Mar 31, 2018
Report on the Audit of the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Tasty Bite Eatables Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the state of affairs, profit and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We are also responsible to conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditorâs report. However, future events or conditions may cause an entity to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31 March 2018, its profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Other Matters
1. The comparative financial information of the Company for the year ended 31 March 2017 and the transition date opening balance sheet as at 1 April 2016 included in these Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the years ended 31 March 2017 and 31 March 2016 dated 16 May 2017 and 07 May 2016 respectively expressed unmodified opinions on those financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006, as adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have been audited by us.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the Directors as on 31 March 2018 taken on record by the Board of Directors, none of the Directors is disqualified as on 31 March 2018 from being appointed as a Director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements; Refer Note 35 to the Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring the amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; and
iv. The disclosures in the financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made since they do not pertain to the financial year ended 31 March 2018. However amounts as appearing in the audited financial statements for the year ended 31 March 2017 have been disclosed (refer note 39).
With reference to the Annexure referred to in paragraph 1 in Report on Other Legal and Regulatory Requirements of the Independent Auditorâs Report to the Members of the Company on the Ind AS financial statements for the year ended 31 March 2018, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets by which its fixed assets are verified once a year. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its fixed assets. The discrepancies noticed on such verification between the physical count and the book records were not material and have been properly dealt with in the books of account.
(c) According to the information and explanations given to us and on the basis of examination of the records of the Company, the title deeds of the immovable properties are held in the name of the Company, except for the following:
Sr.no |
Type of Asset |
Gross block as on 31 March 2018 |
Net block as on 31 March 2018 |
Remarks |
1 |
Freehold land - Gut No. 503 |
INR 0.28 lakh |
INR 0.28 lakh |
The Company has filed a legal suit alleging illegal occupation of the land of the Company. |
2 |
Freehold land - Gut No. 505, 506 and 507 |
INR 1.26 lakh |
INR 1.26 lakh |
Appeal for correction of land records has been rejected by the Additional Commissioner, Pune. Further appeal has been filed with Commissioner, Pune. |
(ii) The inventory, except goods in transit, has been physically verified by management during the year. The discrepancies noticed on such verification between the physical stock and the book records were not material and have been properly dealt with in the books of account. In our opinion, the frequency of such verification is reasonable and adequate in relation to the size of the Company and the nature of its business. In respect of stocks lying with third parties at the year end, written confirmations from major parties have been obtained.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, paragraph 3(iii) of the Order is not applicable.
(iv) According to the information and explanations provided to us, the Company has neither granted any loan and nor made any investments, or guarantees or security during the year, to which section 185 or 186 of the Companies Act, 2013 is applicable. Accordingly, paragraph 3(iv) of the Order is not applicable.
(v) The Company has not accepted any deposits in accordance with section 73 to 76 of the Act and the rules made there under. Accordingly, paragraph 3(v) of the Order is not applicable.
(vi) In our opinion and according to the information and explanations given to us, maintenance of cost records under section 148 of the Act is not applicable to the Company under the Companies (Cost Record and Audit) Rules, 2014.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income-tax, Sales-tax, Service Tax, Goods and Services Tax, Duty of Customs, Duty of Excise, Value Added Tax and any other statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities though there have been some delays in payment of Provident Fund, Income-tax and Value Added Tax.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income-tax, Sales-tax, Service Tax, Goods and Services Tax, Duty of Customs, Duty of Excise, Value Added Tax, cess and any other statutory dues were in arrears as at 31 March 2018, for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of Income tax, Sales-Tax, Service tax, Goods and Services Tax, Duty of Customs, Duty of Excise, and Value added tax which have not been deposited by the Company on account of disputes, except as disclosed in Enclosure 1 to this Annexure.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to its bankers. The Company did not have any dues to financial institutions or any outstanding debentures during the year.
(ix) According to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were taken. The Company has not raised money by way of further public offer (including debt instruments) during the year.
(x) According to the information and explanations given to us, no fraud on or by the Company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations given to us, the managerial remuneration has been paid/ provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company as per the Act. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, all the transactions with related parties are in compliance with sections 177 and 188 of the Act and the details, as required by the applicable accounting standards have been disclosed in the Ind AS financial statements.
(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partially convertible debentures during the year.
(xv) According to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with them during the year.
(xvi) In our opinion and according to the information and explanations given to us, the Company is not required to be register under section 45-IA of the Reserve Bank of India Act, 1934.
Enclosure 1 to Annexure A
Details of statutory dues, which have not been deposited on account of dispute:
Name of the statute |
Nature of the dues |
Period to which the amount relates (Financial year) |
Amount (Rs. In lakhs) |
Amount paid under protest (Rs. In Lakhs) |
Amount unpaid (Rs. In Lakhs) |
Forum where dispute is pending |
The Income Tax Act, 1961 |
Income Tax |
2007-2008 |
245.05 |
50.80 |
194.25 |
The Income Tax Appellate Tribunal |
The Income Tax Act, 1961 |
Income Tax |
2008-2009 |
224.12 |
30.00 |
194.12 |
The Income Tax Appellate Tribunal |
The Income Tax Act, 1961 |
Income Tax |
2010-2011 |
238.82 |
- |
238.82 |
The Income Tax Appellate Tribunal |
Central Excise Act, 1944 |
Duty, Interest and Penalty |
September 2010- February 2011 |
98.83 |
98.83 |
The Customs, Excise and Service Tax Appellate Tribunal. |
|
The Central Sales Tax, 1956 |
Sales Tax, Interest and Penalty |
1999-2000 |
7.88 |
4.50 |
3.38 |
Maharashtra Sales Tax Tribunal |
The Central Sales Tax, 1956 |
Sales Tax, Interest and Penalty |
2003-2004 |
0.49 |
0.49 |
Maharashtra Sales Tax Tribunal |
|
Customs Act, 1962 |
Duty and Interest |
2013 - 2014 and 2014 - 2015 |
264.09 |
- |
264.09 |
The Commissioner of Customs |
Referred to in paragraph 2(f) in Report on Other Legal and Regulatory Requirements of the Independent Auditorâs Report to the Members of the Tasty Bite Eatables Limited on the Ind AS financial statements for the year ended 31 March 2018.
