Mar 31, 2015
We have audited the accompanying financial statements of Shiv-vani Oil
& Gas Exploration Services Limited (the "Company"), which comprise
the Balance Sheet as at 31st March,2015, and the Statement of Profit
and Loss, the Cash Flow Statement for the year then ended, and a
summary of significant accounting policies and other explanatory
information, which we have signed under reference to this report.
Management's Responsibility for the standalone Financial Statements
The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act,2013(" the Act") with
respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standard Specified under Section 133 of the Act, read with
Rule 7 of the Companies(Accounts) Rules,2014. This responsibility also
includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company
and for preventing and detecting fraud and other irregularities, the
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent ; and the
design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provision of the Act, the accounting and auditing standards and matters
which are required to be included in the audit report under the
provisions of the Act and the Rules made thereudner.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors' judgment, including the assessment
of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalones
financial statements.
Opinion
In our opinion, and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March ,2015, and its loss and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies(Auditor's Report) Order,2015 ("the
order") issued by the Central Government of India in term 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 the paragraphs 3 and 4 of the
Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
(b) In our opinion, proper books of accounts as required by 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 Cash Flow Statement
dealt with by this Report are in agreement with books of account:
(d) In our opinion, the aforesaid standalone financial statement comply
with the Accounting Standards under Section 133 of the Companies Act,
2013 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, and taken on records by the Board of Directors,
none of the directors are disqualified as on 31st March 2015, from
being appointed as a director in terms of clause(g) of sub-section(2)
of section 164 of the Act.
(f) With respect to the other matters to be include in the Auditor
Report in accordance with Rule 11 of the Companies (Audit and
Auditor's) Rules 2014, in our opinion and to the best of our
information and according to the explanations given to us.
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements-
Refer Note 31-5(a) to 5(f) to the financial statements.
(ii) There has been no delay in transferring amount required to be
transferred to the Investors Education and Protection
Fund to the extent legally allowed to be transferred
Annexure to the Auditor's Report of Shiv-Vani Oil & Gas Exploration
Services Ltd
The Annexure referred to in our report to the Members of Shiv-vani Oil
& Gas Exploration Services Ltd for the year ended on 31st March,2015.
We report that,
1. (i) The Company has maintained proper records of fixed assets
showing full particulars including quantitative details and the
situation of its fixed assets .
(ii) A major portion of fixed assets has been physically verified by
the management during the year. In our opinion, the frequency of
verification of the fixed assets by the management is reasonable having
regards to the size of the Company and the nature of its assets. The
discrepancies noticed have been properly dealt with in the books of
accounts.
2. (i) The management has conducted physical verification of inventory
at reasonable intervals.
(ii) In our opinion and according to the information and explanations
given to us, the procedure for physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(iii) In our opinion Company has maintained proper records of inventory
and no material discrepancies were noticed on physical verification.
3. In respect of the loans, secured or unsecured, granted or taken by
the Company to/from Companies, firm or other parties in the register
maintained under section 189 of the Companies Act, 2013.
(i) The Company has given interest free loan to Corporate/ to its
subsidiaries. In respect of the said loans, the maximum amount
outstanding at any time during the year is Rs.3,689,918,331/-
(ii) In our opinion and according to the information and explanations
given to us, the terms and conditions of interest free loans are not
prima facie prejudicial to interest of the Company.
(iii) The said interest free loan given to a wholly owned subsidiary of
the Company are repayable on demand and there is no repayment schedule.
(iv) In respect of the loan given by the Company to the corporate, the
same is repayable on demand the questions of overdue amount does not
arise.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for sale of goods and
services . During the course of our audit, no continuing major weakness
has been noticed in the internal control systems;
5. The Company has not accepted any deposits from the public.
6. In our opinion and according to the information and explanations
given to us the Central Government has not prescribed maintenance of
cost records under section 148 (1) of the Companies Act 2013 in respect
of the Company's products.
7. (a) As per the records of the Company and information and
explanations provided to us, the Company is not regular in depositing
the undisputed statutory dues including Provident Fund, Investor
Educaton and Protection fund, Employees State Insurance, Income Tax,
Sales Tax, Wealth Tax, WCT. Tax deduct at sources, Customs Duty, Excise
Duty, Cess and other Statutory dues with appropriate authorities.
