Mar 31, 2016
To The Members of Triveni Glass Limited Allahabad
We have audited the accompanying financial statements of Triveni Glass Limited, which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement, and a summary of the significant accounting policies and other explanatory information for the year then ended.
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 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 preparation of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud orerror.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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 procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial control system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements, subject to,
i. We could not physically verify the Plant & machinery at Allahabad unit as we were not allowed to enter the factory premises due to labor disturbances. Hence the balances of Rs.4, 31, 42,493.04 appearing against Plant& Machinery remain unaudited and we had conducted the physical verification at Rajahmundry unit.
ii. Rs.26.85 Crores is advance received in anticipation of sale of Land & Building of the Allahabad Plant and subject to the approval of appropriate authority.
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 above point (i) & (ii), 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 case of Balance Sheet, of the state of affairs of the Company as at 31 March, 2016,
(b) In case of the statement of Profit &loss of the Profit of the company for the year ended on that date, and
(c) In case of the cash flow statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order, 2016 (âthe orderâ), issued by the Central Government of India in terms of sub section (11) of section 143 of the Companies Ac,2013, we give in the Annexure a statement on the matters specified in paragraph 3 & 4 of the order, to the extent applicable.
As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) Except for the effects of the matter described in the point (i) & (ii) above, in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) Except for the effects of the matter described in the points (i) & (ii) above, in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31 March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31stMarch, 2016 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 Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Triveni Glass Limited on the accounts of the company for the year ended 31st March, 2016.
i. (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.
(b) All the fixed assets have not been physically verified by the management during the year but there is the regular programme of verification which in our opinion is reasonable having regard to the size of the company and of its assets. No discrepancies were noticed on such physical verification. However, no verification has been carried out in Allahabad Unit due to its closure.
(c) Title deeds of immovable properties are held in the name of the company.
ii. As explained to us, inventories have been physically verified during the year by the management at reasonable intervals. However, at Allahabad Unit, all the inventory items had not been physically verified, as the factory remained closed for a considerable period of time.
iii. (a) The company has not granted unsecured loans, to parties covered by the clause (76) of Section 2 of the Companies Act, 2013.
(b) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has taken an unsecured loan from the director of the company. The detail is provided below:-
S. no. |
Party Name |
Opening |
Closing |
1 |
Mr.J.K.Agrawal |
103.65 Lacs |
103.65 Lacs |
iv. Provision of Section 185 and 186 of the companies Act, 2013 has been compiled in respect of Loans, investment, guarantees, and security.
v. The directives issued by the Reserve Bank Of India and the provision of Sec 73 to 76 or any other relevant provision of the Companies Act 2013 and the Rules framed there under is not applicable on the company as company has not accepted any deposits
vi. To the best of our knowledge and explanation given to us by the management, the Central Government has prescribed maintenance of cost records for the Glass Industry and the cost Audit has been conducted for the year 2014-15 as per the Govt. order and report submitted to Govt. against which there are no adverse observations.
vii. (a) In our opinion and as per the explanation given to us, the company is generally regular in depositing undisputed statutory dues including provident fund, income tax, sales tax, duty of excise, and other statutory dues with appropriate authorities and are outstanding as at 31st March, 2016
Name of the Statute |
Nature of the Dues |
Amount (Rs. in Lac) |
Period to which the amount relates |
|
Income Tax Act, 1961 |
Income Tax Deducted from Source -Allahabad -Rajahmundry |
4.51 3.12 |
March â16 1 since March â16 _T paid |
|
Fringe Benefit Tax - Allahabad |
31.77 |
2008-2009 |
||
Provident Fund Act |
Employee Family pension Fund Rajahmundry |
1.11 |
March â16 - Since Paid |
|
Central Excise |
Rajahmundry |
4.69 |
March â 16 - since paid |
|
State Sales Tax |
Rajahmundry |
6.22 46.02 19.59 15.28 87.11 |
2009-2010 ^ 2010-2011 2012-2013 2013-2014 |
|
Total |
132.31 |
(b) The disputed statutory dues aggregating to Rs. 6437.77 Lacs, that has not been deposited on account of matters pending before appropriate authorities are as under:
SL NO |
NAME OF THE STATUTE |
NATURE OF THE DUES |
FORUM WHERE DISPUTE IS PENDING |
AMOUNT (Rs. in Lac) |
1. |
Central Excise Act and CENVAT Credit Rules, 2004 |
Central Excise Duty and CENVAT credit |
Central Excise Service Tax Appellate Tribunal, New Delhi |
726.00 |
2. |
Central Excise Act and CENVAT Credit Rules, 2004 |
Central Excise Duty and CENVAT credit |
Central Excise Service Tax Appellate Tribunal, New Delhi |
111.00 |
3.* |
Central & State Sales Tax/ Trade Tax |
Sales Tax /Trade Tax |
Various Sales Tax / Trade Tax Appellate Authorities, Allahabad |
188.63 |
* The Company has deposited an amount of Rs.53.72 Lacs under protest. |
||||
4. |
Central & State Sales Tax/ Trade Tax |
Sales Tax /Trade Tax |
Supreme Court, New Delhi |
107.21 |
5 |
Custom Act, 1962 |
EPCG Scheme |
Asst. Commissioner Customs Visakhapatnam |
659.60 |
6. |
Customs Act, 2004 |
Advance License |
DGFT Kanpur |
367.00 |
7 |
Central Excise & State Sales Tax/Trade Tax |
Excise |
Rajahmundry |
86.33 |
8 |
Commissioner of Central Excise Allahabad |
Excise Penalty |
Central Excise Tribunal- New Delhi |
2096.00 2096.00 |
Total |
6437.77 |
viii. The company has defaulted in repayment of dues to financial institutions which are as follows:
Particulars |
Amount Due (Rs.in Lacs) |
Period |
Due to |
Principal |
2700.00 |
Up to 31st March 2016 |
IDBI (SASF) |
Plus Interest |
|||
Interest |
40.00 |
Up to 31st March 2016 |
State Bank of India, Lucknow |
Principal |
132.00 |
Up to 31st March 2016 |
Canara Bank, Kolkata |
Interest |
3.00 |
Canara Bank, Kolkata |
|
Total |
2875.00 |
As mentioned in the last Annual Report that SASF had withdrawn this Previous OTS package on 09.02.2015. The company requested them to restore the OTS package as the delay in making the payment had not been due to any fault of the company, but that of the Asset Sale Committee constituted by BIFR. After lot of efforts SASF finally restored the OTS Package vide their letter dated 05.01.2016 which emphasizes a down payment of Rs.600 lacs and the balance payment by March 2016. As the OTS sanctioned was not as per the Companies request, the company has accepted the proposal with a request that firstly the amount should be brought down to the agreed amount of Rs.2400 lacs and secondly, the company should be allowed at least 12 month time to make payment as in present circumstances, it is difficult to find a suitable buyer for the Allahabad plant. Hence, the company has to arrange funds from outside sources which take time. The company has made some payment in March 2016 and promised to make regular monthly payments from April 2016 and also given the assurance that on sale of the Allahabad plant we will settle their dues immediately.
