Mar 31, 2021
Vardhman Acrylics LimitedReport on the Audit of the Financial StatementsOpinion
We have audited the accompanying financial statements of Vardhman Acrylics Limited (âthe Company"), which comprise the Balance Sheet as at 31st March 2021, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash flows for the year then ended and notes to the financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âthe financial Statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act,2013 (âthe Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended,(âInd AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2021, the profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Financial Statements under the provisions of the Act and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. 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.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Financial Statements of the current period. We have determined that there are no key audit matters to communicate in our report.
Other Information
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the company''s annual report, (but does not include the financial statements and our auditors'' report thereon).
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Indian Accounting Standards (Ind AS). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the 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.
In preparing the Financial Statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditorâs Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion
on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management and Board of Directors.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Order") issued by the Central Government in terms of sub section (11) of section 143 of the Act, we give in âAnnexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit, we report, that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit ;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those book;
(c) The Balance sheet, the statement of profit and loss ( including other comprehensive income) , statement of changes in equity and the statement of cash flows dealt with by this Report are in agreement with the relevant books of account;
(d) In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015.
e) On the basis of the written representations received from the directors as on 31st March 2021 taken on record by the Board of directors, none of the directors is disqualified as on 31st March 2021 from being appointed as a Director in terms of Section 164(2) of the Act ;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure B", Our report expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company''s internal financial controls over financial reporting
(g) With respect to the matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act,
In our opinion and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
(h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The company has disclosed the impact of pending litigations on its financial position in its Financial Statements. Refer Note 35 to the financial statement;
ii. The company did not have any long term contracts including derivatives contracts for which there were any material foreseeable losses and,
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
For SCV & Co. LLP Chartered Accountants Firm Reg. No.000235N/N500089
(Sanjiv Mohan) Partner Place: Ludhiana M. No. 086066 Date: 08th May, 2021 UDIN: 21086066AAAAJD6234
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Vardhman Acrylics Limited (âthe Companyâ), which comprise the balance sheet as at 31 March 2018, the statement of profit and loss (including other comprehensive income), the statement of changes in equity and the statement of cash flows for the year then ended and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fai r view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the order issued under section 143(11) of the Act.
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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Board of Directors, as well as evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company, as at 31 March 2018, and its profit, total comprehensive income, the changes in equity and the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies ( Auditorâs report) Order, 2016 (â the orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, which forms a part of this report, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Section 143(3) of the Act, based on our audit, we report, that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The balance sheet, the statement of profit and loss (including other comprehensive income), the statement of cash flows and statement of changes in equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act, read with relevant rules issued thereunder;
(e) On the basis of the written representations received from the directors of the Company as on 31st March 2018 taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March 2018 from being appointed as a Director in terms of Section 164(2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the companyâs internal financial controls over financial reporting and;
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended 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 Standalone financial statements. Refer Note 33A to the standalone financial statements.
ii. The company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses; and
iii. There were no amounts which were to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE - A TO THE INDEPENDENT AUDITORSâ REPORT
(Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirementsâ section of our report to the Members of Vardhman Acrylics Limited of even date)
(i) In respect of the Companyâs fixed assets:-
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a phased programme of physical verification of its fixed assets which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. As part of this programme, the management has physically verified certain fixed assets during the year. According to the information and explanations given to us, no discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, title deed of the immovable property is held in the name of the Company.
(ii) According to the information and explanations given to us, physical verification has been conducted by management at reasonable intervals in respect of finished goods, stores and spares and raw material. Further, stock in the possession and custody of third parties and stock in transit as at 31st March, 2018 has been verified by the management with reference to confirmation and statement of accounts or correspondence with the third party or subsequent receipt of goods. In our opinion, the frequency of such verification is reasonable.
According to the information and explanations given to us, no discrepancies were noticed on such verification.
(iii) According to the information and explanations given to us, we report that the Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnership or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Therefore the provisions of paragraph 3(iii) of the Order are not applicable to the Company.
(iv) According to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Act, with respect of grant of loans, making investments and providing guarantees, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposits covered under the provisions of sections 73 to 76 and any other relevant provision of the Companies Act, 2013 and the rules framed there under. According to information and explanation given to us, no order under its aforesaid sections has been passed by the Company Law Board, National Company Law Tribunal or the Reserve Bank of India or any court or any other Tribunal on the Company.
(vi) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of such records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and on the basis of the records of the Company examined by us, in our opinion, the Company has been regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, value added tax, cess, goods and service tax and other statutory dues applicable to it with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts in respect of statutory dues payable were outstanding as on the last day of the financial year concerned for a period of more than six months from the date they became payable as at 31st March, 2018.
(b) According to the information and explanations given to us, there are no dues of duty of custom, entry tax and income tax which have not been deposited with the appropriate authorities on account of any dispute. However according to the information and explanations given to us, the following dues of service tax, value added tax, sales tax and duty of excise which have not been deposited by the company with the appropriate authorities on account of dispute.