According to the information and explanations given to us, no un
disputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31,2015 for a period of more than six months
from the date of becoming payable except Tax Deducted at source dues
aggregating to Rs.46,507,048/-(Previous year Rs.64,590,336/-) VAT dues
aggregating to Rs.42,302,658/- (Previous year 45,062,958/-), Work
Contract Tax dues aggregating to Rs.11,727,696/- (Previous Year
Rs.10,670,375/- ), professional Tax dues aggregating to Rs.2,481,030/-(
Previous Year Rs.1,625,791/-), Dividend Distribution Tax dues
aggregating Rs.7,520,832/-(Previous Year Rs.7,520,832/-) Provident Fund
dues aggregating Rs.Nil (Previous Year Rs.6,710,598/) and Services Tax
dues aggregating to Rs.835,695,272/-(Previous year Rs.1,420,782,067/-)
were payable at the year end.
(b) Following are the details of disputed statutory dues that have not
paid to the concerned authorities
Nature of Statute Nature of Dues Amount (Rs.)
Pending
Service Tax Demand 479,531,062
Service Tax Demand 317,919,573
Central Excise Penal Proceeding 1,250,000
Income Tax Act Income Tax 338,567,479
Nature of Statute Period to which Forum where dispute is
Pending the amount relates Pending
Service Tax Upto 2007-2008 Service Tax Appellate
Tribunal
Service Tax 2010-2013 Service Tax Commissioner
Central Excise 2007-2008 High Court
Income Tax Act 2005-06 to ITAT, New Delhi
2008-09
(c) According to the information and explanation given to us, no amount
is required to be transferred to Investor Education and Protection Fund
in accordance with the relevant provisions of the Act.
8. The Company have accumulated losses of Rs.135,08,70,182/ at the end
of the Financial year .Resulting in the fully erosion of Net-worth of
the Company and it has incurred cash loss during the financial year
amounting Rs.306,98,53,734/-.
9. As per books and records maintained by the Company and according to
the information and explanation given to us, the Company has defaulted
in repayment of loans and interest dues to financial institutions or
Bank amounting to Rs.360.58 crores which is reflected under note-4
"Long term borrowing" - "Secured" - "from Banks" and under
note no 10-'Other Current Liabilities' - 'Current maturities of
long term Debts' - in the financial statement.
10. According to the information and explanations given to us, the
Company has not given security / guarantee for any loan taken by others
from banks & financial institutions.
11. The Company has not raised any term loans during the year.
12. In our opinion and according to the information and explanations
given to us by the management which have been relied upon by us, no
fraud on or by the Company has been noticed or reported during the
year.
For Vijay Prakash
Gupta & Associates
Chartered Accountants
Firm Reg. No:005570N
Vikas Varshney
New Delhi Partner
June 6, 2015 Membership No:510929
Mar 31, 2014
We have audited the accompanying financial statements of Shiv-Vani Oil
& Gas Exploration Services Limited (the "Company"), which comprise the
Balance Sheet as at 31st March,2014, and the Statement of Profit and
Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information,
which we have signed under reference to this report.
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
accounting principles generally accepted in India, including the
Accounting Standards notified under the Companies Act,1956, read with
General Circular 8/2014 dated 4 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors'' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the 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.
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 accompanying 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 31st March 2014;
b. in the case of the Statement of the Profit and Loss, of the Loss
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
1. As required by the Companies(Auditor''s Report) 0rder,2003; as
amended by the Companies (Auditor''s Report)(Amendment) 0rder,2004;
issued by the Central Government of India in term of Sub-Section(4A) of
Section 227 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 the 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 accounts as required by 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 dealt with by this
Report are in agreement with 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 Companies Act,1956, read with General Circular 8/2014 dated 4 April
2014 issued by the Minsitry of Corporate Affairs;
e. On the basis of written representations received from the directors
as on 31st March 2014, and taken on records by the Board of Directors,
none of the directors is disqualified as on 31st March2014, from being
appointed as a director in terms of clause(g) of sub-section(1) of
section 274 of the Act.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 7 of the Independent Auditors'' Report of even
date to the member of Shiv-vani Oil & Gas Exploration Services Ltd on
the financial statement as of and for the year ended 31st March, 2014.
I. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. no material discrepancies were noticed on such
physical verification.
c) In our opinion the Company has not disposed of a substantial part of
its fixed assets during the year and therefore, the going concern
status of the Company is not affected.
II. In respect of its inventories:
a) As explained to us, the inventory of store & Spare parts, except
goods in transit, lying at different sites, have been physically
verified by the management at reasonable intervals during the year. In
our opinion, the frequency of such verification is reasonable having
regard to the Company and the nature of the Company and the nature of
its business.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventory, as explained
to us, there were no material discrepancies noticed on physical
verification of inventory as compared to the book records
III. In respect of the loans, secured or unsecured, granted or taken by
the Company to/from Companies, firm or other parties in the register
maintained under section 301 of the Companies Act,1956;
a) The Company has given interest bearings loan to corporate/interest
free to its subsidiaries. In respect of the said loans, the maximum
amount outstanding at any time during the year is Rs2,806,335,291/-.
b) In our opinion and according to the information and explanations
given to us, the terms and conditions of interest free loans are not
prima facie prejudicial to interest of the Company.
c) The said interest free loan given to a wholly owned subsidiary of
the Company and there is no repayment schedule.
d) In respect of the loan given by the Company to the corporate, the
same is repayable on demand the question of overdue amount does not
arise.
e) The Company has taken new loans during the year.
