Mar 31, 2015
1. We have audited the accompanying financial statements of SUPERTEX
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
2. The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act")with
respect to the preparation of these financial statements to give a true
and fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the accounting standards
specified under Section 133 of the Act read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities, selection
and application of appropriate accounting policies, making judgments
and estimates that are reasonable and prudent and design,
implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the occupancy 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
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules
made there under including the accounting standards and matters which
are required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards and pronouncements 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.
6. 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 auditors 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 on adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
7. 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
8. 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 March 31,2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies(Auditor's Report) Order, 2015' issued
by the Central Government of India in terms of Sub-Section (11) of
section 143 of the Act (hereinafter referred to as the "Order"), and on
the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
10. As required by Section 143(3) of the Act, we report that :
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss 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 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 knowledge and belief
and according to the information and explanations given to us :
i. The Company does not have any pending litigations as at March
31,2015 which would impact its financial position.
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 outstanding which were required to be
transferred to the Investor Education and Protection Fund by the
Company during the year ended March 31,2015.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
Referred to in Paragraph 9 of the Independent Auditors' Report of even
date to the members of Supertex Industries Limited on the standalone
financial statements as of and for the year ended March 31,2015.
I. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verified by the Management as per 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 have been noticed on such verification.
II. (a) The inventory, including stocks with certain third parties has
been physically verified by the Management during the year in respect
inventory lying with third parties, these have substantially been
confirmed by them, in our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
III. The Company has not granted any secured / unsecured loans to
companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013.
IV. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of the business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company and according to the information and
explanations given to us, we have neither come across, nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
V. The Company has not accepted any deposits from the public within
the meaning of Section 73 and 74 of the Act and the rules framed there
under to the extent notified.
VI. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
specified under sub section (1) of Section 148 of the Act and are of
the opinion that prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
VII. (a) According to the information and explanation given to us and
the records of the Company examined by us, in our opinion, the Company
is regular in depositing the undisputed statutory dues, including
provident fund, employees' state insurance, income tax, sales tax,
wealth tax, service tax, duty of customs and duty of excise,value added
tax and other material statutory dues, as applicable, with the
appropriate authorities.
(b) According to the information and explanation given to us and the
records of the Company examined by us, the particulars of dues of
excise duty and cess as at 31st March 2015 which have not been
deposited on account of a dispute are as follows:
Name of the Nature of Dues Amount Period to which the
Statute (Rs. lacs) amount relates
Central Excise Duty 67.32 1/4/2006 to 31/12/2011
Excise Act
Name of the Statute Forum where the dispute is pending
Central Excise Act AppellateTribunal, Ahmedabad
According to the information and explanation given to us and the
records of the Company examined by us, there are no dues of income-tax,
wealth tax and service tax which have not been deposited on account of
any dispute.
(c) The amount required to be transferred to Investor Education and
Protection Fund has been transferred within the stipulated time in
accordance with the provisions of the Companies Act, 1956 and the rules
made there under.
VIII. The Company has no accumulated losses as at the end of the
financial year and it has not incurred any cash losses in the financial
year ended on that date or in the immediate preceding financial year.
IX. According to the records of the Company 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 or debenture
holders as at the balance sheet date.
X. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks or financial institutions.
XI. In our opinion and according to the information and explanations
given to us, the term loans have been applied on an overall basis, for
the purposes for which they were obtained.
XII. During the course of examination of the books and records of the
Company, carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instance of material fraud
on or by the Company, noticed or reported during the year, nor have we
been informed of any such case by the Management.
For N. G. THAKRAR & CO For M. B. AGRAWAL & CO.