Report on the Internal Financial Controls with Reference to Financial Statements under Clause (i) of Sub-section 3 of Section 143 of the Act
We have audited the internal financial controls with reference to financial statements of Tasty Bite Eatables Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal financial control with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements were established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls with reference to financial statements.
Meaning of Internal Financial Controls with Reference to Financial Statements
A companyâs internal financial control with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the Ind AS financial statements.
Inherent Limitations of Internal Financial Controls with Reference to Financial Statements
Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial control with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as of 31 March 2018, based on the internal control with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For B S R & Associates LLP
Chartered Accountants
Firmâs Registration No: 116231W / W-100024
Raajnish Desai
Partner
Membership No. 101190
Place : Pune
Date : 16 May 2018
Mar 31, 2017
Report on the Financial Statements
We have audited the accompanying financial statements of TASTY BITE EATABLES LIMITED (âthe Companyâ), which comprises the Balance Sheet as at March 31, 2017, 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.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2017, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in the paragrapRs.3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on March 31, 2017, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - refer note 32 to the financial statements.
ii. The Company does not have any material foreseeable losses on long term contracts including derivative contracts requiring provision under the applicable law or accounting standards.
iii. There are no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in the financial statements as to holdings as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30, 2016. However, we are unable to obtain sufficient and appropriate audit evidence in respect of certain transactions to report on whether the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management - Refer note 20.1 to the financial statement. Further, as stated in note 20.1 to the financial statements amounts aggregating to Rs. 36 thousand as represented to us by the Management have been utilized for other than permitted transactions and received amount aggregating Rs. 25 thousand from transactions which are not permitted.
ANNEXURE A TO THE INDEPENDENT AUDITORâS REPORT
Referred to in in Para 1 âReport on Other Legal and Regulatory Requirementsâ in our Independent Auditorsâ Report to the members of the Company on the financial statements for the year ended March 31, 2017
Statement on Matters specified in paragraphs 3 and 4 of the Companies (Auditorâs Report) Order, 2016:
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) As explained to us, the Company has a programme for physical verification of fixed assets at periodic intervals. In our opinion, the period of verification is reasonable having regard to the size of the Company and nature of its assets. The discrepancies noticed on such verification were not material and have been properly dealt with in the books of account.
(c) According to the information and explanations given to us and on the basis of examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company, except:
Sr. No. |
Type of Asset |
Gross Block as on March 31, 2017 (Rupees) |
Net Block as on March 31, 2016 (Rupees) |
Remarks |
1. |
Free Hold Land -Gut No. 503 |
27,591 |
27,591 |
The Company has filed a legal suit for illegal occupation of Company land. |
2. |
Free Hold Land -Gut No. 505, 506, 507 |
125,586 |
125,586 |
Appeal for correction of land records has been rejected by Additional Commissioner, Pune. Appeal is being filed with the Commissioner, Pune. |
ii. In our opinion and according to the information and explanations given to us, physical verification of inventory has been conducted at reasonable intervals by the management. The discrepancies noticed on physical verification have been properly dealt with in the books of account.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act. Therefore, the provisions of sub clause (a), (b) and (c) of paragrapRs.3(iii) of the Order are not applicable.
iv. In our opinion and according to the information and explanations given to us and the records examined by us, the Company has not advanced any loans or made any investments or provided any guarantees or security to the parties covered under section 185 and 186. Therefore, the provisions of Clause 3 (iv) of the Order are not applicable to the Company.
v In our opinion and according to the information and explanations given to us, the Company has not accepted any Deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Act and the Rules framed thereunder are not applicable.
vi. In our opinion and according to the information and explanations given to us, the maintenance of cost records under sub-section (1) of section 148 of the Act is not applicable to the Company under the Companies (Cost Record and Audit) Rules, 2014.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues to the appropriate authorities. According to the information and explanations given to us, there are no arrears of outstanding statutory dues in respect of above as on the last day of the financial year for a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us and the records examined by us, there are no dues of Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise and Value added tax outstanding on account of any dispute, other than the following:
Name of Statute |
Nature of Dues |
Amount (Rs.) |
Period to which the amount relates |
Forum where dispute is pending |
The Central Sales Tax Act, 1956 |
Sales Tax, Interest and Penalty |
788,036 |
1999-2000 |
The Sales Tax Tribunal |
The Bombay Sales Tax Act, 1959 |
Interest and Penalty |
41,778 |
1999-2000 |
The Sales Tax Tribunal |
The Delhi Sales Tax Act, 1975 |
Sales Tax, Interest and Penalty |
48,702 |
2003-2004 |
The Deputy Commissioner of Sales Tax (Appeal) |
The Central Excise Act, 1944 |
Duty, Interest and Penalty |
9,883,269 |
2010-2011 |
The Commissioner of Central Excise (Appeals) |
The Income Tax Act, 1961 |
Tax and Interest |
24,504,930 |
2007-2008 |
The Income Tax Appellate Tribunal |
The Income Tax Act, 1961 |
Tax and Interest |
22,412,640 |
2008-2009 |
The Income Tax Appellate Tribunal |
The Income Tax Act, 1961 |
Tax and Interest |
23,881,580 |
2010-2011 |
The Income Tax Appellate Tribunal |
Of the above, the Company has deposited Rupees 491,778 towards sales tax, Rupees 233,240 towards excise duty and Rupees 8,080,000 towards income tax.