IV. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and also for the sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
systems.
V. In respect of the contracts or arrangements referred to section 301
of the Companies act, 1956:
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered in the register maintained
under section301 of the Companies Act,1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, there are certain transactions in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Companies Act,1956 aggregating during the year to Rs.5,00,000/- or
more in respect of any party in the said financial year. The prices at
which these have been made are reasonable having to the prevailing
prices at that time.
VI. According to the information and explanations to us, the Company
has not accepted any deposits from the public. Therefore the provision
of Clause (vi) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
VII. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
VIII. Maintenance of cost records has not been prescribed by central
government under section 209 (1) (d) of the Companies Act, 1956.
IX. In respect of statutory dues:
a) According to the records the Company is not regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection fund, Employees, State Insurance, Income Tax, Sales Tax,
Wealth Tax, Work Contract Tax, Tax deduct at Sources, Customs Duty,
Excise Duty, Cess and other statutory dues with the appropriate
authorities. According to the information and explanations given to us,
no un disputed amounts payable in respect of
the aforesaid dues were outstanding as at March31,2014 for a period of
more than six months from the date of becoming payable except Tax
deduct at source dues aggregating to Rs.17,51,25,632/-(Previous year
Rs.12,90,08,864/-) VAT dues aggregating to Rs.4,50,62,958/-(Previous
Year Rs. 1,75,68,135/-), Work Contract Tax dues aggregating to
Rs.1,06,70,375/-(Previous year Rs. 57,44,111/-) Professional Tax dues
aggregating to Rs.17,09,095/-(Previous Year Nil) Dividend Distribution
Tax dues aggregating Rs.75,20,832/-(Previous Year Nill) Provident Fund
dues aggregating to Rs.67,10,598/- (Previous Year Nil) And Service Tax
dues aggregating to Rs.142,07,82,067/- (Previous Year 127,22,44,795/-
were payable at the year end.
b) Following are the details of disputed statutory due that have not
Paid to the concerned authorities.
Name of the Nature of Amount
Statute pending Dues (Rs.)
Service tax Demand 47,95,31,062
Central Excise Penal Proceeding 1,250,000
Income Tax Act Income Tax 33,85,67,479
Name of the Period to which Forum where
Staute the amount relates dispute is pending
Service tax 2007-08 Service Tax
Appellate Tribunal
Central Excise 2007-08 High Court & Custom
Income Tax Act 2005-06 to 2008-09 Commissioner of
Income tax 1961
(Appeals) New Delhi.
X. The Company does not have accumulated losses at the end of the
financial year. The Company has incurred cash loss during the financial
year amounting to Rs. 4,58,44,0,565/-.
XI. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the payments to
Bank, Financial institutions were delayed .
XII. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
XIII. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause (xiii) of the
Companies (Auditor Report) 0rder,2003 are not applicable to the
Company.
XIV. The Company is not dealing or trading in shares, securities,
debentures and other investments as such the provision of the clause
are not applicable to the Company
XV. According to the information and explanation given to us, the
Company has given counter guarantees against the guarantees issued by
the Company''s bankers.
XVI. As per information and explanation given to us, term loans raised
during the year by the Company have been applied for the purpose for
which said loans were raised.
XVII. According to the information and explanations given to us and as
per books and records examined by us, as on the date of balance sheet
,no funds raised on short-term basis used for long term investment.
Similarly, no funds raised on long-term basis have been used for
short-term investment.
XVIII.The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under section
301 of the Companies Act 1956. According to the information and
explanation given to us and as per the books and records examined by
us, the price at which shares have been issued is not prejudicial to
the interest of the Company.
XIX. The Company has not issued any debentures during the year.
XX. The Company has not raised any monies by way of public issues
during the year.
XXI. According to the information and explanation given us, and on the
basis of our examination of the books and records of the Company
carried out in accordance with the generally accepted auditing
practices in India. We have not come across any such instance of fraud
on or by the Company have been noticed or reported during the course of
our audit.
For Vijay Prakash Gupta & Associates
Chartered Accountants
ICAI Firm Reg. No. : 005570N
Vikas Varshney
New Delhi Partner
September 2, 2014 Membership No.510929
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of Shiv-Vani
Oil & Gas Exploration Services Ltd. (the "Company"), which comprise the
Balance Sheet as at March 31, 2013 and 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,
which we have signed under reference to this report.
