Auditor Report of Tirupati Starch & Chemicals Ltd.
Mar 31, 2015
We have audited the accompanying financial statements of M/s.Tirupati
Starch & Chemicals Ltd., ("the Company"), which comprise the Balance
Sheet as at March 31, 2015, the Statement of Profit and Loss, and the
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Director is responsible for the matters stated
in Section134(5) of the Companies Act,2013, ("the Act") with respect to
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 Companies (Accounts) Rules,
2014. This responsibility also includes maintenance of adequate
Accounting records in accordance with the provision of the Act, for
safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of
appropriate accounting policies ;making judgments and estimates that
are reasonable and prudent; and design implementation and maintenance
of adequate internal financial control that were operating effectively
for ensuring the accuracy and completeness of accounting records ,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provision 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 requirement 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 financial statement 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 companies 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
statement.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements more
particularly Subject to Note No. 1(e) (viii), 1(j), 1(k), give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the company as
at March 31,2015, and its profit and its cash flows for the year ended
on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure a statement on the matters specified in
paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a. we have 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, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
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. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules,2014, in our opinion and to the best of our information and
according to the explanations given to us :
1) The company has disclosed the impact of pending litigations on its
financial position in its financial statements. Refer Note 25 to the
financial statements.
2) The Company has made provisions as required under the applicable law
or accounting standards for material forcible losses if any on long
terms contracts including derivative contracts.
3) There are no delay in transferring amounts required to be
transferred if any to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 1 of "Report on Other Legal and Regulatory
Requirements" of our report of even date M/s.Tirupati Starch &
Chemicals Ltd., Indore (2014-15)
(i) (a) In respect of fixed assets the work of compilation of the Fixed
Assets register showing other particulars such as location,
depreciation, quantitative details etc. is in progress.
(b) As explained to us, most of the fixed Assets were physically
verified in a phased manner during the year by the management in
accordance with a programme of verification, which in our opinion
should be correlated with the Fixed Assets register the work of
compilation is still in progress. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(ii) (a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification needs to be increased.
(b) According to the information and explanations given to us, in our
opinion, the procedures for physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business and in our
opinion frequency of verification needs to be increased.
(c) According to the information and explanations given to us, in our
opinion the Company has maintained proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material, having regard to the size & nature
of the business of the Company and the same have been properly dealt
with in the books of accounts time to time.
(iii) (a) According to the information and explanations given to us as
the Company has not given any loans to companies, firms or other
parties covered in register maintained under section 189 of the Act and
hence clause (a) and (b) are not applicable .
(iv) In our opinion and according to the information and explanations
given to us, the internal control procedures is not commensurate with
the size of the Company and the nature of its business with regard to
purchases of inventory and fixed assets and with regard to the sale of
goods and services. During the year the company has appointed M/s.
Spark & Associates, Chartered Accountants as Internal Auditors and they
have also observed that Internal Control Procedures followed by the
company needs improvement and that accounting software in place for the
recording the transactions is now not able to keep up with the needs of
growing business. Now the Company has appointed a firm of Chartered
Accountants as internal Auditor and also broad based its accounts
department in order to strengthen the Internal Control System. During
the course of our audit, the management has assured to strengthen the
aforesaid internal control procedures mainly regarding purchase of
Fixed Assets & other expenditure verification.
(v) The Company has not accepted any deposits from the public within
the meaning of sections 73 and 74 of the Act and the rules framed there
under to the extent notified.
(vi) To the best of our knowledge and according to the information and
explanations given to us, as sub-section (1) of section 148 of the Act
applicable to the company and the company is in process to comply with
the said act and the maintenance of the said records is in process. We
have however not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete as the same are
in process of maintenance.
(vii) According to the information and explanations given to us in
respect of statutory and other dues:
(a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, the
Company is generally regular in depositing undisputed statutory dues,
including Provident Fund, Income Tax, Excise Duty, Sales Tax, Service
Tax, Cess and any other material statutory dues applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Excise
Duty and Cess were in arrears, as at 31st March, 2015, for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, details
of dues of income tax, excise duty and sales tax which have not been
deposited as on 31st March, 2015 on account of any dispute are given
below :
Particulars Forum where matter is pending
1 (a) Excise Duty CESTAT
1 (b) Excise Duty Deputy Commissioner- Pithampur
1 (c) Excise Duty CESTAT
1 (d) Excise Duty Tribunal, Delhi has rejected the Depart
mental Appeal
1 (e) Excise Duty Supreme Court (Department's Appeal)
2 (a) CST M.P Commercial Appellate Board
2 (b) MPCT M.P Commercial Appellate Board
Particulars Financial/Assessment Amount
Year to which involved
matter pertains
Excise Duty 1/2005 to 9/2007 Rs. 4,10,05,661/-
Excise Duty 1/2007 to 11/2009 Rs. 4,27,981/-
Excise Duty 9/1996 to 10/1996 Rs. 1,66,334/-
Excise Duty 10/2005 to 10/2014 Rs. 97,16,002/-
Excise Duty 11/2006 to 12/2014 Rs.13,31,44,939/-
CST 1995-96, & 1998-99 Rs. 6,73,755/-
MPCT 1997-98 Rs. 27,041/-
(c') In our opinion and according to the information and explanations
given to us No amount is required to be transferred to Investor
Education and Protection Fund in accordance with the provisions of the
Companies Act, 1956 and the rules made there under.
(viii) The Company have no accumulated losses as at 31st March, 2015 no
cash losses incurred during the financial year covered by our audit
there was no Cash Loss in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the overdue amount of installments payable to Banks for
Term Loan were Rs.1,33.70 Lacs at the end of 31st March, 2015 and the
company has regularized the term loan accounts on 10th April 2015.
(x) In our opinion and according to the information and explanations
given to us, Company has not given any guarantee for loans taken by
others from banks and financial institutions.
(xi) According to the information and explanations given to us, term
loan availed by the Company during the year was used for the purpose
for which the loan was obtained.
(xii) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the company, noticed or reported during the
year, nor have we been informed of any such case by the management.
For SUNIL CHANDRA GOYAL & CO.