Further, the Company has disputed certain additions and disallowances under the Income Tax Act, 1961 for the years 2003-2004, 2004-2005 and 2005-2006 before the Commissioner of Income Tax (Appeals) and for the year 2012-2013 before the Dispute Resolution Panel. There is no demand for these cases.
viii. The Company has not defaulted in repayment of any dues to financial institutions, banks and government. There are no dues to debenture holders.
ix. The Company has not raised money through initial public offer or further public offer (including debt instruments). In our opinion and according to the information and explanations given to us and based on the documents and records examined by us on an overall basis, the term loans obtained by the Company were applied for the purpose for which the loans were obtained.
x. During the course of our examination of the books of account and records of the Company, and according to the information and explanation given to us and representations made by the Management, no material fraud by or on the Company by its officers or employees, has been noticed or reported during the year.
xi. According to the information and explanation given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanation given to us, the Company is not a Nidhi Company. Accordingly, provisions of paragrapRs.3(xii) of the Order are not applicable.
xiii. According to the information and explanation given to us and based on our examination of the records of the Company, transactions with related parties are in compliance with sections 177 and 188 of the Act, where applicable, and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with the directors or persons connected with them. Hence, the provisions of section 192 of the Act are not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 hence the provisions of paragrapRs.3 (xvi) of the Order are not applicable.
For KALYANIWALLA & MISTRY LLP
CHARTERED ACCOUNTANTS
(Firm Registration No. 104607W/W100166)
Ermin K. Irani
Partner
M. No.: 35646
Place : Pune
Date : May 16, 2017
Mar 31, 2015
We have audited the accompanying financial statements of TASTY BITE
EATABLES LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31,2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31,2015, and its profit and its cash flows for the year ended
on that date.
Emphasis of Matter
We draw attention to the following matters in the Notes to the
financial statements:
a) Note 46 to the financial statements, wherein, it has been stated
that the approval of the Central Government for the excess remuneration
paid to the Managing Director for the year ended March 31,2014 is
awaited.
b) Note 12 to the financial statements, consequent to Schedule II to
the Companies Act, 2013 becoming applicable with effect from April
01,2014, depreciation for the year ended March 31,2015 has been
provided on the basis of the useful lives as prescribed in Schedule II.
This has resulted in the depreciation expense for year ended March
31,2015 being higher by Rs.17,611,014. Depreciation of Rs. 2,219,800 (net
of Deferred Tax) on account of assets whose useful life is already
exhausted as on April 01,2014, has been adjusted to Surplus in
Statement of Profit and Loss.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. The Company was required to spend an amount of Rs. 821,120 being 2%
of the average net profits of the three immediately preceding financial
years on the Corporate Social Responsibility ('CSR') as per the
provisions of section 135 of the Act. The Company has not spent any
amount on CSR during the year.
3. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on March 31,2015 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 31 to the
financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There are no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT Referred to in paragraph 1
under the heading 'Report on Other Legal and Regulatory Requirements'
of our report of even date on the financial statements of Tasty Bite
Eatables Limited for the year ended March 31,2015
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the Company has a program for physical
verification of fixed assets at periodic intervals. In our opinion, the
period of verification is reasonable having regard to the size of the
Company and the nature of its assets. The discrepancies noticed on such
verification were not material and have been properly dealt with in the
books of account.
ii. (a) The Management has conducted physical verification of inventory
at reasonable intervals.
(b) In our opinion, 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. The
discrepancies noticed on physical verification have been properly dealt
with in the books of account.
iii. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 189 of the Act. Accordingly sub-clauses (a) and (b) of
clause (iii) of paragraph 3 of the Order are not applicable to the
Company for the current year.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchases of inventory and fixed assets and for the sale of goods and
services. In our opinion and according to information and explanations
given to us, there is no continuing failure to correct major weaknesses
in internal control system.
v. According to the information and explanations given to us, the
Company has not accepted any deposits from the public.
vi. According to the information and explanations given to us, the
maintenance of cost records has not been specified by the Central
Government under sub-section (1) of section 148 of the Act, for the
activities of the Company.
vii. (a) According to the information and explanations given to us and
the records examined by us, the Company
is generally regular in depositing undisputed statutory dues including
Provident Fund, Employees' State Insurance, Income-tax, Sales Tax,
Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added
Tax, Cess and any other statutory dues with the appropriate
authorities.
According to the information and explanations given to us, there are no
arrears of outstanding statutory dues in respect of above as at the
last day of the financial year for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us and on
the basis of our examination of the books of account and records, there
are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of
Customs, Duty of Excise, Value Added Tax, or Cess on account of any
dispute, other than the following:
Name of Statute Nature of Dues Amount (Rs.) Period to which
the amount relates
Central Sales Tax Tax, Interest and 788,036 1999 -2000
Act, 1956 Penalty
Bombay Sales Tax Interest and 41,778 1999 -2000
Act, 1959 Penalty
Name of Statute Forum where
dispute is pending
Central Sales Tax
Act, 1956 Sales Tax Tribunal
Bombay Sales Tax
Act, 1959 Sales Tax Tribunal
Name of Statute Nature of Dues Amount (Rs.) Period to which
the amount relates
Delhi Sales Tax Tax, Interest 48,702 2003 - 2004
Act, 1975 and Penalty
The Finance Act, Tax and Penalty 2,716,214 2005 to 2010
1994 (Service Tax)
The Income Tax Tax 5,183,624 2006 - 2007
Act, 1961
The Income Tax Tax 24,504,930 2007- 2008
Act, 1961
The Income Tax Tax 22,412,640 2008 - 2009
Act, 1961
ame of Statute Forum where
dispute is pending
Delhi Sales Tax
Act, 1975 Deputy Commissioner
of Sales Tax (Appeal)
The Finance Act,
1994 (Service Tax) The Customs, Excise
and Service Tax
Appellate Tribunal
The Income Tax
Act, 1961 The Income Tax
Appellate Tribunal
The Income Tax
Act, 1961 The Income Tax
Appellate Tribunal
The Income Tax
Act, 1961 The Income Tax
Appellate Tribunal
Of the above, the Company has deposited Rs. 491,778 towards sales tax, Rs.
