Mar 31, 2014
We have audited the accompanying financial statements of ''SURABHI
CHEMICALS AND INVESTMENTS LIMITED'' ("the Company"), which comprise the
Balance Sheet as at 31st March, 2014, the statement of Profit & Loss
Account 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
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 the
accounting Standards notified under the Companies Act, 1956 read with
the General Circular 08/2014 dated 04th April 2014, issued by the
Ministry of Corporate Affairs. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of Company''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 financial statements give the information
required by the Companies Act,1956("the Act") in the manner so required
and give a true and fair view in conformity with the accounting
principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) In the case of the statement of Profit and Loss, of the profit of
the Company for the year ended on the date; and
c) In the case of the Cash Flow statement, of the cash flow 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 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 Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) That 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 sub section (3c) of section 211 of the Companies, Act
1956 read with the General Circular 08/2014 dated 04th April 2014,
issued by the Ministry of Corporate Affairs.
e) On the basis of written representation received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of section 274 (1)(g) of the Companies
Act,1956.
ANNEXURE TO INDEPENDENT AUDITOR''S REPORT
ANNEXURE TO THE AUDITORS'' REPORT (REFERRED TO IN OUR REPORT OF EVEN
DATE TO THE MEMBERS OF SURABHI CHEMICALS AND INVESTMENTS LIMITED AS AT
AND FOR THE YEAR ENDED 31st MARCH, 2014)
1 A The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
B The fixed assets have been physically verified by the Management
during the year and no material discrepancies were identified on such
verification.
C There was no substantial disposal of Fixed assets during the year.
2 In our opinion and according to the information and explanation given
to us, since, the company does not hold any inventories, the provisions
of clause (2) (i),(ii) and (iii) are not applicable.
3 A According to the information and explanations given to us, the
company has not granted loans, secured or unsecured to companies firms
or other parties covered in the register maintained u/s 301 of the
Companies Act, 1956. Accordingly, the provisions of clause 4(iii) (a)
to (d) of the order are not applicable to the company and hence not
commented upon.
B According to the information and explanations given to us, the
company has not taken loans, secured or unsecured from companies firms
or other parties covered in the register maintained u/s 301 of the
Companies Act, 1956. Accordingly, the provisions of clause 4(iii) (e)
to (g) of the order are not applicable to the company and hence not
commented upon.
4 In our opinion and according to information and explanation given to
us, there are adequate internal control procedures commensurate with
the size of the company and nature of its business with regards to
purchase of inventory and fixed assets and for the sale of inventories.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in internal control system of the
company.
5 A In respect of the contract or arrangements referred to in Section
301 of the Companies Act, 1956, in our opinion and according to the
information and explanation given to us, the transactions made in
pursuance of contracts or arrangements that need to be entered in 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 explanation given
to us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956 and exceeding the value of Rs 5,00,000 in respect of each
party during the year have been made at prices which appear reasonable
as per information available with the Company.
6 The Company has not accepted deposits from public within the purview
of section 58-A or Section 58-AA of the Companies Act, 1956
7 In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
8 To the best of our knowledge and as explained, the Central Government
has not prescribed maintenance of cost records under Section 209 (1)
(d) of the Companies Act, 1956 for the Services rendered by the
company.
9 According to the information and explanations given to us and on the
basis of our examination of the records of the company, amounts
deducted or accrued in the books of accounts in respect of undisputed
statutory dues including provident fund, Income Tax, Service Tax and
other material statutory dues have been generally regularly deposited
during the year by the company with the appropriate authorities. As
explained to us, the company did not have any dues on account of
Employees State Insurance, Wealth Tax, Cess and Investor Education and
Protection Fund.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
service tax and material statutory dues in arrears, as at 31st March,
2014 for a period of more than six months from the date on which they
become payables due.
10 The Company does not have accumulated losses as at the end of
financial year and has not incurred cash losses in the current
financial year and immediately preceding financial year.
11 The company did not have outstanding dues in respect of financial
institution, bank or debenture holders during the year.
12 According to the information and explanations given to us and based
on the documents and records produced before us, the Company has not
granted loans and advances on the basic of security by way of pledge of
shares, debentures, and other securities.
13 In our opinion, the company is not a chit fund or nidhi/mutual
benefit fund/ Society. Accordingly, the provisions of clause 4(xiii) of
the order are not applicable to the company and hence not commented
upon.
14 The Company has is not dealing in shares, securities, debentures and
other investments and as such this clause is not applicable.
15 According to the information and explanations given to us, the
Company has not given guarantee for loan taken by others from banks or
financial institutions.
16 The Company did not have any term loans outstanding during the year.
17 According to the information and explanations given to us, and on
the basis of 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 preferential allotment of shares during the
year to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956.
19 The company does not have any outstanding debentures during the
year.