Management''s Responsibility for the Financial Statements
2. 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 of the Company in accordance
with the Accounting Standards referred to in sub-section(3C) of Section
211 of the ''Companies Act, 1956'' of India ( the "Act"). This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' Responsibility
3. 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.
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 auditors'' judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the 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 accompanying 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, 2013;
b) In the case of the statement of Profit & Loss, of the Profit for the
year ended on that date;
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 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 Act (hereinafter referred to as the Rs.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 the paragraph 4 and 5 of the Order.
8 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 accounts as required by law have
been kept by the Company so far as appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit & Loss dealt with by this
Report are in agreement with books of account.
(d) In our opinion, the Balance Sheet, Statement of Profit & Loss dealt
with by this report comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Act;
(e) On the basis of written representation received from the Directors
as on 31st March, 2013, and taken on records by the Board of Directors,
none of the Directors is disqualified as on 31st March, 2013, from
being appointed as a Director in terms of clause (g) of sub-Section (I)
of Section 274 of the Act.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 7 of the Independent Auditor''s Report of even
date to the member of Shiv-Vani Oil & Gas Exploration Services Ltd. on
the financial statements as of and for the year ended March 31, 2013.
I. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the company and
nature of its assets no material discrepancies were noticed on such
physical verification.
c) In our opinion the company has not disposed of a substantial part of
its fixed assets during the year and therefore, the going concern
status of the Company is not affected.
II. In respect of its inventories:
a) As explained to us, the inventory of store & Spare parts, except
goods in transit, lying at different sites, have been physically
verified by the management at reasonable intervals during the year. In
our opinion, the frequency of such verification is reasonable having
regard to the company and the nature of the company and the nature of
its business.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventory. as explained
to us, there were no material discrepancies noticed on physical
verification of inventory as compared to the book records.
III. In respect of the loans, secured or unsecured, granted or taken
by the company to/from companies, firm or other parties in the register
maintained under section 301 of the Companies Act,1956;
a) The Company has given interest bearings loan to corporate/ to its
subsidiaries. In respect of the said loans, the maximum amount
outstanding at any time during the year was Rs. 192,38,16,345/-.
b) In our opinion and according to the information and explanations
given to us, the terms and conditions of interest free loans are not
prima facie prejudicial to interest of the Company.
c) The said interest free loan given to a wholly owned subsidiary of
the Company are repayable on demand and there is no repayment schedule.
d) In respect of the loan given by the Company to the corporate, the
same is repayable on demand the question of overdue amount does not
arise.
e) The Company has taken new loans during the year.
IV. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and also for the sale of goods
and services. During the course of our audit, we have not observed and
continuing failure to correct major weaknesses in internal control
systems.
V. in respect of the contracts or arrangements referred to section 301
of the companies act 1956:
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed 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, there are certain transactions in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Companies Act,1956 aggregating during the year to Rs.500000/- or
more in respect of any party in the said financial year. The prices at
which these have been made reasonable having to the prevailing prices
at that time.
VI. According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Therefore the
provision of Clause (vi) of the companies (Auditors Report) Order, 2003
are not applicable to the Company.
VII. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
VIII. Maintenance of cost records has not been prescribed by central
government under section 209 (1) (d) of the Companies Act, 1956.
IX. In respect of statutory dues:
a) According to the records, the Company was not regular in depositing
the undisputed statutory dues including Provident Fund, Employees State
Insurance Contribution, Sales tax, Work contract ax, Tax deducted at
Source and other statutory dues with the appropriate authorities.
According to the information and explanations given to us, no
undisputed accounts payable in respect of the aforesaid dues were
outstanding as at March 31,2013 for a Period of more than six months
from the date of becoming payable except Tax deducted at sources dues
aggregating to Rs. 12,90,08,864/- (Previous Year  2,62,31,877), VAT
dues aggregating to Rs. 1,75,68,135/-, Work Contract Tax dues
aggregating to Rs. 57,44,111/- and Services Tax dues aggregating to Rs.
127,22,44,795/- (Previous Year  Rs. 49,32,81,182) were payable at the
year end.
b) Following are the details of disputed statutory due that have not
been Paid to the concerned authorities.
Name of the Nature of Amount Period to which Forum where
Statute pending Dues (Rs.) the amount
relates dispute is
pending
Service Demand 47,95,31,062 F. Y. 2007-08 Service Tax
Appellate
Tribunal
Central Excise & Penal
Procee
ding 12,50,000 F. Y.2007-08 High Court -
Bombay
Custom
Income Tax Act, Income
Tax 33,90,17,125 2005-06 To
2008-09 Commissioner
of
1961 Income Tax
(Appeals)
New Delhi
X. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered of dues to financial year.