As regards State Bank of India, only interest dues of Rs.247 lacs were outstanding as on 31.3.2015, out of which the Bank agreed for waiver of interest of Rs.41 lacs. Hence only a sum of Rs.206 lacs was payable to them out of which the company has made payment of Rs.100 lacs. Only a sum of Rs.40 lacs was due as on 31.3.2016 which was subsequently paid in April 2016 and NOC obtained from Bank.
As regards Canara Bank, as mentioned in the last Annual report that an OTS settlement with the Bank was arrived for Rs.610 lacs which emphasis on down payment of Rs.124 lacs and the balance of Rs.486 lacs was to be paid in 6 equal monthly installments of Rs.81 lacs each starting from December 2015 and ending in May 2016. The Company has made the down payment and also installment payment up to 31.3.2016 and only two installments are left to be paid in the month of April and May 2016.
i. According to the information and explanations given to us, the company has not given any guarantees for loan taken by others from bank or financial institutions during the year.
ii. According to the books and records of the company and as per the information and explanation given to us by the management, the company has not utilized any fund raised on short term basis for long term investment and vice versa.
iii. According to the information and explanation given to us and as represented by the Management and based on our examination of the books and records of the company, no material fraud on or by the Company was noticed or reported during the year.
ix. No money by way of public offer or further public offers (including debt instruments) and term loans.
x. According to the information and explanation given to us and as represented by the Management and based on our examination of the books and records of the company, no material fraud by the company or any fraud on the Company by its officers/ employees has been noticed or reported during the year.
xi. 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.
xii. Company is not a Nidhi Company.
xiii. The provisions of Sec 177 & 188 of Companies Act 2013 are not applicable as the company does not entered any related party transaction during the financial year.
xiv. Company has not made any preferential allotment or private placement of shares or fully partly convertible debentures during the year under review.
xv. The company has not entered into any non-cash transactions with directors or persons connected with him.
xvi. The company is not required to be registered under Sec 45-IA of the Reserve Bank Of India Act,1934
FOR AMIT RAY & CO.
CHARTERED ACCOUNTANTS
(FRN: 000483C)
Abhishek Sharma
PLACE: ALLAHABAD (Partner)
DATE: 25.05.2016 M. NO. 403861
Mar 31, 2015
We have audited the accompanying financial statements of Triveni Glass
Limited, which comprise the Balance Sheet as at 31st March, 2015, the
Statement of Profit and Loss, the Cash Flow Statement, and a summary of
the significant accounting policies and other explanatory information
for the year then ended.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting 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
preparation of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
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
procedures selected depend on the auditors judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the 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 control system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements, subject to,
i. We could not physically verify the Plant & machinery at Allahabad
unit as we were not allowed to enter the factory premises due to labour
disturbances. Hence the balances of Rs.4, 31, 42,493.04 appearing
against Plant & Machinery remain unaudited and we had conducted the
physical verification at Rajahmundry unit.
ii. Liability of Rs 21.18 crores is appearing as Advance against sale
of land, building, Plant and machinery.
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 above point (i) & (ii), 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 case of Balance Sheet, of the state of affairs of the Company as
at 31st March, 2015,
(b) In case of the statement of Profit & loss of the loss of the
company for the year ended on that date, and
(c) In case of the cash flow statement, of the cash flows for the year
ended on that date. Report on Other Legal and Regulatory Requirements
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 Companies Ac,2015, we give in the
Annexure a statement on the matters specified in paragraph 3 & 4 of the
order, to the extent applicable.
As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) Except for the effects of the matter described in the point (i) &
(ii) above, in our opinion, proper books of account as required by law
have been kept by the Company so far as it appears from our examination
of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the books
of account.
(d) Except for the effects of the matter described in the points (i) &
(ii) above, in our opinion, the aforesaid financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements;
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts;
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
The Annexure referred to in paragraph 1 of our Report of even date to
the members of Triveni Glass Limited for the year ended March 31, 2015
i. (a)The company has maintained proper records showing full
particulars including quantitative details and situation of fixed asset
(b)According to the information an explanation given to us, physical
verification of fixed assets has not been done during the year. But
there is a regular program of verification which, in our opinion, is
reasonable having regard to the size of the company and nature of its
assets. No material discrepancies were noticed on such verification.
ii. (a)As explained to us, inventories have been physically verified
at Rajahmundry unit during the year by the management at reasonable
intervals.
(b)In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c)In our opinion and on the basis of our examination of the records,
the Company is maintaining proper records of its inventories. No
material discrepancy was noticed on physical verification of stocks at
Rajahmundry unit by the management as compared to book records
iii. Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and for sale
of goods.
v. In our opinion and according to the information and explanations
given to us by the management, the Company has accepted loan from Mr.
J. K. Agrawal (Managing Director) amounting to Rs.103.65 lacs.
vi. The Central Government has prescribed maintenance of cost records
for the Glass Industry and the cost Audit has been conducted for the
year 2013-14 as per the Govt. order and report submitted to Govt.
against which there are no adverse observations.
vii. (a) According to the records of the Company, the following
undisputed Statutory dues including Provident Fund, Income Tax, Sales
Tax, Excise Duty, Cess and other statutory dues, wherever applicable,
have not been deposited with the appropriate authorities and are
outstanding as at 31st March, 2015
Name of the Statute Nature of the Dues Amount
(Rs. in Lac)
Income Tax Act, 1961 Income Tax Deducted from 4.23
Source 1.45
-Allahabad
Fringe Benefit Tax - 31.77
Allahabad
-Rajahmundry
Employee Family pension 21.89
Provident Fund Act Fund
Rajahmundry 1.60
Central Excise Rajahmundry 2.47
State Sales Tax Rajahmundry 6.22
46.02
19.59
32.12
30.75
134.70
Total 198.11
Name of the Statute Period to which the amount
relates
Income Tax Act, 1961 March Rs.151. since
March Rs.15 paid
2008 - 2009
Provident Fund Act
Since Paid March Rs.15
Central Excise March ' 15 - since paid
State Sales Tax 2009-2010
2010-2011
2012-2013
2013-2014
2014-2015
(b) The disputed statutory dues aggregating to Rs 6351.21 Lacs, that
have not been deposited on account of matters pending before
appropriate authorities are as under:
SL NAME OF THE STATUTE NATURE OF THE
NO DUES
1. Central Excise Act and Central Excise Duty
CENVAT Credit Rules, and CENVAT credit
2004
2. Central Excise Act and Central Excise Duty
CENVAT Credit Rules, and CENVAT credit
2004
3 * Central & State Sales Tax/ Sales Tax /Trade Tax
Trade Tax
* The Company has deposited an amount of Rs.11.49 Lacs under protest.
