Mar 31, 2016
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of TINNA RUBBER AND INFRASTRUCTURE LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31st, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the 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 standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India, as 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. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by 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 qualified audit opinion on the standalone financial statements.
Basis for Qualified Opinion
The Company has not provided interest amounting to Rs.9,49,626/- as required under the provisions of section 16 of Micro, Small and Medium Enterprise Development Act, 2006 in respect of delayed payments to suppliers covered under the said Act. Consequently, the profit for the year ending 31st March 2016 is overstated to the extent.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, subject to the possible effects of the matters described in the Basis for Qualified Opinion paragraphs, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2016
b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s report) Order, 2016(âthe 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'' a statement on 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 appears from our examination of those books;
(c) The Balance Sheet, the 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 aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) The matter described in the Basis for Qualified Opinion paragraph above, in our opinion, does not have any adverse effect on the functioning of the company.
(f) On the basis of written representations received from the directors as on March 31st ,2016, taken on record by the Board of Directors, none of the directors is disqualified as on March 31st ,2016, from being appointed as a director in terms of Section 164(2) of the Act;
(g) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above.
(h) 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 Annexure ''B''; and
(i) 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:
(1) The Company has disclosed the impact of pending litigations on its financial position in its financial statements,
(2) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts, if any, and
(3) There were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in paragraph 1 under the heading âReport on other legal and regulatory requirementsâ of our report to the members of TINNA RUBBER AND INFRASTRUCTURE LIMITED (the Company) for the year ended 31.03.2016. We report that:
1) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The Company has a phased periodical programme of physical verification of all fixed assets, which in our opinion is reasonable having regard to the size of the Company and the nature of its business. No material discrepancies have been noticed on such verification.
(c) As per explanation given to us, the title deeds of immovable properties are held in the name of the Company.
2) As per explanations given to us, inventories have been physically verified by the management at reasonable interval. In our opinion, the frequency of the verification is reasonable and no material discrepancies were noticed on physical verification of stocks as compared to book records.
3) The Company had granted loans to parties aggregating to Rs. 55,00,000/- at the beginning of the year which are covered in the register maintained under section 189 of the Companies Act, 2013. The said parties have an outstanding balance of Rs. NIL as at the end of the year.
(a) In our opinion, the rate of interest and other terms and conditions on which the loans had been granted to the bodies corporate listed in the register maintained under section 189 of the Act were not, prima facie, prejudicial to the interest of the Company.
(b) In the case of the loans granted to the bodies corporate listed in the register maintained under section 189 of the Act, the borrowers have been regular in the payment of the principal and interest as stipulated
(c) There is no overdue amount for more than ninety days as at the end of the year.
4) In our opinion and according to the information and explanations given to us, the Company has complied with provisions of Section 185 and 186 of Companies Act, 2013 in respect of loans, investments, guarantees, and securities granted. In case of corporate guarantees given by the Company to TP Buildtech Private Limited, and Fratelli Wines Private Limited, Shri Kapil Sekhri, a Director in the said Companies was appointed as a director in the Company w.e.f 12th February 2016 to 4th May, 2016. No fresh corporate guarantee was given during the said period.
5) According to information and explanations given to us, the Company has not accepted any deposits as per the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under.
6) We have broadly reviewed the cost records maintained by the Company pursuant to the rules made by Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture of Rubber and Rubber Product-waste, Parings and Scrap of Rubber and are of the opinion that, prima facie, the prescribed accounts and cost records have been maintained. We have not, however, made a detailed examination of the same.
7) a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales-Tax, Service tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other undisputed statutory dues, except income tax payable amounting to Rs. 1,25,80,142/- and excise duty payable amounting to Rs.32,57,451/- on account of goods destroyed by fire in the month of April and June,2015, which are in arrears as at 31st March, 2016, concerned for a period of more than six months from the date they become payable.
b) According to the records of the Company, the dues outstanding of income tax and other taxes on account of any dispute, are as follows:-
S. No. |
Name of Statute |
Nature of Dues |
Amount (Rs.) |
Financial Year |
Forum where dispute is pending |
1 |
Income Tax Act, 1961 |
Income Tax |
73,50,358/- |
2000-2001 |
Delhi High Court |
2 |
Income Tax Act, 1961 |
Income Tax |
4,91,962/- |
2005-2006 |
Income Tax Appellate Tribunal |
3 |
Income Tax Act, 1961 |
Income Tax |
4,98,512/- |
2006-2007 |
Income Tax Appellate Tribunal |
4 |
Income Tax Act, 1961 |
Income Tax |
18,12,243/- |
2007-2008 |
Income Tax Appellate Tribunal |
5 |
Income Tax Act, 1961 |
Income Tax |
41,04,979/- |
2008-2009 |
Income Tax Appellate Tribunal |
6 |
Income Tax Act, 1961 |
Income Tax |
41,11,208/- |
2005-06 To 2009-10 |
Commissioner of Income Tax (Appeals), Delhi |
7 |
Service Tax |
Service Tax (excluding penalties and interest) |
50,12,301/- |
01.04.2008 to 30.06.2012 |
Customs, Excise & Service Tax Appellate Tribunal, Delhi |
8 |
Excise Duty |
Excise Duty |
5,49,986/- |
01.04.2010 to 31.03.2012 |
Commissioner of Central Excise, Customs & Service Tax (Appeals), Vapi |
9 |
Excise Duty |
Excise Duty |
1,45,134/- |
2011-12 |
Commissioner of Central Excise (Appeals), Mumbai |
8) Based on the information and explanations given to us by the management, the Company has not defaulted in the repayment of loans or borrowing to a Financial Institution, Bank, Government or dues to debenture holders wherever applicable. The balance in working capital limits have exceeded the sanctioned limits from time to time. As explained to us the balance is within the sanctioned limit plus 10% adhoc limit within the powers of the bank.
9) Based on the information and explanations given to us by the management, the Company has not raised any money by way of initial public offer / further public offer and debt instruments. However money raised by way of term loan were applied for the purpose for which the said term loans were obtained.
10) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the company or no fraud / material fraud on the company by the officers and employees of the Company has been noticed or reported during the year.
11) In our opinion and according to the information and explanation given to us, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of this clause of the order are not applicable to the Company and hence not commented upon.