Firm Regn. No. 110907W Firm Regn. No. 100137W
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
N. G. Thakrar Sanjay Lunkad
Proprietor Partner
Membership No. 36213 Membership No. 48229
Mumbai, 30th May, 2015 Mumbai, 30th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of SUPERTEX
INDUSTRIES LIMITED (the Company), which comprise the Balance Sheet as
at 31st March, 2014 the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of 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 Standards notified under the Companies
Act, 1956 (the Act) read with the General Circular 15/2013 dated
13/09/2013 of the Ministry of Corporate Affairs in respect of Section
133 of the Companies Act, 2013 and accordance with the Accounting
principles generally accepted in India. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material mis-statement,
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 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
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 judgement, 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 auditors
consider 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 Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by the Management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India :
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies(Auditor''s Report) Order, 2003 (the Order)
issued by the Central Government of India 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 said Order.
We draw attention to Note No.30(II)ii regarding non provision for
Minimum Alternate Tax (MAT) under the Income tax Act, 1961 as the
Company has obtained a legal opinion for non provision of the same.
As required by Section 227(3) of the Act, we further 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 the law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards notified under
the Act read with the General Circular 15/2013 dated 13/09/2013, of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013;
(e) On the basis of written representations received from the
Directors, as on 31st March, 2014 and taken on record by the Board of
Directors, we report that 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.
(Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" section of our report of even date)
1. In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) As explained to us, all the assets have been physically verified by
the management during the year as per 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) The fixed assets disposed off, in our opinion, do not constitute a
substantial part of its fixed assets and such disposal has, in our
opinion, not affected the going concern status of the Company.
2. In respect of inventories:
(a) As explained to us, the inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancy noticed on physical
verification of inventories as compared to the book records.
3. In respect of loans:
(a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) The Company has taken unsecured loans from 14 parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs 356.64 lacs and the
year-end balance of such loan was Rs 313.67 lacs. The amount was not
due for repayment during the year.
(c) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from the parties listed in the register
maintained under Section 301 of the Companies Act, 1956 are not prima
facie prejudicial to the interest of the Company.
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 inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any major weaknesses in internal controls.
5. In respect of the contracts or arrangements referred to in section
301 of the Companies Act, 1956:
(a) According to the information and explanation given to us, we are of
the opinion that the transactions that need to be entered into the
register maintained under Section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five lacs in respect of
any party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public.
Therefore, the provisions of clause (vi) of para 4 of the Order are not
applicable to the Company.
7. In our opinion, the Company has an internal audit system. However,
the same needs to be further strengthened to make it commensurate with
size and the 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
maintenance of cost records under Section 209 (1)(d) of the Companies
Act, 1956, for the products of the Company, and are of the opinion that
prima- facie, the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
9. In respect of statutory dues:
(a) The Company has generally been regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income tax, Sales tax, Wealth tax, Service tax, Custom duty,
Excise duty, cess and any other material statutory dues applicable to
it.
(b) There were no undisputed amounts payable in respect of income-tax,
wealth tax, service tax, customs duty, excise duty and cess which were
in arrears, as at March 31,2014 for a period of more than six months
from the date they became payable. The disputed statutory dues
aggregating to Rs 792.11 lacs, that have not been deposited on account
of matter pending before appropriate authorities are as under :-
Name of Nature of Dues Amount Period to which Forum where
Statute (Rs. lacs) amount relates dispute is
pending
Central Excise Duty 792.11 4/7/1995 to High Court
Excise Act 22/10/1996
Total 792.11
10. The Company does not have any accumulated losses at the end of the
financial year in excess of fifty percent of its net worth. The Company
has not incurred cash losses during the financial year covered by our
audit and in the immediately preceding financial year.
11. In our opinion and according to information and explanations given
to us, the Company has not defaulted in repayment of dues to banks. In
our opinion and according to information and explanations given to us,
the Company did not have any amount due to financial institutions or
debenture holders.
12. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any 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 and according to the information and explanations
given to us, 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, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institution.
16. According to information and explanations given to us, the Company
has not raised any term loans during the year.
17. In our opinion and 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. The Company has not made any preferential allotment of equity
shares to parties and companies covered in the register maintained
under Section 301 of the Companies Act, 1956.
19. According to the information and explanations given to us, the
Company has not issued any secured debentures during the period covered
by our report. Accordingly, the provisions of clause 4(xix) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
20. The Company has not raised any money by way of public issue,
during the year.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed or reported by the Company during the year.
