Mar 31, 2018
Independent Auditorâs Report
To,
The Members of,
TIRUPATI SARJAN LIMITED
Report on the Financial Statements
We have audited the accompanying standalone financial statements of TIRUPATI SARJAN LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, cash flows in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone 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. In conducting 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 and the Order under section 143(11) of the Act.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Basis For Qualified Opinion
The Company has not made provision for Gratuity Expense and Leave Encashment in its books, which constitutes a departure from Accounting Standard 15 -âEmployee Benefitsâ referred to in Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. Thus, the company has overstated the profit to that extent, amount being not ascertained.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair as per the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its profit, its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, we report, to the extent applicable 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 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 it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards prescribed under section 133 of the Act, read with Rule 7 of the Companies(Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has pending litigations, its impact on financial position is as per point no. 7(6) of Annexure B to the Independent Auditors Report.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. Based on audit procedures and representations provided to us by the management, we report that the disclosures are in accordance with the books of accounts maintained by the company and as produced to us by the Management.
v. The disclosures regarding details of specified bank notes held and transacted during 8 November 2016 to 30 December 2016 have not been made since the requirement does not pertain to financial year ended 31st March, 2018.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
Annexure âAâ to the Independent Auditorâs Report
(Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of TIRUPATI SARJAN LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
A companyâs internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Referred to in of our report of even date
In terms of the information and explanations sought by us and given by the company and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that -
1 (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As explained to us, all the assets have been physically verified by the management once during the year, which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification
(c) The title deeds of immoveable properties included in the Property, Plant and Equipment as disclosed in Note 3 to the financial statement are held in the name of the company.
2. As explained to us, the inventory has been physically verified at reasonable intervals during the year by the management. In our opinion, the frequency of verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material. The discrepancies have been properly dealt with in the books of accounts)
3. The company had granted loan to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act.
(a) The terms and conditions of the grant of such loans are not prejudicial to the company''s interest.
(b) No Schedule of repayment of principal and payment of interest has been stipulated.
(c) No Schedule of repayment of principal and payment of interest has been stipulated and therefore the question of overdue amounts does not arise. Though Company has informed that the reasonable steps have been taken for recovery of the principal and interest.
4. In respect of loans, investments guarantees, and security the provisions of section 185 and 186 of the Companies Act, 2013 have been complied with.
5. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits in contravention of Directives issued by Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Act and the rules framed there under, where applicable . No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal.
6. We have broadly reviewed the books of accounts and records maintained by the company pursuant to the rules prescribed under section 148(1) of the Act for maintenance of cost records in respect of companies Services and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of records.
7. (a) According to the records of the company the company is generally regular in depositing with appropriate authorities undisputed statutory dues including, income tax, sales tax, service tax and other material statutory dues applicable to it.
According to the information and explanations given to us, undisputed amounts payable in respect of income tax, wealth tax, service tax, sales tax that were in arrears, as at 31-Mar-2018 for a period of more than six months from the date they became payable are given below.
Name of the Statute |
Amount (Rs.) |
Period to which amount relates |
Professional Tax |
1,28,200/- |
For the F. Y. 2017-18 |
Professional Tax |
6,94,229/- |
For the F. Y. 2016-17 |
TDS Payable |
1,13,08,868/- |
For the F. Y. 2017-18 |
VAT Payable |
1,37,146/- |
For the F. Y. 2017-18 |
Service Tax Payable |
84,08,800/- |
For the F. Y. 2017-18 |
(b) According to the information and explanations given to us, the dues of income tax and Service tax that have not been deposited with appropriate authorities on account of any dispute and the forum where the disputes are pending are given below. ('' in lacs)
Name of the Statute |
Assessment Year |
Original Demand |
Demand Outstanding as on 31-3-18 |
Remarks |
Income Tax |
2006-07 |
Nil |
Nil |
During the course of assessment Companyâs claim U/s. 80 IA / 80 IB was restricted and the first Appellate authority allowed the claim in favour of the Company. The Ahmadabad tribunal has also allowed the matter in favor of the company. The department has chosen to appeal the same in Gujarat High Court. |
Income Tax |
2012-13 |
5.31 |
Nil |
The demand has been raised during the assessment proceedings and confirmed by the Commissioner ((Appeal). The Company has filed an Appeal with Income Tax Appellate Tribunal. ITAT has set aside file to AO for Verifications. |
Service Tax |
2007-13 |
239.44 |
221.48 |
The demand has been raised and the Company has filed an Appeal with CESTAT after paying the 7.5% of the Demand duty. |
Service Tax |
Oct-11 to Sept -12 |
75.95 |
75.95 |
The demand has been raised and the Company has filed an Appeal with CESTAT after paying 7.5% of the demand duty. |
8. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion, the company has not defaulted in repayment of dues to a financial institution, bank, Government or dues to debenture holders
9. The company has not raised moneys by way of initial public offer or further public offer (including debt instrument). However the moneys were raised by way of term loans which were applied for the purposes for which those were raised.
10. Based upon the audit procedures performed and according to the information and explanations given to us, no fraud by the company or any fraud on the company by its officers or employees has been noticed or reported during the course of our audit that causes the financial statements to be materially misstated.
11. 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. The company is not a Nidhi Company hence this clause is not applicable.
13. Based upon the audit procedures performed and according to the information and explanations given to us, All transactions with 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 The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
15. 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 SWETA PATEL & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN:139165W CA SWETA H PATEL
Partner
M.No.154493
Place : Ahmedabad
Date : 06-06-2018
Mar 31, 2016
INDEPENDENT AUDITORS REPORT
To,
The Members of,
TIRUPATI SARJAN LIMITED
Report on the Financial Statements
1. We have audited the accompanying financial statements of (âthe company''), which comprises Balance Sheet as at 31st Mar 2016, the Statement of Profit and Loss account and cash flow statement for the year then ended, and a Summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
2. 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 of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding 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 materials misstatement, whether due to fraud or error.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provision of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedure 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 assessment, 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 the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Basis for Qualified Opinion
The Company has not made provision for Gratuity Expense and Leave Encashment in its books, which constitutes a departure from the Accounting Standard 15 - ââEmployee Benefitsâ referred to in section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, Thus, the Company has overstated the profit to that extent, amount being not ascertained.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in Basis for Qualified Opinion paragraph, 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, 31st March 2015 and their profit and their Cash Flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
4. As required by the Companies (Auditor''s Report) Order, 2016 (the Order) issued by the Central Government in terms of Section 143 (11) of the Act, we enclosed in the annexure a statement on matters specified in paragraph 3 & 4 of the said order.