Chartered Accountants
Firm Reg.No. FRN : 002658C
SUNIL GOYAL
Place: Indore Proprietor
MNo.71809
Date : 30th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of M/s.Tirupati
Starch & Chemicals Ltd , ("the Company"), which comprise the Balance
Sheet as at March 31, 2014 the Statement of Profit and Loss, and the
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
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 sub-section
(3C) of section 211 of the Companies Act, 1956 ("the Act") read with
the General Circular 1 512013 dated 13th Sept. 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act. 2013.
and in accordance with the accounting principles generally accepted in
India. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit, We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company's
internal Control An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
in our opinion and to the best of our Information and according to the
explanations given to
us, the financial statements more particularly Subject to Note No t(e)
(VIll). 1(i). 1(k). give
the information required by the Act in the manner so required and give
a true and fair view in
conformity with the accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
(b) In the case of the Statement of Profit and Loss, of the Profit 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 of India in terms of
sub-section (4A) or section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2 As required by section 227(3) of the Act. report that
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit:
b. in our opinion proper books of account as required by taw have been
kept by the Company so far as appears from our examination of those
books
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account
d in our opinion, the Balance Sheet, the Statement of Profit and LOos,
and the Cash Flow Statement comply with the Accounting Standards
referred 10 in subsection (3C) of section 211 of the Act, read with the
General Circular 1512013 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 written representations received from the directors
as an March 31, 2014. and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act .
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 1 of "Report on Other Legal and Regulatory
Requirements" oF our report of even date
M/s.Tirupati Starch & Chemicals Ltd.. Indore (2013-14)
(i) (a) In respect of fixed assets the work of compilation of the Fixed
Assets register showing other particulars such as location,
depreciation, quantitative details etc. is in progress
(b) As explained to us, most of the fixed Assets were physically
verified in a phased manner during the year by the management in
accordance with a programme of verification, which in our opinion
should be correlated with the Fixed Assets register the work of
compilation is still in progress. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(c) During the year, as explained to us. Mo part of fixed assets has
been disposed off by the Company.
(ii) (a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification needs to be increased in respect of Stocks sent on
consignment basis and lying with third parties these have substantially
been confirmed by them, and in absence of some confirmations the stock
Is based on the basis of records available with the Company &
Confirmation by the management, more particularly described in Note 1
(e)(vij forming part of accounts.
(b) According to the information and explanations given to us, in our
opinion, the procedures for physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business and in our
opinion frequency of verification needs to be increased
(c) Acconding to the In formation and expla nations given to us, in our
opinion the Company has maintained proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material, having regard to the size & nature
of the business of the Company and the same have been property dealt
with in the books of accounts time to time.
(iii) (a) According to the information and explanations given to us as
the Company has not given any loans to companies, firms or other parties
covered in register maintained under section 301 of the Companies Act,
1956,therefore paragraphs (iii),(b),(c),(d) are not applicable.
(b) The Company has taken loan of Rs, 4,78,,49,716.07 from 21 parties &
maximum dues Rs. 5,30,39,103/- from parties who are relatives of key
management personal.
(C) The rate of interest and other terms & conditions of loans taken by
the company are not prim a facie prejudicial lo the interest of the
company
(d) No amount was overdue for repayment
(iv) In our opinion and according to the information and explanations
given to us, there are adequate infernal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and fixed assets and
with regard to the sale of goods and services. During the course of
our audit, the management has assured to strengthen the aforesaid
internal control procedures mainly regarding purchase of Fixed Assets.
(v) (a) To the best of our knowledge and belief and according to
information and explanations given to us, we are of the opinion that
there was No transaction that needed to be entered into the register
maintained under Section 301 of the Companies Act, 1956,
(b) In our opinion and according to the information and explanations
given to us There was no transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956, and exceeding the value of rupees five lakhs
in respect to any party duiyng the year.
(vi) in our opinion and According to the information and explanations
given to us. we are of the opinion that the Company has not complied
with the provisions of Sections 58A and 58AA of the Companies Act, 1956
and the Companies (Acceptance of Deposits), Rules, 1975 with regard to
deposits accepted from public to ihe extent that it has accepted excess
deposit of Rs.37 17 Lacs as on 31s! March. 2014 from the limits
specified. As per information and explanation given to us. The Central
Government had granted exemption to the company from the compliance of
provisions of section 58A of the Companies Act, 1956 and Rules 3(2)(i)
& 3(2)(ii) of the companies (Acceptance of Deposit} Rules 1975 framed
there under upto 31.03,2013 subject to certain conditions and no other
order under the aforesaid section 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
(uii) The Company has an internal audit system which in our opinion
needs to be strengthened to make it commensurate and adequate with the
size of the company and nature of its business.
(viii) To the best of our knowledge and according to the information
and explanations given to us, as per notification of ihe Ministry of
Corporate Affairs dated 3rtl June. 2011 the provisions of the
Companies (Cost Accounting) Rules 2011 are applicable to the company
and the company is in process to comply with the said rules and the
maintenance of the said records is in process We have however not made
a detailed examination of the cost records with a view to determine
whether they are accurate or complete as the same are in process of
maintenance.
(ix) According to the informal ion and explanations given to us in
respect of statutory and other dues:
(a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, the
Company is generally regular in depositing undisputed statutory dues,
including Provident Fund. Income Tax. Excise Duty, Sales Tax, Service
Tax, Cess and any other materia! statutory dues applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Income-tax. Sales Tax. Excise
Duty and Cess were in arrears, as at 31" March, 2014. for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, details
of dues of income tax, excise duty and sales tax which have not been
deposited as on 3111 March, 2014 on account of any dispute are given
below:
Particulars Foam where matter is [Financiai/Assessme
pendng nt Year to which
matter pertains
1 Excise Duty commissioner Central Excise Various Years
DepariTTien! & Other
2 (a) C3T M.P Commercial Appellate 1995-99, & 199&99
Bogrd
(h) MPCT M.P Commercial Appellate 1397-98
Board
Amount involved
1 Rsl6.30,9O,57Or-
2 Rs 673755/-
(h) Rs.27D41A
(x) The Company have no accumulated losses as at 31st March, 2014 no
cash losses incurred during the financial year covered by our audit
there was no Cash Loss in the immediately preceding financial year.
(xi> 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 during the year.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities,
fxiii) The provisions of any special statutes as specified under clause
(xiii) ol the order are not applicable to the Company.
(xiv) In our opinion and according to the information and explanations
given to us. the Company is not a dealer or trader in securities &
investments.
(xv) In our opinion and according to the information and explanations
given to us. Company has not given any guarantee for loans taken by
others from banks and financial institutions.