4. Central & State Sales Tax/ Sales Tax /Trade Tax
Trade Tax
5 Custom Act, 1962 EPCG Scheme
6. Advance Licence
Customs Act, 2004
7 Central Excise & State Sales Excise
Tax/Trade Tax
8 Commissioner of Central Excise
Excise Allahabad
Penalty
Total
SL NAME OF THE STATUTE FORUM WHERE AMOUNT
NO DISPUTE IS PENDING (Rs. in Lac)
1. Central Excise Act and Central Excise Service 726.00
CENVAT Credit Rules, Tax Appellate Tribunal,
2004 New Delhi
2. Central Excise Act and Central Excise Service 111.00
CENVAT Credit Rules, Tax Appellate Tribunal,
2004 New Delhi
3 * Central & State Sales Tax/ Various Sales Tax / Trade 88.45
Trade Tax Tax Appellate Authorities,
Allahabad
* The Company has deposited an amount of Rs.11.49 Lacs under protest.
4. Central & State Sales Tax/ Supreme Court, New 107.21
Trade Tax Delhi
5 Custom Act, 1962 Asst. Commissioner 659.60
Customs Visakhapatnam
6. DGFT Kanpur 367.00
Customs Act, 2004
7 Central Excise & State Sales Rajahmundry 86.33
Tax/Trade Tax 13.62
8 Commissioner of Central Central Excise Tribunal- 2096.00
Excise Allahabad New Delhi
2096.00
6351.21
(c) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
viii. The Company has incurred cash losses during the financial year
covered by our audit.
ix. The company has defaulted in repayment of dues to financial
institutions which are as follows:
AMOUNT DUE (Rs.in Lacs) Period Due to
Principal 1255.00 Upto 31st March 2015 IDBI (SASF)
Interest 1845.00 IDBI (sASf)
Principal Upto 31st March 2015 State Bank of India,
Lucknow
Interest 247.00 State Bank of India,
Lucknow
Principal 508.00 Upto 31st March 2015 Canara Bank, Kolkata
Interest 82.00 Canara Bank, Kolkata
Total 3937.00
As mentioned in the last Annual Report that SASF had served a notice
under section 13(2) of the Securitization and Reconstruction of
financial Assets and Enforcement of Security Investment 2001 on the
company in April 2013, but the company was successful in OTS settlement
with SASF in Oct 2013, for a sum of RS 3550 lacs. The company in right
earnest and inspite of the Allahabad Plant not being sold was able to
arrange funds from outside sources and pay SASF a sum of Rs 1155 lacs
by 31.01.2015, but as the company had not been able to pay the full
amount as per terms of OTS, SASF choose to withdraw the OTS package
vide its letter dated 09.02.2015. the company has requested them to
restore the package and have also take up the matter with BIFR/AIFR to
prevail upon SASF to Restore the package as the delay in making the
payment has not been due to any fault of the company, but that of the
Asset Sale Committee constituted by the operating agency, IDBI Bank,
New Delhi, who have not been able to sell the Allahabad Plant and have
delayed the process forcing SASF to withdraw the package. The company
is hoping that once the company is able to locate a suitable buyer for
the plant they shall be able to negotiate and clear the SASF dues.
As regards the SBI India, the company had paid the full principal
amount of Rs 1489 lacs by March 2014 and only the interest for the
delay period amounting to Rs 327 lacs was outstanding to be paid to
SBI. The company has paid a further sum of Rs 80 lacs during the year
against the same and is making regular payments to them and is
confident to clear the balance amount once the buyer for Allahabad
plant is finalized.
As regards Canara Bank, as mentioned in the last Annual report that a
settlement at Rs 590 lacs had been arrived at with them but
subsequently their Head office have not approved the OTS and asked for
substantial improvement in the package. The company has written to them
that as the package has been finalized once and we also have made
payment of Rs 59 lacs against the same they should accept the same.
Till 31.03.2015 no headway could be made in this regard, but in May
2015 after a lot of persuasion and discussions the company was able to
arrive at a revised settlement of Rs 610 lacs. The sanction letter is
awaited.
Figures shown above are the actual defaulted liabilities on the basis
of OTS, the book liabilities are higher in view of provisions for
Interest, etc created in earlier year.
x. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from bank
or financial institutions during the year.
xi. According to the books and records of the company and as per the
information and explanation given to us by the management, the company
has not utilised any fund raised on short term basis for long term
investment and vice versa.
xii. According to the information and explanation given to us and as
represented by the Management and based on our examination of the books
and records of the company, no material fraud on or by the Company was
noticed or reported during the year.
FOR AMIT RAY & CO.
CHARTERED ACCOUNTANTS
(FRN: 000483C)
AMITAVA RAY
(PARTNER)
M. NO. 006947
PLACE: ALLAHABAD
DATE: 30.10.2015
Mar 31, 2014
We have audited the accompanying financial statements of TRIVENI GLASS
LIMITED, which comprise the Balance Sheet as at March 31, 2014, and the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information.
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. 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.
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.
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 & 5 of the said order.
2. Depreciation amounting to Rs.647.15 lacs has not been provided in
accounts for Float Glass Plant. We have been explained that due to the
closer of the Float Glass Plant from 16-09-06 onwards depreciation has
not been charged in the accounts. As a result of this profits of the
year and fixed assets are overstated by the same amount.
3. The Company has not followed AS-22 (Accounting for Taxes on Income)
issued by the Institute of Chartered Accountants of India See
clarification in note no.26.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, and subject to our comments in point no.2,3
above, the financial statements give the information required by the
Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
1. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
For Amit Ray & Co., Chartered Accountants. Place: Allahabad Date: 31st
May 2014
Basudeb Banerjee (Partner) Membership No.070468 F.R.NO.000483C
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Triveni Glass Limited on the accounts of the company
for the year ended 31st March, 2014.