Nature of Statue |
Nature of Dues |
Forum at which dispute is pending |
Total Demand (in Lakhs) |
Paid under Protest (in Lakhs) |
Unpaid |
Financial Year to which in relates |
The Gujarat Vat T ax Act, 2003 |
VAT and CST |
Joint Commissioner of Commercial Tax Appeal-2, Vadodara |
203.20 |
25.04 |
178.16 |
2009-10 |
The Gujarat Vat Tax Act, 2003 |
VAT and CST |
GVAT Tax Tribunal, Ahmedabad |
132.54 |
20.00 |
112.54 |
2008-09 |
The Gujarat Vat Tax Act, 2003 |
VAT and CST |
Joint Commissioner of Commercial Tax Appeal-2, Vadodara |
43.27 |
â |
43.27 |
2004-05 and 2005-06 |
The Punjab Vat Act, 2005 |
VAT and CST |
Vat Tribunal, Punjab |
10.47 |
2.62 |
7.85 |
2009-10 |
The Finance Act, 1994 |
Service Tax |
CESTATE, Ahmedabad |
2.98 |
0.29 |
2.69 |
2009-10 to 2013-14 |
The Finance Act, 1994 |
Service Tax |
Commissioner Appeal, Vadodara |
2.90 |
0.22 |
2.68 |
2015-16 and 2016-17 |
The Finance Act, 1994 |
Service Tax |
Additional Commissioner/ Superintendent, Ankleshwar |
34.72 |
34.72 |
2005-06 to 2009-10 and 2016-17 to 2017-18 |
(viii) According to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to a financial institution, bank or government. The Company has not issued any debentures during the year or in the preceding year.
(ix) In our opinion and according to the information and explanations given to us, the company has not raised any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, clause 3 (ix) of the Order is not applicable.
(x) According to the information and explanations given to us, no fraud by the company or on the company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to information and explanations given to us and based on our examination of records of the company, the company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) According to the information and explanations given to us, the company is not a Nidhi Company. Therefore the provisions of paragraph 3 (xii) of the Order are not applicable.
(xiii) According to the information and explanations given to us, and based on our examination of the records of the company, transactions with the related parties are in compliance with section 1 77 and 188 of the Act, where applicable and the details of the transactions have been disclosed in the Ind AS financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us, the company has not made preferential allotment or private placement of shares or fully or partly convertible debentures during the year under audit. Thus the provisions of paragraph 3(xiv) of the Order are not applicable.
(xv) According to information and explanations given to us, and based on our examination of the records of the company, the company has not entered into non-cash transactions with director or person connected with them. Accordingly, provisions of paragraph 3 (xv) of the Order are not applicable.
(xvi) According to the information and explanations given to us, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE - B TO THE INDEPENDENT AUDITORSâ REPORT
(Referred to in paragraph 2(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report to the members of Vardhman Acrylics Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financials control over financial reporting of Vardhman Acrylics Limited (âthe Companyâ) as of 31st March 2018 in conjunction with our audit of standalone financial statements of company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India and the Standards on Auditing, prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Standalone financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that:
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For SCV & Co;
Chartered Accountants
Firm Reg. No.000235N
Sd/-
(Sanjiv Mohan)
Place: Gurugram Partner
Date: 03rd May, 2018 M. No. 086066
Mar 31, 2015
We have audited the accompanying financial statements of Vardhman
Acrylics Limited ("the Company") which comprises the Balance Sheet as
at 31 st March, 2015, the Statement of Profit and Loss, the Cash flow
statement for the year then ended,and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in S.134 (5) of the Companies Act, 201 3 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 1 33 of the Act, read with Rule (7) of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding the assets of the company and for preventing and detecting
fraud and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are responsible and prudent; and design and implementation, and
maintenance of adequate internal controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of
financial statements that give a true and fair view and are free from
material misstatements, 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
arid auditing standards and the matters which are required to be
included in the audit report under the provisions of the Act and the
Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143 (10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements.The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of the 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 gives a true and fair view in
order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 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, we give in the Annexure, a
statement on matters specified in paragraphs 3 and 4 of the order;
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
(b) In our opinion, proper books of account as required by law have
been kept by the company so far as it appears from our examination of
those books;
(c) The Balance Sheet, the Statement of Profit and Loss, and the cash
flow statement dealt with by this report are in agreement with the
books of account;
(d) In our opinion, the aforesaid financial statements comply with
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 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 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 best-of our information and
accordingly explanations given to us;
i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 1 6A to the
financial statements;
ii) Company did not have any long term contracts ¦ including
derivative contracts for which there were any material foreseeable
losses.
iii) There were no amounts which were to be transferred, to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT Referred to in Paragraph 1
under the heading of "Report on Other Legal and Regulatory
Requirements" of our Report of even date
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed,
assets.
(b) The Company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As part of this
programme, the management has physically verified certain fixed assets
during the year. Discrepancies noticed on such verification as compared
to book records, which were not material, have been properly adjusted
in the books of account.
(ii) (a) As explained to us,physical verification has been conducted by
management at reasonable intervals in respect of finished goods, stores
and spares and spares parts and raw material, Further, stock in the
possession and custody of third parties and stock in transit as at 31st
March, 2015 has been verified by the management with reference to
confirmation and statement of accounts or correspondence with the third
party or subsequent receipt of goods. In our opinion, the frequency of
such verification is reasonable.