20 The Company has not raised any money by public issue during the
year.
21 Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during
the year.
For Ramanand & Associates
Chartered Accountants
FRN : 117776W
CA Ramanand Gupta
Partner
Membership No. 103975
Place : Mumbai
Date : May 30, 2014
Mar 31, 2010
(1) We have audited the attached Balance Sheet of SURBHI CHEMICALS AND
INVESTMENT LIMITED as at 31st March 2010, the Profit and Loss Account
and also the Cash Flow Statement of the Company 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
(3) As required by the Companies (Auditors Report) Order, 2003 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 Paragraphs 4 and 5 of the said
Order.
(4) Further to our comments in the Annexure referred to in Paragraph 3
above, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of the
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, the 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 the 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 and together with the notes appended, the
said accounts 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 and
(ii) in the case of the Profit and Loss Account, of the PROFIT of the
Company for the year ended on that date.
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
-1-
ANNEXURE TO THE AUDITORS REPORT:
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS REPORT TO THE
MEMBERS ON THE ACCOUNTS OF SURABHI CHEMICALS AND INVESTMENTS LIMITED
FOR THE YEAR ENDED ON 315T MARCH. 2010:
1. The company has maintained proper records showing full
particulars including quantitative details and situation of
fixed assets.
2. The company had no inventory during the year under review.
Accordingly, the provisions of the clauses 4(ii)(a), (b) and (c) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
company.
3. (a) The company has not taken any unsecured loan from other firm /
companies and persons covered in the register maintained under section
301 of the Companies Act, 1956. The company has not granted loans to
firm and persons covered under register maintained section 301 of the
companies Act. There are no companies covered under the register
maintained under section 301 of the Companies Act, 1956 to which the
company has granted loans.
(b) The company has not granted loans to firm and persons covered under
register maintained under section 301 of the Companies Act,1956.
(c) The company has not granted any Loan and therefore the question
of repayment does not arise.
(d) There is no overdue amount of loan taken from or granted to
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 procedures
commensurate with the size of the company and nature of its business
with regard to the purchase of inventory, fixed assets and with regard
to the sale of goods. During the course of our audit we have not
observed any continuing failure to correct major weaknesses in internal
controls.
5. (a) According to the information and explanations given to us, we
are of the
opinion that the transactions that need to be entered in 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 contracts or.
arrangements
entered in the register maintained under section 301 of the companies
Act, 1956 and exceeding the value of rupees five lakhs in respect of
any party during the year 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 from the public within
the meaning of provisions of section 58A and 58AA of the Companies Act,
1956 and the 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. To the best of our knowledge and according to the information given
to us, the Central Government has not prescribed the maintenance of the
cost records under section 209 (1) (d) of the Companies Act, 1956 for
any products manufactured by the company.
9. (a) The company is regular in depositing with appropriate
authorities
undisputed statutory dues including provident fund, investor education
protection fund, employees state insurance, income tax, sales tax,
wealth tax, custom duty, excise duty, cess and 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, sales tax, wealth
tax, custom 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.
(c) According to the information and explanations given to us, there
are no dues of income tax, sales tax, wealth tax, custom duty, excise
duty and cess which have not been deposited on account of any dispute.
10. The company does not have accumulated losses as at the year-end.
The company has not incurred any cash losses during the financial year
covered under audit. The company had incurred cash losses Rs.47093/- in
the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks and financial institutions. The company has no dues to debenture
holders.
12. According to the information and explanations given to us, the
company has not granted 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 the clause 4(xiii)
of the Companies (Auditors Report) Order, 2003 are not applicable to
the company.
14. The company has maintained proper records of transactions and
contracts of dealing in shares, securities, debentures and other
investments and timely entries have been made in it. The shares and
securities have been held by the company in its own name and in the
name of Paami Textile and investments ltd which has been amalgamated
from 26/12/2008.
15. 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.
16. The company has not taken any term loans 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 the no funds raised on short-term basis have been used for the
long-term investment. No long-term funds have been used to finance
short-term assets except permanent working capital.
18. According to the information and explanations given to us, the
company has not made preferential allotment of the shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956. However the company has allotted 1,73,100
shares to shares holders of its Subsidiary Company Paami Textiles and
Investments Ltd as the same has been amalgamated with Surbhi Chemicals
and Investments Ltd. with effect from 26/12/2008.
19. According to the information and explanations given to us, during
the period covered by our audit report the company has not issued any
debentures and therefore clause (xix) of the said Order is not
applicable to the company.
20. The company has not raised monies by public issues and therefore
clause (xx) of the said Order is not applicable to the company.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
FOR HIREN M. DIWAN & COMPANY
Chartered Accountants
PLACE: SURAT
(TEJAS M. DESAI)
DATE : 01/09/2010 PARTNER
Membership No. 113760
Firm Reg. No. 303691W