(xvi) According to the information and explanations given to us, term
loan availed by the Company during the year was used for the purpose for
which the loan was obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, in our
opinion, Short term funds have generally been used for short term
purposes
(xviii) According to the information and explanations given to us.
during the year the Company has made preferential allotment of shares
to parties and companies covered in the register maintained under
Section 301 of the Companies Ad. 1956 at the price which is not
prejudicial to the interest of the company.
(xix) According to the information and explanations given to us. the
Company has not issued any debentures during the year
(xx) The Company has raised money through preferential allotment of 0%
Redeemable Non Convertible and Non -Cumulative Preference Shares during
the year and used it for the object of the issue.
(xxi) Based upon the audit procedures performed and information given
by the management we report that no fraud on or by the company has been
noticed or reported during the course of our Audit.
For SUNIL CHANDRA GOYAL& CO
Chartered Accountants
Firm Reg No FRN:002658C
sd/-
sunil goyal
Place: indore Proprietor
Date : 30 May 2014 MNo.71609
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of M/s.Tirupati
Starch & Chemicals Ltd., ("the Company"), which comprise the Balance
Sheet as at March 31, 2013 the Statement of Profit and Loss, and the
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
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 sub-section
(3C) of section 211 of the Companies Act, 1956 ("the Act") and in
accordance with the accounting principles generally accepted in India.
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements more particularly
Subject to Note No. 1(e)(vi), (vii), (viii), 1(j), 1(k),
25(v), 28, 35, 36 & 36A give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) In the case of the Statement of Profit and Loss, of the loss 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 of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Act.
e. On the basis of written representations received from the directors
as on March 31, 2013, taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in paragraph 1 of "Report on Other Legal and Regulatory
Requirements" of our report of even date
M/s.Tirupati Starch & Chemicals Ltd., Indore (2012-13)
(i) (a) In respect of fixed assets the work of compilation of the Fixed
Assets register showing other particulars such as location,
depreciation, quantitative details etc. is in progress.
(b) As explained to us, most of the fixed Assets were physically
verified in a phased manner during the year by the management in
accordance with a programme of verification, which in our opinion
should be correlated with the Fixed Assets register the work of
compilation is still in progress. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(c) During the year, as explained to us, No part of fixed assets has
been disposed off by the Company.
(ii) (a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification needs to be increase. In respect of Stocks sent on
consignment basis and lying with third parties these have substantially
been confirmed by them, and in absence of some confirmations the stock
is based on the basis of records available with the Company &
Confirmation by the management, more particularly described in Note
1(e)(vi) forming part of accounts.
(b) According to the information and explanations given to us, in our
opinion, the procedures for physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business and in our
opinion frequency of verification needs to be increased.
(c) According to the information and explanations given to us, in our
opinion the Company has maintained proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material, having regard to the size & nature
of the business of the Company and the same have been properly dealt
with in the books of accounts time to time.
(iii) (a) According to the information and explanations given to us as
the Company has not given any loans to companies, firms or other
parties covered in register maintained under section 301 of the
Companies Act, 1956, therefore paragraphs (iii),(b),(c),(d) are not
applicable.
(b) The Company has taken loan of Rs.4,24,85,464/- from 36 parties &
maximum dues Rs.4,29,61,308/- from parties who are relatives of key
management personal.
(c) The rate of interest and other terms & conditions of loans taken by
the company are not prima facie prejudicial to the interest of the
company.
(d) No amount was overdue for repayment.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and fixed assets and
with regard to the sale of goods and services. During the course of our
audit, the management has assured to strengthen the aforesaid internal
control procedures mainly regarding purchase of Fixed Assets.
(v) (a) To the best of our knowledge and belief and according to
information and explanations given to us, we are of the opinion that
there was No transaction that needed to be entered into the register
maintained under Section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information and explanations
given to us. There was no transactions made in pursuance of contracts
or arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956. and exceeding the value of rupees five lakhs
in respect to any party during the year.
(vi) In our opinion and According to the information and explanations
given to us, we are of the opinion the Company has not complied with
the provisions of Sections 58A and 58AA of the Companies Act, 1956 and
the Companies (Acceptance of Deposits), Rules, 1975 with regard to
deposits accepted from public as it has accepted excess deposit of
Rs.476.63 Lacs as on 31st March, 2005 and Rs.352.61 lacs as on 30th
November, 2007 from the limits specified. As per information and
explanation given to us. The Central Government had granted exemption
to the company from the compliance of provisions of section 58A of the
Companies Act, 1956 and Rules 3(2)(i) & 3(2)(ii) of the companies
(Acceptance of Deposit) Rules 1975 framed there under upto 31.03.2013
subject to certain conditions and no other order under the aforesaid
section 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. Further during the year the Company has accepted further
deposits to the extent of Rs. 170.44 lacs and for this it has applied
for exemption from Central Government vide its latest letter no.
TSCL/281 dt. 10/05/2012 and the sanction is awaited.
(vii) The Company has an internal audit system which in our opinion
needs to be strengthened to make it commensurate and adequate with the
size of the company and nature of its business.
(viii) To the best of our knowledge and according to the information
and explanations given to us, as per notification of the Ministry of
Corporate Affairs dated 3rd June, 2011 the provisions of the Companies
(Cost Accounting) Rules 2011 are applicable to the company and the
company is in process to comply with the said rules and the maintenance
of the said records is in process. We have however not made a detailed
examination of the cost records with a view to determine whether they
are accurate or compute as the same are in process of maintenance.
(ix) According to the information and explanations given to us in
respect of statutory and other dues:
According to the information and explanations given to us and
according to the books and records as produced and examined by us, the
Company is generally regular in depositing undisputed statutory dues,
including Provident Fund, Income Tax, Excise Duty, Sales Tax, Service
Tax, Cess and any other material statutory dues applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Excise
Duty and Cess were in arrears, as at 31st March, 2013, for a period of
more than six months from the date they became payable subject to note
No.25, 28, 35 & 36 and the disputed amounts as detailed in (b) below.
(x) The Company have no accumulated losses as at 31st March, 2013 no
cash losses incurred during the financial year covered by our audit
there was no Cash Loss in the immediately preceding financial year.
(xi) 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 during the year.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) The provisions of any special statutes as specified under clause
(xiii) of the order are not applicable to the Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities &
investments.