(b) The procedures for the physical verification of inventory followed
by the management are, in our opinion, reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion, the Company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of
inventory as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) The company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act. Accordingly clauses 3(iii) (a)
& (b) of the order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us during the course of audit, there are adequate internal
control systems commensurate with the size of the Company and the
nature of its business with regard to purchase of inventories and fixed
assets, are for the sale of goods and services. Further, on the basis
of our examination of the books and records of the Company carried out
in accordance with the generally accepted auditing practices in India,
we have neither come across nor have been informed of any instance of a
continuing failure to correct major weaknesses in the aforesaid
internal control system.
(v) In our Opinion and according to the information and explanation
given to us, the Company has not accepted any deposits from the public
as per directives issued by the Reserve Bank of India and the
provisions of section 73 to 76 or any other relevant section of the
Companies Act and the rules framed thereunder.
(vi) We have broadly reviewed the cost accounting records maintained by
the Company pursuant to 'The Companies (Cost Records and Audit) Rule,
2014', as notified by notification no. 425 (E) dated 30th June, 2014 of
Ministry of Corporate Affairs, Government of India under section 148 of
the Companies Act, 2013. We are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained by
Company. We are, however, not required to make a detailed examination
of such books and records.
(vii) (a) In our opinion and according to the information and
explanations given to us and according to the records of the Company,
undisputed statutory dues including Provident Fund, Employees State
Insurance, Income tax, Sales tax, Wealth tax, Service tax, Custom duty,
Excise duty, Cess and other material statutory dues, wherever
applicable, have been regularly deposited with the appropriate
authorities and there are no undisputed statutory dues payable for a
period of more than six months from the date they became payable as at
31st March, 2015.
(b) According to the records of the company examined by us and the
information and explanations given to us, there are no dues of income
tax, value added tax, sales tax,Custom Duty,wealth tax,Service Tax,
Excise Duty and Cess which have not been deposited on account of any
dispute,except the following in respect of disputed Excise duty, Sates
tax, income tax :
Nature of Nature Forum where
Statue of Due Dispute is Pending
The Central Cenvat CESTAT, Ahmedabad
Excise and Credit
Salt Act, 1944
Income Tax Income Tax CIT (Appeals)
Act, 1961
Income Tax Income Tax CIT(Appeals)
Act, 1961
Income Tax Income Tax CIT(Appeals)
Act, 1961
The Cujarat VAT & CST Joint Commissioner
VAT Tax of Commercial Tax
Act, 2003 Appeal-2 Vadodara
The Gujarat VAT & CST Gujarat Value
VAT Tax Added Tax Tribunal
Act, 2003 Ahmedabad
The Gujarat VAT & CST Joint Commissioner
VAT Tax of Commercial Tax
Act, 2003 Appeal-2 Vadodara
Nature of
Statue Amount Period to
(In lacs) which the
amount relates
The Central
Excise and
Salt Act, 1944 1.17 2006-10
Income Tax
Act, 1961 186.13 Assessment
Year 2007-08
Income Tax
Act, 1961 274.68 Assessment
Year 2010-11
Income Tax
Act, 1961 132.00 Assessment
Year 2011-12
The Gujarat
VAT Tax
Act, 2003 178.16 2009-10
The Gujarat
VAT Tax
Act, 2003 112.54 2008-09
The Gujarat
VAT Tax
Act, 2003 27.74 2007-08
c) Company does not have any amount which is required to be transferred
to Investor Education and Protection Fund in accordance with relevant
provisions of Companies Act, 1956 and rules made thereunder.
(viii) The Company does not have any accumulated losses as at the end
of the financial year. There are no cash losses during the financial
year under report and in the immediately preceding financial year.
(ix) According to the information and explanations given to us and as
per the books and records examined by us, the Company has not defaulted
in repayment of dues to any financial institutions or banks and
debenture holder. '
(x) According to the information and explanations given to us, the
Company has given a counter guarantee of Rs. 232.90 Lacs in favor of
Gujarat Industrial Development Corporation (GIDC) in relation to the
corporate guarantee provided by GIDC for availment of term loans by
Bharuch ECO- Aqua Infrastructure Limited, the terms and Condition
whereof are not, prima facie, prejudicial to the interest of the
company.
(xi) As per the information and explanations given to us and on the
basis of our examination of the records, in our opinion, the term loans
taken by the Company have been applied for the purpose for which the
said loans were obtained, whenever such end use has been stipulated by
lender(s).
(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, we have neither come across any instance
of fraud on or by the Company, noticed and reported during the year,
nor have we been informed of such case by the management
For S.S. Kothari Mehta & Co.