13) As per the information given to us, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards;
14) According to the information and explanations given to us and on an overall examination of the balance sheet, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(14) are not applicable to the company and, not commented upon.
15) In our opinion and according to the information and explanation given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him.
16) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For V.R. Bansal & Associates
Chartered Accountants
Firm Registration No. 016534N
(Rajan Bansal)
Place : Delhi Partner
Dated: 30th May, 2016 Membership No. 093591
Mar 31, 2015
We have audited the accompanying standalone financial statements of
TINNA RUBBER AND INFRASTRUCTURE 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
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the 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 standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
issued by the Institute of Chartered Accountants of India, as specified
under section 143(10) of the Act. Those Standards require that we comply
with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the 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 accounting policies used and the reasonableness of
the accounting estimates made by 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 qualified audit opinion on the
standalone financial statements.
Basis for Qualified Opinion
The Company has not provided interest amounting to Rs. 7,34,341/- as
required under the provisions of section 16 of Micro, Small and Medium
Enterprise Development Act, 2006 in respect of delayed payments to
suppliers covered under the said Act. Consequently, the profit for the
quarter ending 31st March 2015 is overstated to the extent.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, subject to the possible effects of the
matters described in the Basis for Qualified Opinion paragraphs, 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 31,2015;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
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 matters specified in paragraphs 3 and 4 of the Order, to
the extent applicable.
2. As required by section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
(c) The Balance Sheet, the 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 aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none of
the directors is disqualified as on 31 March, 2015, from being appointed
as a director in terms of Section 164(2) of the Act;
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(1) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
No.33 to the financial statements,
(2) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses,
(3) There were no amounts which were required to be transferred, to the
Investor Education and Protection Fund by the Company.
Annexure referred to in paragraph 1 under the heading "Report on other
legal and regulatory requirements" of our report of even date
Re: Tinna Rubber and Infrastructure Limited (the Company)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of
fixed assets.
(b) The Company has a phased periodical programme of physical
verification of all fixed assets, which in our opinion is reasonable
having regard to the size of the Company and the nature of its
business. No material discrepancies have been noticed on such
verification.
2. (a) As per explanations given to us, inventories have been physically
verified by the management at reasonable intervals. In our opinion, the
frequency of the verification is reasonable.
(b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification of stocks
as compared to book records.
3. (a) The company has granted unsecured loans to two parties
aggregating to Rs. 4,55,00,000/- during the year covered in
the register maintained under section 189 of the Companies Act, 2013.
The said parties have an outstanding principal balance of Rs.
55,00,000/- as at the end of the year.
(b) In respect of loans granted by the Company, repayment of principal
amounts and interest is as per stipulations.
(c) There is no overdue amount of more than rupees one lakh in respect
of loan granted to Companies, firms or other parties listed in the
register maintained under section 189 of the Companies Act, 2013.
4. In our opinion and according to information and explanations given
to us, there is an adequate internal control system commensurate with
the size of the company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
system.
5. According to information and explanations given to us, the company
has not accepted any deposits as per the provisions of sections 73 to
76 or any other relevant provisions of the Companies Act and the rules
framed there under.
6. We have broadly reviewed the cost records maintained by the Company
pursuant to the rules made by Central Government for the maintenance of
cost records under section 148(1) of the Companies Act, 2013, related
to the manufacture of Rubber and Rubber Product-waste, Parings and
Scrap of Rubber and are of the opinion that, prima facie, the
prescribed accounts and cost records have been maintained. We have not,
however, made a detailed examination of the same.
7. (a) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees State Insurance, Sales-Tax, Wealth tax, Service tax, Excise
Duty, Custom Duty, Value Added Tax, Cess and any other undisputed
statutory dues with the appropriate authorities. Income Tax payable for
the financial year 2013-14 due on 30th November, 2014 is outstanding as
at the end of the year which has been paid subsequent to the date of
Balance Sheet. However, there are no arrears of outstanding statutory
dues as at 31st March, 2015, concerned for a period of more than six
months from the date they become payable;
(b) According to the records of the Company, the dues outstanding of
income tax and other taxes on account of any dispute are as follows:-
S. Name of Statute Nature of Dues Amount (Rs.) Financial
No. Year
1. Income Tax Act, 1961 Income Tax 73,50,358/- 2000-2001
2. Income Tax Act, 1961 Income Tax 4,91,962/- 2005-2006
3. Income Tax Act, 1961 Income Tax 4,98,512/- 2006-2007
4. Income Tax Act, 1961 Income Tax 18,12,243/- 2007-2008
5. Income Tax Act, 1961 Income Tax 41,04,979/- 2008-2009
Service Tax 50,12,301/- 01.04.2008 to
6. Service Tax (excluding 30.06.2012
penalties
and interest)
7 Excise Duty Excise Duty 5,49 986/- 01.04.2010 to
31.03.2012
S. Name of Statute Forum where
No. dispute is pending
1. Income Tax Act, 1961 Delhi High Court
2. Income Tax Act, 1961 Income Tax Appellate Tribunal
3. Income Tax Act, 1961 Income Tax Appellate Tribunal
4. Income Tax Act, 1961 Income Tax Appellate Tribunal
5. Income Tax Act, 1961 Income Tax Appellate Tribunal
Customs, Excise & Service
6. Service Tax Tax Appellate Tribunal, Delhi
7 Excise Duty Commissioner of Central Excise,
Customs & Service Tax (Appeals), Vapi
(c) There is no amount required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder.
8. The company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and during the
immediately preceding financial year.
9. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to any
financial institution or bank except with some delays in case of term
loans where repayment of two (2) installments aggregating to Rs.
3280962/- and interest of Rs. 1166111/- have been made with delays of 1
to 20 days.
10. The Company has given corporate guarantees for loans taken by
others from bank and financial institutions. According to the
information and explanations given to us, we are of the opinion that
the terms and conditions thereof are not prima facie prejudicial to the
interests of the Company, since as explained to us, the said guarantees
are given on behalf of subsidiary and associates companies and are
given on account of commercial expediency.
11. Based on the information and explanations given to us by the
management, the term loans were applied for the purpose for which the
said loans were obtained.