(i) (a) On the basis of available information, the Company has
maintained proper records showing full particulars including
quantitative details and situation of its fixed assets.
(b) All the fixed assets have not been physically verified by the
management during the year but there is the regular programme of
verification which in our opinion is reasonable having regard to the
size of the company and of its assets. No discrepancies were noticed on
such physical verification. However no verification has been carried
out in Allahabad Unit due to its closure.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed off during the year and
therefore does not affect the going concern assumption.
(ii) (a) As explained to us, inventories have been physically verified
by the management at regular intervals. However at Allahabad Unit, all
the inventory items had not been physically verified, as the factory
remained closed for a considerable period of time.
(b) In our opinion and according to information and explanations given
to us, the procedure of physical verification of inventory followed by
the management is reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to us there was no material discrepancies noticed on physical
verification of inventories as compared to the book records.
(iii) (a) On the basis of Information given to us the following party
has granted loan to the Company.
Name of the Party Amount (in Rs.)
Mr.J.K.Agrawal ( Managing Director) 103.65 lacs
(b) According to the information and explanation given to us, the loan
given to the company by Mr. J. K. Agrawal, Managing Director is free of
interest and as such is not prejudicial to the interest of the company.
(c) On the basis of the information given to us there is no overdue
amount which is payable by the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and for sale of
goods. Further, during the course of our audit, we have not observed
any major weakness in internal control.
(v) (a&b) According to the information and explanations given to us,
loan that is taken by the Company from Managing Director is entered
into a register in pursuance of section 301 of the Companies Act, 1956.
(vi) The Company has not accepted any deposits from the public during
the year and the company is not having any public deposit as on date.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business at Rajahmundry.
The internal audit of Allahabad was not carried out from July''06 due to
closure of the factory.
(viii) The Central Government has prescribed maintenance of cost
records for the Glass Industry and the cost Audit has been conducted
for the year 2012-13 as per the Govt order and report submitted to Govt
against which there are no adverse observations.
(ix) (a) According to the records of the Company, the following
undisputed Statutory dues including Provident Fund, Income Tax, Sales
Tax, Excise Duty, Cess and other statutory dues, wherever applicable,
have not been deposited with the appropriate authorities and are
outstanding as at 31st March, 2014.
Name of the Nature of the Dues Amount Period to which the
Statute (Rs. in amount relates
_Lac)
Income Tax Income Tax Deducted 2.95 March ''14 since
Act 1961 from Source 0.56 March ''14 paid
-Allahabad
-Rajahmundry
Fringe Benefit Tax - 31.77 2008-2009
Allahabad
77.82 2005-2006 - Rs.20
Provident Provident Fund Trust 1.56 Lacs
Fund Act Provident Fund / ESI
Rajahmundry Paid March ''14 -
since paid
Central Excise Rajahmundry 38.56 March '' 14 - since
paid
State Sales Tax Rajahmundry 622 2009-2010
46.02 2010-2011 since
- 2011-2012 paid
34.85 2012-2013
36.87 2013-2014
123.96
Total 302.19
(b) The disputed statutory dues aggregating to Rs 6463.34 Lacs, that
have not been deposited on account of matters pending before
appropriate authorities are as under:
SL NAME OF THE STATUTE NATURE OF THE FORUM WHERE
NO DUES DISPUTE IS PENDING
1. Central Excise Act and Central Excise Duty Central Excise Service
CENVAT Credit Rules, and CENVAT credit Tax Appellate Tribunal,
2004 New Delhi
2. Central Excise Act and Central Excise Dut Central Excise Service
CENVAT Credit Rules, and CENVAT credit Tax Appellate Tribunal,
2004 New Delhi
3. Central & State Sales Sales Tax /Trade Various Sales Tax /
Tax Trade Tax Tax Trade Tax Appellate
Authorities, Allahabad
* The Company has deposited an amount of Rs.11.49 Lacs under protest.
4. Central & State Sales Sales Tax /Trade Supreme Court, New
Tax Trade Tax Tax Delhi
5 Custom Act, 1962 EPCG Scheme Asst. Commissioner
Customs Visakhapatnam
6. Advance Licence DGFT Kanpur
Customs Act, 2004
7 Central Excise & State Excise Rajahmundry
Sales Tax/Trade Tax
8 Commissioner of Central Excise Central Excise Tribunal
Excise Allahabad New Delhi
Penalty
NAME OF THE STATUTE AMOUNT (Rs.
in Lac)
Central Excise Act and CENVAT Credit Rules, 2004 726.00
Central Excise Act and CENVAT Credit Rules, 2004 122.00
Central & State Sales Tax/ Trade Tax 88.45
Central & State Sales Tax/ Trade Tax 107.21
Custom Act, 1962 755.00
Customs Act, 2004 405.00
Central Excise & State Sales Tax/Trade Tax 67.68
Commissioner of Central Excise Allahabad 2096.00
2096.00
Total 6463.34
(x) The Company is a sick industrial company within the meaning of
Clause (O) of subsection (1) of Section 3 of Sick Industrial Companies
(Special Provisions) Act, 1985. The Net worth of the Company has been
fully eroded as on 31st March, 2014. The net worth of the company as
on 31.03.2014 being Rs. (5016.92) Lacs
The company has not incurred any cash losses during the financial year
covered by our audit as well as the preceding financial year.
(xi) The company has defaulted in repayment of dues to financial
institutions which are as follows:
AMOUNT DUE (Rs.in
Lacs) Period Due to
Principal 2400.00 Upto 31st March 2014 IDBI (SASF)
Interest 1297.50 IDBI (SASF)
Principal Upto 31st March 2014 State Bank of India,
Lucknow
Interest 337.06 State Bank of India,
Lucknow
Principal 508.00 Upto 31st March 2014 Canara Bank, Kolkata
Interest 82.00 Canara Bank, Kolkata
Total 4624.56
As informed earlier that SASF (IDBI) had sanctioned an OTS package to
the Company in February 2010. Against this package the company made
payment of Rs.1600 lacs, but defaulted in making payment of the balance
amount of Rs.2400 lacs till March 2013. The Company requested SASF to
revive the OTS package which SASF vide their letter dt.4.10.2013 agreed
to give a fresh package to the Company on the following terms :- 1.)
Total payment to be made Rs.3550 lacs
2.) Rs.3250 lacs payable within one month i.e by 2.11.2013 and balance
Rs.300 lacs to be paid in six monthly installments commencing after 6
months from the date of LOA.