XI. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to financial institutions. Bank or
debenture holders.
XII. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the company on the basis of security by way of pledge of
shares, debentures and other securities.
XIII. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund /society. Therefore, the provisions of clause (xiii) of
the Companies (Auditor Report) Order,2003 are not applicable to the
Company.]
XIV. The Company is not dealing or trading in shares, securities,
debentures and other investments as such the provision of the clause
are not applicable to the Company.
XV. According to the information and explanation given to us, the
company has given counter guarantee against the guarantees issued by
the company''s bankers.
XVI. As per information and explanation given to us, term loans raised
during the year by the company have been applied for the purpose for
which said loans were raised.
XVII.According to the information and explanations given and records
examined by us, as on the date of balance sheet ,no funds raised on
short-term basis used for long term investment. Similarly, no funds
raised on long-term basis have been used for short-term investment.
XVIII.The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the companies Act 1956.
XIX. The Company has not issued any debentures during the year.
XX. The company has not raised any monies by way of public issues
during the year.
XXI. According to the information and explanation given to us, and on
the basis of our examination of the books and records of the company
carried out in accordance with the generally accepted auditing
practices in India. We have not come across any such instance of fraud
on or by the company have been noticed or reported during the course of
our audit.
For Vijay Prakash Gupta & Associates
Chartered Accountants
Firm Reg. No. : 005570N
Vikas Varshney
New Delhi Partner
May 30, 2013 Membership No.510929
Mar 31, 2012
1. We have audited the attached Balance Sheet of SHIV-VANI OIL & GAS
EXPLORATION SERVICES LTD at March 31, 2012, the Profit and Loss
Accounts and also the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Company management. Our responsibility is to express an opinion
on theses financial statements based on our audit.
2. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the companies (Auditor Report ) Order ,2003 ("the
order") issued by Central Government of India in terms of sub-section
(4A) of Section 227 of the Companies Act,1956 ("the Act"), 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 above, we
report that:
a) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of account, as required by law, have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt 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 are in compliance with the
Accounting Standards referred to in section 211 (3C) of the Companies
Act, 1956.
e) On the basis of written representations received from the Directors
as on March31,2012 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on March31, 2012
from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant Accounting policies and other notes 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 accepted in India:
i. in the case of the Balance sheet, of the state of affairs of the
Company as at March 31, 2012;
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 31ST MARCH 2012 (Referred to in
paragraph 3 above of our Report of even date)
I. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets, no material discrepancies were noticed on such
physical verification.
c) In our opinion the Company has not disposed of a substantial part of
its fixed assets during the year and therefore, the going concern
status of the Company is not affected.
II. In respect of its inventories:
a) As explained to us, the inventory of store & spare parts, except
goods in transit, lying at different sites, have been physically
verified by the management at reasonable intervals during the year. In
our opinion, the frequency of such verification is reasonable having
regard to the Company and the nature of the Company and the nature of
its business.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventory. as explained
to us, there were no material discrepancies noticed on physical
verification of inventory as compared to the book records
III. In respect of the loans, secured or unsecured, granted or taken
by the Company to/from Companies, firm or other parties in the register
maintained under section 301 of the Companies Act,1956;
a) The Company has given interest bearings loan to corporate/interest
free to its subsidiaries. In respect of the said loans, the maximum
amount outstanding at any time during the year is Rs.117236082.
b) In our opinion and according to the information and explanations
given to us, the terms and conditions of interest free loans are not
prima facie prejudicial to interest of the Company.
c) The said interest free loan given to a wholly owned subsidiary of
the Company and there is no repayment schedule.
d) In respect of the loan given by the Company to the corporate, the
same is repayable on demand the question of overdue amount does not
arise.
e) The Company has taken new loans during the year.
IV. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and also for the sale of goods
and services. During the course of our audit, we have not observed and
continuing failure to correct major weaknesses in internal control
systems.
V. in respect of the contracts or arrangements referred to section 301
of the Companies Act, 1956:
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed 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, there are certain transactions in pursuance of contracts
or arrangements entered in the register maintained under Section 301 of
the Companies Act,1956 aggregating during the year to Rs.
500,000/-(Rupees Five Lakhs only ) or more in respect of any party in
the said financial year. The prices at which these have been made
reasonable having to the prevailing prices at that time.
VI. According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Therefore the
provision of Clause (vi) of the Companies (Auditors Report) Order, 2003
are not applicable to the Company.
VII. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
VIII. Maintenance of cost records has not been prescribed by Central
Government under Section 209 (1) (d) of the Companies Act, 1956.