5. 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 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 it appears from our examination of those books.
c) The Balance Sheet and the Statement of Profit and Loss 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) In our opinion there are no observations or comments on the financial transactions, which may have an adverse effect on the functioning of the Company.
f) On the basis of the written representations received from the directors as on 31st Mar 2016 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st Mar
2016 from being appointed as a directors in terms of section 164(2) of the Act.
g) Report on the Internal Financial Controls under Clause (1) of Sub-section 3 of section 143 of the companies Act, 2013 (âthe Actâ)- is enclosed an annexure to this report.
h) With respect to the other matters to be included in the Auditor''s Report in accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. As informed to us the Company does not have any pending litigations which would impact its financial position]
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.]
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of (âthe Company'') as of 31-Mar-2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date. Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence I/we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31-Mar-2016.
Referred to in of our report of even date
In terms of the information and explanations sought by us and given by the company and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that: -
1 (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As explained to us, all the assets have been physically verified by the management once during the year, which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification
(c) The title deeds of immoveable properties included in the fixed asset as disclosed in Note 9 to the financial statement are held in the name of the company.
2. As explained to us, the inventory has been physically verified at reasonable intervals during the year by the management. In our opinion, the frequency of verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material. The discrepancies have been properly dealt with in the books of accounts)
3. The company had granted loan to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act.
(a) The terms and conditions of the grant of such loans are not prejudicial to the company''s interest.
(b) No Schedule of repayment of principal and payment of interest has been stipulated.
(c) No Schedule of repayment of principal and payment of interest has been stipulated and therefore the question of overdue amounts does not arise. Though Company has informed that the reasonable steps have been taken for recovery of the principal and interest.
4. In respect of loans, investments guarantees, and security the provisions of section 185 and 186 of the Companies Act, 2013 have been complied with.
5. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits in contravention of Directives issued by Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Act and the rules framed there under, where applicable . No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal.
6. We have broadly reviewed the books of accounts and records maintained by the company pursuant to the rules prescribed under section 148(1) of the Act for maintenance of cost records in respect of companies Services and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of records.
7. (a) According to the records of the company the company is generally regular in depositing with appropriate
authorities undisputed statutory dues including, investor education protection fund, income tax, sales tax, service tax and other material statutory dues applicable to it.
According to the information and explanations given to us, undisputed amounts payable in respect of income tax, wealth tax, service tax, sales tax that were in arrears, as at 31-Mar-2016 for a period of more than six months from the date they became payable are given below.
Name of the Statute |
Amount (Rs.) |
Period to which amount relates |
Professional Tax |
9,39,340/- |
For the FY.2015-16 |
Professional Tax |
18,15,520/- |
For Earlier Year |
(b) According to the information and explanations given to us, the dues of income tax and Service tax that have not been deposited with appropriate authorities on account of any dispute and the forum where the disputes are pending are given below
Name of the Statute |
Nature of the dues |
Amount (Rs.) |
Period to which amount relates |
Income Tax |
During the course of assessment Company''s claim U/s. 80 IA / 80 IB was restricted and the first Appellate authority allowed the claim in favour of the Company. The Ahmadabad tribunal has also allowed the matter in favor of the company. The department has chosen to appeal the same in Gujarat High Court. |
Nil |
AY 2006-07 |
Income Tax |
The demand has been raised during the assessment proceedings and the Company has filed an Appeal with First Appellate Authority. |
0.24 |
A.Y.2009-10 |
Income Tax |
The demand has been raised during the assessment proceedings and the Company has filed an Appeal with First Appellate Authority. |
16.81 |
A.Y.2013-14 |
TDS |
The demand has been raised during the assessment proceedings and the Company has filed an Appeal with First Appellate Authority. |
8.05 |
AY.2014-15 |
Service Tax |
The demand has been raised and the Company has filed an Appeal with CESTAT after paying the 7.5% of the Demand duty. |
239.44 |
AY 2007-13 |
8. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion, the company has not defaulted in repayment of dues to a financial institution, bank, Government or dues to debenture holders
9. The company has not raised moneys by way of initial public offer or further public offer (including debt instrument). However the moneys were raised by way of term loans which were applied for the purposes for which those were raised.
10. Based upon the audit procedures performed and according to the information and explanations given to us, no fraud by the company or any fraud on the company by its officers or employees has been noticed or reported during the course of our audit that causes the financial statements to be materially misstated.
11. 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. The company is not a Nidhi Company hence this clause is not applicable.
13. Based upon the audit procedures performed and according to the information and explanations given to us, All transactions with 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 The company has made private placement of shares during the year under review. The requirement of Section 42 of the Companies Act, 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised.
15. 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 SWETA PATEL & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN:139165W
CA SWETA H PATEL
Partner
Place : Ahmadabad
Date : 22-6-2016
Mar 31, 2015
Report on the Financial Statements
We have audited the accompanying financial statements of Tirupati
Sarjan Limited, which comprise the Balance Sheet as at 31st March,
2015, the Statement of Profit and Loss and Cash Flow Statement for the
year ended on 31st March, 2015, and a summary of significant accounting
policies and other explanatory information
Management's Responsibility for the Financial Statements
The management and Board of Directors of the Company are responsible
for the matters stated in Section 134(5) of the Companies Act, 2013
('the act') with respect to the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the generally accepted accounting principles in India, including the
Accounting Standards specified under Section 133 of the Act, read with
rule 7 of Companies (Accounts) Rules, 2014. This responsibility
includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company
and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; design,
implementation and maintenance of adequate internal financial controls,
that are operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that gives a true and fair
view and are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the 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 the Company's management and Board of
Directors, as well as evaluating the overall presentation of the
financial statements
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March 2015, its profit/loss and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 issued
by the Central Government of India in terms of sub-section (11) of
section 143 of the Act, we give in the Annexure a statement on the
matters Specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we further 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
purpose of our audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the aforesaid financial statements comply with the
applicable 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 March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014::
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company does not have any long-term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise.
iii. There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise.