(xv) In our opinion and according to the information and explanations
given to us, Company has not given any guarantee for loans taken by
others from banks and financial institutions.
(xvi) According to the information and explanations given to us, term
loan availed by the Company during the year was used for the purpose
for which the loan was obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, in our
opinion, Short term funds have generally been used for short term
purposes.
(xviii) According to the information and explanations given to us,
during the year the Company has not made preferential allotment of
shares to parties and companies covered in the register maintained
under Section 301 of the Companies Act, 1956.
(xix) According to the information and explanations given to us, the
Company has not issued any debentures during the year.
(xx) The Company has not raised any money through public issues during
the year.
(xxi) Based upon the audit procedures performed and information given
by the management we report that no fraud on or by the company has been
noticed or reported during the course of our Audit.
For SUNIL CHANDRA GOYAL & CO.,
Chartered Accountants
SUNIL GOYAL
Proprietor
Membership No.71809
Place : Indore FRN : 002658C
Date : 30th May'' 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s. Tirupati Starch
& Chemicals Ltd., as at 31st March 2012 and also the 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, as amended by the Companies
(Auditors Report) (Amendement) Order 2004 (together the order) and on
the basis of such checks of the books and records of the company as we
considered appropriate and according to the informations & explanations
given to us, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order to the extent
applicable to the Company.
4. Further to our comments in the Annexure referred to above, we
report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
these books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report subject to comments given
below comply with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 ;
(e) On the basis of the written representations received from the
directors, as on March 31, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
(f) We have relied upon the representations made to us by the
management that.
(i) Being a complex technical matter, the Stock in Process of Raw
Starch has been determined as described in Note-1 (e) (iii) (a) forming
part of accounts.
Subject to the foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts, read together with the Company's Accounting Policies and the
Notes thereto as per schedule 20 forming part of Accounts, more
particularly. Note No.1(e) (vi) (vii) & (viii) regarding method of
ascertainment & accounting of consignment exspenses Inventory and sale
of Finished Goods lying with consignee,. Note No.1(j) & 1(k) regarding
Non-provision for leave encashment, in terms of revised AS-15 issued by
Institute of Chartered Accountant of India, regarding premium paid
under Group Gratuity Scheme of LIC charged to Profit & Loss A/c. Note
No. 23
(vi) regarding MandiTax, Note No. 26 regarding inclusion of Excise Duty
on uncleared Stock of Finished Goods amounting to Rs. 4,78,390/- Note
No. 32 regarding Non-reconciliation of Coal & Stores records and Note
No. 33 regarding non-ascertainment of amount receivable, Note No. 34,
regarding ascertainment of Export benefits forming part of accounts,
give the information required by the Companies Act, 1956 in the manner
so required and give a true and fair view in confirmity 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 2012;
(b) In the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(c) In the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date
M/s.Tirupati Starch & Chemicals Ltd., Indore (2011-12)
(i) (a) In respect of fixed assets, the work of compilation of the
Fixed Assets register showing other particulars such as location,
depreciation, quantitative details etc. is in progress.
(b) As explained to us, most of the fixed Assets were physically
verified in a phased manner during the year by the management in
accordance with a programme of verification, which in our opinion
should be corelated with the Fixed Assets register the work of
compilation is still in progress. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(c) During the year, as explained to us, No part of fixed assets has
been disposed off by the Company.
(ii) (a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification needs to be increase. In respect of Stocks sent on
consignment basis and lying with third parties these have substantially
been confirmed by them, and in absence of some confirmations the stock
is based on the basis of records available with the Company &
Confirmation by the management, more particularly described in Note 1
(e)(vi) forming part of accounts.
(b) According to the information and explanations given to us, in our
opinion, the procedures for physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business and in our
opinion frequency of verification needs to be increased.
(c) According to the information and explanations given to us, in our
opinion the Company has maintained proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material, having regard to the size & nature
of the business of the Company and the same have been properly dealt
with in the books of accounts time to time.
(iii) (a) According to the information and explanations given to us as
the Company has not given any loans to companies, firms or other
parties covered in register maintained under section 301 of the
Companies Act, 1956, therefore paragraphs (iii),(b),(c),(d) are not
applicable.
(b) The Company has taken loan of Rs.3,87,12,157/- from 36 parties &
maximum dues 4,15,70,872/- from parties who are relatives of key
management personal.
(c) The rate of interest and other terms & conditions of loans taken by
the company are not prima facie prejudicial to the interest of the
company.
(d) No amount was overdue for repayment.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and fixed assets and
with regard to the sale of goods and services. During the course of our
audit, the management has assured to strengthen the aforesaid internal
control procedures mainly regarding purchase of Fixed Assets.
(v) (a) To the best of our knowledge and belief and according to
information and explanations given to us, we are of the opinion that
there was no transaction that needed to be entered into the register
maintained under Section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information and explanations
given to us. There was no transactions made in pursuance of contracts
or arrangements entered in the register maintained under Section 301 of
the CompaniesAct, 1956. and exceeding the value of rupees five lakhs in
respect to any party during the year.
(vi) In our opinion and According to the information and explanations
given to us, we are of the opinion the Company has not complied with
the provisions of Sections 58Aand 58AAof the CompaniesAct, 1956 and the
Companies (Acceptance of Deposits), Rules, 1975 with regard to deposits
accepted from public as it has accepted excess deposit of Rs.476.63
Lacs as on 31st March, 2005 and Rs.352.61 lacs as on 30th November,
2007 from the limits specified. As per information and explanation
given to us. The Central Government had granted exemption to the
company from the compliance of provisions of section 58A of the
Companies Act, 1956 and Rules 3(2)(i) & 3(2)(ii) of the companies
(Acceptance of Deposit) Rules 1975 framed there under upto 31.03.2013
subject to certain conditions and no other order under the aforesaid
section 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.
(vii) The Company has an internal audit system which in our opinion
needs to be strengthened to make it commensurate and adequate with the
size of the company and nature of its business.
(viii) To the best of our knowledge and according to the information
and explanations given to us, as per notification of the Ministry of
Corporate Affairs dated 3rd June, 2011 the provisions of the Companies
(Cost Accounting) Rules 2011 are applicable to the company and the
company is in process to comply with the said rules and the maintenance
of the said records is in process. We have however not made a detailed
examination of the cost records with a view to determine whether they
are accurate or compute as the same are in process of maintenance.