3.) Interest for default to be charged @ 14.75% P.A
4.) Promoters to undertake and buy back existing 35.36 lacs equity
shares allotted to SASF at face value of Rs.10/- each within a period
of 18 months from the date LOA. The company with all its efforts was
able to locate a financier who was ready to give bridge loan against
the property, but unfortunately he backed out in January''14 end
therefore putting the Company into great difficulty, however the
company has been able to locate another buyer / financier, and talks
are in final stage but even after getting extension of time from SASF
till 31.3.14 the company was not able to pay their dues, the company is
still trying its best to arrive at a arrangement of financing and
settle the dues of SASF at the earliest. SASF has now allowed time till
31.5.2014.
Similarly SBI who had approved a OTS scheme of Rs.1489 lacs valid till
November 2011. The company was able to pay only a sum of Rs.855 lacs
against the same till 31.3.2013, and the balance amount of Rs.634 lacs
in January 2014, as a result of the delay an additional interest
liability of Rs.327 lacs was created as on 31.3.2014 which the company
inspite of all its efforts has not been able to clear and has sought
time initially till 30.4.2014, but due to procedural delay the company
has requested for some more time from SBI for this payment .
As regards Canara Bank, after a settlement has been arrived at on
12.3.2014 for a total amount of Rs.590 lacs . Formal letter from the
Bank is still awaited, though the company has given its consent to the
same.
Figures shown above are the actual defaulted liabilities on the basis
of OTS, the book liabilities are higher in view of provisions for
Interest, etc created in earlier year.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loan and advances on the
basis of security by way of pledge of shares, debenture and other
securities.
(xiii) In our opinion, the Company is not a chit or a nidhi / mutual
benefit fund/society.
Therefore, the provisions of clause 4(xiii) of the Companies (Auditors
Report) Order, 2003, are not applicable to the Company.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, debentures and other
securities. Therefore, the provisions of clause 4(xiv) of the Companies
(Auditors Report) Order, 2003, are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or Financial Institutions during the year
(xvi) According to the information and explanations given to us and on
an overall examination of the Balance sheet of the Company, we are of
the opinion that the Company has not utilized any fund raised on
short-term basis for long-term investment and vice-versa.
(xvii) During the year, the Company has not made any preferential
allotment of shares to parties and Companies covered in the Register
maintained u/s 301 of the Companies Act, 1956.
(xviii) Debentures are converted into secured loan as per OTS Scheme
2005 for which necessary Securities has been created and registered.
(xix) The Company has not raised any money from public issues during
the year.
(xx) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For Amit Ray & Co.,
Chartered Accountants.
Place: Allahabad
Date:31st May , 2014 Basudeb Banerjee
(Partner)
Membership No.070468
FRN Â 000483C
Mar 31, 2013
We have audited the accompanying financial statements of TRIVENI GLASS
LIMITED, which comprise the Balance Sheer as at March 31, 2013, and the
Statement of Profit and Loss and Cash Flow Statement for the year fhen
ended, and a summary of significant accounting policies and other
explanatory information.
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. 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.
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 arc free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosure-: 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 interna! 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.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31. 2013;
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date: and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
ny 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. Depreciation amounting to Rs. 647.15 lacs has not been provided in
accounts for Float Glass Plant.
We have been explained that due to the closer of the Float Glass Plant
from 16-09-06 onwards depreciation has not been charged in the
accounts. Thus the profit is overstated by same amount.
3. The Company has not provided interest on loan from institutions and
Bank for the year 2012- 13 amounting to Rs. 650.15 Lakhs. The company
has explained us that they are in talks -with SB I & IDBl(SASF) to
extend the OTS scheme upto 30th September, 2013 to settle their dues.
4. The Company has not followed AS-22 (Accounting for Taxes on Income)
issued by the Institute of( ''bartered Accountants of India
5. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013. from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
1) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Triveni Glass Limited on the accounts of the company
for the year ended 31st March, 2013.
(i) (a) On the basis of available information, the Company has
maintained proper records showing full particulars including
quantitative details and situation of its fixed assets.
(b) All the fixed assets have not been physically verified by the
management during the year but there is the regular programme of
verification which in our opinion is reasonable having regard to the
size of the company and of its assets. No discrepancies were noticed on
such physical verification. However no verification has been carried
out in Allahabad Unit due to disturbances in the Factory.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
(ii) (a) As explained to us, inventories have been physically verified
by the management at
regular intervals. However at Allahabad Unit, all the inventory items
had not been physically verified, as the factory remained closed for a
considerable period of time.
(b) In our opinion and according to information and explanations given
to us, the procedure of physical verification of inventory followed by
the management is reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to us there was no material discrepancies noticed on physical
verification of inventories as compared to the book records.
(iii) (a) On the basis of Information given to us the following party
has granted loan to the Company.
Name of the Party Amount (in Rs.)
Mr.J.K.Agrawal ( Managing Director) 103.65 lacs
(b) According to the information and explanation given to us, the loan
given to the company by Mr. J. K. Agrawal, Managing Director is free of
interest and as such is not prejudicial to the interest of the company.
(c) On the basis of the information given to us there is no overdue
amount which is payable by the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and for sale of
goods. Further, during the course of our audit, we have not observed
any major weakness in internal control.
(v) (afitb) According to the information and explanations given to us,
loan that is taken by the Company from Managing Director is entered
into a register in pursuance of section 301 of the Companies Act, 1956.
(vi) The Company has not accepted any deposits from the public during
the year and the company is not having any public deposit as on date.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business at Rajahmundry.
The internal audit of Allahabad was not carried out from July''06 due to
disturbance in the factory.
(viii) The Central Government has not prescribed maintenance of cost
records under clause
(d) of sub-section (1) of section 209 of the Companies Act, 1956.
(ix) (a) According to the records of the Company, the following
undisputed Statutory dues including Provident Fund, Income Tax, Sales
Tax, Excise Duty, Cess and other statutory dues, wherever applicable,
have not been deposited with the appropriate authorities and are
outstanding as at 31st March. 2013.
(c) The disputed statutory dues aggregating to Rs 4317.24 Lacs, that
have not been deposited on account of matters pending before
appropriate authorities are as under:
(a; The Company is a sick industrial company within the meaning of
Clause (O) of suosection(l) of Section 3 of Sick Industrial Companies
(Special Provisions) Act, 1985
The Net worth of the Company has been fully eroded as on 31st March,
2013. The net worth of the company as on 31.03.2013 being Rs.(5691.02)
The company has not incurred any cash losses during the financial year
covered Dy our audit but had incurred it in the immediately preceding
financial year.