For N. G. THAKRAR & CO For M. B. AGRAWAL & CO.
Firm Regn. No. 110907W Firm Regn. No. 100137W
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
N. G. Thakrar Sanjay Lunkad
Proprietor Partner
Membership No. 36213 Membership No. 48229
Place : Mumbai Place : Mumbai
Dated : 30th May, 2014 Dated : 30th May, 2014
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of SUPERTEX
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 significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956. 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 mis-statement, whether
due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We have conducted our audit in
accordance with auditing standards generally accepted in India. Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement.
4. 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 judgement, 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 auditors consider internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the 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 :
(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 for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies(Auditor''s Report) Order, 2003, as
amended, issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, of India
(the ''Act''), we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
8. We draw attention to note no.31(II)ii regarding non provision for
Minimum Alternate Tax (MAT) under the Income tax Act, 1961 as the
Company has obtained a legal opinion for non provision of the same.
9. As required by Section 227(3) of the Act, we further 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 the law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement dealt with by this report
comply with the Accounting Standards referred to in sub section (3C) of
Section 211 of the Companies Act, 1956;
(e) On the basis of written representations received from the
Directors, as on 31st March, 2013 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2013 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
The Annexure referred to in our report to the members of Supertex
Industries Ltd. for the year ended 31st March, 2013. 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.
(b) As explained to us, all the assets have been physically verified by
the management during the year as per 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) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of inventories:
(a) The inventories 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 the information and explanations
given to us, the procedures for physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancy noticed on physical
verification of inventories as compared to the book records.
3. In respect of loans:
(a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) The Company has taken unsecured loans from 16 parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs 181.67 lacs and the
year-end balance of such loan was Rs 101.91 lacs. The amount was not
due for repayment during the year.
(c) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from the parties listed in the register
maintained under Section 301 of the Companies Act, 1956 are not prima
facie prejudicial to the interest of the Company.
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 inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any major weaknesses in internal controls.
5. In respect of the contracts or arrangements referred to in section
301 of the Companies Act, 1956:
(a) To the best of our knowledge and belief and according to the
information and explanation given to us, we are of the opinion that the
transactions that need to be entered into the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five lacs in respect of
any party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
under sections 58A and 58AA of the Companies Act, 1956, and the
Companies (Acceptance of Deposits) Rules, 1975.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business. However, the
same needs to be further strengthened.
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, for the products of the Company, and are of the opinion that
prima- facie, the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
9. In respect of statutory dues: (a) According to the information and
explanations given to us and the records of the Company examined by us,
in our opinion the Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income tax, Sales tax, Wealth tax, Service tax, Custom duty,
Excise duty, cess and any other material statutory dues applicable to
it. (b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, customs duty, excise duty and cess were in arrears, as at
March 31, 2013 for a period of more than six months from the date they
became payable, except tax deducted at source Rs 2.52 lacs.
10. The Company does not have any accumulated losses at the end of the
financial year in excess of fifty percent of its net worth. The Company
has not incurred cash losses during the financial year covered by our
audit and in the immediately preceding financial year.
11. According to the records of the Company examined by us and on the
basis of information and explanations given to us, the Company has not
defaulted in repayment of dues to financial institutions, banks or
debenture holders.
12. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any 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 and according to the information and explanations
given to us, 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, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institution.
16. The Company has not raised any term loans during the year.
17. In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investment.
18. The Company has not made any preferential allotment of share
warrants to parties and companies covered in the register maintained
under Section 301 of the Companies Act, 1956.
19. In our opinion and according to the information and explanations
given to us, the Company has not issued any secured debentures during
the period covered by our report. Accordingly, the provisions of clause
4(xix) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
20. The Company has not raised any money by way of public issue,
during the year.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed or reported by the Company during the year.
For N.G.THAKRAR & CO For M. B. AGRAWAL & CO.