12. During the course of our examination of the books of accounts
carried out in accordance with generally accepted auditing practices in
India, we have not come across any significant instance of fraud on the
company or instance of fraud by the Company, either noticed or reported
during the year, except one instance informed by the management
regarding remittance of USD 9,000 to a foreign party towards the import
of raw material to an unintended fraudulent recipient by Hacking of E
mail ID of foreign supplier and giving the Bank details of fraudulent
party instead of original supplier. The company has lodged a FIR with
the Cyber Cell of Delhi Police in this regard.
For V.R.Bansal& Associates
Chartered Accountants
Firm Registration No. 016534N
(Rajan Bansal)
Place: Delhi Partner
Dated: 29/05/2015 Membership No.093591
Mar 31, 2014
We have audited the accompanying financial statements of TINNA RUBBER
AND INFRASTRUCTURE 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 ended on that date annexed thereto 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
accounting principles generally accepted in India, including the
Accounting Standards notified under the Companies Act, 1956 ("the Act")
read with the General Circular 8/2014 dated 4th April 2014 of the
Ministry of Corporate Affairs. This responsibility includes the design,
implementation, and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the Company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion.
Emphasis of Matter
Without qualifying our opinion, we would like to draw attention to note
no 31(iv) regarding corporate guarantee given by the Company to TP
Buildtech Private Limited an associate company, which is not in
compliance with section 185 of Companies Act, 2013. As per informations
given to us, the same has been complied with subsequent to the date of
Balance Sheet.
Basis for Qualified Opinion
The Company has provided depreciation on the rates prescribed under
Schedule XIV of the Act in respect of its unit in the complex of
Manglore Refinery and Petrochemicals Limited (MRPL). However, as per
the work order awarded by MRPL, the Company shall transfer Plant and
Machinery of the said unit at nominal value of '' 1/- on 05/07/2014.
Therefore the depreciation on Plant and Machinery is to be charged on
the basis of useful life of the asset i.e. up to 05/07/2014. In view of
this, the provision for depreciation is less by Rs.19,76,667/- for the
year ending 31st March, 2014 and the profit is overstated to that
extent. Consequently, the value of Plant & Machinery and Reserves and
Surplus are over stated due to diminution in the value of assets by Rs.
1,45,87,629/- as at 31st March, 2014.
The Company has not provided interest amounting to Rs.4,24,685/- as
required under the provisions of Section 16 of the Micro, Small and
Medium Enterprise Development Act, 2006 in respect of delayed payments
to suppliers covered under the said Act. Consequently, the profit for
the year is overstated to that extent.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the possible effects of the
matters described in the Basis for
Qualified Opinion paragraphs, 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 Profit and Loss statement, of the profit for the
year ended on that date.
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (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 section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
The Cash Flow Statement comply with the Accounting Standards notified
under the Companies Act, 1956 ("the Act") read with the General
Circular 8/2014 dated 4th April 2014 issued by the Ministry of
Corporate Affairs except for the possible effects of the matter
described in the Basis for Qualified Opinion paragraph;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
requirements'' section of our report of even date)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation
of its fixed assets
(b) The Company has a phased periodical programme of physical
verification of all fixed assets, which in our opinion is reasonable
having regard to the size of the Company and the nature of its
business. No material discrepancies have been noticed on such
verification.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of fixed assets of the Company and
such disposal has, in our opinion, not affected the going status of the
Company.
2. (a) As per explanations given to us, inventories have been
physically verified by the management at reasonable intervals. In our
opinion, the frequency of the verification is reasonable.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business,
(c) In respect of loans taken by the Company, repayment of the
principal amounts and interest is as per stipulations:
3. (a) The Company has granted loans of Rs.10,55,00,000/- to three
parties covered in the register maintained under
section 301 of the Companies Act, 1956. The maximum amount involved
during the year is Rs.6,44,50,000/- and the year-end balance outstanding
was Rs. Nil/-.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the Company, are not prima facie prejudicial to the
interest of the Company. The Company has not charged any interest on
loan given to subsidiary Company, since as explained to us, the loan
given to subsidiary company is on account of commercial expediency.
(c) In respect of loans granted by the Company, repayment of principal
amounts and interest is as per stipulations.
(d) There is no overdue amount of more than rupees one lakh in respect
of loan granted to Companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(e) The Company has taken loans of Rs.23,99,00,000/- from nine parties
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year was
Rs.18,81,04,183/- and the year-end balance of loans from such parties was
Rs.2,10,00,000/-
(f) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which such loans have been taken are not prima facie prejudicial to the
interests of the Company.
(g) In respect of loans taken by the Company, repayment of the
principal amounts and payment of interest is as per stipulations.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventories, fixed assets and for
sale of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in the
internal control system.
5. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need
to be entered in the register maintained u/s 301 of the Companies Act,
1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
agreements that need to be entered in the register maintained under
section 301 of the Companies Act, 1956 aggregating during the year
exceeding Rs.5,00,000/- have been made at price which are reasonable
having regard to the prevailing market price at the relevant time. The
Company has entered into a lease agreement with the TP Buildtech
Private Limited, an associate company @ Rs1/-per month. In our opinion,
the said agreement has not been entered at prevailing market rates. As
explained to us by the management, the said agreement has been entered
on account of commercial expediency.
6. According to the information and explanations given to us, the
Company has not accepted any deposits from the public during the year,
within the meaning of Section 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975.
7. In our opinion, the Company during the year has a reasonable
internal audit system which requires to be strengthened to make it
commensurate with size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956, related to the manufacture of Rubber and Rubber
Product-waste, Parings and Scrap of Rubber and are of the opinion that
prima facie, the prescribed accounts and records have been maintained.
We have not, however, made a detailed examination of the same.
9. (a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including
Provident Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues applicable to it.
(b) According to the information and explanations given to us no
undisputed amounts payable in respect of Provident Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, cess and other undisputed statutory dues were
outstanding, at the year end, for a period more than six months from
the date they become payable except Entry tax of Rs. 6,54,355/- and
interest and penalty on Cess payment under BPMC (Cess on entry of
goods) Rules, 1996 of Rs. 25,61,063/-.
(c) According to the records of Company, the dues outstanding of
income-tax and other taxes on account of any dispute are as follows.
S. Name of Statute Nature of Dues Amount (Rs.)
No.