(ix) According to the information and explanations given to us in
respect of statutory and other dues:
(a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, the
Company is generally regular in depositing undisputed statutory dues,
including Provident Fund, Income Tax, Excise Duty, Sales Tax, Service
Tax, Cess and any other material statutory dues applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Excise
Duty and Cess were in arrears, as at 31st March, 2012, for a period of
more than six months from the date they became payable subject to note
No. 23, 26, 32 & 33 and the disputed amounts as detailed in (b) below.
(b) According to the information and explanations given to us, details
of dues of income tax, excise duty and sales tax which have not been
deposited as on 31st March, 2012 on account of any dispute are given
below:
Particulars Forum where
matter is Financial/
Assessment Amount Involved
pending Year to
which matter
pertains
1 Excise Duty Commissioner
Central Excise
Various Years Rs. 23,37,75,030/-
Department &
others
2(a) CST M.R Commercial
Appellate 1995-96,
1997-98 Rs. 4,86,766/-
Board & 1998-99
(b) MPCT M. P.
Commercial
Appellate 1997-98 Rs. 27,041/-
Board
(x) The Company have no accumulated losses as at 31st March, 2012 no
cash losses incurred during the financial year covered by our audit
there was no Cash Loss in the immediately preceeding financial year.
(xi) 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 during the year.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) The provisions of any special statutes as specified under clause
(xiii) of the order are not applicable to the Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities &
investments.
(xv) In our opinion and according to the information and explanations
given to us, Company has not given any guarantee for loans taken by
others from banks and financial institutions.
(xvi) According to the information and explanations given to us, no
term loans were availed by the Company during the year was used for the
purpose for which the loan was obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, in our
opinion, Shortterm funds have generally been used for short term
purposes.
(xviii) According to the information and explanations given to us,
during the year the Company has not made preferential allotment of
shares to parties and companies covered in the register maintained
under Section 301 of the Companies Act, 1956.
(xix) According to the information and explanations given to us, the
Company has not issued any debentures during the year.
(xx) The Company has not raised any money through public issues during
the year.
(xxi) Based upon the audit procedures performed and information given
by the management we report that no fraud on or by the company has been
noticed or reported during the course of our Audit.
For SUNIL CHANDRAGOYAL & CO.,
Chartered Accountants
SUNIL GOYAL
Proprietor
Membership No.71809
Place: Indore FRN : 002658C
Date : 5th September' 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s. Tirupati Starch &
Chemicals Ltd., as at 31st March 2011 and also the 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, as amended by the Companies
(Auditors Report) (Amendement) Order 2004 (together the order) and on
the basis of such checks of the books and records of the company as we
considered appropriate and according to the information's & explanations
given to us, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order to the extent
applicable to the Company.
4. Further to our comments in the Annexure referred to above, we
report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
these books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report subject to comments given
below comply with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956;
(e) On the basis of the written representations received from the
directors, as on March 31, 2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
(f) We have relied upon the representations made to us by the
management that.
(i) Being a complex technical matter, the Stock in Process of Raw
Starch has been determined as described in Note-1 (e) (iii) (a) in
Schedule 20 forming part of accounts.
Subject to the foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts, read together with the Company's Accounting Policies and the
Notes thereto as per schedule 20 forming part of Accounts, more
particularly. Note No.1(e) (vi) (vii) & (viii) regarding method of
ascertainment & accounting of consignment expenses Inventory and sale
of Finished Goods lying with consignee,. Note No.1(j) & 1(k) regarding
Non-provision for leave encashment, in terms of revised AS-15 issued by
Institute of Chartered Accountant of India, regarding æ premium paid
under Group Gratuity Scheme < of LIC charged to Profit & Loss A/c. Note
No.5 regarding inclusion of Excise Duty on un cleared Stock of Finished
Goods amounting to Rs. 4,20,807/- Note No.11 regarding Non-
reconciliation of coal & store records and Note No. 12 regarding
non-ascertainment of amount receivable, Note No. 13, regarding non
ascertainment of Export benefits of schedule 20 forming part of
accounts, give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India.
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011;
(b) In the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(c) I n the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date
M/s.Tirupati Starch & Chemicals Ltd., Indore (2010-11)
(i) (a) In respect of fixed assets, the work of compilation of the
Fixed Assets register showing other particulars such as location,
depreciation, quantitative details etc. is in progress.
(b) As explained to us, most of the fixed Assets were physically
verified in a phased manner during the year by the management in
accordance with a programme of verification, which in our opinion
should be corelated with the Fixed Assets register the work of
compilation is still in progress. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(c) During the year, as explained to us, No part of fixed assets has
been disposed off by the Company.
(ii) (a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification needs to be increase. In respect of Stocks sent on
consignment basis and lying with third parties these have substantially
been confirmed by them, and in absence of some confirmations the stock
is based on the basis of records available with the Company &
Confirmation by the management, more particularly described in Note 1
(e)(vi) of schedule 20 forming part of accounts.
(b) According to the information and explanations given to us, in our
opinion, the procedures for physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business and in our
opinion frequency of verification needs to be increased.
(c) According to the information and explanations given to us, in our
opinion the Company has maintained proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material, having regard to the size & nature
of the business of the Company and the same have been properly dealt
with in the books of accounts time to time.
(iii) (a) According to the information and explanations given to us as
the Company has not given any loans to companies, firms or other
parties covered in register maintained under section 301 of the
Companies Act, 1956, therefore paragraphs (iii),(b),(c),(d) are not
applicable.
(b) The Company has taken loan of Rs.3,87,07,486/- from 37 parties &
maximum dues 5,31,04,397/- from 50 parties who are relatives of key
management personal.
(c) The rate of interest and other terms & conditions of loans taken by
the company are not prima facie prejudicial to the interest of the
company.
(d) No amount was overdue for repayment.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and fixed assets and
with regard to the sale of goods and services. During the course of our
audit, the management has assured to strengthen the aforesaid internal
control procedures mainly regarding purchase of Fixed Assets.
(v) (a) To the best of our knowledge and belief and according to
information and explanations given to us, we are of the opinion that
there was No transaction that needed to be entered into the register
maintained under Section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information and explanations
given to us. There was no transactions made in pursuance of contracts
or arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956. and exceeding the value of rupees five lakhs
in respect to any party during the year.