IX. In respect of statutory dues:
a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Work
Contract Tax, Tax Deducted at Sources, Customs Duty, Excise Duty, Cess
and other statutory dues have been generally regularly deposited with
the appropriate authorities. According to the information and
explanations given to us, no un disputed amounts payable in respect of
the aforesaid dues were outstanding as at March 31, 2012 for a period
of more than six months from the date of becoming payable except Tax
Deducted at Source dues aggregating to Rs. 26231877 and Service Tax
dues aggregating to Rs.49328118 were payable at the year end.
b) Following are the details of disputed statutory due that have not
been paid to the concerned authorities.
Name of the Nature of Amount Period
to which Forum where
Statute
pending Dues (Rs.) the amount
relates dispute is pending
Service tax Demand 479531062 2007-08 Service Tax Appellate
Tribunal
Central Excise Penal
Proceeding 1250000 2007-08 High Court & Custom
X. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered of dues to financial year.
XI. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that in few cases the
payment to Bank, Financial institutions was delayed .
XII. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
XIII. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund /society. Therefore, the provisions of clause (xiii) of
the Companies (Auditor Report) Order,2003 are not applicable to the
Company
XIV. The Company is not dealing or trading in shares, securities,
debentures and other investments as such the provision of the clause
are not applicable to the Company.
XV. According to the information and explanation given to us, the
Company has given counter guarantee against the guarantees issued by
the company's bankers.
XVI. As per information and explanation given to us, term loans raised
during the year by the Company have been applied for the purpose for
which said loans were raised.
XVII.According to the information and explanations given to us and as
per books and records examined by us, as on the date of balance sheet,
no funds raised on short-term basis used for long term investment.
Similarly, no funds raised on long- term basis have been used for
short-term investment.
XVIII.The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under Section
301 of the Companies Act, 1956. According to the information and
explanation given to us and as per the books and records examined by
us, the price at which shares have been issued is not prejudicial to
the interest of the company.
XIX. The Company has not issued any debentures during the year;
however, first pari passu charge on fixed Assets of the company was
created for Optional Convertible Debentures (OCD) of Rs. 2500000000
issued last year.
XX. The Company has not raised any monies by way of public issues
during the year.
XXI. According to the information and explanation given to us, and on
the basis of our examination of the books and records of the Company
carried out in accordance with the generally accepted auditing
practices in India. We have not come across any such instance of fraud
on or by the Company have been noticed or reported during the course of
our audit.
For Vijay Prakash Gupta & Associates
Chartered Accountants
Firm Reg. No. : 005570N
Vikas Varshney
New Delhi Partner
September 3, 2012 Membership No.510929
Mar 31, 2011
1. We have audited the attached Balance Sheet of Shiv-Vani Oil & Gas
Exploration Services Ltd. at 31st March, 2011, the Profit and Loss
Accounts and also the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the company management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the companies (Auditor Report) Order, 2003 ("the
order") issued by central Government of India in terms of Sub-Section
(4A) of Section 227 of the Companies Act, 1956 ("the Act"), 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 above, we
report that:
a) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of account, as required by law, have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt 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 are in compliance with the
Accounting Standards referred to in Section 211 (3C) 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
significant Accounting policies and other notes thereon give the
information required by the companies Act,1956, in the manner so
required and give a true and fair view in conformity with the
accounting principals accepted in India:
i. in the case of the Balance sheet, of the state of affairs of the
Company as at 31st March, 2011;
ii. in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT 31ST MARCH 2011 ANNEXURE REFERRED TO IN
PARAGRAPH ABOVE OF OUR REPORT OF EVEN DATE
I. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the company and
nature of its assets, no material discrepancies were noticed on such
physical verification.
c) In our opinion the company has not disposed of a substantial part of
its fixed assets during the year and therefore, the going concern
status of the Company is not affected.
II. In respect of its inventories:
a) As explained to us, the inventory of store & Spare parts, except
goods in transit, lying at different sites, have been physically
verified by the management at reasonable intervals during the year. In
our opinion, the frequency of such verification is reasonable having
regard to the company and the nature of the company and the nature of
its business.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventory. as explained
to us, there were no material discrepancies noticed on physical
verification of inventory as compared to the book records
III. In respect of the loans, secured or unsecured, granted or taken
by the company to/from companies, firm or other parties in the register
maintained under Section 301 of the Companies Act, 1956;
a) The Company has given interest bearings loan to corporate/interest
free to its subsidiaries. In respect of the said loans, the maximum
amount outstanding at any time during the year is Rs. 5,052.20 millions.
b) In our opinion and according to the information and explanations
given to us, the terms and conditions of interest free loans are not
prima facie prejudicial to interest of the company.
c) The said interest free loan given to a wholly owned subsidiary of
the Company are repayable on demand and there is no repayment schedule.
d) In respect of the loan given by the Company to the corporate, the
same is repayable on demand the question of overdue amount does not
arise.
e) The Company has taken new loans during the year.