1.Income Tax Act, 1961 Income Tax 73,50,358/-
2.Income Tax Act, 1961 Income Tax 4,91,962/-
3.Income Tax Act, 1961 Income Tax 4,98,512/-
4.Income Tax Act, 1961 Income Tax 18,12,243/-
5.Income Tax Act, 1961 Income Tax 41,04,979/-
6.Service Tax Service tax (excluding 50,12,301/-
penalties and interest)
Name of Statute Fin. Year Forum where
dispute is pending
Income Tax Act, 1961 2000-2001 Delhi High Court
Income Tax Act, 1961 2005-2006 Commissioner of
Income Tax (Appeals)
Income Tax Act, 1961 2006-2007 Commissioner of Income
Tax(Appeals)
Income Tax Act, 1961 2007-2008 Commissioner of Income
Tax (Appeals)
Income Tax Act, 1961 2008-2009 Commissioner of Income
Tax (Appeals)
Service Tax 01.04.2008to Appeal to be filed
30.06.2012
10. The Company has no accumulated losses at the end of financial year
and it has not incurred cash losses in the current and during the
immediate preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank except with some delays in case of term
loans where repayment of installments of Rs. 7431314/- and interest of Rs.
2049530/- have been made with delays of 1 to 8 days.
12. According to the information and explanation given to us and based
on documents and records produced to us, the Company has not granted
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 (as amended) are not
applicable to the Company.
14. In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 (as amended) are not applicable to the Company.
15. The Company has given corporate guarantees for loans taken by
Others from banks and financial institutions. According to the
information and explanations given to us, we are of the opinion that
the terms and conditions thereof are not prima facie prejudicial to the
interests of the Company, since as explained to us, the said guarantees
are given on behalf of subsidiary and associates companies are given on
account of commercial expediency.
16. Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
17. According to the information and explanations given to us and an
overall examination of the balance sheet of the Company, we report that
no funds raised on short-term basis have been used for long-term
investment.
18. The Company has reissued 78800 forfeited equity shares of Rs. 10/-
each at a premium of Rs.36/- per equity share to parties covered in
register maintain under section 301 of the companies Act 1956. In our
opinion, the price at which such shares have been issued are not
prejudicial to the interests of the Company.
19. The Company did not have any outstanding debentures during the
year
20. The Company has not raised money by way of public issue of
shares/debentures in current year.
21. According to the information and explanation given to us, no fraud
on or by the Company has been noticed or reported during the period
that causes the financial statement to be materially misstated.
For V. R. Bansal & Associates
(Chartered Accountants)
Firm Registration No. : 016534N
Rajan Bansal
Place : New Delhi (Partner)
Dated : 29/5/2014 Membership No. : 93591
Mar 31, 2013
We have audited the accompanying financial statements of TINNA RUBBER
AND INFRASTRUCTURE LIMITED ("the Company") which comprise the Balance
Sheet as at March 31, 2013, and the Statement of Profit and Loss and
Cash Flow Statement for the year ended on that date annexed thereto 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 and
financial performance and cash flows of the company in accordance with
accounting principles generally accepted in India, including the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
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. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion.
Basis for Qualified Opinion
The Company has provided depreciation on the rates prescribed under
Schedule XIV of the Act in respect of its unit in the complex of
Mangalore Refinery and Petrochemicals Limited (MRPL). However, as per
the work order awarded by MRPL, the Company shall transfer plant and
machinery of the said unit at a nominal value of Rs. 1/- on 05/07/2014.
Therefore the depreciation on plant and machinery is to be charged on
the basis of useful life of the asset i.eupto 05/07/2014. In view of
this, the provision for depreciation is less by Rs. 19,74,422/- for the
year ending 31st March 2013, and the profit is overstated to that
extent. Consequently, the value of Plant and Machinery and Reserve and
Surplus are overstated due to diminution in the value of assets by
Rs. 1,26,10,962/- as at 31st March 2013.
The Company has not provided interest amounting to Rs. 46,688/- as
required under the provisions of section 16 of the Micro, Small and
Medium Enterprise Development Act, 2006 in respect of delayed payments
to suppliers covered under the said Act. Consequently, the profit for
the year is overstated to that extent.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the possible effects of the
matters described in the Basis for Qualified Opinion paragraphs, 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, 2013;
b) In the case of the Profit and Loss statement, of the profit for the
year ended on that date.
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 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 section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
The Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956; except
for the possible effects of the matter described in the Basis for
Qualified Opinion paragraph;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
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
Companies Act, 1956 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 INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
requirements'' section of our report of even date)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets
(b) The Company has a phased periodical programme of physical
verification of all fixed assets, which in our opinion is reasonable
having regard to the size of the Company and the nature of its
business. No material discrepancies have been noticed on such
verification.
(c) ''The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of fixed assets of the Company and
such disposal has, in our opinion, not affected the going status of the
Company.
2. (a) As per explanations given to us, inventories have been
physically verified by the management at reasonable intervals. In our
opinion, the frequency of the verification is reasonable.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
3. (a) The Company has granted loan of Rs. 39,50,000/- to BGK
Infrastructure Developers Private Limited, a subsidiary Company,
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year is Rs. 39,50,000/-
and the year-end balance outstanding was Rs. 39,50,000/-.
(b) The Company has not charged any interest on loan given to
subsidiary Company. In our opinion and according to the information and
explanations given to us, the terms and conditions on which such loans
have been given are not prima facie prejudicial to the interests of the
Company, since as explained to us, the loan given to subsidiary company
is on account of commercial expediency.
(c) There is no stipulation with regard to repayment of principal
amount and payment of interest in respect of loan given by the Company.
No interest has been charged on such account.
(d) There is no overdue amount of more than rupees one lakh in respect
of loan granted to Companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(e) The Company has taken loans of Rs. 8,32,00,000/- from eight parties
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year was
Rs. 6,55,63,730/- and the year-end balance of loans from such parties was
Rs. 1,91,63,161/-.
(f) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which such loans have been taken are not prima facie prejudicial to the
interests of the Company.
(g) In respect of loans taken by the Company, repayment of the
principal amounts and payment of interest is as per stipulations.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventories, fixed assets and for
sale of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in the
internal control system.
5. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered in the
register maintained u/s 301 of the Companies Act, 1956 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
agreements that need to be entered in the register maintained under
section 301 of the Companies Act, 1956 aggregating during the year
exceeding Rs. 5,00,000/- have been made at price which are reasonable
having regard to the prevailing market price at the relevant time.
6. According to the information and explanations given to us, the
Company has not accepted any deposits from the public during the year,
within the meaning of Section 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975.
7. In our opinion, the Company during the year has a reasonable
internal audit system which requires to be strengthened to make it
commensurate with size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956, related to the manufacture of Rubber and Rubber
Product-waste, Parings and Scrap of Rubber and are of the opinion that
prima facie, the prescribed accounts and records have been maintained.
However, we have not made a detailed examination of the records with a
view to satisfy ourselves that the records are complete and correct.
9. (a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess at the end of the period ending
31st March 2013 for a period more than six months from the date they
become payable except Entry tax of Rs 2,62,716/- and interest and
penalty on Cess payment under BPMC (Cess on entry of goods) Rules, 1996
of Rs. 25,61,063/-.
(b) According to the records of Company, the dues outstanding of
income-tax and other taxes on account of any dispute are as follows.
S. Name of Statute Nature of Dues Amount (Rs.)
No.
1. Income Tax Act, 1961 Income Tax 73,50,358/-
2. Income Tax Act, 1961 Income Tax 4,91,962/-
3. Income Tax Act, 1961 Income Tax 4,98,512/-
4. Income Tax Act, 1961 Income Tax 18,12,243/-
5. Income Tax Act, 1961 Income Tax 41,04,979/-
Name of Statute Fin. Year Forum where dispute is
pending
Income Tax Act, 1961 2000-2001 Delhi High Court
Income Tax Act, 1961 2005-2006 Commissioner of Income Tax
(Appeals)
Income Tax Act, 1961 2006-2007 Commissioner of Income Tax
(Appeals)
Income Tax Act, 1961 2007-2008 Commissioner of Income Tax
(Appeals)
Income Tax Act, 1961 2008-2009 Commissioner of Income Tax
(Appeals)
10. The Company has no accumulated losses at the end of financial year
and it has not incurred cash losses in the current and during the
immediate preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank during the year.
12. According to the information and explanation given to us and based
on documents and records produced to us, the Company has not granted
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 (as amended) are not
applicable to the Company.
14. In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 (as amended) are not applicable to the Company.
15. Based on our examination of records and according to the
information and explanation given to us, the Company has not given
guarantee for loans taken by others from bank or financial
institutions, which are prejudicial to the interests of the Company.
16. Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
17. According to the information and explanations given to us and an
overall examination of the balance sheet of the Company, short term
borrowings of Rs. 5,51,63,161/- has been utilized for the purchase of
tangible assets. As explained to us, such short term borrowings were
obtained on a temporary basis pending sanction of term loan from
Syndicate Bank.
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, during the year.
19. The Company did not have any outstanding debentures during the
year
20. The Company has not raised money by way of public issue of
shares/debentures in current year.
21. According to the information and explanation given to us, no fraud
on or by the Company has been noticed or reported during the period
that causes the financial statement to be materially misstated.
For V. R. Bansal & Associates
(Chartered Accountants)
Firm Registration No. : 016534N
Rajan Bansal
Place : New Delhi (Partner)
Dated : 29/5/2013 Membership No. : 93591
Mar 31, 2012
1. We have audited the annexed Balance Sheet of M/s. TINNA OVERSEAS
LIMITED as at 31st March, 2012 and the statement of profit and loss of
the company and also the cash flow statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by 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, as
amended by the companies (Auditor's Report) (Amendment) Order 2004
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, we enclose in the annexure
hereto a statement on the matters specified in paragraphs 4 and 5, to
the extent applicable to the company, of the said order.
4. Further to our comments in the annexure referred to in the above
paragraph, 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 except documents in support of fair value of the sale of shares
{Refer Note No. 14 (iv)};
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 and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us;
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, profit & loss account and cash
flow statement, dealt with by this report, comply with the accounting
standards referred to in sub-section 3(C) of section 211 of the
Companies Act, 1956 except in case of AS-6 as mentioned in point no. f;
e) On the basis of written representation received from the directors,
as on 31st March 2012 and taken on record by the board of directors, we
report that none of the directors are disqualified as on 31st March
2012 from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956;
f) Attention is drawn to
Note no. 13 (a) regarding non- provision of higher depreciation on the
basis of limits on the use of the assets upto 05.07.2014 and
accordingly non-provision of Rs. 1,06,36,540/- due to diminution in value
of Assets at MRPL unit
Effect of the above point on statement of profit and Loss and balance
sheet is that:
(i) Total profits for the year are overstated to the extent of:
(a) Non-provision of diminution in value of plant ofRs. 10,78,851/-
(ii) Total fixed assets and reserves & surplus are overstated to the
extent of:
(b) Non-provision of diminution in value of plant ofRs. 1,06,36,540/-
g) Subject to the above, in our opinion and to the best of our
information and according to explanations given to us, the said balance
sheet, statement of profit and loss and cash flow statement read
together 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 accounting principles generally accepted in
India:- i) in the case of the balance sheet, of the state of affairs of
the company as at 31st March, 2012;
ii) in the case of the statement of profit and loss, of the profit of
the company for the year ended on that date; and
iii) in the case of cash flow statement, of the cash flows of the
company for the year ended on that date.
Annexure referred to in paragraph 3 of our report to the members of M/s
TINNA OVERSEAS LIMITED on the accounts as at and for the period ended
31st March, 2012 that;
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The company has a phased periodical programme of physical
verification of all fixed assets, which in our opinion is reasonable
having regard to the size of the company and the nature of its
business. No material discrepancies have been noticed on such
verification.
(c) During the year, the company has not disposed off major part of the
assets. According to the information and explanations given to us, we
are of the opinion that the surrender of leasehold land and written off
of Jatropha Plantation at Tuljapur unit has not affected the going
concern status of the company.
2. (a) As per explanations given to us, inventories have been
physically verified by the management at reasonable intervals. In our
opinion, the frequency of the verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company has maintained proper records of inventories. The
discrepancies noticed on physical verification between the physical
stocks and the book records were not material.