800,000 towards service tax. Out of disputed dues of Income Tax, the
Company has deposited Rs. 9,080,000 and has requested the Income Tax
Department to adjust Rs. 4,183,624 out of income tax refunds of
subsequent periods.
Further, the Company has disputed certain additions and disallowances
under the Income Tax Act, 1961 for the year 2003-2004 and 2005-2006
before the Commissioner of Income Tax (Appeals), for the year 2004-2005
before the Income Tax Appellate Tribunal and for the year 2009-2010
before the Dispute Resolution Panel. There is no demand for these
cases.
(c) According to the information and explanations given to us, there
were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
viii. The Company does not have accumulated losses as at the end of the
financial year. Further, it has not incurred any cash losses in the
current financial year and immediately preceding financial year.
ix. According to the information and explanations given to us and based
on the documents and records produced before us, there has been no
default in repayment of dues to financial institutions or banks. There
are no dues to debenture holders.
x. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xi. In our opinion and according to the information and explanations
given to us and based on the documents and records examined by us on an
overall basis, the term loans obtained by the Company were applied for
the purpose for which the loans were obtained.
xii. Based on the audit procedures performed and according to the
information and explanations given to us by the Management, we report
that no fraud on, or by the Company has been noticed or reported during
the year.
For KALYANIWALLA & MISTRY
CHARTERED ACCOUNTANTS
(Firm Registration No.: 104607W)
Ermin K. Irani
Partner
Membership No.: 35646
Date : May 13, 2015
Place : Pune
Mar 31, 2014
We have audited the accompanying financial statements of Tasty Bite
Eatables Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, 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.
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 Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated September 13, 2013
of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by the management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
Without qualifying our report, we draw attention to note no. 44,
wherein, it has been stated that the Company is in the process of
making an application to the Central Government for the approval of the
excess remuneration paid to the Managing Director.
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
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by sub-section (3) of section 227 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. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards notified under
the Companies Act, 1956, read with the General Circular 15/ 2013 dated
September 13, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013;
e. on the basis of written representations received from the directors
as on March 31, 2014, where applicable, 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 clause (g) of
sub-section (1) of section 274 of the Act.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the Act
nor has it issued any Rules under the said section, prescribing the
manner in which such cess is to be paid, no cess is due and payable by
the Company.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in paragraph 1 under the heading ''Report on Other Legal and
Regulatory Requirements'' of our report of even date on the accounts of
Tasty Bite Eatables Limited for the year ended March 31, 2014
1) (i) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(ii) As explained to us, the Company has a program for physical
verification of fixed assets at periodic intervals. In our opinion, the
frequency of physical verification of fixed assets is reasonable having
regard to the size of the Company and the nature of its assets. As
informed to us, no material discrepancies were noticed on such
verification and the same have been properly dealt with in the
accounts.
(iii) In our opinion, there was no significant disposal of fixed assets
during the year to affect the going concern assumption.
2) (i) The Management has conducted physical verification of inventory
at reasonable intervals. In our opinion, the frequency of verification
is reasonable.
(ii) In our opinion, 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.
(iii) The Company has maintained proper records of inventory. As
informed to us, no material discrepancies were noticed on the physical
verification between the physical stocks and the book records and the
same have been properly dealt with in the accounts.
3) (i) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(ii) The question of commenting on the rates of interest and other terms
and conditions of the loans granted being prejudicial to the interest of
the Company, regular receipt of principal and interest, overdue amount
and reasonable steps taken for recovery of principal and interest does
not arise.
(iii) The Company has taken loans from one party listed in the register
maintained under section 301 of the Companies Act, 1956. The total loan
amount outstanding at the year end is Rs.72,071 thousand.
(iv) In our opinion, the rate of interest and other terms and
conditions of loans taken from Companies and parties listed in the
register maintained under Section 301 of the Companies Act, 1956 are
not, prima facie, prejudicial to the interest of the Company.
(v) The Company is regular in the payment of principal and interest.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchases of inventory, fixed assets and for the sale
of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls.
5) (i) Based upon the audit procedures applied by us and according to
the information and explanations given to us, we are of the opinion
that the particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956, have been entered in the
register maintained under that section. (ii) In our opinion and
according to the information and explanations given to us, the
transactions made in pursuance of such 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 any
party during the year, have been made at prices which are reasonable,
having regard to prevailing market prices at the relevant time.
6) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 58A, 58AA, or any other relevant
provisions 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 of the Company and nature of its business.
8) We have broadly reviewed the books of account maintained by the
company pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained. We have
however not made a detailed examination of the cost records with a view
to determine whether they are accurate or complete.
9) (i) According to the information and explanation given to us, the
Company is regular in depositing undisputed statutory dues including
dues pertaining to Provident Fund, Employees'' State Insurance,
Income-tax, Value Added Tax, Customs Duty, Cess and any other statutory
dues with the appropriate authorities.
We have been also informed that there are no undisputed dues which have
remained outstanding at the end of the financial year for a period of
more than six months from the date they became payable.
(ii) According to the information and explanations given to us, there
are no dues of Sales Tax, Value Added Tax, Income Tax, Customs Duty,
Wealth Tax, Excise Duty or cess outstanding on account of any dispute,
other than the following:
Name of Statute Nature of Dues Amount (Rs.)