Annexure referred to in paragraph 7 Our Report of even date to the
members of Tirupati Sarjan Limited on the accounts of the company for
the year ended 31st March, 2015
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
i.
a. The Company has maintained proper records showing full particulars,
including quantitative details andsituation of fixed assets ;
b. As explained to us and on the basis of representation received from
the management of the company, fixed assets have been physically
verified by the management at regular intervals, which in our opinion
is reasonable, looking to the size of the company and the nature of the
business.According to the information and explanation given to us,
discrepancies on such verification were not material compared to the
available records.
ii.
a. As explained to us, inventories have been physically verified
during the year by the management.
b. As per the procedures explained to us, which are followed by the
management to physical verification by way of verification of title
deeds, site visits by Management and certification of extent of work
completion by competent persons are in our opinion 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 of the
Company, we are of the opinion that, the Company is maintaining proper
records of its inventory. Discrepancies noticed on verification between
physical stocks and book records were not material.
iii. According to the information and explanations given to us, the
Company has taken a loan from the parties mentioned in the register
maintained under section 189 of the companies Act at a terms which are
not prejudicial to the interest of the company and repayment of its
principal and interest are as agreed upon and there is no overdue
amount outstanding.As per the stipulation condition of the Bank's Loan
Sanction letter company has accepted the loans.
The company has granted loans, secured or unsecured to companies, firms
or other parties covered in the register maintained under section 189
of the Companies Act, 2013 however the terms and conditions at which
such loans have been given are not prejudicial to the interest of the
company. Interest free advances received are less than interest free
loans received by the company.
iv. On the basis of appropriate audit procedure followed by us and in
terms of the information and explanations given to us, we are of the
opinion that there are generally adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and for
sale of goods. During the course of our previous assessment, no major
weakness in internal control had come to our notice.
v. The company has not accepted any deposits with in the meaning of
Section 73 to 76 or any other relevant provision of the Companies
Act,2013 andrules framed there under.
vi. As informed to us, maintanance of the cost records under section
148(1) of the Companies act,2013 has been prescribed by the Central
Government and same is in progress.
vii.
a. According to the records of the Company, it has been generally
regular in depositing undisputed Statutory dues including, Income tax,
VAT, Service Tax and other statutory dues with the appropriate
authorities. According to the information and explanations given to us
,no undisputed amounts payable in respect of above were in arrears, as
at March,31 2015 for a period of more than six months from the date on
which they became payable except following :
Sr
No. Particulars Amount Payable Amount paid
till signing
as on 31.3.2015 of Balance
sheet
1 Professional tax of F.Y. 2014-15 28,31,890 10,10,570
2 Service Tax of F.Y. 2014-15 3,56,070 1,04,782
3 TDS of F.Y. 2014-15 27,22,929 25,78,888
4 EPF of F.Y. 2014-15 24,191 24,191
b. According to the information and explanations given to us and based
on the records of the companExamined by us, there are no dues of Income
Tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty and Excise Duty
which have not been deposited on account of any disputes except the
followings.
Income Tax Liabilities:
Assessment Original Demand Remarks
Year Demand Outstanding
(Rs. In
lacs) as on
31-03-13
(Rs.in
lacs)
2006-07 Nil Nil During the course of assessment
Company's claim U/s. 80 IA / 80 IB
was restricted and the first
Appellate authority allowed the
claim in favour of the Company.
The Ahmadabad tribunal has also
allowed the matter in favor of the
company. The department has chosen
to appeal the same in Gujarat High
Court.
2009-10 9.24 0.24 The demand has been raised during
the assessment proceedings and the
Company has filed an Appeal with
First Appellate Authority.
2010-11 60.5 60.5 The demand has been raised during
the assessment proceedings and the
Company has filed an Appeal with
First Appellate Authority.
2012-13 0.71 0.71 The demand has been raised during
the assessment proceedings and the
Company has filed an Appeal with
First Appellate Authority.The Order
of the First Appealate authority
is in favour of the asseessee to
the extend of Rs.22.34 lakhs and
Rs.6.88 Lakhs are subject to
confirmation from Assesseeing
officer.And for remaining amount
assessee will make the further
appeal.
TDS liability Penalty
2014-15 8.05 8.05 The demand has been raised during
the assessment proceedings and the
Company has filed an Appeal with
First Appellate Authority.
Service tax Liability
2007-13 239.44 239.44 The demand has been raised and
the Company has filed an Appeal
with CESTAT after paying the 7.5%
of the Demand duty.
c. There has not been an occasion in case of the Company during the
year under report to transfer any sumsto the Investor Education and
Protection Fund. The question of reporting delay in transferring such
sums does not arise.
viii. Company does not have any accumulated losses, which are not less
than fifty percent of its net worth. Also, Company has not incurred any
cash losses in such financial year and in the immediately preceding
financial year.
ix. According to the records of the company examined by us and as per
the information and explanations given to us, the company has not
defaulted in repayment of dues to bank or financial institution.
Further, Company has not issued any debentures.
x. According to the information and explanations given to us, and the
representations made by the management, the Company has given guarantee
for loans taken by its subsidiary at Kampla, Uganda for Rs. 38.03
crores (7 Million USD) from KCB, Uganda and same is not prejudicial to
the interest of the Company.
xi. In our opinion, and according to the information and explanations
given to us, term loans were applied for the purpose for which the
loans were obtained.
xii. During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have we been informed of any such instance by the
Management
For SWETA PATEL & ASSOCIATES
Chartered Accountants
Firm Registration No: 139165W
CA Sweta H Patel
Membership No.154493
Place:Ahmedabad
Date:17-08-2015
Mar 31, 2014
We have audited the accompanying financial statements of TIRUPATI
SARJAN LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March , 2014, the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in Section 211
(3C) of the Companies Act, 1956 ("the Act") read with the General
Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company 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 in terms of Section 227(4A)
of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books [and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us].
