty for
the period
(a) March, 2002 to 33.78
November, 2002
(b) December, 2002 to 6.34
January, 2003
(c) September, 1998 to 0.73
September, 1999
Income Demand raised for 615.17 Commissioner
Tax A.Y.2008-09 of Income Tax
Sales Tax Demand raised as per Asst.
Assessment Order- Commissioner,
1997-98 11.42 Sales Tax,
1996-97 65.17 (Appeals)
Revised order for - Mumbai
1998-99 80.23
10) The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11) According to the records examined by us and the information and
explanation given to us, the company has not defaulted in repayment of
dues to any financial institution or bank as at the Balance Sheet date.
12) 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.
13) In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
14) In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
15) 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.
16) On the basis of the records examined by us, and according to the
information and explanations given to us, the Company has not obtained
any term loan during the year.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report
that, prima facie, no funds raised on short-term basis have been used
for long-term investment.
18) During the year the company has not made preferential allotment of
shares to parties and companies covered in the register maintained
under section 301 of the Act.
19) During the period covered under audit, the company has not issued
any debentures.
20) The company has not raised any money through public issue during
the year.
21) During the course of our examination of the books and records of
the company, carried out in accordance with generally accepted auditing
practices in India and according to the information and explanation
given to us, we have neither come across any instance of fraud or by
the company, noticed or reported during the year, nor have we been
informed of such case by the management.
For CHATURVEDI & CO.
Chartered Accountants
(Registration No.302137E)
S.N. CHATURVEDI
(Partner)
Membership Number: 40479
Place: Mumbai
Date: May 30, 2011
Mar 31, 2010
1) We have audited the attached Balance Sheet of SUDITI INDUSTRIES
LIMITED as at 31st March, 2010, the Profit and Loss Account and also
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 conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3) As required by the Companies (Auditors Report) Order, 2003,and the
Companies (Auditors Report) (Amendment) Order, 2004 issued by the
Central Government of India in terms of sub-section (4A) of section 227
of the Companies Act, 1956, we enclose in the Annexure, a statement on
the matters specified in paragraph 4 & 5 of the said Order.
4) Further to our comments in the Annexure referred to above, we report
that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, the Company has kept proper books of account as
required by law so far as appears from our examination of those books;
c) The Balance Sheet, Profit and Loss account and Cash Flow statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss account and Cash
Flow statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.
e) On the basis of written representations received from the directors,
as on 31st March, 2010 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as at 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) In our opinion and to the best of our information and according to
the explanations given and management representations made to us, the
said accounts subject to what is stated in Para 4 above, read together
with the 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 Flow for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT Referred to in paragraph 3 of our
Report of even date
1) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets except for the assets under installation.
b) All the assets have not been physically verified by the management
during the year but there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
c) As the assets disposed during the year is not very significant, it
does not have any bearing on the going concern assumption followed by
the company.
2) a) The inventory has been physically verified during the year
by the management at reasonable intervals during the year.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company is maintaining proper records of inventory. No material
discrepancies have been noticed on physical verification of stocks as
compared to book records.
3) The company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
register maintained under section 301 of the companies Act, 1956
4) In our opinion and according to the information and explanations
given to us, there is 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.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control system.
5) 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 Companies Act, 1956 have
been entered in the register required to be maintained under that
section. b) As regards transactions made in pursuance of contracts or
arrangement entered into the registers maintained under Section 301 and
exceeding the value of rupees five lac in respect of any party during
the year, in our opinion and according to the information and
explanation given to us, have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6) The company has not accepted any deposits during the year from the
public within the meaning of the provisions of section 58A and 58AA or
any other relevant provisions of the Companies Act, 1956 and rules
framed thereunder.
7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8) 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 209 (1) (d) of the Companies
Act, 1956. We are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9) a) Undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income Tax, Sales Tax, Service Tax, Custom Duty, Excise duty, Cess and
other statutory dues have generally been regularly deposited with
appropriate authorities though there have been occasional delays.
b) According to the information and explanations given to us, except
for the following, no undisputed amounts payable in respect of income
tax, sales tax, service tax, customs duty, excise duty and cess were in
arrears, as at 31st March 2010 for a period of more than six months
from the date they became payable.
Name of the Nature of Dues Amount Period to which the
Statute (Rs in lacs) amount relates
Maharashtra
Industrial Being demand
raised 26.27 Nov.2001 onwards
Development for differential
water
Corporation
(MIDC) charges for earlier
years 4.90 FY 04-05
4.77 FY 05-06
4.75 FY 06-07
2.62 FY 07-08
c) According to the records of the Company, the dues
outstanding of Sales Tax, Excise Duty, on account of
disputes are as follows.
Name of the Nature of Dues Amount Forum where dispute
Statute (Rs.in lacs) is pending
Central Excise On account of
interpretation Commissioner
Act, 1944 of exemption
notification (Appeals)
of Excise duty
for the period
(a) March, 2002 to 33.78
November, 2002
(b) December, 2002 to 6.34
January, 2003
(c) September, 1998 to 0.73
September, 1999
Sales Tax Interest on delayed 10.85 Asst.
Commissioner,
payment of Tax 65.17 Sales Tax,
Demand raised as per 80.23 (Appeals) Mumbai
Revised Order for
F.Y.1998-99
10) The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11) According to the records examined by us and the information and
explanation given to us, the company has not defaulted in repayment of
dues to any financial institution or bank as at the Balance Sheet date.
12) 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.
13) In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
14) In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
15) 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.
16) On the basis of the records examined by us, and according to the
information and explanations given to us, the Company has not obtained
any term loan during the year.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report
that, prima facie, no funds raised on short-term basis have been used
for long-term investment.
18) During the year the company has not made preferential allotment of
shares to parties and companies covered in the register maintained
under section 301 of the Act.
19) During the period covered under audit, the company has not issued
any debentures.
20) The company has not raised any money through public issue during
the year.
21) During the course of our examination of the books and records of
the company, carried out in accordance with generally accepted auditing
practices in India and according to the information and explanation
given to us, we have neither come across any instance of fraud or by
the company, noticed or reported during the year, nor have we been
informed of such case by the management.
For CHATURVEDI & CO.
Chartered Accountants
(Registration No.302137E)
Place : Mumbai S.N. CHATURVEDI
Date : May 28, 2010 (Partner)
Membership Number: 40479