Firm Regn.No.110907W Firm Regn.No.100137W
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
N.G. Thakrar Sanjay Lunkad
Proprietor Partner
Membership No. 36213 Membership No. 48229
Place : Mumbai Place : Mumbai
Dated : 29th May, 2013 Dated : 29th May, 2013
Mar 31, 2012
We have audited the accompanying financial statements of SUPER TEX
INDUSTRIES LIMITED which comprise the Balance Sheet as at 31st March,
2012, the Statement of Profit and Loss and the Cash Flow Statement for
the year then ended and a summary of significant accounting policies
and other explanatory information.
Management's Responsibility for the Financial Statements
The Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956. 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 mis-statement, 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 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. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India :
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
ii. in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies(Auditor's Report) Order, 2003, as
amended, issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, of India
(the 'Act'), we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
2. We draw attention to Note No. 31(II)ii regarding non provision for
Minimum Alternate Tax (MAT) under the Income tax Act, 1961 as the
company has obtained a legal opinion for non provision of the same.
3. As required by Section 227(3) of the Companies Act, 1956 we further
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 the law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub section (3C) of Section 211 of
the 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 on
31st March, 2012 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in our report to the members of Supertex
Industries Ltd. for the year ended 31st March,2012. We report that:
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, all the assets have been physically verified by
the management during the year as per a regular programme 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) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
ii. (a) The inventories 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 the information and explanations
given to us, the procedures for physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancy noticed on physical
verification of inventories as compared to the book records.
iii. (a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) The Company has taken unsecured loans from 18 parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 152.91 lacs and the
year-end balance of such loan was Rs. 95.91 lacs. The amount was not due
for repayment during the year.
(c) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from the parties listed in the register
maintained under Section 301 of the Companies Act, 1956 are not prima
facie prejudicial to the interest of the Company.
iv. 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 inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any major weaknesses in internal controls.
v. (a) To the best of our knowledge and belief and according to the
information and explanation given to us, we are of the opinion that the
transactions that need to be entered into the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five lacs in respect of
any party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
under sections 58A and 58AA of the Companies Act, 1956, and the
Companies (Acceptance of Deposits) Rules, 1975.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business. However, the
same needs to be further strengthened.
viii. 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, for the products of the Company, and are of the opinion that
prima- facie, the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
ix. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion the Company
is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees' State Insurance, Income tax, Sales
tax, Wealth tax, Service tax, Custom duty, Excise duty, cess and any
other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, customs duty, excise duty and cess were in arrears, as at
March 31, 2012 for a period of more than six months from the date they
became payable.
(c) The disputed statutory dues aggregating to Rs. 792.11 lacs, that have
not been deposited on account of matter pending before appropriate
authorities are as under :-
Name of Nature of Dues Amount Period to which Forum where
Statute (Rs lacs) amount relates dispute is
pending
Central Excise Duty 792.11 4/7/1995 to
22/10/1996 High Court
Excise Act
Total 792.11
x. The Company does not have any accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
xi. According to the records of the Company examined by us and on the
basis of information and explanations given to us, the Company has not
defaulted in repayment of dues to financial institutions, banks or
debenture holders.
xii. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion and according to the information and explanations
given to us, 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.
xv. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institution.
xvi. The Company has not raised any term loans during the year.
xvii. In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investment.
xviii. The Company has not made any preferential allotment of share
warrants to parties and companies covered in the register maintained
under Section 301 of the Companies Act, 1956.
xix. In our opinion and according to the information and explanations
given to us, the Company has not issued any secured debentures during
the period covered by our report. Accordingly, the provisions of clause
4(xix) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
xx. The Company has not raised any money by way of public issue,
during the year.
xxi. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed or reported by the Company during the year.
For N.G.THAKRAR & CO For M. B. AGRAWAL & CO.
Firm Regn.No.110907W Firm Regn.No.100137W
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
N.G. Thakrar M. B. Agrawal
Proprietor Partner
Membership No. 36213 Membership No. 9045
Place : Mumbai Place : Mumbai
Dated : 31st May, 2012 Dated : 31st May, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of SUPERTEX 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.