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account [and with the returns received from the branches not
visited by us].
(d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act read with the General
Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a director in terms of Section 274(1) (g) of
the Act.
ANNEXURE REFERRED TO IN PARAGRAPH 5 OF OUR AUDITOR''S REPORT OF EVEN
DATE ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2014 OF
M/S TIRUPATI SARJAN LTD.
1. (a) The company has generally maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us and on the basis of representations received
from the management of the Company, fixed assets, according to the
practice of the Company, are physically verified by the management at
reasonable intervals, which in our opinion, is reasonable, looking to
the size of the Company and the nature of its business. According to
the information and explanations given to us, discrepancies on
such verification were not material compared to the available records.
(c) The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern.
2. (a) As explained to us, inventories have been physically verified
during the year by the management.
(b) As per the procedures explained to us, which are followed by the
management to physical verification by way of verification of title
deeds, site visits by Management and certification of extent of work
completion by competent persons are in our opinion 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 of the
Company, we are of the opinion that, the Company is maintaining proper
records of its inventory. Discrepancies noticed on verification between
physical stocks and book records were not material.
3. According to the information and explanations given to us, the
Company has taken a loan from the parties mentioned in the register
maintained under section 301 of the companies Act at a terms which are
not prejudicial to the interest of the company and repayment of its
principal and interest are as agreed upon and there is no overdue
amount outstanding.
The company has granted loans, secured or unsecured to companies, firms
or other parties covered in the register maintained under section 301
of the Companies Act, 1956 however the terms and conditions at which
such loans have been given are not prejudicial to the interest of the
company. Interest free advances received are less than interest free
loans received by the company.
4. On the basis of appropriate audit procedure followed by us and in
terms of the information and explanations given to us, we are of the
opinion that there are generally adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and for
sale of goods. During the course of our previous assessment, no major
weakness in internal control, had come to our notice.
5. On the basis of audit procedures performed by us, and according to
the information, explanations and representations given to us, we are
of the opinion that transactions, in which directors were interested as
contemplated under section 297 and sub-section (6) of section 299 of
the companies Act, 1956 and required to be entered in the register
maintained under section 301 of the said Act, have taken place at a
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. In our opinion and according to the information and explanation
given to us, the Company has not invited any deposits from the public
for which provision of Section 58-Aof the Companies Act, 1956 and its
Rules are applicable.
7. The company has in house internal audit system and in our opinion it
commensurate with the size of the company and the nature of its
business.
8. As explained to us, maintenance of cost records under Section 209(1
)(d) of the Companies Act, 1956 has been prescribed by the Central
Government and same is in progress.
9. (a) According to the records of the Company, it has been generally
regular in depositing undisputed
statutory dues including, Income tax, VAT, Service Tax and other
statutory dues with the
appropriate authorities. According to the information and explanations
given to us ,no undisputed amounts payable in respect of above were in
arrears, as at March,31 2014 for a period of more than six months from
the date on which they became payable except following :
Amount Payable Amount paid till signing
as on 31.3.2014 of Balance sheet
Professional tax of Rs. 17,33,520/- Rs. 17,33,520/-
F.Y. 2013-14
Service Tax of F.Y. Rs. 67,49,092/- Rs. 31,22,958/-
2013-14
TDS of F.Y. 2013-14 Rs. 18,93,375/- Rs. 19,466/-
EPF of F.Y. 2013-14 Rs. 37,299/- Rs. 37,299/-
(b) As explained to us, and on the basis of our examination of the
records, there are no disputed statutory dues pending before any
authorities except the followings.
Assessment Original Demand Remarks
Year Demand Outstanding
(Rs. In as on
lacs) 31-03-14
(Rs.in lacs)
2006- 07 Nil Nil During the course of assessment
Company''s claim U/s. 80IA/ 80
IB was restricted and the first
Appellate authority allowed the claim
in favour of the Company. The Ahmadabad
tribunal has also allowed the matter
in favor of the company.
The department has chosen to appeal the
same in Gujarat High Court.
2007- 08 23.54 23.54 The demand after First Appellate
Authority order is Rs. 22918.
The same has been adjusted against
refund due to the company.
2009- 10 9.24 0.24 The demand after First Appellate
Authority order is Rs. 18154.
The same has been adjusted against
refund due to the company.
2010- 11 60.50 60.50 The demand after First Appellate
Authority order is Rs. 84883.
The same has been adjusted against
refund due to the company.
2011- 12 0.71 0.71 The demand has been raised during
the assessment proceedings and the
Company has filed an Appeal with
First Appellate Authority.
10. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses, both in the financial
year under review and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders.
12. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of share, debentures
or any other securities.
13. According to the information and explanations given to us, and the
representations made by the management, the Company has given guarantee
for loans taken by its subsidiary at Kampla, Uganda for Rs. 38.03
crores (7 Million USD) from KCB, Uganda and same is not prejudicial to
the interest of the Company.
14. On the basis of the records examined by us, and relying on the
information compiled by the Company for co relating the funds raised to
the end use of term loans, we have to state that, the Company has taken
a new loans for purchase of vehicle and machinery Rs. 141.645 lacs and
also taken a working capital loan of Rs.773 lacs out of which Rs. 675
lacs has been disbursed by bank to meet the working capital gap during
the year under review.
15. The company has raised funds on short-term basis, which have not
been used for long-term investment and vice versa.
16. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed by the Company during the year.
Looking to the nature of activities being carried on, at present, by
the Company and also considering the nature of the matters referred to
in the various clauses of the Companies (Auditor''s Report) Order, 2004,
Clauses xiii, xiv, xviii, xix and xx of paragraph 4 of the aforesaid
Order, are in our opinion, not applicable to the Company.