Central Sales Tax Tax, Interest and 788,036
Act, 1956 Penalty
Bombay Sales Tax Interest and 41,778
Act, 1959 Penalty
Delhi Sales Tax Tax, Interest 48,702
Act, 1975 and Penalty
The Finance Act, Tax and Penalty 2,716,214
1994 (Service Tax)
The Income Tax Tax 5,183,624
Act, 1961
The Income Tax Tax 11,828,200
Act, 1961
The Income Tax Tax 22,412,640
Act, 1961
Name of the Statute Period to which Forum where
the amount relates dispute is pending
Central Sales Tax Act, 1956 1999 -2000 Sales Tax Tribunal
Bombay Sales Tax Act, 1959 1999 -2000 Sales Tax Tribunal
Delhi Sales Tax Act, 1975 2003 -2004 Deputy
Commissioner of
Sales Tax (Appeal)
The Finance Act, 1994 2005 - 2010 The Customs, Excise
(Service Tax) and Service Tax
Appellate Tribunal
The Income Tax Act, 1961 2006 -2007 The Income Tax
Appellate Tribunal
The Income Tax Act, 1961 2007-2008 The Income Tax
Appellate Tribunal
The Income Tax Act, 1961 2008-2009 The Income Tax
Appellate Tribunal
Of the above, the Company has deposited Rs.491,778 towards sales tax,
Rs.800,000 towards service tax. Out of disputed dues of Income Tax,
the Company has deposited Rs.1,080,000 and has requested the Income Tax
Department to adjust Rs.4,183,624 out of income tax refunds of
subsequent periods.
Further, the Company has disputed certain additions and disallowances
under the Income Tax Act, 1961 for the years 2003-2004 and 2004-2005
before the Commissioner of Income Tax (Appeals). The Company has
received an order from the Commissioner of Income Tax (Appeals) for the
year 2005-2006 and as informed to us, the Company is awaiting the order
giving effect to the said order from the assessing officer. There is no
demand for these cases.
10) The Company has no accumulated losses as at the end of the
financial year. Further, it has not incurred any cash losses in the
current financial year and immediately preceding financial year.
11) According to the information and explanations given to us and based
on the documents and records produced before us, there has been no
default in repayment of dues to financial institutions or banks. There
are no dues to debenture holders.
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 any loans or advances on the basis of security by way of pledge
of shares, debentures or other securities.
13) According to the information and explanations given to us, the
nature of activities of the Company does not attract any special
statute applicable to chit fund and nidhi / mutual benefit fund /
societies.
14) According to the information and explanations given to us, the
Company does not deal or trade in shares, securities, debentures and
other investments.
15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16) In our opinion and according to the information and explanations
given to us, the term loans obtained by the Company were applied for
the purpose for which the loans were obtained.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, funds
amounting to Rupees 51,755 thousand raised on short-term basis
(primarily represented by changes in working capital and short term
borrowings) have been used for long-term investment (primarily
represented by additions to fixed assets and repayment of long term
borrowings).
18) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19) The Company did not issue any debentures during the year.
20) The Company has not raised any money through a public issue during
the year.
21) According to the information and explanations given to us by the
Management and to the best of our knowledge and belief, no fraud on, or
by the Company has been noticed or reported during the year.
FOR KALYANIWALLA & MISTRY
CHARTERED ACCOUNTANTS
(Firm Registration No.: 104607W)
Ermin K. Irani
Partner
Membership No.. 35646
Date : May 8, 2014
Place : Pune
Mar 31, 2012
1. We have audited the attached Balance Sheet of TASTY BITE EATABLES
LIMITED as at March 31, 2012 and also the Profit and Loss Statement of
the Company for the year ended as on that date annexed thereto and the
Cash Flow Statement for the year ended on that date. These financial
statements are the responsibility of the Company's Management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we annex hereto a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
4. Without qualifying our report, we draw attention to note no. 43,
wherein, it has been stated that the Company has made an application to
the Central Government for the approval of the excess remuneration paid
to the whole time directors as per the limits laid down under section
198 of the Companies Act, 1956 read with Schedule XIII to the said Act.
5. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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
these books.
c) The Balance Sheet, the Profit and Loss Statement 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 Profit and Loss Statement and
the 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 March 31, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
March 31, 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 with the notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
ii) in the case of the Profit and Loss Statement, of the Profit of the
Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Referred to in Paragraph (3) of our report of even date on the accounts
of Tasty Bite Eatables Limited for the year ended March 31, 2012.
1) (i) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(ii) As explained to us, the Company has a program for physical
verification of fixed assets at periodic intervals. In our opinion, the
frequency of physical verification of fixed assets is reasonable having
regard to the size of the Company and the nature of its assets. As
informed to us, no material discrepancies were noticed on such
verification and the same have been properly dealt with in the
accounts.
(iii) In our opinion, there was no significant disposal of fixed assets
during the year to affect the going concern assumption.
2) (i) The Management has conducted physical verification of inventory
at reasonable intervals. In our opinion, the frequency of verification
is reasonable.
(ii) In our opinion, 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.
(iii) The Company has maintained proper records of inventory. As
informed to us, no material discrepancies were noticed on the physical
verification between the physical stocks and the book records and the
same have been properly dealt with in the accounts.
3) (i) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(ii) The question of commenting on the rates of interest and other
terms and conditions of the loans granted being prejudicial to the
interest of the Company, regular receipt of principal and interest,
overdue amount and reasonable steps taken for recovery of principal and
interest does not arise.
(iii) The Company has taken loans from one party listed in the register
maintained under section 301 of the Companies Act, 1956. The total loan
amount outstanding at the year end is Rs.114,457 thousand.