Chartered Accounts
Firm's Registration No.- 000756N
(Kamal Kishore)
Place: New Delhi Partner
Date : May 04, 2015 Membership No. 078017
Mar 31, 2014
We have audited the accompanying Financial Statements of Vardhman
Acrylics Limited ("the Company") which comprises the Balance Sheet as
at 31st March, 2014,and the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and Notes to the Financial
Statements comprising of a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the act") read with the General Circular
15/ 2013 dated 13 September 2013 of the Ministry of corporate Affairs
in respect of Section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation, and maintenance of
internal controls relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatements, 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 the material misstatement of the financial statements,
whether due to error or fraud. In making those risk assessments, the
auditor considers internal control relevant to the Company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness
of the entity''s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and 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 said 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:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
ii) In the case of Statement of Profit and Loss, of the profit of the
Company for the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash flows 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 section
227 of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order;
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss and 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
sub-section (3C) of section 211 of the Companies Act, 1956 read with
the General Circular 15/2013 dated 13 September 2013 of the Ministry of
corporate Affairs in respect of Section 133 of the Companies Act, 2013;
and
e. On the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our Report of even date
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As part of this
programme, the management has physically verified certain fixed assets
during the year.Discrepancies noticed on such verification as compared
to book records, which were not material, have been properly adjusted
in the books of account.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
2. (a) As explained to us, physical verification has been conducted
by the management at reasonable intervals in respect of finished goods,
stores and spare parts and raw materials. Further, stocks in the
possession and custody of third parties and stock in transit as at 31st
March, 2014 has been verified by the management with reference to
confirmation and statement of account or correspondence with the third
parties or subsequent receipt of goods. In our opinion, the frequency
of such verification is reasonable.
(b) The procedures for the physical verification of inventory followed
by the management are, in our opinion, reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion, the Company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of
inventory as compared to book records were not material and have been
properly dealt with in the books of account.
3. (a) The Company has not granted any loan, secured or unsecured,
to companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(b) Since there are no such loans, comments regarding terms and
conditions, repayment of the principal amount, interest due thereon and
overdue amounts are not required.
(c) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(d) Since there are no such loans, comments regarding terms and
conditions, repayment of the principal amount, interest due thereon and
overdue amounts are not required.
4. In our opinion and according to the information and explanations
given to us during the course of audit, there are adequate internal
control systems commensurate with the size of the Company and the
nature of its business with regard to purchase of inventories and fixed
assets and for the sale of goods and services. Further, on the basis of
our examination of the books and records of the Company, carried out in
accordance with the generally accepted auditing practices in India, we
have neither come across nor have we been informed of any instance of
major weaknesses in the aforesaid internal control systems.
5. (a) Based on the audit procedures applied by us and according
to the information and explanations provided by the management, there
are no transactions which are required to be entered into the register
maintained under section 301 of the Companies Act, 1956.
(b) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that there are no transactions made in pursuance of contracts
or arrangements required to be entered in the register maintained under
section 301 of the Companies Act, 1956 and exceeding the value of five
lacs rupees in respect of each party during the year.
6. In our opinion and according to information and explanations given
to us, the Company has not accepted any deposits from the public within
the meaning of Section 58A and Section 58AA or any other relevant
provisions of the Companies Act, 1956 and rules framed thereunder.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost accounting records maintained by
the Company pursuant to the rules prescribed by the Central Government
for the maintenance of cost records under clause (d) of sub-section (1)
of section 209 of the Companies Act, 1956 and are of the opinion that,
prima facie, the prescribed accounts and records have been made and
maintained. We are, however, not required to make a detailed
examination of such books and records.
9. (a) In our opinion and according to the information and
explanations given to us and according to the records of the Company,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income tax, Sales tax,
Wealth tax, Service tax, Custom duty, Excise duty, Cess and other
material statutory dues, wherever applicable, have been regularly
deposited with the appropriate authorities during the year and there
are no undisputed statutory dues payable for a period of more than six
months from the date they became payable as at 31st March, 2014.
(b) According to the records of the Company examined by us and the
information and explanations given to us, there are no dues of Sales
tax, Income tax, Custom duty, Wealth tax, Service tax, Excise dutyand
Cess which have not been deposited on account of any dispute, except
the following in respect of disputed Excise duty, Sales tax:
Nature of Statute Nature of Due Amount
(Rs. In Lacs)
The Central Excise Cenvat Credit 1.16
and Salt Act, 1944
The Gujarat Vat Interest on sales 27.74
Tax Act, 2003 Tax demand
The Gujarat Vat VAT & CST 112.54
Tax Act, 2003
The Gujarat Vat VAT & CST 267.93
Tax Act, 2003
Income Tax Income Tax 22.56
Act, 1961
Income Tax Income Tax 184.00
Act, 1961
Nature of Statute Forum where Period
Dispute is Pending
The Central Excise CESTAT, 2006-10
and Salt Act 1944 Ahmedabad
The Gujarat Vat Joint Commissioner 2007-08
Tax Act 2003 of Commercial Tax Appeals 2 Vadodara
The Gujarat Vat Joint Commissioner 2008-09
TAx ACt 2003 of Commercial Tax Appeals 2 Vadodara
The Gujarat Vat Joint Commissioner 2009-10
Tax Act 2003 of Commercial Tax Appeals 2 Vadodara
(Company is in process to
file the appeal)
Income tax Act 1961 CIT (Appeals) AY 2011-12
Income Tax Act 1961 CIT (Appeals) AY 2006-07
10. The Company does not have accumulated losses as at the end of the
financial year. There are no cash losses during the financial year and
in the immediately preceding financial year.
11. According to the information and explanations given to us and as
per the books and records examined by us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company does not fall within the category of Chit fund/Nidhi/
Mutual Benefit fund/Society and hence the related reporting
requirements of the Order are not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments and hence the related reporting requirements of the
Order are not applicable.