For RAJESH J. SHAH & ASSOCIATES
Chartered Accountants
(FirmRegistration No. 108407W)
Signature
(CAKIRAN B. PARIKH)
(Partner)
(Membership No. 106171)
AHMEDABAD, 31st July, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of TIRUPATI
SARJAN LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March , 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in Section 211(3C)
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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2004 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books [and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us].
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account [and with the returns received from the branches not
visited by us].
(d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
ANNEXURE REFERRED TO IN PARAGRAPH 5 OF OUR AUDITOR''S REPORT OF EVEN
DATE ON THE FINANCIAL STATEMENTS FOR THE YEAR
ENDED 31ST MARCH, 2013 OF M/S TIRUPATI SARJAN LTD.
1. (a) The company has generally maintained proper records showing
full particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us and on the basis of representations received
from the management of the Company, fixed assets, according to the
practice of the Company, are physically verified by the management at
reasonable intervals, which in our opinion, is reasonable, looking to
the size of the Company and the nature of its business. According to
the information and explanations given to us, discrepancies on such
verification were not material compared to the available records.
(c) The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern.
2. (a) As explained to us, inventories have been physically verified
during the year by the management.
(b) As per the procedures explained to us, which are followed by the
management to physical verification by way of verification of title
deeds, site visits by Management and certification of extent of work
completion by competent persons are in our opinion 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 of the
Company, we are of the opinion that, the Company is maintaining proper
records of its inventory. Discrepancies noticed on verification between
physical stocks and book records were not material.
3. According to the information and explanations given to us, the
Company has taken a loan from the parties mentioned in the register
maintained under section 301 of the companies Act at a terms which are
not prejudicial to the interest of the company and repayment of its
principal and interest are as agreed upon and there is no overdue
amount outstanding.
The company has granted loans, secured or unsecured to companies, firms
or other parties covered in the register maintained under section 301
of the Companies Act, 1956 however the terms and conditions at which
such loans have been given are not prejudicial to the interest of the
company. Interest free advances received are less than interest free
loans received by the company.
4. On the basis of appropriate audit procedure followed by us and in
terms of the information and explanations given to us, we are of the
opinion that there are generally adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and for
sale of goods. During the course of our previous assessment, no major
weakness in internal control, had come to our notice.
5. On the basis of audit procedures performed by us, and according to
the information, explanations and representations given to us, we are
of the opinion that transactions, in which directors were interested as
contemplated under section 297 and sub-section (6) of section 299 of
the companies Act, 1956 and required to be entered in the register
maintained under section 301 of the said Act, have taken place at a
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. In our opinion and according to the information and explanation
given to us, the Company has not invited any deposits from the public
for which provision of Section 58-A of the Companies Act, 1956 and its
Rules are applicable.
7. The company has in house internal audit system and in our opinion
it commensurate with the size of the company and the nature of its
business.
8. As explained to us, maintenance of cost records under Section
209(1) (d) of the Companies Act, 1956 has been prescribed by the
Central Government and same is in progress.
9. (a) According to the records of the Company, it has been generally
regular in depositing undisputed statutory dues including, Income tax,
VAT, Service Tax and other statutory dues with the appropriate
authorities. According to the information and explanations given to us
,no undisputed amounts payable in respect of above were in arrears, as
at March,31 2013 for a period of more than six months from the date on
which they became payable except following : Professional tax of F.Y.
2011-12 Rs. 43,160/- (b) As explained to us, and on the basis of our
examination of the records, there are no disputed statutory dues
pending before any authorities except the followings.
Income Tax Liabilities:
Assessment Original Demand Demand
Year (Rs. In
lacs)
Outstanding as on Remarks 31-03-13
(Rs.in lacs)
The demand has been raised
during the assessment 2007-08 23.54 23.54
proceedings and the Company has
filed an Appeal with
First Appellate Authority.
2009-10 9.24 0.24
The demand has been raised during
the assessment proceedings and the
Company has filed an Appeal with
The demand has been raised during
the assessment 2010-11 60.50 60.50
proceedings and the Company has
filed an Appeal with
First Appellate Authority.
10. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses, both in the financial
year under review and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders.
12. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of share, debentures
or any other securities.
13. According to the information and explanations given to us, and the
representations made by the management, the Company has given guarantee
for loans taken by its subsidiary at Kampla, Uganda for Rs. 38.03
crores (7 Million USD) from KCB, Uganda and same is not prejudicial to
the interest of the Company.
14. On the basis of the records examined by us, and relying on the
information compiled by the Company for co relating the funds raised to
the end use of term loans, we have to state that, the Company has taken
a new loans for purchase of vehicle and machinery Rs. 141.645 lacs and
also taken a working capital loan of Rs.773 lacs out of which Rs. 675
lacs has been disbursed by bank to meet the working capital gap during
the year under review.
15. The company has raised funds on short-term basis, which have not
been used for long-term investment and vice versa.
16. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed by the Company during the year.
Looking to the nature of activities being carried on, at present, by
the Company and also considering the nature of the matters referred to
in the various clauses of the Companies (Auditor''s Report) Order, 2004,
Clauses xiii, xiv, xviii, xix and xx of paragraph 4 of the aforesaid
Order, are in our opinion, not applicable to the Company.
For RAJESH J. SHAH & ASSOCIATES
Chartered Accountants
(Firm Registration No. 108407W)
(CA KIRAN B. PARIKH)
(Partner)
(Membership No. 106171)
AHMEDABAD, 30th May, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of M/S. TIRUPATI SARJAN
LIMITED., as at 31st March, 2012, the annexed Statement of Profit and
Loss Account and the Cash flow statements for the year ended on that
date, both annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from any 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 principal used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditor's Report) Order, 2004 issued
by the Central Government in terms of section 227(4A) of the Companies
Act, 1956, we annex hereto a statement on the matters specified in
paragraphs 4 & 5 of the said order.
3. Further to our comments in the Annexure referred to above, We
report that:
A. We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
B. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
books of the Company.