3. (a) The company has granted loan ofRs. 31,50,000/- to one party
covered in the register maintained under section 301 of Companies Act,
1956. The maximum amount involved during the year is Rs. 31,50,000/- and
year-end balance outstanding was Rs. 31,50,000/-
(b) Based on our examination, rate of interest and other terms &
conditions of loans given by the company, secured or unsecured, are
prima facie not prejudicial to the interest of the company except non-
recovery of interest.
(c) There is no stipulation of receipt of principal amount and interest
on loans granted by the company, accordingly, clause 4(iii) (d) of the
Companies (Auditors Report) Order, 2003 is not applicable to the
company
(e) The company has taken loans ofRs. 5,99,35,000/- from three parties
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year was Rs.
3,56,61,770/- and the year-end balance of loans from such parties was Rs.
3,25,72,097/-.
(f) The company has paid interest on loans taken from parties covered
in the register maintained u/s 301 of the Companies Act, 1956. However,
rate of interest and other terms and conditions on which loans have
been taken from companies, firms or other 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
(g) There is no stipulation of repayment of loans 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 with regard to purchases of inventories, fixed assets and for
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal controls.
5. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered in the
register maintained u/s 301 of the Companies Act, 1956 have been so
entered; and
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or agreements
that need to be entered in the register maintained under section 301 of
the Companies Act, 1956 aggregating during the year exceeding Rs.
5,00,000/- have been made at prices on which we are reasonable, except
in case of sale of shares we are unable to comment in absence of any
document in support of its fair value
6. In our opinion and according to the information given to us, the
company has not accepted any deposits from the public under section
58A, 58AA or any other relevant provisions of the Companies Act, 1956
and the Companies (Acceptance of Deposits) Rules, 1975.
7. In our opinion, the company during the year has a reasonable
internal audit system which requires to be strengthened to make it
commensurate with size and the nature of its business.
8. We have broadly reviewed the cost records of the company and are of
opinion that, prima facie, the accounts and records prescribed under
clause (d) sub section (I) section 209 of the Companies Act, 1956 have
been maintained. However, we have not made a detailed examination of
the records with a view to satisfy ourselves that the records are
complete and correct.
9. (i) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employee's state insurance, income tax, sales tax/ value added tax,
wealth tax, service tax, custom duty, excise duty, cess and other
statutory dues applicable to it, except few cases of late deductions
and depositions of TDS and late depositions of ESI/PF, advance income
tax & sales tax/ value added tax.
(ii) According to the information and explanations given to us, no
undisputed amount outstanding payable in respect of income tax, sales
tax/ vat, wealth tax, service tax, custom duty, excise duty, cess, at
the end of the period ending 31st March, 2012 for a period more than
six months from the date they become payable except wealth tax of Rs.
5,63,987/-, income tax ofRs. 71,574/- and interest & penality on Cess
payment under BPMC (cess on entry of goods) Rules, 1996 ofRs. 25,61,063/-
(iii) According to the information and explanations given to us there
are no dues of value added tax, income tax, custom duty, wealth tax,
excise duty, service tax and cess which have not been deposited on
account of any dispute, except the following:
S. Name of Statute Nature of dues Amount (Rs.)
No.
1. ESI Corporation Additional demand 396,629/-
2. Haryana VAT Increase in rate
of Levy 1,002,579/-
3. Income Tax Act, 1961 Income Tax 7,350,358/-
Name of Statue Fin. Year Forum where
dispute is pending
ESI Corporation 1999-2000 Regional Director, Faridabad
Haryana VAT 2010-2011 Haryana tax tribunal
Income Tax Act, 1961 2000-2001 Delhi High Court
10. The company does not have any accumulated losses as at end of
accounting period nor has incurred any cash losses in the accounting
period covered under audit and in the immediate preceding financial
year.
11. In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of dues to a
financial institutions or banks.
12. In our opinion and according to the information and explanation
given to us that the company has not granted any loans & advances on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
14. In our opinion the company is not dealing in or trading of shares
/ securities / debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
15. Based on our examination of records and according to the
information and explanation given to us, the company has not given
guarantees for loans taken by others from banks or financial
institutions, which are prejudicial to the interest of the company.
16. In our opinion and according to the information and explanation
given to us, on and overall basis, the term loans have been applied for
the purposes for which they were raised.
17. According to the information and explanation given to us and an
overall examination of the balance sheet of the company, we are of the
opinion that the funds raised on short term basis have not been
utilized for long term investment.
18. According to the information and explanation given to us the
company has not made any preferential allotment, accordingly the
provisions of clause 4(xviii) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
19. According to the information and explanation given to us the
company has not issued any debenture, accordingly the provisions of
clause 4(xix) of the Companies (Auditors Report) Order, 2003 are not
applicable to the company.
20. According to the information and explanation given to us the
company has not raised money by public issue during the year,
accordingly the provisions of clause 4(xx) of the Companies (Auditors
Report) Order, 2003 are not applicable to the company.
21. According the information and explanation given to us, no fraud on
or by the company has been noticed or reported during the period that
causes the financial statement to be materially misstated.
For Rawla & Company
(Chartered Accountants)
Firm Regn. No. 001661N
CA Hardeep Singhal
New Delhi (Partner)
August 27, 2012 M. No. 505618
Mar 31, 2010
1. We have audited the annexed Balance Sheet of M/s.TINNA OVERSEAS
LIMITED as at 31st March, 2010 and the profit and loss account of the
company and also the cash flow statement lor the period ended on that
date annexed thereto These financial statements are the responsibility
of the companys management. Our responsibility is to express an
opinion on these financial statements based on our audit
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles Used and significant estimates made
by 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, as
amended by the companies (Auditors Report) (Amendment) Order 2004
issued by the Centra! Government of India in terms of sub- section (4A)
of section 227 of the Companies Act, 1956, we enclose in the annexure
hereto a statement on the matters specified in paragraphs 4 and 5, to
the extent applicable to the company, of the said order.