15. According to the information and explanation given to us, the
Company has given a counter guarantee of Rs. 232.90 lacs in favor of
Gujarat Industrial Development Corporation (GIDC) in relation to the
corporate guarantee provided by GIDC for availment of term loans by
Bharuch Eco-AquaInfrastructure Limited, the terms and conditions
whereof are not, prima facie, prejudicial to the interest of the
Company.
16. In our opinion and according to the information and explanations
given to us, there is no term loan taken by the Company during the
year.
17. According to the information and explanations given to us and as
per the books and records examined by us, on an overall examination of
the balance sheet of the Company, the funds raised by the Company on
short-term basis have not been applied for long- term investment.
18 The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. According to the information and explanations given to us and on
the basis of records examined by us, the Company has not issued any
debentures.
20. The Company has not raised any money by way of public issue during
the year.
21. 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, we have neither come across any instance
of fraud on or by the Company, noticed and reported during the year,
nor have we been informed of such case by the management.
For S.S. Kothari Mehta & Co.
Chartered Accountant
Firm Registration No. 000756N
Kamal Kishore
Place: New Delhi Partner
Date: 19th May, 2014 Membership No. 078017
Mar 31, 2013
Report On the Financial Statements
We have audited the accompanying Financial Statements of Vardhman
Acrylics Limited ("the Company") which comprises the Balance Sheet as
at 31st March, 2013 and the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended and Notes to the Financial
Statements comprising of a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible forthe 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 controls relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatements, 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 the material misstatement of the financial statements,
whether due to error or fraud. 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 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 said 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:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2013;
ii) In the case of Statement of Profit and Loss, of the profit of the
Company for the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash flows 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 section
227 of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order;
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss and 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
sub-section (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our Report of even date
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As part of this
programme, the management has physically verified certain fixed assets
during the year. Discrepancies noticed on such verification as compared
to book records were not material, and have been properly adjusted in
the books of account.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
2. (a) As explained to us, physical verification has been conducted by
the management at reasonable intervals in respect of finished goods,
stores and spare parts and raw materials. Further, stocks in the
possession and custody of third parties and stock in transit as at 31
st March, 2013 have been verified by the management with reference to
confirmation of statement of account or correspondence with the third
parties or subsequent receipts of goods. In ouropinion, the frequency
of such verification is reasonable.
(b) The procedures for the physical verification of inventories
followed by the management are, in our opinion, reasonable and adequate
in relation to the size of the Company and the nature of ts business.
(c) In our opinion, the Company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of
inventory as compared to book records were not material and have been
properly dealt with in the books of account.
3. (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
; (b) Since there are no such loans, comments regarding terms &
conditions, repayment of the principal amount, interest due thereon and
overdue amounts are not required.
(c) The Company has not taken any loans, secured or unsecured, from
companies, firms or other partes listed in the register maintained
under section 301 of the Companies Act, 1956.
(d) Since there are no such loans, comments regarding terms &
conditions, repayment of the principal amount, interest due thereon and
overdue amounts are not required.
4. In our opinion and according to the information & explanations
given to us during the course of audit, there are adequate internal
control systems commensurate with the size of the Company and the
nature of its business with regard to purchase of inventories and fixed
assets and for the sale of goods and services. Further, on the basis of
our examination of the books and records of the Company, carried out in
accordance with the generally accepted auditing practices in India, we
have neither come across nor have we been informed of any instance of a
major weakness in the aforesaid internal control systems.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, there are
no transactions which are required to be entered into the register
maintained under section 301 of the Companies Act, 1956.
(b) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that, there are no transactions made in pursuance of contracts
or arrangements required to be entered in the register maintained under
section 301 of the Companies Act,1956 and exceeding the value of five
lacs rupees in respect of each party during the year.
6. In our opinion and according to information and explanations given
to us, the Company has not accepted any deposits within the meaning of
Section 58A, 58AA or any relevant provision of Companies Act, 1956 and
rules framed there under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost accounting records maintained by
the Company pursuant to the Companies (Cost Accounting Records) Rules,
2011 prescribed by the Central Government under section 209 (1 )(d) of
the Companies Act, 1956and are of the opinion that, prima facie, the
prescribed records have been made & maintained. We are, however, not
required to carry out a detailed examination of the same.
9. (a) In our opinion and according to the information and
explanations given to us and according to the records of the Company,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income tax, Sales tax,
Wealth tax, Service tax, Custom duty, Excise duty, Cess and other
material statutory dues, wherever applicable, have been regularly
deposited with the appropriate authorities during the year and there
are no such undisputed statutory dues payable for a period of more than
six months from the date they became payable as at 31 st March, 2013.
10. The Company does not have accumulated losses as at the end of
defaulted in repayment of dues to any financial institution or bank
requirements of the Order are not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or tradine t in snaresd securities, debentures
sasESKSsr MM "¦"*g requirements
15. According to the information and explanations given to us, the
Company has given a counter guarantee of Rs. 232.90 lacs in favour
17. According to the information and explanations given to us and as
Company on short-term basis have not been applied for long-term section
301 of the Companies Act, 1956.
20. The Company has not raised any money by way of public issue during
the years. year, nor have we been informed of such case by the
management.