(iv) In our opinion, the rate of interest and other terms and
conditions of loans taken from Companies and parties listed in the
register maintained under Section 301 of the Companies Act, 1956 are
not, prima facie, prejudicial to the interest of the Company.
(v) The Company is regular in the payment of principal and interest.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchases of inventory, fixed assets and for the sale
of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls.
5) (i) Based upon the audit procedures applied by us and according to
the information and explanations given to us, we are of the opinion
that the particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956, have been entered in the
register maintained under that section.
(ii) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such 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 any party during the year, have been made at prices which
are reasonable, having regard to prevailing market prices at the
relevant time.
6) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 58A, 58AA, or any other relevant
provisions 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 of the Company and nature of its business.
8) According to the information and explanations given to us, the
maintenance of cost records has not been prescribed by the Central
Government under section 209(1)(d) of the Companies Act, 1956, for any
of the activities of the Company.
9) (i) According to the information and explanation given to us, the
Company is regular in depositing undisputed statutory dues including
dues pertaining to Provident Fund, Employees' State Insurance,
Income-tax, Value Added Tax, Customs Duty, Cess and any other statutory
dues with the appropriate authorities.
We have been also informed that there are no undisputed dues which have
remained outstanding at the end of the financial year for a period of
more than six months from the date they became payable.
(ii) According to the information and explanations given to us, there
are no dues of Sales Tax, Value Added Tax, Income Tax, Customs Duty,
Wealth Tax, Excise Duty or cess outstanding on account of any dispute,
other than the following:
Name of
Statute Nature of
Dues Amount (Rs.) Period to
which Forum where
the amount
relates dispute is
pending
Central
Sales Tax Tax,
Interest and 788,036 1999-2000 Sales Tax
Tribunal
Act, 1956 Penalty
Bombay Sales
Tax Interest and 41,778 1999-2000 Sales Tax
Tribunal
Act, 1959 Penalty
Delhi Sales
Tax Tax, Interest 48,702 2003-2004 Deputy
Act, 1975 and Penalty Commissioner
of Sales Tax
(Appeal)
The Finance
Act, Tax and
Penalty 2,716,214 2005 to
2010 The Customs,
Excise
1994 (Service
Tax) and Service
Tax
Appellate
Tribunal
The Customs Fine and
Penalty 950,000 1987-1988 High Court
Act, 1962
The Income
Tax Tax 5,183,624 2006-2007 The Income Tax
Act, 1961 Appellate
Tribunal
Of the above, the Company has deposited Rs.491,778 towards sales tax,
Rs.800,000 towards service tax and Rs.1,000,000 towards income tax.
Further, the Company has disputed certain additions and disallowances
under the Income Tax Act, 1961 for the years 2003-2004 and 2004-2005
before the Commissioner of Income Tax (Appeals) and for the year
2007-2008 before the Dispute Resolution Panel. The Company has received
an order from the Commissioner of Income Tax (Appeals) for the year
2005-2006 and as informed to us, the Company is awaiting the order
giving effect to the said order from the assessing officer.
There is no demand for these cases.
10) The Company has no accumulated losses as at the end of the
financial year. Further, it has not incurred any cash losses in the
current financial year and immediately preceding financial year.
11) According to the information and explanations given to us and based
on the documents and records produced before us, there has been no
default in repayment of dues to banks. There are no dues to financial
institutions or debenture holders.
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 any loans or advances on the basis of security by way of pledge
of shares, debentures or other securities.
13) According to the information and explanations given to us, the
nature of activities of the Company does not attract any special
statute applicable to chit fund and nidhi / mutual benefit fund /
societies.
14) According to the information and explanations given to us, the
Company does not deal or trade in shares, securities, debentures and
other investments.
15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16) In our opinion and according to the information and explanations
given to us, the term loans obtained by the Company were applied for
the purpose for which the loans were obtained.
17) According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, funds
amounting to Rs.37,699 thousand raised on short term basis (primarily
represented by changes in working capital) have been used for long term
investment (primarily represented by fixed assets). Further, the
Company has explained that steps are being taken to augment the long
term funds.
18) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19) The Company did not issue any debentures during the year.
20) The Company has not raised any money through a public issue during
the year.
21) According to the information and explanations given to us by the
Management and to the best of our knowledge and belief, no fraud on, or
by the Company has been noticed or reported during the year.
For and on behalf of
KALYANIWALLA & MISTRY
CHARTERED ACCOUNTANTS
(Firm Registration No.: 104607W)
Anil A. Kulkarni
Partner
Membership No.: 47576
Date : May 30, 2012
Place : Pune
Mar 31, 2011
1. We have audited the attached Balance Sheet of TASTY BITE EATABLES
LIMITED as at March 31, 2011 and also the Profit and Loss Account of
the Company for the year ended as on that date annexed thereto and the
Cash Flow Statement for the year ended on that date. These financial
statements are the responsibility of the Company's Management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we annex hereto a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
4. Without qualifying our report, we draw attention to Note no. 22 of
schedule 14: Notes to Accounts, wherein, it has been stated that the
Company has made an application to the Central Government for the
approval of the excess remuneration paid to the whole time directors as
per the limits laid down under section 198 of the Companies Act, 1956
read with Schedule XIII to the said Act.
5. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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
these 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
the 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 March 31, 2011 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
March 31, 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 with the notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2011;
ii) in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in Paragraph (3) of our report of even date on the accounts
of Tasty Bite Eatables Limited for the year ended March 31, 2011.
1) (i) The Company has maintained proper records showing full
particulars, including quantitative details
and situation of fixed assets.
(ii) As explained to us, the Company has a program for physical
verification of fixed assets at periodic intervals. In our opinion, the
frequency of physical verification of fixed assets is reasonable having
regard to the size of the Company and the nature of its assets. As
informed to us, no material discrepancies were noticed on such
verification and the same have been properly dealt with in the
accounts.