4. Further to our comments in the annexure referred to in the above
paragraph, 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 and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us;
c) The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the balance sheet, profit & loss account and cash
flow statement, dealt with by this report, comply with the accounting
standards referred to in sub-section 3(C) of section 211 of the
Companies Act, 1956,;
e) On the basis of written representation received from the directors,
as on 31st March 2010 and taken on record by the board of directors, we
report that none of the directors are disqualified as on 31st March
2010 from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act. 1956;
f) In our opinion, and to the best of our information and according to
explanations given to us,
Subject to Note No. 18 of Notes to Accounts, the said balance sheet,
profit & loss account and cash flow statement read together 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 accounting principles generally accepted in India:-
i) in the case of the balance sheet, of the state of affairs of the
Company for the period ended 31st March, 2010;
ii) in the case of the profit and loss account of the profit of the
company for the period ended on that date; and
iii) in the case of cash flow statement, of the cash flows of the
company for the period ended on that data.
ANNEXURETOTHE AUDITORS REPORT
Annexure referred to in paragraph 3 of our report to the members of M/S
TINNA OVERSEAS LIMITED on the accounts as at and for the period ended
31st March. 2010 that;
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of the fixed
assets
(b) The company has a phased periodical programme of physical
verification of ah fixed assets, which in our opinion is reasonable
having regard to the size of the company and the nature of its
business. No material discrepancies have been noticed on such
verification.
(c) During the year, the company has not disposed off major part of (he
assets
2. (a) As per explanations given to us, inventories have been
physically verified by the management at reasonable intervals. In our
opinion, the frequency of the verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company has maintained proper records of inventories. The
discrepancies noticed on physical verification between the physical
stocks and the book records were not material.
3. (a) The company had granted loans to two companies covered in the
register maintained under section 301 of Companies Act, 1956. The
maximum amount involved during the year was Rs 1,06,09.166/- and the
year end balance of loans granted to such companies was Rs 55,42,315/-
(b) Based on our examination, rate of interest and other terms &
conditions of loans given by the company, secured or unsecured, are
prima facie not prejudicial to the interest of the company
(c) There is no stipulation of receipt of principal amount and interest
on loans granted by the company, accordingly, clause 4(iii) (d) of the
Companies (Auditors Report) Order 2003 is not applicable to the
company,
(e) The company has taken loans from two companies covered in the
register maintained under section 301 of the Companies Ac!, 1956. The
maximum amount involved during the year was Rs 1,25,00,000/- and the
year end balance of loans granted to such companies was Nil.
(f) The company has not paid any interest on loans taken from companies
covered in the register maintained u/s 301 of the Companies Ac 1956.
However, other terms and conditions on which loans have been taken from
companies firms or other parties listed in the register maintained
under section 301 of the Companice Act, 1956 are not prima facie,
prejudicial to the interest of the company
(g) There is no stipulation of repayment of loans 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 with regard to purchases of inventories, fixed assets and for
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal controls.
5. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered in the
register maintained u/s 301 of the Companies Act, 1956 have been so
entered; and
(b) In our opinion and according to the information and explanations
given to us, no transactions are made in pursuance of contracts or
agreements that need to be entered in the register maintained under
section 301 of the Companies Act, 1961.
6. In our opinion and according to the information given to us, the
company has not accepted any deposits from the public under section 58A
,58AA or any- other relevant provisions of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975.
7. in our opinion, the company has reasonable internal audit system
which requires to be strengthened to make it commensurate with size and
the nature of its business.
8. We have broadly reviewed the cost records of the company and are of
opinion that, prima facie, the accounts and records prescribed under
clause (d) sub section (I) section 209 of the Companies Act, 1956 have
been maintained. However, we have not made a detailed examination of
the records with a view to satisfy ourselves that the records are
complete and correct.
9. (i) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other statutory dues applicable
to it, except advance income tax/ tds and at few occasions of provident
fund, employees state insurance & value added tax.
(ii) According to the information and explanations given to us, no
undisputed amount outstanding payable in respect of income tax, sales
tax, wealth tax, service tax, custom duty, excise duty, cess, at the
end of the period ending 31st March, 2010 for a period more than six
months from the date they become payable except wealth tax of Rs
5,63,987/-
(iii) According to the information and explanations given to us there
are no dues of value added tax, income tax, custom duty, wealth tax,
excise duty, service tax and cess which have not been deposited on
account of any dispute, except the following:
Name of Nature of Amount Fin, Forum
Statute dues Year where
dispute Is
pending
1. Sales Tax Additional 1,54,310/- 2002- Assessing
demand 2003 Officer
Ward-106,
New Delhi
2. ESI Additional 3,96,629/- 1999- Regional
Corporation demand 2000 Director
Faridabad,
10. The company does not have any accumulated losses as at end of
accounting period nor has incurred any cash losses in the accounting
period covered under audit and in the immediate preceding financial
year.
11. In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of dues to a
financial institutions or banks.
12. In our opinion and according to the Information and explanation
given to us that the company has not granted any loans & advances on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4{xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
14. In our opinion the company is not dealing in or trading of shares
/ securities / debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
15. Based on our examination of records and according to the
information and explanation given to us, the company has not given
guarantees for loans taken by others from banks or financial
institutions, which are prejudicial to the interest of the company.
16. In our opinion and according to the information and explanation
given to us, on and overall basis, the term loans have been applied for
the purposes for which they were raised.
17. According to the information and explanation given to us and an
overall examination of the balance sheet of the company, we are of the
opinion that the funds raised on short term basis have not been
utilized for long term investment.
18. According to the information and explanation given to us the
company has not made any preferential allotment, accordingly the
provisions of clause 4(xviii) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
19. According to the information and explanation given to us the
company has not issued any debenture, accordingly the provisions of
clause 4(xix) of the Companies (Auditors Report) Order, 2003 are not
applicable to the company.
20. According to the information and explanation given to us the
company has not raised money by public issue during the year,
accordingly the provisions of clause 4(xx) of the Companies (Auditors
Report) Order, 2003 are not applicable to the company.
21. According the information and explanation given to us, no fraud on
or by the company has been noticed or reported during the period that
causes the financial statement to be materially misstated.
For Rawla & Company
Chartered Accountants
FRN No. 001661N
CAY.P. Rawla
New Delhi (Partner)
July 29, 2010 M. No. 10475
Mar 31, 2009
1. We have audited the annexed Balance Sheet of M/s.TINNA OVERSEAS
LIMITED as at 31st March, 2009 and the profit and loss account of the
company and also the cash flow statement for the period ended on that
date annexed thereto. These financial statements are the responsibility
of the companys management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by 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, as
amended by the companies (Auditors Report) (Amendment) Order 2004
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, we enclose in the annexure
hereto a statement on the matters specified in paragraphs 4 and 5, to
the extent applicable to the company, of the said order.