For S.S.KOTHARI MEHTA & COMPANY
Chartered Accountants
Firm Registration No. 000756N
Kamal Kishore
Dated: May 28, 2013 Partner
Place: New Delhi Membership No. 078017
Mar 31, 2012
1. We have audited the attached balance sheet of VARDHMAN ACRYLICS
LIMITED ("the Company"), as at 31st March, 2012, the statement of
profit and loss 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 the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 {as
amended by the Companies(Auditors' Report) (Amendment) Order 2004}
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956 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 a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(i) 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;
(ii) 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;
(iii) 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;
(iv) In our opinion, the balance sheet, statement of profit and loss
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;
(v) On the basis of written representations received from the
directors, as on 31st March 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2012 from being appointed as a director in terms of clause
(g) of sub-section(1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said 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, 2012;
(b) in the case of the statement of profit and loss, of the profit for
the year ended on that date; and
(c) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date,
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. All the assets have been physically verified by the management
during the year in terms of a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such verification.
3. In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
4. As explained to us, physical verification has been conducted by the
management at reasonable intervals in respect of finished goods, stores
and spare parts and raw materials. Further, stock in the possession
and custody of third parties and stock in transit as at 31st March,2012
have been verified by the management with reference to confirmation or
statement of account or correspondence with the third parties or
subsequent receipts of goods. In our opinion, the frequency of
verification is reasonable.
5. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
6. On the basis of our examination of the records of inventory, in our
opinion, the Company has maintained proper records of inventory and as
explained to us, the discrepancies noticed on physical verification of
inventory as compared to book records were not material and have been
properly dealt with in the books of account.
7. According to the records of the company examined by us and the
information and explanations given to us, the company has neither
granted nor taken any loans, secured or unsecured, to or from
companies, firms and other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Consequently, clauses
(iii)(a)to (iii))(g) of paragraph 4 of CARO are not applicable.
8. 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 purchase of inventory and fixed assets and for
the sale of goods. Further, on the basis of our examination of the
books and records of the Company, carried out in accordance with the
generally accepted auditing practices in India, we have neither come
across nor have we been informed of any instance of a continuing
failure to correct major weaknesses in the aforesaid internal control
systems.
9. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, there are no
transactions which are required to be entered into the register
maintained under section 301 of the Companies Act, 1956.
10. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that, there are no transactions made in pursuance of contracts
or arrangements required to be entered in the register maintained under
section 301 of the Companies Act,1956 and exceeding the value of five
lacs rupees in respect of each party during the year.
11. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits within the
meaning of section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and rules framed thereunder.
12. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
13. We have broadly reviewed the cost records maintained by the Company
pursuant to' The Companies (Cost Accounting Records) Rules 2011' as
notified by notification no. GSR 429(E) dated 3 June 2011 of Ministry
of Corporate Affairs, Government of India under section 209(1)(d) of
the Companies Act, 1956. We are of the opinion that, prima facie, the
prescribed records have been made and maintained by the Company. We
are, however, not required to make a detailed examination of such
records.
14. According to the records of the Company examined by us and the
information and explanations given to us, in our opinion, the Company
is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, income-tax,
sales-tax, wealth-tax, customs duty, excise duty, cess and other
statutory dues applicable to it.
15. According to the records of the Company examined by us and the
information and explanations given to us, no undisputed amounts payable
in respect of income tax, wealth tax, sales tax, customs duty and
excise duty were outstanding, as at 31st March, 2012 for a period of
more than six months from the date they became payable.
16. According to the records of the Company examined by us and the
information and explanations given to us, there are no dues of sales
tax, income tax, customs duty, wealth tax, service tax, excise duty and
cess which have not been deposited on account of any dispute, other
than the following: -
Name of Nature of dues Amount due Forum Period
statute (Rs.) where
pending
The Gujarat Purchase/Sales 43,27,734/- Joint 2006-2007,
Sales Tax Tax on fuel Commissioner 2007-2008
Act,1969 Of Sales Tax-
Vadodara
The Central Cenvat Credit 12,61,595/- CESTAT - 2005-2006
Excise Act, Ahmedabad 2007-2008,
1944 2008-2009,
2009-2010
The Gujarat Interest on
Sales 27,73,983/- Joint 2007-2008
Sales Tax Tax Demand Commissioner
Act,1969 Of Sales
Tax-
Vadodara
17. The Company does not have accumulated losses as at the close of
the financial year. The Company has not incurred any cash losses during
the financial year covered by our audit and the immediately preceding
financial year.
18. According to the records of the Company examined by us and the
information and explanations given to us, in our opinion, the Company
has not defaulted in repayment of dues to banks and debenture holders.
19. According to the information and explanation given to us, the
company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures or other securities.
20. The Company does not fall within the category of Chit Fund, Nidhi
Fund or Mutual Benefit Fund/Societies and hence the related reporting
requirements of the order are not applicable.
21. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments and hence the related reporting requirements of the
Order are not applicable.
22. According to the information and explanations given to us, the
Company has given a counter guarantee of Rs. 2,32,90,000 lacs in favour
of Gujarat Industrial Development Corporation (GIDC) in relation to the
corporate guarantee provided by GIDC for availment of term loans by
Bharuch Eco-Aqua Infrastructure Limited, the terms and conditions
whereof are not, prima facie, prejudicial to the interest of the
Company.