(iii) In our opinion, there was no significant disposal of fixed assets
during the year to affect the going concern assumption.
2) (i) The Management has conducted physical verification of inventory
at reasonable intervals. In our
opinion, the frequency of verification is reasonable.
(ii) In our opinion, 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.
(iii) The Company has maintained proper records of inventory. As
informed to us, no material discrepancies were noticed on the physical
verification between the physical stocks and the book records and the
same have been properly dealt with in the accounts.
3) (i) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956.
(ii) The question of commenting on the rates of interest and other
terms and conditions of the loans granted being prejudicial to the
interest of the Company, regular receipt of principal and interest,
overdue amount and reasonable steps taken for recovery of principal and
interest does not arise.
(iii) There is no overdue amount of loans taken from, companies, firms,
or other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
(iv) The Company has taken loans from one party listed in the register
maintained under section 301 of the Companies Act, 1956. The total loan
amount outstanding at the year end is Rs.102,120 thousand.
(v) In our opinion, the rate of interest and other terms and conditions
of loans taken from Companies and parties listed in the register
maintained under Section 301 of the Companies Act, 1956 are not, prima
facie, prejudicial to the interest of the Company.
(vi) The Company is regular in the payment of interest. The repayment
of the principal amounts has not commenced yet.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchases of inventory, fixed assets and for the sale
of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls.
5) (i) Based upon the audit procedures applied by us and according to
the information and explanations given to us, we are of the opinion
that the particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956, have been entered in the
register maintained under that section.
(ii) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such 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 any party during the year, have been made at prices which
are reasonable, having regard to prevailing market prices at the
relevant time.
6) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 58A, 58AA, or any other relevant
provisions of the Companies Act, 1956 and the rules framed thereunder.
7) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8) According to the information and explanations given to us, the
maintenance of cost records has not been prescribed by the Central
Government under section 209(1) (d) of the Companies Act, 1956, for any
of the activities of the Company.
9) (i) According to the information and explanation given to us, the
Company is regular in depositing undisputed statutory dues including
dues pertaining to Provident Fund, Employees' State Insurance,
Income-tax, Value Added Tax, Customs Duty, Cess (except Cess under
Section 441A of the Companies Act, 1956 since the aforesaid section has
not yet been made effective by the Central Government) and any other
statutory dues with the appropriate authorities.
We have been also informed that there are no undisputed dues which have
remained outstanding at the end of the financial year for a period of
more than six months from the date they became payable.
(ii) According to the information and explanations given to us, there
are no dues of Sales Tax, Value Added Tax, Income Tax, Customs Duty,
Wealth Tax, Excise Duty or cess outstanding on account of any dispute,
other than the following:
Name of Nature of Dues Amount Period Forum where
Statute (Rs.) to which dispute is
the amount pending
relates
Central Sales Tax, Interest 788,036 1999-2000 Sales Tax
Tax Act, 1956 and Penalty Tribunal
Bombay Sales Interest and 41,778 1999-2000 Sales Tax
Tax Act, 1959 Penalty Tribunal
Delhi Sales Tax, Interest 48,702 2003-2004 Deputy
Tax Act, 1975 and Penalty Commissioner
of Sales Tax
(Appeal)
The Income Tax, Interest 100,818 2005-2006 Commissioner of
Tax Act, 1961 and Penalty Income Tax
(Appeals)
The Customs Fine and 950,000 1987-1988 High Court
Act, 1962 Penalty
Of the above, the Company has deposited Rs.491,778 towards Sales Tax.
Further, the Company has disputed certain disallowances under the
Income Tax Act, 1961 for the years 2003-2004 and 2004-2005 before the
Commissioner of Income Tax (Appeals) and for the year 2006-2007 before
the Dispute Resolution Panel. There is no demand for these cases.
10) The Company has no accumulated losses as at the end of the
financial year. Further, it has not incurred any cash losses in the
current financial year and immediately preceding financial year.
11) According to the information and explanations given to us and based
on the documents and records produced before us, there has been no
default in repayment of dues to banks. There are no dues to financial
institutions or debenture holders.
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 any loans or advances on the basis of security by way of pledge
of shares, debentures or other securities.
13) In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi / mutual benefit
fund / societies.
14) The Company does not deal or trade in shares, securities,
debentures and other investments.
15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16) In our opinion and according to the information and explanations
given to us, the term loans obtained by the Company were applied for
the purpose for which the loans were obtained.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, funds
amounting to Rupees 41,085 thousand raised on short-term basis
(primarily represented by creditors) have been used for long-term
investment (primarily represented by fixed assets). Further, the
Company has explained that steps are being taken to augment the long
term funds.
18) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19) The Company did not issue any debentures during the year.
20) The Company has not raised any money through a public issue during
the year.
21) According to the information and explanations given to us by the
Management and to the best of our knowledge and belief, no fraud on, or
by the Company has been noticed or reported during the year.
For and on behalf of
KALYANIWALLA & MISTRY
CHARTERED ACCOUNTANTS
(Firm Registration No.: 104607W)
Anil A. Kulkarni
Partner
Membership No.47576
Date : May 2, 2011
Place : Pune
Mar 31, 2010
1. We have audited the attached Balance Sheet of TASTY BITE EATABLES
LIMITED as at March 31, 2010 and also the Profit and Loss Account of
the Company for the year ended as on that date annexed thereto and the
Cash Flow Statement for the year ended on that date. These financial
statements are the responsibility of the Companys Management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we annex hereto 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 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
these 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
the 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 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 with the notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010;
ii) in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in Paragraph (3) of our report of even date on the accounts
of Tasty Bite Eatables Limited ended March 31, 2010.