1 We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on 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.
2 As required by the Companies(Auditor's Report) Order, 2003, as
amended by 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, of India (the 'Act') and on
the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
3 We draw attention to note no.2 (d) of Schedule K regarding non
provision for Minimum Alternate Tax (MAT) under the Income tax Act,
1961 as the company has obtained a legal opinion for non provision of
the same.
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, proper books of account as required by the law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub section (3C) of Section 211 of the
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 on
31st March, 2011 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
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 the 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 flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(referred to in paragraph 2 of our report of even date)
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation
of fixed assets.
(b) As explained to us, all the assets have been physically verified by
the management during the year as per a regular programme 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) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
ii. (a) The inventories 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 the information and explanations
given to us, the procedures for physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancy noticed on physical
verification of inventories as compared to the book records.
iii. (a) The Company has not granted any loans, secured or unsecured
to companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) The Company has taken unsecured loans from 17 parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs 159.15 lacs and the
year- end balance of such loan was Rs 113.79 lacs. The amount was not
due for repayment during the year.
(c) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from the parties listed in the register
maintained under Section 301 of the Companies Act, 1956 are not prima
facie prejudicial to the interest of the Company.
iv. 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 inventory, fixed assets and
with regard to the sale of goods and services. During the course of our
audit, we have not observed any major weaknesses in internal controls.
v. (a) To the best of our knowledge and belief and according to the
information and explanation given to us, we are of the opinion that the
transactions that need to be entered into the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five lacs in respect of
any party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any
deposits from the public under sections 58A and 58AA of the Companies
Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. 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, for the products of the Company, and are of the opinion that
prima- facie, the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
ix. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion the Company
is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees' State Insurance, Income tax, Sales tax,
Wealth tax, Service tax, Custom duty, Excise duty, cess and any other
material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income- tax, wealth tax, service
tax, customs duty, excise duty and cess were in arrears, as at March 31,
2011 for a period of more than six months from the date they became
payable.
(c) The disputed statutory dues aggregating to Rs 996.04 lacs, that
have not been deposited on account of matter pending before appropriate
authorities are as under :-
Name of Nature of Dues Amount Period to which Forum where
Statute (Rs lacs) amount relates dispute is
pending
Sales
Tax Act Sales Tax, 203.93 2003-04 to
2006-07 Asst.Commi
-ssioner,
Surat
Interest &
Penalty
Central
Excise
Act Excise Duty 792.11 4/7/1995 to
22/10/1996 High Court
Total 996.04
x. The Company has been discharged from the purview of the Board of
Industrial & Financial Reconstruction vide their
order dated 18/06/2010. The Company has earned a profit during the
financial year covered by our audit and had earned a profit in the
immediately preceding financial year.
xi. According to the records of the Company examined by us and on the
basis of information and explanations given to us, the Company does
not have any dues to financial institutions or banks or debenture
holders.
xii. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion and according to the information and explanations
given to us, 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.
xv. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institution.
xvi. The Company has not raised any term loans during the year.
xvii. In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investment.
xviii. According to the information and explanations given to us, the
Company has made a preferential allotment of share warrants to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956. The price at which these equity share
warrants have been issued has been determined as per the Securities and
Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2009, which in our opinion, is not prejudicial to the
interest of the Company.
xix. In our opinion and according to the information and explanations
given to us, the Company has not issued any secured debentures during
the period covered by our report. Accordingly, the provisions of clause
4(xix) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
xx. The Company has not raised any money by way of public issue,
during the year.
xxi. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed or reported by the Company during the year.
For N.G.THAKRAR & CO. For M.B.AGRAWAL & CO.
Firm Regn.No.110907W Firm Regn.No.100137W
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
N. G. Thakrar Sanjay Lunkad
Proprietor Partner
Membership No.36213 Membership No.48229
Mumbai,30th May,2011 Mumbai,30th May,2011
Mar 31, 2010
We have audited the attached Balance Sheet of SUPERTEX 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.