(xi) The company has defaulted in repayment of dues to financial
institutions v
AMOUNT DUE (Rs.in
Lacs) Period Due to
Principal 3516.00 Upto 31st March 2013 IDBI (SASF) Interest 5606.69
IDBI (SASF)
Principal 1066.30 Upto 31st March 2013 State Bank of India, Lucknow
interest 703.83 State Bank of India, Lucknow
P-mcipal 508.00 Upto 31st March 2013 Canara Bank, Kolkata Interest
175.65 Canara Bank, Kolkata
Total 11576.47
The IDB1 has sanctioned an One Time Settlement (OTS) scheme for payment
of Rs.4000 iakhs latest by February, 2011, which company had defaulted,
but the company had further asked IDBI for extension of time. In the
event of any further failure on the part of the Company, IDBI has the
right to revoke the OTS. The Company has paid its first installment of
Rs.1440 lakhs and further Rs.160 lacs during 2011-12. The company is in
talks with IDBI (SASF) to revive the package till 30 September, 2013.
Similarly SBI who had approved an OTS scheme in October, 2010 for
payment of Rs 1489 iakhs and same was valid in November, 2011 against
which the company has made an initial payment of Rs.400 lakhs and
Further payment of Rs.63.10 Lacs during 2011-12. The company has
approached the Bank to grant further extension of time for payment of
balance due.
(yii) In our opinion and according to the information and explanations
given to us, the
Company has not granted any loan and advances on the basis of security
by way of p''edge of shares, debenture and other securities.
(xiii) (a to d) In our opinion, the Company is not a chit or a nidhi /
mutual benefit fund/society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditors Report) Order, 2003, are not
applicable to the Company.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, debentures and other
securities. Therefore, the provisions of clause 4(xiv) of the
Companies (Auditors Report) Order, 2003, are not applicable to the
Company,
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or Financial Institutions 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, we are of
the opinion that the Company has not utilized any fund raised on
short-term basis for long-term Investment and vice-versa.
(xviii) Curing the year, the Company has not made any preferential
allotment of shares to parties and Companies covered in the Register
maintained u/s 301 of the Companies Act. 1956.
(xix) Debentures are converted into secured loan as per OTS Scheme 2005
for which necessary Securities lias been created and registered.
(xx) The Compan/ has not raised any money from public issues during the
year.
(xxi) In our op,n>on and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For Amit Ray & Co.,
Chartered Accountants.
Place: Allahabad
Date: 29th Day of May, 2013 Amitava Ray
(Partner)
Membership No.006947
F.R.No - 000483C
Mar 31, 2012
1. We have audited the attached Balance Sheet of Triveni Glass Ltd.,
Allahabad as at 31.03.2012 and the annexed Profit and Loss Account and
also the Cash Flow Statements for the period ended on that date. These
financial statements are the responsibility of the Company's
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from any material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the 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 Government of India, in terms of Section 227 (4A) of the
Companies Act, 1956 of India 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 enclose
in the annexure hereto a statement on the matters specified in
paragraphs 4 & 5 of the said order.
4. Depreciation amounting to Rs. 647.15 lacs has not been provided in
accounts for Float Glass Plant.
We have been explained that due to the closer of the Float Glass Plant
from 16-09-06 onwards depreciation has not been charged in the
accounts. Thus the loss is understated by same amount.
5. The Company has also not provided interest on loan from
institutions and Bank for the Year 2011-12 amounting to Rs.578.41
lakhs. Thus the loss is understated by same amount.
6. The Company has not followed AS-22 (Accounting for Taxes on Income)
issued by the Institute of Chartered Accountants of India
7. Further to our comments in the Annexure referred to in paragraph
(3) and (4) above,
We report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion, proper books of account as required by law have
been maintained by the company in the manner so required, so far as
appears from our examination of those books.
c. The Balance Sheet, Profit and Loss Accounts and Cash Flow
Statement, dealt with by this report are in agreement with the books of
account maintained by the Company.
d. In our opinion, Balance Sheet, 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, in so far as they are applicable to the Company
8. In our opinion and to the best of our information and according to
explanations given to us the said accounts, read together with the
Significant Accounting Policies and Notes forming part thereof, gives
the information required by the Companies Act, 1956, in the manner so
required and gives 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 2012, and
b. In case of the Profit and Loss Account, of the Loss for the year
ended on that date.
c. In the case of Cash Flow Statement, the Cash Flows of the Company
for the year ended on that date.
ANNEXURE TO AUDITOR'S REPORT
Referred to in paragraph 3 of our report of even date
(i) (a) On the basis of available information, the Company has
maintained proper records showing full particulars including
quantitative details and situation of its fixed assets.
(b) All the fixed assets have not been physically verified by the
management during the year but there is the regular programme of
verification which in our opinion is reasonable having regard to the
size of the company and of its assets. No discrepancies were noticed on
such physical verification. However no verification has been carried
out in Allahabad Unit due to disturbances in the Factory.
(c) According to the information and explanations given to us,
furniture & fittings, Non- factory Building and Meerut unit had been
sold during the year which is duly accounted for, and such sale does
not affect the going concern of the company.
(ii) (a) As explained to us, inventories have been physically verified
by the management at regular intervals. However at Allahabad Unit , all
the inventory items had not been physically verified , as the factory
remained closed for a considerable period of time.
(by In our opinion and according to information and explanations given
to us , the procedure of physical verification of inventory followed by
the management is reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to us there was no material discrepancies noticed on physical
verification of inventories as compared to the book records.
(iii) (a) On the basis of Information given to us the following party
has granted loan to the Company.
Name of the Party Amount (in Rs.)
Mr.J.K.Agrawal ( Managing Director) 103.65 lacs
(b) According to the information and explanation given to us, the loan
given to the company by Mr. J. K. Agrawal Managing Director is free of
interest and as such is not prejudicial to the interest of the company
and there was no installment due in the year 2011-12.
(c) On the basis of the information given to us there is no overdue
amount which is payable by the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and for sale of
goods. Further, during the course of our audit, we have not observed
any major weakness in internal control.
(v) (a&b) According to the information and explanations given to us,
loan that is taken by the Company from Managing Director is entered
into a register in pursuance of section 301 of the Companies Act, 1956.
(vi) The Company has not accepted any deposits from the public during
the year and the company is not having any public deposit as on date.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business at Rajahmundry.
The internal audit of Allahabad was not carried out from July'06 due to
disturbance in the factory.
(viii) The Central Government has not prescribed maintenance of cost
records under clause
(d) of sub-section (1) of section 209 of the Companies Act, 1956.