Further to our comments in the annexure referred to in the above
paragraph, 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 and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us ;
c) The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the balance sheet, profit & loss account and cash
flow statement, dealt with by this report, comply with the accounting
standards referred to in sub-section 3(C) of section 211 of the
Companies Act, 1956,;
e) On the basis of written representation received from the directors,
as on 31 st March 2009 and taken on record by the board of directors,
we report that none of the directors are disqualified as on 31st March
2009 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
explanations given to us, the said balance sheet, profit & loss account
and cash flow statement read together with the notes thereon, give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair vjew in conformity with accounting
principles generally accepted in India:-
i) in the case of the balance sheet, of the state of affairs of the
company for the period ended 31st March, 2009;
ii) in the case of the profit and loss account of the profit of the
company for the period ended on that date; and
iii) in the case of cash flow statement, of the cash flows of the
company for the period ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 1 of our report to the members of M/S
TINNA OVERSEAS LIMITED on the accounts as at and for the period ended
31st March, 2009 that;
1. The company has maintained proper records showing full particulars
including quantitative details and situation of the fixed assets. The
company has a phased periodical programme of physical verification of
all fixed assets, which in our opinion is reasonable having regard to
the size of the company and the nature of its business. No material
discrepancies have been noticed on such verification.
2. (a) As per explanations given to us, inventories
have been physically verified by the management at reasonable
intervals. In our opinion, the frequency of the verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company has maintained proper records of inventories. The
discrepancies noticed on physical verification between the physical
stocks and the book records were not material.
3. (a) The company has not taken any loan from
companies covered in the register maintained under section 301 of the
Companies Act, 1956. The company had granted loans to three companies,
(including two subsidiaries) covered in the register maintained under
section 301 of Companies Act, 1956 The maximum amount involved during
the year was Rs. 12,41,03,137/- and the year end balance of loans
granted to such companies was Nil.
(b) Based on our examination, rate of interest and other terms &
conditions of loans given by the company, secured or unsecured, are
prima facie not prejudicial to the interest of the company except
interest on loans and advances given to two companies, which are
subsidiaries of the company, were not provided in view of the
Accounting Policy No. 9 (b) and Note No. 2.
(c) Based on our examination, amounts given to two subsidiaries of the
company were settled vide Order of Company Law Board, New Delhi dated
09/06/2009 effective from 05/01/2009 with reference to Petition No.
17/2008 dated 14.05.2008. (Refer Note No. 2)
(d) There is no overdue amount of loans taken from or granted to
companies, firms or her parties listed in the register maintained under
section 301 of the Companies Act, 1956
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventories, fixed assets and for
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal controls.
5. In our opinion:
(a) All the transactions that are required to be entered in the
register maintained u/s 301 of the Companies Act, 1956 are so entered;
and
(b) The transactions made in pursuance of such contracts or
arrangements have been made at prices, which are reasonable, having
regard to the prevailing market prices.
6. In our opinion and according to the information given to us, the
company has not accepted any deposits from the public under section 58A
,58AA or any other relevant provisions of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules ,1975.
7. In our opinion, the company has reasonable internal audit system
which requires to be strengthened to make it commensurate with size and
the nature of its business.
8. We have broadly reviewed the cost records of the company and are of
opinion that, prima facie, the accounts and records prescribed under
clause (d) sub section (I) section 209 of the Companies Act, 1956 have
been maintained. However, we have not made a detailed examination of
the records with a view to satisfy ourselves that the records are
complete and correct.
9. (i) The company is regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, employees state insurance, income tax, sales tax, wealth tax,
service tax, custom duty, excise duty, cess and other statutory dues
applicable to it, except at few occasions of provident fund & employees
state insurance.
(ii) According to the information and explanations given to us, no
undisputed amount outstanding payable in respect of income tax, sales
tax, wealth tax, service tax, custom duty, excise duty, cess, at the
end of the period ending 31st March, 2009 for a period more than six
months from the date they become payable except wealth tax of Rs.
5,63,987/-
(iii) According to the information and explanations given to us there
are no dues of sales tax, income tax , custom duty , wealth tax, excise
duty , service tax and cess which have not been deposited on account of
any dispute, except the following:
Name of Nature of Amount Fin. Forum
Statute dues Year where
dispute is
pending
1. Sales
Tax Additional 154310 2002- Assessing
demand 2003 Officer
Ward-106,
New Delhi
2. ESI Additional 396629 1999- Regional
Corpo
ration demand 2000
Director
Faridabad,
10. The company does not have any accumulated losses as at end of
accounting period nor has incurred any cash losses in the accounting
period covered under audit and in the immediate preceding financial
year.
11. In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of dues to a
financial institutions or banks.
12. In our opinion and according to the information and explanation
given to us that the company has not granted any loans & advances on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
14. In our opinion the company is not dealing in or trading of shares
/ securities / debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
15. Based on our examination of records and according to the
information and explanation given to us, the company has not given
guarantees for loans taken by others from banks or financial
institutions, which are prejudicial to the interest of the company.
16. In our opinion and according to the information and explanation
given to us, on and overall basis, the term loans have been applied for
the purposes for which they were raised.
17. According to the information and explanation given to us and an
overall examination of the balance sheet of the company, we are of the
opinion that the funds raised on short term basis have not been
utilized for long term investment.
18. According to the information and explanation given to us the
company has not made any preferential allotment, accordingly the
provisions of clause 4(xviii) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
19. According to the information and explanation given to us the
company has not issued any debenture, accordingly the provisions of
clause 4(xix) of the Companies (Auditors Report) Order, 2003 are not
applicable to the company.
20. According to the information and explanation given to us the
company has not raised money by public issue during the year,
accordingly the provisions of clause 4(xx) of the Companies (Auditors
Report) Order, 2003 are not applicable to the company.
21. According the information and explanation given to us, no fraud on
or by the company has been noticed or reported during the period that
causes the financial statement to be materially misstated.
For Rawla & Company
Chartered Accountants
CAYP Rawla
New Delhi (Partner)
August 28, 2009 M. No. 10475
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