(vi) In our opinion and According to the information and explanations
given to us, we are of the opinion the Company has not complied with
the provisions of Sections 58A and 58AA of the Companies Act, 1956 and
the Companies (Acceptance of Deposits), Rules, 1975 with regard to
deposits accepted from public as it has accepted excess deposit of
Rs.476.63 Lacs as on 31st March, 2005 and Rs.352.61 lacs as on 30th
November, 2007 from the limits specified. As per information and
explanation given to us. The Central Government has granted exemption
to the company from the compliance of provisions of section 58A of the Companies Act, 1956 and Rules 3(2)(i) & 3(2)(ii) of the companies
(Acceptance of Deposit) Rules 1975 framed there under upto 31.03.2013
subject to certain conditions and no other order under the aforesaid
section 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.
(vii) The Company has an internal audit system which in our opinion
needs to be strengthened to make it commensurate and adequate with the
size of the company and nature of its business.
(viii) To the best of our knowledge and according to the information
and explanations given to us, the Central Government has not prescribed
the maintenance of cost records for any product of the Company under
Section 209(1 )(d) of the Companies Act, 1956.
(ix) According to the information and explanations given to us in
respect of statutory and other dues:
(a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, the
Company is generally regular in depositing undisputed statutory dues,
including Provident Fund, Income Tax, Excise Duty, Sales Tax, Service
Tax, Cess and any other material statutory dues applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Excise
Duty and Cess were in arrears, as at 31st March, 2011, for a period of
more than six months from the date they became payable subject to note
No.2, 5, 11 & 12 of Notes on Accounts (Schedule 20) and the disputed
amounts as detailed in (b) below.
(b) According to the information and explanations given to us, details
of dues of income tax, excise duty and sales tax which have not been
deposited as on 31st March, 2011 on account of any dispute are given
below:
Particulars Forum where
matter is Financial/
Assessment Amount Involved
pending Year to which
matter
pertains
1 Excise Duty Commissioner
Central Excise Various Years Rs. 23,35,79,776/-
Department &
others
2(a) CST M.P. Commercial
Appellate 1995-96,1997-98 Rs. 4,86,766/-
Board & 1998-99
(b) MPCT M.P. Commercial
Appellate 1997-98 Rs. 27,041/-
Board
(x) The Company have no accumulated losses as at 31st March, 2011 no
cash losses incurred during the financial year covered by our audit
there was no Cash Loss in the immediately preceeding financial year.
(xi) 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 during the year.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) The provisions of any special statutes as specified under clause
(xiii) of the order are not applicable to the Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities &
investments.
(xv) In our opinion and according to the information and explanations
given to us, Company has not given any guarantee for loans taken by
others from banks and financial institutions.
(xvi) According to the information and explanations given to us, no
term loans were availed by the Company during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, in our
opinion, Short term funds have generally been used for short term
purposes.
(xviii) According to the information and explanations given to us,
during the year the Company has not made preferential allotment of
shares to parties and companies covered in the register maintained
under Section 301 of the Companies Act, 1956.
(xix) According to the information and explanations given to us, the
Company has not issued any debentures during the year.
(xx) The Company has not raised any money through public issues during
the year.
(xxi) Based upon the audit procedures performed and information given
by the management we report that no fraud on or by the company has been
noticed or reported during the course of our Audit.
For SUNIL CHANDRAGOYAL & CO.,
Chartered Accountants
SUNIL GOYAL
Proprietor
Membership No.71809
Place : Indore FRN : 002658C
Date :20th August'2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s. Tirupati Starch &
Chemicals Ltd., as at 31 st March 2010 and also the 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, as amended by the Companies
(Auditors Report) (Amendement) Order 2004 (together the order) and on
the basis of such checks of the books and records of the company as we
considered appropriate and according to the informations & explanations
given to us, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said-order to the extent
applicable to the Company.
4. Further to our comments in the Annexure referred to above, we
report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
these books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report subject to comments given
below comply with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956;
(e) Onthe basis of the written representations received from the
directors, as on March 31,2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31,2010 from being appointed as a director in terms of clause (g)
of sub-section (1) of section 274 of the Companies Act, 1956;
(f) We have relied upon the representations made to us by the
management that.
(i) Being a complex technical matter, the Stock in Process of Raw
Starch has been determined as described in Note-1(e)(iii)(a) in
Schedule 20 forming part of accounts.
Subject to the foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts, read together with the Companys Accounting Policies and the
Notes thereto as per schedule 20 forming part of Accounts, more
particularly. Note No.1(e) (vi) (Vii) & (Viii) regarding method of
ascertainment & accounting of Inventory and sale of Finished Goods
lying with consignee,. Note No.1(j) & 1(k) regarding Non-provision for
leave encashment, in terms of revised AS-15 issued by Institute of
Chartered Accountant of India, regarding premium paid under Group
Gratuity Scheme of LIC charged to Profit & Loss A/c. Note No.5
regarding inclusion & provision of Excise Duty on uncleared Stock of
Finished Goods amounting to Rs. 1,50,836/- Note No.11 regarding
Non-reconciliation of Excise records and Note No. 12 regarding
non-ascertainment of amount receivable, Note No. 13, regarding Export
benefits of schedule 20 forming part of accounts, give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in confirmity with the accounting principles
generally accepted in India.
(a) in the case of the Balance Shee.t, of the state of affairs of the
Company as at 31st March 2010;
(b) In the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(c) In the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT Referred to in paragraph 3 of our
report of even date M/s.Tirupati Starch & Chemicals Ltd., Indore
(2009-10)
(i) (a) In respect of fixed assets, the Fixed Assets register showing
other particulars such as location, depreciation, quantitative details
etc. is maintained.
(b) As explained to us, most of the fixed Assets were physically
verified in a phased manner during the year by the management in
accordance with a programme of verification, which in our opinion
should be corelated with the Fixed Assets register. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification.
(c) During the year, as explained to us, No part of fixed assets has
been disposed off by the Company.
(ii) (a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification needs to be increased. In respect of Stocks sent on
consignment basis and lying with third parties these have substantially
been confirmed by them, and in absence of some confirmations the stock
is based on the basis of records available with the Company &
Confirmation by the management, more particularly described in Note
1(e)(vi) of schedule 20 forming part of accounts.
(b) According to the information and explanations given to us, in our
opinion, the procedures for physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business and in our
opinion frequency of verification needs to be increased.