23. According to the records of the Company examined by us and the
information and explanations given to us, in our opinion, there are no
term loans taken by the Company during the year.
24. According to the information and explanations given to us and on
the basis of an overall examination of the balance sheet of the
Company, in our opinion, generally, there are no funds raised by the
Company on short-term basis, which have been used for long-term
investment.
25. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956.
26. During the period covered by our audit report, the Company has not
issued any debentures.
27. During the period covered by our audit report, the Company has not
raised any money by public issue.
28. 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, we have neither come across any instance
of fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For S.S. Kothari Mehta & Co.
Chartered Accountants
Firm Registration No.: 000756N
(CA Kamal Kishore)
Place : New Delhi Partner
Dated : 9th May, 2012 Membership No.: 078017
Mar 31, 2011
1. We have audited the attached balance sheet of VARDHMAN ACRYLICS
LIMITED ("the Company"), as at 31st March, 2011, 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 the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 (as
amended by Companies (Auditors' Report) (Amendment) Order, 2004) issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956 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 a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
i) 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;
(ii) 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;
(iii) The balance sheet, profit and loss account and cash flow
statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the 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;
(v) In our opinion and to the best of our information and according to
the explanations given to us, the said 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 31 st March, 2011;
(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.
(vi) On the basis of written representations received from the
directors, as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31 st March, 2011 from being appointed as a director in terms of clause
(g) of sub- section (1) of section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date,
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. All the assets have been physically verified by the Management
during the year in terms of a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed
on such verification.
3. In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
4. As explained to us, physical verification has been conducted by the
Management at reasonable intervals in respect of finished goods, stores
and spare parts and raw materials. Further, stock in the possession
and custody of third parties and stock in transit as at 31 st March,
2011 have been verified by the management with reference to
confirmation or statement of account or correspondence with the third
parties or subsequent receipts of goods. In our opinion, the frequency
of such verification is reasonable.
5. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
6. On the basis of our examination of the records of inventory, in our
opinion, the Company has maintained proper records of inventory and as
explained to us, the discrepancies noticed on physical verification of
inventory as compared to book records were not material and have been
properly dealt with in the books of account.
7. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
Consequently, clauses (iii)(a) to (iii)(g) of paragraph 4 of CARO are
not applicable.
8. 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 purchase of
inventory and fixed assets and for the sale of goods. Further, on the
basis of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing
practices in India, we have neither come across nor have we been
informed of any instance of a continuing failure to correct major
weaknesses in the aforesaid internal control system.
9. Based on the audit procedures applied by us and according to the
information and explanations given to us by the Management, there are
no transactions which are required to be entered in the register
maintained under Section 301 of the Companies Act, 1956.
10. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that, there are no transactions made in pursuance of contracts
or arrangements required to be entered in the register maintained under
section 301 of the Companies Act, 1956 and exceeding the value of five
lacs rupees in respect of each party during the year.
11. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits within the
meaning of Section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and rules framed thereunder.
12. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
13. According to the information and explanation given to us, the
Central Government of India has not prescribed the maintenance of cost
records under section 209(1)(d) of the Companies Act, 1956 for any of
the products manufactured by the Company.
14. According to the records of the Company examined by us and the
information and explanations given to us, in our opinion, the Company
is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, income-tax,
sales-tax, wealth-tax, customs duty, excise duty, cess and other
statutory dues applicable to it.
15. According to the records of the Company examined by us and the
information and explanations given to us, no undisputed amounts payable
in respect of income-tax, wealth-tax, sales-tax, customs duty, and cess
were outstanding, as at 31st March, 2011 for a period of more than six
months from the date they became payable.
16. According to the records of the Company examined by us and the
information and explanations given to us, there are no dues of
sales-tax, income-tax, customs duty, wealth-tax, service-tax, excise
duty and cess which have not been deposited on account of any dispute,
other than the following: -
Sr. Nature of dues Amount due Forum where pending
No. (Rs. in lacs)
1. Purchase/Sales 43.28 Joint Commissioner of
Tax on fuel Sales Tax-Baroda
2. Cenvat Credit 12.04 CESTAT-Ahmedabad
3. Cenvat Credit 2.34 Commissioner (Appeals)- Surat
17. The Company does not have accumulated losses as at the close of
the financial year. The Company has not incurred any cash losses during
the financial year covered by our audit and the immediately preceeding
financial year.
18. According to the records of the Company examined by us and the
information and explanations given to us, in our opinion, the Company
has not defaulted in repayment of dues to bank and debenture holders.
19. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
20. The Company does not fall within the category of Chit fund/
Nidhi/Mutual Benefit Fund/Society and hence the related reporting
requirements of the Order are not applicable.
21. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments and hence the related reporting requirements of the
Order are not applicable.
22. According to the information and explanations given to us, the
Company has given a counter guarantee of Rs. 232.90 lacs in favour of
Gujarat Industrial Development Corporation (GIDC) in relation to the
corporate guarantee provided by GIDC for availment of term loans by
Bharuch Eco-Aqua Infrastructure Limited, the terms and conditions
whereof are not, prima facie, prejudicial to the interest of the
Company.
23. According to the records of the Company examined by us and the
information and explanations given to us, in our opinion, there are no
term loans taken by the Company during the year.