IV. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and also for the sale of goods
and services. During the course of our audit, we have not observed and
continuing failure to correct major weaknesses in internal control
systems.
V. In respect of the contracts or arrangements referred to Section 301
of the Companies Act, 1956:
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed 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, there are certain transactions in pursuance of contracts
or arrangements entered in the register maintained under Section 301 of
the Companies Act,1956 aggregating during the year to Rs.500,000/-
(Rupees Five Lakhs only) or more in respect of any party in the said
financial year. The prices at which these have been made reasonable
having to the prevailing prices at that time.
VI. According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Therefore the
provision of Clause (vi) of the Companies (Auditors Report) Order, 2003
are not applicable to the Company.
VII. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
VIII. Maintenance of cost records has not been prescribed by central
government under Section 209(1)(d) of the Companies Act, 1956.
IX. In respect of statutory dues:
a) According to the information and explanation given to us and the
records of the Company examined by us, in our opinion, subject to Note
no. 11 of Notes to Accounts (Schedule G), the Company has been
generally regular in depositing the undisputed statutory dues including
provident fund, tax deducted at source, Investor Education and
Protection fund, Employee's state insurance, Income Tax, sales tax/Vat,
service tax, custom duty, excise duty, cess and other material
statutory dues as applicable with the appropriate authorities.
b) Following are the details of disputed statutory due that have not
Paid to the concerned authorities.
Name of the Nature of Amount Period to which Forum where
Statute pending Dues (Rs.) the amount
relates dispute
is pending
Service Tax Demand 549,531,062 2007-08 Service Tax
Appellate
Tribunal
Central Excise Penal
Proceeding 1,250,000 2007-08 High Court
& Custom
X. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered of dues to financial year.
XI. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to financial institutions, Bank or
debenture holders.
XII. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the company on the basis of security by way of pledge of
shares, debentures and other securities.
XIII. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund /society. Therefore, the provisions of clause (xiii) of
the Companies (Auditor Report) Order,2003 are not applicable to the
Company
XIV. The Company is not dealing or trading in shares, securities,
debentures and other investments as such the provision of the clause
are not applicable to the Company.
XV. According to the information and explanation given to us, the
company has given counter guarantee against the guarantees issued by
the company's bankers.
XVI. As per information and explanation given to us, term loans raised
during the year by the company have been applied for the purpose for
which said loans were raised.
XVII. According to the information and explanations given to us and as
per books and records examined by us, as on the date of balance sheet
,no funds raised on short-term basis used for long term investment.
Similarly, no funds raised on long-term basis have been used for
short-term investment.
XVIII. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the companies Act 1956. According to the information and
explanation given to us and as per the books and records examined by
us, the price at which shares have been issued is not prejudicial to
the interest of the company.
XIX. The Company had issued Optional Convertible debentures for Rs.
2,500 Millions during the year and created 1st pari passu charge of
Assets.(Refer note no B (a) of notes to Accounts ).
XX. The company has not raised any monies by way of public issues
during the year.
XXI. According to the information and explanation given to us, and on
the basis of our examination of the books and records of the company
carried out in accordance with the generally accepted auditing
practices in India. We have not come across any such instance of fraud
on or by the company have been noticed or reported during the course of
our audit.
For Vijay Prakash Gupta & Associates
Chartered Accountants
Firm Registration No: 05577N
Vikas Varshney
New Delhi Partner
August 31, 2011 Membership No: 510929
Mar 31, 2010
1. We have audited the attached Balance Sheet of Shiv-Vani Oil & Gas
Exploration Services Ltd. as at March 31, 2010, the Profit and Loss
Accounts and also the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the company management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the companies (Auditor Report) Order, 2003 ("the
order") issued by Central Government of India in terms of sub-section
(4A) of section 227 of the Companies Act, 1956 ("the Act"), we enclose
in the Annexure a statement on the matters specified in paragraphs 4 &
5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for purposes of our
audit:
b) In our opinion, proper books of account, as required by law, have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt 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 Statements with by this report are in compliance with the
Accounting Standards referred to in section 211 (3C) of the Companies
Act 1956.
e) On the basis of written representations received from the Directors
as on March 31, 2010 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on March 31, 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
significant Accounting policies and other notes thereon give the
information required by the companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles accepted in India;
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 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, the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT 31ST MARCH, 2010 ANNEXURE REFERRED TO
IN PARAGRAPH ABOVE OF OUR REPORT OF EVEN DATE
I. In respect of its fixed assets;
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets no material discrepancies were noticed on such
physical verification.
c) In our opinion the Company has not disposed of a substantial part of
its fixed assets during the year and therefore, the going concern
status of the Company is not affected.