(ix) (a) According to the records of the Company, the following
undisputed Statutory dues including Provident Fund, Income Tax, Sales
Tax, Excise Duty, Cess and other statutory dues, wherever applicable,
have not been deposited with the appropriate authorities and are
outstanding as at 31st March, 2012.
(c) The disputed statutory dues aggregating to Rs 2234.56 Lacs, that
have not been deposited
on account of matters pending before appropriate authorities are as
under:
(x) The Company is a sick industrial company within the meaning of
Clause (O) of
subsection (1) of Section 3 of Sick Industrial Companies (Special
Provisions) Act, 1985 The accumulated losses of the Company as on 31st
March, 2012 exceed fifty percent of the Net worth of the Company.
The Company has incurred cash loss during the financial year covered by
our report. (xi) The company has defaulted in repayment of dues to
financial institutions which are as follows:
AMOUNT DUE (Rs.in
Lacs) Period Due to
Principal 3516.00 Upto 31st March 2012 IDBI (SASF)
Interest 5606.69 IDBI (SASF)
Principal 1447.90 Upto 31st March 2012 State Bank of
India, Lucknow
Interest 703.00 State Bank of
India, Lucknow
Principal 508.00 Upto 31st March 2012 Canara Bank,
Kolkata
Interest 175.65 Canara Bank,
Kolkata
Total 11957.24
The IDBI has sanctioned an One Time Settlement (OTS) scheme for payment
of Rs.4000 lakhs latest by February,2011, which company had defaulted,
but the company had further asked" IDBI'Tor extension of time. In the
event of any further failure on the part of the Corripany,;,IDBI has
the right to revoke the OTS. The Company has paid its first installment
of Rs.1440 lakhs and further Rs.160 lacs during 2011-12 and Further ^
Rs. ISO Lakh cMr% 20fl-12.
November, 2011 against which the company has made an initial payment of
Rs.400 lakhs and Further payment of Rs.63.10 Lacs during 2011-12. The
company has approached the Bank to grant further extension of time for
payment of balance due.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loan and advances on the
basis of security by way of pledge of shares, debenture and other
securities.
(xiii) (a to d) In our opinion, the Company is not a chit or a nidhi /
mutual benefit fund/society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditors Report) Order, 2003, are not
applicable to the Company.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, debentures and other
securities. Therefore, the provisions of clause
(xiv) of the Companies (Auditors Report) Order, 2003, are not
applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or Financial Institutions 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, we are of
the opinion that the Company has not utilized any fund raised on
short-term basis for long-term investment and vice-versa. (xviii)
During the year, the Company has not made any preferential allotment of
shares to parties and Companies covered in the Register maintained u/s
301 of the Companies Act, 1956.
(xix) Debentures are converted into secured loan as per OTS Scheme 2005
for which necessary Securities has been created and registered.
(xx) The Company has not raised any money from public issues during the
year.
(xxi) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year.
Place: Allahabad For Amit Ray & Co.,
Date: 27th Day of October, 2012 Chartered Accountants
Amitava Ray (M.No. 006947) F.R.No. - 000483C
Mar 31, 2010
1) We have audited the attached Balance Sheet of Triveni Glass Ltd.,
Allahabad as at 31.03.2010 and the annexed Profit and Loss Account and
also the Cash Flow Statements for the period ended on that date. These
financial statements are the responsibility of the Companys
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2) We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from any material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the 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 Government of India, in terms of Section 227 (4A) of the Companies
Act, 1956 of India 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 enclose in the
annexure hereto a statement on the matters specified in paragraphs 4 &
5 of the said order.
4) Depreciation amounting to Rs. 656.51 lacs has not been provided in
accounts for Float Glass Plant.
We have been explained that due to the closer of the Float Glass Plant
from 16-09-06 onwards depreciation has not been charged in the
accounts.
5) The Company has also not provided interest on loan from Canara Bank
amounting to Rs.78.74 lakhs. Thus the profit is overstated by the same
amount.
6) Further to our comments in the Annexure referred to in paragraph (3)
and (4) above, we report that:
(i) 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.
(ii) In our opinion, proper books of account as required by law have
been" maintained by the company- in the manner so required, so far as
appears from our examination of those books.
(iii) The Balance Sheet, Profit and Loss Accounts and Cash Flow
Statement, dealt with by this report are in agreement whh the books of
account maintained by the Company.
(iv) In our opinion, Balance Sheet, 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, in so far as they are applicable to the Company
7) In our opinion and to the best of our information and according to
explanations given to us the said accounts, read together with the
Significant Accounting Policies and Notes forming part thereof, gives
the information required by the Companies Act, 1956, in the manner so
required and gives 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 2010, and ,.
(b) In case of the Profit and Loss Account, of the Profit for the year
ended on that date.
(c) In the case of Cash Flow Statement, the Cash Flows of the Company
for the year ended on that date.
ANNEXURE TO AUDITORS REPORT Referred to in paragraph 3 of our report
of even date
(i) (a) On the basis of available information, the Company has
maintained proper records showing full particulars including
quantitative details and situation of its fixed assets.
(b) All the fixed assets have not been physically verified by the
management during the year but there is the regular programme of
verification which in our opinion is reasonable having regard to the
size of the company and of jts assets. No discrepancies were noticed on
such physical verification. However, no verification has been carried
out in Allahabad Unit due to disturbances in the Factory.
(c) According to the information and explanations given to us,
furniture & fittings, Non-factory Building and Meerut unit had been
sold during the year which are duly accounted for, and such sale does
not affect the going concern of the company.
(ii) (a) As explained to us, inventories have been physically verified
by the management at regular intervals. However at Allahabad Unit, all
the inventory items had not been physically verified , as the factory
remained closed for a considerable period of time.
(b) In our opinion and according to information and explanations given
to us , the procedure of physical verification of inventory followed by
the management is reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to us there was no material discrepancies noticed on physical
verification of inventories as compared to the book records.
(iii) (a) On the basis of Information given to us the following party
has granted loan to the above Company
Name of the Party Amount (in Rs.)
Mr.J.K.Agrawal Managing Director 98.65 lacs
(b) According to the information given to us, the loan given to the
company by Mr. J. K. Agrawal Managing Director is free of interest and
as such is not prejudicial to the interest of the company. .
(c) According to the information and explanations given to us, loan
given by the Managing Director, to the company is at Nil rate of
interest and there is no installment due in the year 2009-10.
(d) On the basis of the information given to us there is no overdue
amount which is payable by the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and for sale of
goods. Further, during the course of our audit, we have not observed
any major weakness in internal control.