24. According to the information and explanations given to us and on
the basis of an overall examination of the balance sheet of the
Company, in our opinion, generally, there are no funds raised by the
Company on short-term basis, which have been used for long-term
investment.
25. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
26. During the period covered by our audit report, the Company has not
issued any debentures.
27. During the period covered by our audit report, the Company has not
raised any money by Public Issue.
28. 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, we have neither come across any instance
of fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For S.S. Kothari Mehta & Co.
Chartered Accountants
Firm Registration No.: 000756N
(CA Kamal Kishore)
Partner
Membership No.: 078017
Place : New Delhi
Dated : 9th May, 2011
Mar 31, 2010
1. We have audited the attached balance sheet of VARDHMAN ACRYLICS
LIMITED, as at 31st 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 the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 {as
amended by Companies (Auditors Report) (Amendment) Order, 2004} issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956 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 a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
i) 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;
(ii) 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;
(iii) The balance sheet, profit and loss account and cash flow
statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the 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;
(v) On the basis of written representations received from the
directors, as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none
of the directors is disqualified as on 31st March, 2010 from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said 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, 2010;
(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.
ANNEXURE TO THE AUDITORS REPORT Referred to in paragraph 3 of our
report of even date,
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. All the assets have been physically verified by the Management
during the year in terms of a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed
on such verification.
3. In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
4. The inventory of the Company has been physically verified by the
Management during the year. In our opinion, the frequency of
verification is reasonable.
5. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
6. On the basis of our examination of the records of inventory, in our
opinion, the Company has maintained proper records of inventory and as
explained to us, the discrepancies noticed on physical verification of
inventory as compared to book records were not material and have been
properly dealt with in the books of account.
7. We have been informed that there are no loans granted in pursuance
of contracts or arrangements that need to be entered into the register
maintained under Section 301.
8. We have been informed that there are no loans taken in pursuance of
contracts or arrangements that need to be entered into the register
maintained under Section 301.
9. 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 purchase of inventory and fixed assets and for
the sale of goods. Further, on the basis of our examination of the
books and records of the Company, carried out in accordance with the
generally accepted auditing practices in India, we have neither come
across nor have we been informed of any instance of a continuing
failure to correct major weaknesses in the aforesaid internal control
procedures.
10. Based on the audit procedures applied by us and according to the
information and explanations given to us by the Management, there are
no transactions which are required to be entered into the register
maintained under Section 301 of the Companies Act, 1956.
11. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits within the
meaning of Section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and rules framed thereunder.
12. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
13. The Central Government of India has not prescribed the maintenance
of cost records under section 209(1)(d) of the Companies Act, 1956 for
any of the products manufactured by the Company.
14. According to the records of the Company examined by us and the
information and explanations given to us, in our opinion, the Company
is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, income-tax,
sales-tax, wealth-tax, customs duty, excise duty, cess and other
statutory dues applicable to it.
15. According to the records of the Company examined by us and the
information and explanations given to us, no undisputed amounts payable
in respect of income-tax, wealth-tax, sales-tax, customs duty and
excise duty were outstanding, as at 31st March, 2010 for a period of
more than six months from the date they became payable.
16. According to the records of the Company examined by us and the
information and explanations given to us, there are no dues of
sales-tax, income-tax, customs duty, wealth-tax, service-tax, excise
duty and cess which have not been deposited on account of any dispute,
other than the following: -
Sr. Nature of dues Amount due Forum where pending
No. (Rs. in lacs)
1. Purchase/Sales 43.28 Joint Commissioner of
Tax on fuel Sales
Tax-Baroda
2. Cenvat Credit 56.08 CESTAT-Ahmedabad
3. Cenvat Credit 0.69 Commissioner (Appeals)-
Surat
4. Cenvat Credit 9.92 Appeals to be filed
17. The Company does not have accumulated losses as at the close of
the financial year. The Company has not incurred any cash losses during
the financial year covered by our audit and the immediately preceeding
financial year.
18. According to the records of the Company examined by us and the
information and explanations given to us, in our opinion, the Company
has not defaulted in repayment of dues to any financial institution or
bank during the year.
19. According to the information and explanations given to us, the
Company has given a counter guarantee of Rs. 232.90 lacs in favour of
Gujarat Industrial Development Corporation (GIDC) in relation to the
corporate guarantee provided by GIDC for availment of term loans by
Bharuch Eco-Aqua Infrastructure Limited, the terms and conditions
whereof are not, prima facie, prejudicial to the interest of the
Company.
20. According to the records of the Company examined by us and the
information and explanations given to us, in our opinion, there are no
term loans taken by the Company during the year.
21. According to the information and explanations given to us and on
the basis of an overall examination of the balance sheet of the
Company, in our opinion, generally, there are no funds raised by the
Company on short-term basis, which have been used for long-term
investment.
22. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
23. During the period covered by our audit report, the Company has not
issued any debentures.
24. During the period covered by our audit report, the Company has not
raised any money by Public Issue.
25. 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, we have neither come across any instance
of fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
26. The other provisions of the Order do not appear to be applicable
for the year under report.
For S.S. Kothari Mehta & co.
Chartered Accountants
(J. Krishnan)
Place :New Delhi Partner
Dated : 28th April, 2010 Membership No.: 84551