C. The Balance Sheet, the Statement of Profit and Loss Account and
Cash Flow Statements dealt with by this Report are in agreement with
the books of account of the Company.
D. In our opinion, the Balance Sheet, the Statement of Profit and Loss
Account and Cash Flow Statements dealt with by this report comply with
the accounting standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956.
E. Based on the representations made by the Directors as on 31st
March, 2012 and taken on record by the Board of Directors of the
Company and the information and explanations given to us, none of the
Directors are, as at 31st March, 2012 prima faces disqualified from
being appointed as director in terms of clause (g) of sub-section (1)
Section 274 of the Companies Act, 1956.
F. In our opinion and to the best of our information and according to
explanation given to us, the said financial statements, read together
with the notes thereon give the information required by the Companies
Act, 1956 in the manner so required and present a true and fair view in
conformity with the accounting principles generally accepted in India :
i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2012; and
ii) In the case of the Statement of Profit and Loss Account, of the
Profit for the year ended on that date;
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date;
Interest Disclosure: Mrs. Alka R. Shah an Independent director of the
company is a wife of one of the partner of the firm Mr. Raiesh J.
Shah.
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR AUDITOR'S REPORT OF EVEN
DATE ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2012 OF
M/S TIRUPATI SARJAN LTD.
1. (a) The company has generally maintained proper records showing
full particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us and on the basis of representations received
from the management of the Company, fixed assets, according to the
practice of the Company, are physically verified by the management at
reasonable intervals, which in our opinion, is reasonable, looking to
the size of the Company and the nature of its business. According to
the information and explanations given to us, discrepancies on such
verification were not material compared to the available records.
(c) The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern.
2. (a) As explained to us, inventories have been physically verified
during the year by the management.
(b) As per the procedures explained to us, which are followed by the
management to physical verification of inventories are in our opinion
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 of the
Company, we are of the opinion that, the Company is maintaining proper
records of its inventory. Discrepancies noticed on verification between
physical stocks and book records were not material.
3. According to the information and explanations given to us, the
Company has taken a loan from the parties mentioned in the register
maintained under section 301 of the companies Act at a terms which are
not prejudicial to the interest of the company and repayment of its
principal and interest are as agreed upon and there is no overdue
amount outstanding.
The company has granted loans, secured or unsecured to companies, firms
or other parties covered in the register maintained under section 301
of the Companies Act, 1956 however the terms and conditions at which
such loans have been given are not prejudicial to the interest of the
company.
4. On the basis of appropriate audit procedure followed by us and in
terms of the information and explanations given to us, we are of the
opinion that there are generally adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and for
sale of goods. During the course of our previous assessment, no major
weakness in internal control, had come to our notice.
5. On the basis of audit procedures performed by us, and according to
the information, explanations and representations given to us, we are
of the opinion that transactions, in which directors were interested as
contemplated under section 297 and sub-section (6) of section 299 of
the companies Act, 1956 and required to be entered in the register
maintained under section 301 of the said Act, have taken place at a
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. In our opinion and according to the information and explanation
given to us, the Company has not invited any deposits from the public
for which provision of Section 58-A of the Companies Act, 1956 and its
Rules are applicable.
7. The company has in house internal audit system and in our opinion
it commensurate with the size of the company and the nature of its
business.
8. As explained to us, maintenance of cost records under Section
209(1) (d) of the Companies Act, 1956 has been prescribed by the
Central Government and same is in progress.
9. (a) According to the records of the Company, it has been regular in
depositing undisputed statutory dues including, Income tax, VAT,
Service Tax and other statutory dues with the appropriate authorities.
According to the information ands explanations given to us ,no
undisputed amounts payable in respect of above were in arrears, as at
March,31 2012 for a period of more than six months from the date on
which they became payable.
(b) As explained to us, and on the basis of our examination of the
records, there are no disputed statutory dues pending before any
authorities except the following.
Income Tax Liabilities:
Assessment
Year Original Demand
Outstanding Remarks
Demand as on 31-03-12
(Rs.In lacs) (Rs.in lacs)
2006-07 Nil Nil During the course of
assessment Company's claim
U/s. 80 IA / 80 IB was
restricted and the first
Appellate authority allowed
the claim in favour of the
Company The Ahmadabad
tribunal has also
allowed the matter
in favor of the
company. The
department has chosen
to appeal the same
in Gujarat High Court.
2009-10 9.24 0.24 The demand has been raised
during the assessment
proceedings and the Company
has filed an Appeal
with First Appellate
Authority.
10. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses, both in the financial
year under review and in the immediately preceding financial year.
11. On the basis of the records examined by us and the information and
explanations given to us, the Company has made default of Rs. 1.20 lacs
in repayment of dues to The Mehsana Urban Co. Op. Bank Ltd. since June,
2011 which has been cleared before the date of signing of the report.
12. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of share, debentures
or any other securities.
13. According to the information and explanations given to us, and the
representations made by the management, the Company has given guarantee
for loans taken by its subsidiary at Kampla, Uganda for Rs. 15.01
crores (7 Billion UGX) from Bank of Baroda, Uganad and same is not
prejudicial to the interest of the Company.
14. On the basis of the records examined by us, and relying on the
information compiled by the Company for co relating the funds raised to
the end use of term loans, we have to state that, the Company has taken
a new loans for purchase of vehicle and machinery Rs. 141.645 lacs and
also taken a working capital loan of Rs.773 lacs out of which Rs. 275
lacs has been disbursed by bank to meet the working capital gap during
the year under review.
15. The company has raised funds on short-term basis, which have not
been used for long-term investment and vice versa.
16. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed by the Company during the year.
Looking to the nature of activities being carried on, at present, by
the Company and also considering the nature of the matters referred to
in the various clauses of the Companies (Auditor's Report) Order, 2004,
Clauses xiii, xiv, xviii, xix and xx of paragraph 4 of the aforesaid
Order, are in our opinion, not applicable to the Company.