(v) (a & b) According to the information and explanations given to us,
loan that is taken by the Company from Managing Director is entered
into a register in pursuance of section 301 of the Companies Act,
1956.
(vi) , The Company has not accepted any deposits from the public during
the year and the company is not having any public deposit as on date.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business at Rajamundry,
Meerut and Allahabad units. The internal audit of Allahabad was not
carried out from July06 due to disturbance in the factory.
(viii) The Central Government has not prescribed maintenance of cost
records under clause (d) of sub-section (1) of section 209 of the
Companies Act, 1956.
(ix) (a) According to the records of the Company, the undisputed
Statutory dues including Provident Fund, Income Tax, Sales Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other statutory dues, wherever
applicable, have not been deposited with the appropriate authorities
and are outstanding as at 31st March, 2010.
The following undisputed statutory due has not been deposited by the
Company:
Name of the Nature of the Dues Amount Period to
Statute (Rs. in Lac) which the
amount
relates
Central Excise Act Excise Duty Payable 2.64 Old Case
and Central Excise
Rule 2002 Service Tax 9.82 2008-2009
Service Tax 10.08 2008-2010
Income Tax Act, Income Tax Deducted from
1961 Source 6.33 2007-2010
Income Tax Act, Fringe Benefit Tax 33.44 2008-2009
1961
Provident Fund Act Provident Fund Trust 67.97 2005-2006
Provident Fund Act Regional Prbvident Fund 27.57 2005-2006 To
Commissioner 2009-2010
Central & State Sales Tax Uttar Pradesh 14.68 2007-2008 &
Sales Tax/ 2008-2009
Trade Tax
Central Excise Act & Central Excise Duty 14.91 2007-2008
Rules 2002 State Rajahmundry 4.06 1998-1999
Sales Tax 31.72 1999-2000
83.26 2008-2009
56.58 2009-2010
Central Excise Allahabad 69.48 2006-2007 To
2009-2010
Total 433.46
(c) The disputed statutory dues aggregating to Rs.4346.75 Lacs, that
have not been deposited on account of matters pending before
appropriate authorities are as under:
SL
NO NAME OF THE NATURE OF FORUM WHERE AMOUNT
STATUTE THE DISPUTE IS (Rs. in Lac)
DUES PENDING
1.Central Excise Act Central Central Excise 726.00
and CENVAT Excise Duty Service Tax
Credit Rules, 2004 and CENVAT Appellate Tribunal,
credit New Delhi
2.Central Excise Act Central Central Excise 2096.00
and CENVAT Excise Duty Service Tax
Credit Rules, 2004 and CENVAT Appellate Tribunal,
credit New Delhi
3.Central Excise Act Central Central Excise 129.32
and CENVAT Excise Duty Service Tax
Credit Rules, 2004 and CENVAT Appellate Tribunal,
credit New Delhi
4.Central & State Sales Tax Various Sales Tax / 16.40
Sales Tax/ Trade /Trade Tax Trade Tax Appellate
Tax Authorities,
Allahabad
* The Company has deposited an amount of Rs.11.49 Lakhs under
protest.
5.Central & State Sales Tax Supreme Court, 90.71
Sales Tax/ Trade /Trade Tax New Delhi
Tax
6.Custom Act, 1962 EPCG Asst. Commissioner 755.00
Scheme Customs
Visakhapatnam
Customs Act, 2004 Advance DGFT Kanpur 405.00
Licence
7 Service Tax High Court 3.74
Allahabad
8 Central Excise & Excise, Rajahmundry 74.40
State Sales Service Tax 19.34
Tax/Trade Tax Sales Tax Rajahmundry 30.84
4346.75
(x) The Company is a sick industrial company within the meaning of
Clause (O) of subsection (1) of Section 3 of Sick Industrial Companies
(Special Provisions) Act, 1985
The accumulated losses of the Co mpany as on 31st March , 2010 exceed
fifty percent of the Net worth of the Company.
The Company has not incurred cash loss during the financial year
covered by our report. In the immediately proceeding financial year the
company has incurred cash loss. However, the total net worth of the
company is Negative as on 31st March 2010.
(xi) The company has defaulted in repayment of dues to financial
institutions which are as follows:
AMOUNT DUE (Rs.in Lacs) Period Due to
Principal 3676.00 Upto 31st March 2010 IDBI (SASF)
Interest 5606.00 IDBI (SASF)
Principal 1511.00 Upto 31st March 2010 State Bank of India,
Lucknow
Interest 703.00 State Bank of India,
Lucknow
Principal 508.00 Upto 31st March 2010 Canara Bank, Kolkata
Interest 82.65 Canara Bank, Kolkata
The IDBI has sanctioned an One Time Settlement (OTS) scheme for payment
of Rs.4000 lakhs latest by February ,2011. In the event of any failure
on the part of the Company IDBI has the right to revoke the OTS. The
Company has paid its first installment of Rs. 1440 lakhs.
OTS scheme has been sanctioned by SBI for total payment of Rs. 1489
lakhs by March, 2011 against which the company has made an initial
payment of Rs.400 lakhs. However the final sanction letter is yet to be
received from the Bank.
The OTS has been taken place for Rs.17 lakhs against the dues of Rs.78
lakhs with HSBC. The Company has made full payment in March, 2010. The
necessary accounting entries have been made.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loan and advances on the
basis of security by way of pledge of shares, debenture and other
securities.
(xiii) (a to d) In our opinion, the Company is not a chit or a nidhi /
mutual benefit fund/society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditors Report) Order, 2003, are not
applicable to the Company.
(xiv) According to the information and explanations, given to us, the
Company is not dealing or trading in shares, debentures and other
securities. Therefore, the provisions of clause 4(xiv) of the Companies
(Auditors Report) Order, 2003, are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or Financial Institutions during the year.
(xvi) The Company has utilized the Term loan for the purpose for which
they were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance sheet of the Company, we are of
the opinion that the Company has not utilized any fund raised on
short-term basis for long-term investment and vice-versa.
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties and Companies covered in the Register
maintained u/s 301 of the Companies Act, 1956.
(xix) Debentures are converted into secured loan as per OTS Scheme 2005
for which necessary Securities has been created and registered.
(xx) The Company has not raised any money from public issues during the
year.
(xxi) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year.
Place: Allahabad For Amit Ray & Co.,
Date: 20th Day of August, 2010 Chartered Accountants
Abhishek Sharma
(Partner)
(Membership No. 403861)
F.R.NO.-000483C
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