(c) According to the information and explanations given to us, in our
opinion the Company has maintained proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material, having regard to the size & nature
of the business of the Company and the same have been properly dealt
with in the books of accounts time to time.
(iii) (d) According to the information and explanations given to us as
the Company has not given any loans to companies, firms or other
parties covered in register maintained under section 301 of the
Companies Act, 1956, therefore paragraphs (iii),(b),(c),(d) are not
applicable.
(e) The Company has taken loan of Rs.4,28,12,817/- from 41 parties &
maximum dues 5,31,22,138/- from 53 parties who are relatives of key
management personal.
(f) The rate of interest and other terms & conditions of loans taken by
the company are not prima facie prejudicial to the interest of the
company.
(g) No amount was overdue for repayment.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and fixed assets and
with regard to the sale of goods and services. During the course of our
audit, the management has assured to strengthen the aforesaid internal
control procedures mainly regarding purchase of Fixed Assets.
(v) (a) To the best of our knowledge and belief and according to
information and explanations given to us, we are of the opinion that
there was No transaction that needed to be entered into the register
maintained under Section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information and explanations
given to us. There was no transactions made in pursuance of contracts
or arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956. and exceeding the value of rupees five lakhs
in respect to any party during the year.
(vi) In our opinion and According to the information and explanations
given to us, we are of the opinion the Company has not complied with
the provisions of Sections 58A and 58AA of the Companies Act, 1956 and
the Companies (Acceptance of Deposits), Rules, 1975 with regard to
deposits accepted from public as it has accepted excess deposit of
Rs.476.63 Lacs as on 31st March, 2005 and Rs.352.61 lacs as on 30th
November, 2007 from the limits specified. As per information and
explanation given to us. The Central Government has granted exemption
to the company from the compliance of provisions of section 58A of the
Companies Act, 1956 and Rules 3(2)(i) & 3(2)(ii) of the companies
(Acceptance of Deposit) Rules 1975 framed there under upto 31.03.2013
subject to certain conditions and no other order under the aforesaid
section 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.
(vii) The Company has an internal audit system which in our opinion
needs to be strengthened to make it commensurate and adequate with the
size of the company and nature of its business.
(viii) To the best of our knowledge and according to the information
and explanations given to us, the Central Government has not prescribed
the maintenance of cost records for any product of the Company under
Section 209(1 )(d) of the Companies Act, 1956.
(ix) According to the information and explanations given to us in
respect of statutory and other dues:
(a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, the
Company is generally regular in depositing undisputed statutory dues,
including Provident Fund, Income Tax, Excise Duty, Sales Tax, Service
Tax, Cess and any other material statutory dues applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Excise
Duty and Cess were in arrears, as at 31st March, 2010, for a period of
more than six months from the date they became payable subject to note
No.2, 5, 11 & 12 of Notes on Accounts (Schedule 20) and the disputed
amounts as detailed in (b) below.
(b) According to the information and explanations given to us, details
of dues of income tax, excise duty and sales tax which have not been
deposited as on 31st March, 20010 on account of any dispute are given
below :
Particulars Forum where
matter is Financial Amount involved
pending Yeartowhich
matter
pertains
1 Income Tax Income Tax
Authority,
Indore 1995-96 Rs.153648/-Addition of
cash credit etc. reducing
unabsorbed depreciation
& Interest.
Income Tax
Authority,
Indore 1998-99 Pending for fresh order
from AO.
Rs. Nil Addition of cash
credit etc. reducing
unabsorbed depreciation
CIT (Appe
als)-ll,
Indore 2004-05 Rs. Nil Addition of cash
credit Disallowances
certain expenses and
addition under sec.145A
CIT (Appe
als)-ll,
Indore 2005-06 Rs. Nil Addition of
cash credit Disallowances
certain expenses and
addition under sec.145A
2 Excise Duty Central
Excise
Department SCN No./OrderNo.
Appeal by Central Excise
Department against Order
in Original No.26-27
dtd.21.07.06
Rs.9,34,36,459/- in
the matter of class
ification of Maize
Starch
V(35)15-04/2007/Adj.
1/31986 dated 03.12.2007
Rs.26663128/- in the
matter of Classification
dispute of Maize Starch.
V(35)15-01/2008/Adj.
l/28532 dated 22.10.2008
Rs.26458042/- in the
matter of Classification
dispute of Maize Starch.
Appeal No.E/2990/06/C.
Exdse dated 06.09.2006
Rs.4,58,096/- Appeal
No.E/1241/06
Rs.7,33,488/-
IV(16)30-318/OT/Pith/
Adj/8795 dated 07.12.
2007 Rs.393622/- in the
matter of Disallow of
Cenvat Credit as common
input used in Hydrol.
IV(16)30-76/08/Pith/
Adj/1666 dated 10.03.
2008 Rs.477802/- in the
matter of Disallow of
Cenvat Credit as common
input used in Hydrol.
IV(16)30-336/08/Adj/
8667 dated 05.12.2008
Rs.495842-in the
matter of Disallow of
Cenvat Credit as
common input used in
Hydrol.
IV(16)30-95/08-09/
Adj/11450 dated 06.03.
2009 Rs.484387/- in
the matter of
Disallow of Cenvat
Credit as common
input used in Hydrol.
IV(16)30-136/06/Pith
/5975 dated 11.09.2006
Rs.470576A in the
matter of Disallow of
Cenvat Credit as com
mon input used in
Hydrol.
IV(16)30-65/07/Pith/
1003 dated 28.02.2007
Rs.466136/ - in the
matter of Disallow of
Cenvat Credit as com
mon input used in
Hydrol.
IV(16)30-66/07/Pith/
Adj/1006 dated 28.02.
2007 Rs.484341/- in
the matter of Disallow
of Cenvat Credit as
common input used in
Hydrol.
IV(16)30-43/08/Pith/
Adj/3433 dated 12.05.
2008 Rs.406131/-in
the matter of
Disallow of Cenvat
Credit as common input
used in Hydrol.
IV(16)30-12/09/Pith/
Adj/10048 dated 19.01.
2009 Rs.42464/- in
the matter of Credit
availed on service
tax paid on outward
transportation.
IV(16)30-219/08/Adj
/5092 Rs.302663/- in
the matter of Credit
availed on service tax
paid on outward
transportation.