FOR, RAJESH J. SHAH & ASSOCIATES
CHARTERED ACCOUNTANTS
[FRN: 108407W]
CA RAJESH J. SHAH
PLACE : AHMEDABAD. PARTNER
DATE : 17.08.2012 M. No.: 040268
Mar 31, 2011
We have audited the attached Balance Sheet of M/S. TIRUPATI SARJAN
LIMITED., as at 31st March, 2011, the annexed Profit and Loss Account
and the Cash Flow statement for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from any 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 principal used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditor's Report) Order, 2004 issued
by the Central Government in terms of section 227(4A) of the Companies
Act, 1956, we annex hereto a statement on the matters specified in
paragraphs 4 & 5 of the said order.
3. Further to our comments in the Annexure referred to above, We
report that:
A. We have obtained all the information and explanation which to the
best of our knowledge and belief, were necessary for the purpose of our
audit.
B. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
books of the Company.
C. The Balance Sheet, the Profit and Loss Account and Cash Flow
statement dealt with by this report are in agreement with the books of
account of the Company.
D. In our opinion, the Balance Sheet, the Profit and Loss Account and
Cash Flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
E. Based on the representations made by the Directors as on 31st
March, 2011 and taken on record by the Board of Directors of the
Company and the information and explanations given to us, none of the
Directors are, as at 31st March, 2011 prima facie disqualified from
being appointed as director in terms of clause (g) of sub-section (1)
Section 274 of the Companies Act, 1956.
F. In our opinion and to the best of our information and according to
explanation given to us, the said financial statements, read together
with the notes thereon give the information required by the Companies
Act, 1956 in the manner so required and present a true and fair view in
conformity with the accounting principles generally accepted in India :
i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2011;
ii) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
iii) In case of Cash Flow statement of the Cash Flow for the year ended
on that date.
Interest Disclosure : Mrs. Alka R. Shah an Independent director of the
company is a wife of one of the partner of the firm Mr. Rajesh J.
Shah.
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR AUDITOR'S REPORT OF EVEN
DATE ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2011
OF M/S TIRUPATI SARJAN LTD.
1. (a) The company has generally maintained proper records showing
full particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us and on the basis of representations received
from the management of the Company, fixed assets, according to the
practice of the Company, are physically verified by the management at
reasonable intervals, which in our opinion, is reasonable, looking to
the size of the Company and the nature of its business. According to
the information and explanations given to us, discrepancies on such
verification were not material compared to the available records.
(c) The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern.
2. (a) As explained to us, inventories have been physically verified
during the year by the management.
(b) The procedures explained to us, which are followed by the
management to physical verification of inventories are in our opinion
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 of the
Company, we are of the opinion that, the Company is maintaining proper
records of its inventory. Discrepancies noticed on verification between
physical stocks and book records were not material.
3. According to the information and explanations given to us, the
Company has taken a loan from the parties mentioned in the register
maintained under section 301 of the Companies Act, 1956 at a terms
which are not prejudicial to the interest of the company and repayment
of its principal and interest are as agreed upon and there is no
overdue amount outstanding.
The company has granted loans, secured or unsecured to companies, firms
or other parties covered in the register maintained under section 301
of the Companies Act, 1956 however the terms and conditions at which
such loans have been given are not prejudicial to the interest of the
company.
4. On the basis of appropriate audit procedure followed by us and in
terms of the information and explanations given to us, we are of the
opinion that there are generally adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and for
sale of goods. During the course of our previous assessment, no major
weakness in internal control, had come to our notice.
5. On the basis of audit procedures performed by us, and according to
the information, explanations and representations given to us, we are
of the opinion that transactions, in which directors were interested as
contemplated under section 297 and sub-section (6) of section 299 of
the companies Act, 1956 and required to be entered in the register
maintained under section 301 of the said Act, have taken place at a
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. In our opinion and according to the information and explanation
given to us, the Company has not invited any deposits from the public
for which provision of Section 58-A of the Companies Act, 1956 and its
Rules are applicable.
7. The company has in house internal audit system and in our opinion
it commensurate with the size of the company and the nature of its
business.
8. As explained to us, maintenance of cost records under Section
209(1)(d) of the Companies Act, 1956 has not been prescribed by the
Central Government.
9. (a) According to the records of the Company, it has been regular in
depositing undisputed statutory dues including, Income tax, VAT, and
other Statutory dues with the appropriate authorities.
(b) As explained to us, and on the basis of our examination of the
records, there are no disputed statutory dues pending before any
authorities except the followings.
Income Tax Liabilities:
Assessment Original Demand Outstand Remarks
Year Demand ing as on
(Rs. In 31-03-11 (Rs.in
lacs) lacs)
2006-07 Nil Nil During the course of
assessment Company's
claim U/s. 80 IA / 80
IB was restricted and
the first Appellate
authority allowed the
claim in favour of the
Company.The Ahmedabad
tribunal has also
allowed the matter in
favour of the company.
The department have
choosen to appeal the
same in Gujarat High
Court.
10. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses, both in the financial
year under review and in the immediately preceding financial year.
11. On the basis of the records examined by us and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to financial institutions or banks.
12. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of share, debentures
or any other securities.
13. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institutions.
14. On the basis of the records examined by us, and relying on the
information compiled by the Company for co relating the funds raised to
the end use of term loans, we have to state that, the Company has taken
a loans for purchase of vehicle and also taken a working capital loan
to meet the working capital gap during the year under review.
15. The company has raised funds on short-term basis, which have not
been used for long-term investment and vice versa.
16. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed by the Company during the year.
Looking to the nature of activities being carried on, at present, by
the Company and also considering the nature of the matters referred to
in the various clauses of the Companies (Auditor's Report) Order, 2004,
Clauses xiii, xiv, xviii, xix and xx of paragraph 4 of the aforesaid
Order, are in our opinion, not applicable to the Company.
For, Rajesh J. Shah & Associates
Chartered Accountants
Firm Regn. No. 108407W
CA Rajesh J. Shah
Partner
M. No.: 040268
Place Ahmedabad
Date 24th August, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of M/S. TIRUPATI SARJAN
LIMITED, as at 31st March, 2010, the annexed Profit and Loss Account
and the cash flow statement for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from any 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 principal used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of section 227(4A) of the Companies
Act, 1956, we annex hereto a statement on the matters specified in
paragraphs 4 & 5 of the said order.