1 We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on 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.
2 As required by the Companies(Auditors Report) Order, 2003, as
amended by 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, of India (the Act) and on
the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
3 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, proper books of account as required by the law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub section (3C) of Section 211 of the
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 on
31st March, 2010 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
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 the affairs of
the Company as at 31st March, 2010;
ii. in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and,
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT (referred to in paragraph 2 of our
report of even date)
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, all the assets have been physically verified by
the management during the year as per a regular programme 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) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
ii. (a) The inventories 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 the information and explanations
given to us, the procedures for physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) 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 the book records.
iii. (a) The Company has granted unsecured advance to one party covered
in the register maintained under Section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs 169.81 lacs
and the year-end balance of such advance was Rs Nil.
(b) In our opinion and according to the information and explanations
given to us, the advance granted to the party listed in the register
maintained under Section 301 of the Companies Act, 1956, was an
interest-free advance for facilitating the Companys Revival Scheme
and, as such, is not prima-facie prejudicial to the interest of the
Company.
(c) The Company had taken unsecured loans from two parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs 10.50 lacs and the
year-end balance of such loan was Rs 10.50 lacs. The amount was not due
for repayment during the year.
(d) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from the parties listed in the register
maintained under Section 301 of the Companies Act, 1956 are not prima
facie prejudicial to the interest of the Company.
iv. 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 inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any major weaknesses in internal controls.
v. (a) To the best of our knowledge and belief and according to the
information and explanation given to us, we are of the opinion that the
transactions that need to be entered into the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
(b) Transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
under sections 58A and 58AA of the Companies Act, 1956, and the
Companies (Acceptance of Deposits) Rules, 1975.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. 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, for the products of the Company, and are of the opinion that
prima- facie, the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
ix. (a) According to the records of the Company, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund,
Employees State Insurance, Income tax, Sales tax, Wealth tax, Service
tax, Custom duty, Excise duty, cess and any other material statutory
dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income- tax, wealth tax,
service tax, customs duty, excise duty and cess were in arrears, as at
March 31, 2010 for a period of more than six months from the date they
became payable.
(c) The disputed statutory dues aggregating to Rs 948.55 lacs, that
have not been deposited on account of matter pending before appropriate
authorities are as under :-
Name of Statute Nature of Dues Amount (Rs
lacs) Period to
which amount
relates Forum where
dispute is
pending
Sales Tax Act Sales Tax, 156.44 2003-04 to
2005-06 Asst.
Commissioner,
Navsari.
Interest &
Penalty
Central Excise Duty 792.11 4/7/1995 to
22/10/1996 High Court
Excise Act
Total 948.55
x. The net worth of the Company is positive and as the Company has
fulfilled all the terms of the Sanctioned scheme, it has applied for
discharge from the Board for Industrial and Financial Reconstruction.
The Company has earned a profit during the financial year covered by
our audit and had earned a profit in the immediately preceding
financial year.
xi. According to the records of the Company examined by us and on the
basis of information and explanations given to us, the Company does not
have any dues to financial institutions or banks or debenture holders.
xii. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion and according to the information and explanations
given to us, 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.
xv. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institution.
xvi. The Company has not raised any term loans during the year.
xvii. In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investment.
xviii. According to the information and explanations given to us, the
Company has made a preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Companies Act, 1956 in terms of the Sanctioned Scheme.
xix. In our opinion and according to the information and explanations
given to us, the Company has not issued any secured debentures during
the period covered by our report. Accordingly, the provisions of clause
4(xix) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
xx. The Company has not raised any money by way of public issue,
during the year.
xxi. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed or reported by the Company during the year.
For N.G.THAKRAR & CO. For M.B. AGRAWAL & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
N.G. Thakrar Sanjay Lunkad
Proprietor Partner
Membership No. 36213 Membership No. 48229
Place : Mumbai Place : Mumbai
Dated : 29th May, 2010 Dated : 29th May, 2010
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