V(35) 15-02/07/Adj/
23327 dt.09.08.2007.
Demand of Rs. 20843
640/- has been issued
on the ground that
the company availed
credit of service tax
availed on Input Serv
ices which were also
used for exempted
goods.
V(17) 15- /2007/Adj.
1/25123 dt.06/09/2007,
Demand of Rs.16399760/-
i.e.10% of value of
exempted goods.
V(935) 15 - 02/15982
dt.25.06.2008. Demand
of Rs.3762261/- i.e.1
0% of value of exempted
goods on the ground of
non maintenance of
separate record of
inputs of dutiable and
exempted goods.
Appeal No.E/3683/2003-
NB(SM) Rs.=166334/- in
the matter of Credit on
returned goods.
3. CST Reference
application
pending 1995-1996 Assessment demand after
first appeal effect.
before M.P.
Commercial Tax Rs. 175731/-, Part
payment made of Rs.
35,200/-
Appellate
Board on 06/02/2004. Demand
outstanding as on 31/03/
2010 Rs.1,40,531/-
MPCT Reference
application
pending 1997-1998 Assessment demand after
second appeal effect.
before M.P.
Commercial Tax Rs. 27041/-, No part
payment made. Demand
Appellate
Board. outstanding As on
31/03/2010 Rs.27,041/-
CST Appeal
argued
before M.P. 1997-1998 Assessment demand after
first appeal effect.
Commercial Tax Appellate Rs. 232465/-,
part payment made of
Rs. 46,500/-
Board
Order awaited. on 06/02/2004. Demand
outstanding As on 31/03/
2010 Rs.1,85,956/-
CST Reference
application
pending 1998-1999 Assessment demand after
first appeal effect.
before M.P.
Commercial Tax Rs. 318392/-, part pay
ment made of Rs. 63,700/-
Appellate Board . on 06/02/2004. Demand
outstanding As on 31/03/
2010 Rs. 2,54,692/-
MPCT On revision,
the assessment
for. Reassessment u/s28(1)
Demand Rs.166868/-, No
MPCT & CST for
both the years part payment made.
MPCT & CST (2002-03) &
are remanded to
the file of (2003-04) Cases pending
for reassessment
Assessing Officer. before ACCT.
ET The Entry Tax
Assessments are ET - 2002-03 Amount
demanded paid vide
challan
confirmed vide
order of Upper no. 1014 dt.05/12/2009
Commissioner
Dated 19/08/2009 ET - 2003-04 Amount
demanded paid vide
challan
no. 1015 dt.05/12/2009.
CST 2002-2003 Reassessment u/s28(1)
Demand Rs.4025374/-, No
part payment made.
Demand outstanding as
on 31/ _ 03/2010 is NIL.
ET 2002-2003 Reassessment u/s28(1)
Demand Rs. 421514/- No
part payment made.
Demand outstanding as
on 31/03/2010 is NIL.
MPCT 2003-2004 Reassessment u/s28(1)
Demand Rs.353496/-, No
part payment made.
Demand outstanding as
on 31/03/2010 is NIL.
CST 2003-2004 Reassessment u/s28(1)
Demand Rs.2711474/-, No
part payment made.
Demand outstanding as
on 31/03/2010 is NIL.
ET 2003-2004 Reassessment u/s28(1)
Demand Rs.510434/-, No
part payment made.
Demand outstanding
as on 31/03/2010 is
NIL.
MPCT Appeal filed
before Hon
ble 2004-2005 Reassessment u/s 28(1)
Demand Rs. 390584/-,
Deputy Commi
ssioner of Part payment made of
Rs. 39060/- on 22/05/08.
Demand outstanding as
on 31/03/2010 is Rs.61/-
CST Comimercial
Tax. All de
cided in 2004-2005 Reassessment u/s 28(1)
Demand Rs. 2595248/-,
our favour.
Net demand
for Part payment made of
Rs. 259530/- paid on
22/05/08 these three
cases after Demand
outstanding as on
31/03/2010 is NIL
ET adjustment
of relief &
part 2004-2005 Reassessment u/s 28(1)
Demand Rs. 363157/-,
payment rem
ains Rs. 31
776/- Part payment made of
Rs. 36320/- on 22/05/08.
Demand outstanding as
on 31/03/2010 is Nil
Dextrose Divison
MPCT Appeal filed
before Honble 2004-2005 Reassessment u/s. 28(1)
Demand X 8485/-, Part
Deputy Commi
ssioner of . payment made of Rs.
850/- on 22/05/08.
Demand outstanding as
on 31/03/2010 is NIL.
CST Commercial
Tax. All dec
ided in 2004-2005 Reassessment u/s. 28(1)
Demand Rs. 138725/-,
our favour.
Net refund
receivable Part payment made of
Rs. 13880/- on
22/05/08. Demand
outstanding as on
31/03/2010 is NIL
ET Rs. 31715/-
after adjus
tment Reassessment u/s.
28(1) Demand Rs. 8485/-,
Part
of relief &
Part payment. 2004-2005 payment made of Rs.
9040/- on 22/05/08.
Demand outstanding
as on 31/03/2010 is
NIL
(x) The Company have no accumulated losses as at 31st March, 2010 no
cash losses incurred during the financial year covered by our audit
there was no Cash Loss in the immediately preceeding financial year.
(xi) 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 during the year.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted loans and acvances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) The provisions of any special statutes as specified under clause
(xiii) of the order are not applicable to the Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities &
investments.
(xv) In our opinion and according to the information and explanations
given to us, Company has not given any guarantee for loans taken by
others from banks and financial institutions.
(xvi; According to the information and explanations given to us, no
term loans were availed by the Company during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, in our
opinion, Short term funds have generally been used for short term
purposes.
(xviii) According to the information and explanations given to us,
during the year the Company has not made preferential allotment of
shares to parties and companies covered in the register maintained
under Section 301 of the Companies Act, 1956.
(xix) According to the information and explanations given to us, the
Company has not issued any debentures during the year.
(xx) The Company has not raised any money through public issues during
the year.
(xxi) Based upon the audit procedures performed and information given
by the management we report that no fraud on or by the company has been
noticed or reported during the course of our Audit.
For SUNIL CHANDRAGOYAL & CO.,
Chartered Accountants
FRN: 002658C
SUNIL GOYAL
Proprietor
Membership No.71809
Place : Indore
Date : 4th September2010
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