II. In respect of its inventories;
a) As explained to us, the inventory of store & Spare parts, excepts
goods in transit, lying at different sites, have been physically
verified by the management at reasonable intervals during the year. In
our opinion, the frequency of such verification is reasonable having
regard to the Company and the nature of the Company and the nature of
its business.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventory, as explained
to us, there were no material discrepancies notices on physical
verification of inventory as compared to the book records.
III. In respect of the loans, secured or unsecured, granted or taken
by the Company to/from companies, firm or other parties in the register
maintained under Section 301 of the Companies Act, 1956;
a) The Company has given interest bearings loan to corporate/interest
free to its subsidiaries. In respect of the said loans, the maximum
amount outstanding at any time during the year is Rs. 3,502.20
millions.
b) In our opinion and according to the information and explanations
given to us, the terms and conditions of interest free loans are not
prima facie prejudicial to interest of the Company.
c) The said interest free loan given to a wholly owned subsidiary of
the Company are repayable on demand and there is no repayment schedule.
d) In respect of the loan given by the Company to the corporate, the
same is repayable on demand the question of overdue amount does not
arise.
e) The Company has taken new loans during the year.
IV. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase inventory and fixed assets and also for the sale of goods and
services. During the course of our audit, we have not observed and
continuing failure to correct major weaknesses in internal control
systems.
V. In respect of the contracts or arrangements referred to section 301
of the Companies Act, 1956;
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that needed to the entered in 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, there are certain transactions in pursuance of contracts
or arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 aggregating during the year to Rs. 500,000/-
(Rupees Five Lakhs only) or more in respect of any party in the said
financial year. The prices at which these have been made reasonable
having to the prevailing prices at that time.
VI. According to the information and explanations to us, the Company
has not accepted any deposits from the public. Therefore the provision
of Clause (vi) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
VII. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
VIII. Maintenance of cost records has not been prescribed by Central
Government under Section 209 (1) (d) of the Companies Act, 1956.
IX. In respect of statutory dues;
a) According to the information and explanation given to us and the
records of the Company examined by us, in our opinion, subject to Note
no 11 of Notes to Accounts (schedule G), the Company has been generally
regular in depositing the undisputed statutory dues including provident
fund, tax deducted at source, Investor Education and Protection fund,
Employees state insurance, income tax, sales tax/Vat, service tax,
customs duty, excise duty, cess and other material statutory dues as
applicable with the appropriate authorities. The extent of the arrears
of statutory dues outstanding as at March 31, 2010 for a period of more
than six month is in respect of Income Tax of Rs. 117,990,335/- and
Fringe Benefit Tax of Rs. 380,573/- for the A.Y. 2009-10
b) Following are the details of disputed statutory due that have not
Paid to the concerned authorities.
Name of the Nature of Amount
Statute pending Dues (Rs. )
Services tax Demand 549,531,062/-
Central Excise & Custom Penal Proceeding 1,250,000/-
Name of the Period to which Forum where
Statute pending the amount relates dispute is
pending
Services tax 2007-08 Service Tax
Appellate Tribunal
Central Excise & Custom 2007-08 High Court
X. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered of dues to financial year.
XI. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions, bank or
debenture holders.
XII. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
XIII. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/ society. Therefore, the provisions of clause (xiii) of
the Companies (Auditor Report) Order, 2003 are not applicable to the
Company.
XIV. The Company is not dealing or trading in shares, securities,
debentures and other investments as such the provision of the clause
are not applicable to the Company.
XV. According to the information and explanation given to us, the
Company has given counter guarantee against the guarantees issued by
the Companys bankers.
XVI. As per information and explanation given to us, term loans raised
during the year by the Company have been applied for the purpose for
which said loans were raised.
XVII. According to the information and explanations given to us and as
per books and records examined by us, as on the date of balance sheet,
no funds raised on short-term basis used for long term investment.
Similarly, no funds raised on long-term basis have been used for
short-term investment.
XVIII. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956. According to the information and
explanation given to us and as per the books and records examined by
us, the price at which shares have been issued is not prejudicial to
the interest of the Company.
XIX. The Company has not issued any debentures during the year, hence
the question of creations of security or charge in respect of
debentures issued does not arise.
XX. The Company has not raised any monies by way of public issue
during the year.
XXI. According to the information and explanation given us, and on the
basis of our examination of the books and records of the Company
carried out in accordance with the generally accepted auditing
practices in India. We have not come across any such instance of fraud
on or by the Company have been noticed or reported during the course of
our audit.
For Vijay Prakash Gupta & Associates
Firm Registration No. 005570N
Chartered Accountants
Vikas Varshney
New Delhi Partner
September 1, 2010 Membership No.510929
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article