1) (i) The Company is maintaining proper records showing full particul
-ars, including quantitative details and situation of fixed assets.
(ii) As explained to us, the Company has a program for physical
verification of fixed assets at periodic intervals. In our opinion, the
frequency of physical verification of fixed assets is reasonable having
regard to the size of the Company and the nature of its assets. As
informed to us, no material discrepancies were noticed on such
verification and the same have been properly dealt with in the
accounts.
(iii) In our opinion, there was no significant disposal of fixed assets
during the year to affect the going concern assumption.
2) (i) The Management has conducted physical verification of inventory
at reasonable intervals. In our opinion,
the frequency of verification is reasonable.
(ii) In our opinion, 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.
(iii) The Company is maintaining proper records of inventory. As
informed to us, no material discrepancies were noticed on verification
between the physical stocks and the book records and the same have been
properly dealt with in the accounts.
3) (i) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956.
(ii) The question of commenting on the rates of interest and other
terms and conditions of the loans granted being prejudicial to the
interest of the Company, regular receipt of principal and interest and
reasonable steps taken for recovery of principal and interest does not
arise.
(iii) There is no overdue amount of loans taken from, or granted to
companies, firms, or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(iv) The Company has taken loans from one party listed in the register
maintained under section 301 of the Companies Act, 1956. The total loan
amount outstanding at the year end is Rs.80,954,460.
(v) In our opinion, the rate of interest and other terms and conditions
of loans taken from Companies and parties listed in the register
maintained under Section 301 of the Companies Act, 1956 are not, prima
facie, prejudicial to the interest of the Company.
(vi) The Company is regular in repaying the principal amounts as
stipulated and has also been regular in the payment of interest.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchases of inventory, fixed assets and for the sale
of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls.
5) (i) Based upon the audit procedures applied by us and according to
the information and explanations given
to us, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956,
have been entered in the register maintained under that section.
(ii) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such 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 any party during the year, have been made at prices which
are reasonable, having regard to prevailing market prices at the
relevant time.
6) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 58A, 58AA, or any other relevant
provisions of the Companies Act, 1956 and the rules framed thereunder.
7) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8) According to the information and explanations given to us, the
maintenance of cost records has not been prescribed by the Central
Government under section 209(1)(d) of the Companies Act, 1956, for any
of the activities of the Company.
9) (i) According to the information and explanation given to us, the
Company is regular in depositing undisputed statutory dues including
dues pertaining to Provident Fund, Employees State Insurance, Income-
tax, Value Added Tax, Customs Duty, Cess (except Cess under Section
441A of the Companies Act, 1956 since the aforesaid section has not
yet been made effective by the Central Government) and any other
statutory dues with the appropriate authorities.
We have been also informed that there are no undisputed dues which have
remained outstanding at the end of the financial year for a period of
more than six months from the date they became payable.
(ii) According to the information and explanations given to us, there
are no dues of Sales Tax, Value Added Tax, Income Tax, Customs Duty,
Wealth Tax, Excise Duty or cess outstanding on account of any dispute,
other than the following:
Name of Statute Nature of Dues Amount (Rs.)
Employees Dues and 1,09,33,763
Provident Funds and Interest
Miscellaneous
Provisions Act, 1952 Dues 4,30,191
Central Sales Tax Tax, Interest 7,88,036
Act, 1956 and Penalty
Bombay Sales Tax Interest 41,778
Act, 1959 and Penalty
Delhi Sales Tax Tax, Interest 48,702
Act, 1975 and Penalty
The Customs Tax Fine 9,50,000
Act, 1962 and Penalty
Name of Statute Period to which Forum where
the amount relates dispute is pending
Employees 1996-2007 Employees
Provident Funds and Provident Fund
Miscellaneous Tribunal
Provisions Act, 1952
1991-1997
Central Sales Tax 1999-2000 Sales Tax Tribunal
Act, 1956
Bombay Sales Tax 1999-2000 Sales Tax Tribunal
Act, 1959
Delhi Sales Tax 2003-2004 Deputy
Act, 1975 Commissioner
of Sales Tax (Appeal)
The Customs Tax 1987-1988 High Court
Act, 1962
Of the above, the Company has deposited Rs.2,062,118 towards the
Provident Fund dues, Rs.491,778 towards Sales Tax.
Further, the Company has disputed certain disallowances under the
Income Tax Act, 1961 for the years 2003- 2004, 2004-2005 and 2005-2006
before the Commissioner of Income Tax (Appeals). There is no demand for
these cases.
10) The Company has no accumulated losses as at the end of the
financial year. Further, it has not incurred any cash losses in the
current financial year and immediately preceding financial year.
11) According to the information and explanations given to us and based
on the documents and records produced before us, there has been no
default in repayment of dues to banks. There are no dues to financial
institutions or debenture holders.
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 any loans or advances on the basis of security by way of pledge
of shares, debentures or other securities.
13) In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi / mutual benefit
fund / societies.
14) The Company does not deal or trade in shares, securities,
debentures and other investments.
15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16) In our opinion and according to the information and explanations
given to us, the term loans obtained by the Company were applied for
the purpose for which the loans were obtained.
17) According to the information and explanations given to us and on an
overall examination of the Balance Sheet, Cash Flow Statement and other
records examined by us, the Company has not used funds raised on short-
term basis for long-term investment.
18) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19) The Company did not issue any debentures during the year.
20) The Company has not raised any money through a public issue during
the year.
21) According to the information and explanations given to us by the
Management and to the best of our knowledge and belief, no fraud on, or
by the Company has been noticed or reported during the year.
For and on behalf of
Kalyaniwalla & Mistry
Chartered Accountants
(Firm Registration No.: 104607W)
Anil A. Kulkarni
Partner
Membership No.47576
Date : May 30, 2010
Place : Pune