3. Further to our comments in the Annexure referred to above, We
report that:
A. We have obtained all the information and explanation which to the
best of our knowledge and belief, were necessary for the purpose of our
audit.
B. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
books of the Company.
C. The Balance Sheet, the Profit and Loss Account and cash flow
statement dealt with by this Report are in agreement with the books of
account of the Company.
D. In our opinion, the Balance Sheet, the Profit and Loss Account and
cash flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
E. Based on the representations made by the Directors as on 31st
March, 2010 and taken on record by the Board of Directors of the
Company and the information and explanations given to us, none of the
Directors are, as at 31st March, 2010 prima faces disqualified from
being appointed as director in terms of clause (g) of sub- section (1)
Section 274 of the Companies Act, 1956.
F. In our opinion and to the best of our information and according to
explanation given to us, the said financial statements, read together
with the notes thereon give the information required by the Companies
Act, 1956 in the manner so required and present a true and fair view in
conformity with the accounting principles generally accepted in India :
i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March,2010;
ii) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
iii) In case of cash flow statement of the cash flow for the year ended
on that date.
Interest Disclosure : Mrs. Alka R. Shah an Independent director of the
company is a wife of one of the partner of the firm Mr. Rajesh J. Shah.
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR AUDITORS REPORT OF EVEN
DATE ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2010 OF
M/S TIRUPATI SARJAN LTD.
1. (a) The company has generally maintained proper records showing
full particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us and on the basis of representations received
from the management of the Company, fixed assets, according to the
practice of the Company, are physically verified by the management at
reasonable intervals, which in our opinion, is reasonable, looking to
the size of the Company and the nature of its business. According to
the information and explanations given to us, discrepancies on such
verification were not material compared to the available records.
(c) The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern.
2. (a) As explained to us, inventories have been physically verified
during the year by the management.
(b) The procedures explained to us, which are followed by the
management to physical verification of inventories are in our opinion
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 of the
Company, we are of the opinion that, the Company is maintaining proper
records of its inventory. Discrepancies noticed on verification between
physical stocks and book records were not material.
3. According to the information and explanations given to us, the
Company has taken a loan from the parties mentioned in the register
maintained under section 301 of the Companies Act at a terms which are
not prejudicial to the interest of the company and repayment of its
principal and interest are as agreed upon and there is no overdue
amount outstanding.
The company has granted loans, secured or unsecured to companies, firms
or other parties covered in the register maintained under section 301
of the Companies Act, 1956 however the terms and conditions at which
such loans have been given are not prejudicial to the interest of the
company.
4. On the basis of appropriate audit procedure followed by us and in
terms of the information and explanations given to us, we are of the
opinion that there are generally adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and for
sale of goods. During the course of our previous assessment, no major
weakness in internal control, had come to our notice.
5. On the basis of audit procedures performed by us, and according to
the information, explanations and representations given to us, we are
of the opinion that transactions, in which directors were interested as
contemplated under section 297 and sub-section (6) of section 299 of
the companies Act, 1956 and required to be entered in the register
maintained under section 301 of the said Act, have taken place at a
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. In our opinion and according to the information and explanation
given to us, the Company has not invited any deposits from the public
for which provision of Section 58-A of the Companies Act, 1956 and its
Rules are applicable.
7. The company has in house internal audit system and in our opinion
it commensurate with the size of the company and the nature of its
business.
8. As explained to us, maintenance of cost records under Section
209(1)(d) of the Companies Act, 1956 has not been prescribed by the
Central Government.
9. (a) According to the records of the Company, it has been regular in
depositing undisputed statutory dues including, Income tax, Sales tax,
and other Statutory dues with the appropriate authorities. In case of
Service Tax liability the company has paid it under protest as company
is of the opinion that its activities are not within the ambit of
Service Tax.
(b) As explained to us, and on the basis of our examination of the
records, there are no disputed statutory dues pending before any
authorities except the followings.
Income Tax Liabilities:
Assessm Original Demand
ent Year Demand Outstanding
(Rs. In as on 31-03- Remarks
lacs) 10 (Rs.in
lacs)
During the course of assessment
2006-07 Nil Nil Companys claim U/s. 80 IA / 80 IB
was restricted and the first
Appellate authority allowed the
claim in favour of the Company.
However the department has preferred
an appeal before Ahmedabad Tribunal.
Service Tax Liabilities:
Financial Original Demand
Year Demand Outstanding
(Rs. In as on 31-03- Remarks
lacs) 10 (Rs.in
lacs)
The company has received a show
2009-10 45.82 35.82 cause notice from Joint
Commissioner,
Service-tax, Ahmedabad III working
out the above service-tax liability
for the financial years 2005-06 &
2006-07. The matter is pending
before the office of the Joint
Commissioner for appropriate
adjudication. Rs. 10 Lacs has
been paid under protest.
10. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses, both in the financial
year under review and in the immediately preceding financial year.
11. On the basis of the records examined by us and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to financial institutions or banks.
12. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of share, debentures
or any other securities.
13. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institutions.
14. On the basis of the records examined by us, and relying on the
information compiled by the Company for co relating the funds raised to
the end use of term loans, we have to state that, the Company has taken
a loan for purchase of vehicle during the year under review.
15. The company has raised funds on short-term basis, which have not
been used for long-term investment and vice versa.
16. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed by the Company during the year.
Looking to the nature of activities being carried on, at present, by
the Company and also considering the nature of the matters referred to
in the various clauses of the Companies (Auditors Report) Order, 2003,
Clauses xiii, xiv, xviii, xix and xx of paragraph 4 of the aforesaid
Order, are in our opinion, not applicable to the Company.
For RAJESH J. SHAH & ASSOCIATES
CHARTERED ACCOUNTANTS
CA RAJESH J. SHAH
PARTNER
Firm Regn No. 108407W
PLACE : AHMEDABAD
DATE : 5th August, 2010
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