Mar 31, 2014
We have audited the accompanying financial statements of VHCL
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-Section(3C) of Section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-Section(4A) of Section227 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 Section227(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, subject to Note No: 10 of the Notes to Accounts.
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 March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-Section(1) of
Section274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under Section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of VHCL Industries Limited on the accounts of the
Company for the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and on
the basis of our examination of the books of account, 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. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(b) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
taken loans secured or unsecured from companies, firms or other parties
listed in the register maintained under Section 301 of the Companies
Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. (a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in Section 301 of
the Act have been entered in the Register required to be maintained
under that section.
(b) As per information & explanations given to us and in our opinion,
the transaction entered into by the Company with parties covered u/s
301 of the Act and aggregating during the year to Rs. 5,00,000/- ( Rs.
Five Lacs ) or more in respect of each party has been made at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
6. The Company has not accepted any deposits from the public covered
under Section 58A and 58AA of the Companies Act, 1956.
7. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-Section(1) of Section 209 of the Act
and we are of the opinion that prima facie the prescribed accounts and
records have been made and maintained.
9. (a) 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 to the extent applicable and any
other statutory dues have not been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were outstanding statutory dues as on 31st of March,
2014 for a period of more than six months from the date they became
payable as per detail given below :
Name of the Statute Nature of dues Amount (Rs. In Lacs)
Income Tax Act, 1961 Income Tax (A.Y. 2013-14) 253.98
Service Tax Act Service Tax 12.11
Central Sales Tax CST 2% 53.29
Income Tax Act, 1961 Dividend Tax 11.99
Income tax Act, 1961 Tax Deducted at Source 8.73
(b) According to the information and explanations given to us, there
are no amounts payable in respect of income tax, wealth tax, service
tax, sales tax, customs duty and excise duty which have not been
deposited on account of any disputes.
10. The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, the Company has defaulted in
repayment of dues to a financial institution, bank or debenture
holders. The Company has defaulted in its obligation for repayment of
LC on maturity to Banks and Financial Institutions.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
has invested in shares and proper records & timely entries have been
made therein. The Investments specified are held in their own name.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the information given by the
management, we report that the Company has raised any term loans during
the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the company
has not made any preferential allotment of shares during the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For RAKESH R.AGARWAL & ASSOCIATES
Chartered Accountants
FRN 119168W
Sd/-
(RAKESH R.AGARWAL)
Partner
M.NO:100223
Place : Mumbai
Date : May 30, 2014
Mar 31, 2013
We have audited the accompanying financial statements of VHCL
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-Section(3C) of Section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case ofthe Profit and Loss Account, ofthe profit for the year
ended on that date; and
c) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-Section(4A) of Section227 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 Section227(3) ofthe 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, subject to Note No: 9 of the Notes to Accounts.
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 March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-Section(1) of
Section274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under Section 441A ofthe
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of VHCL Industries Limited on the accounts of the
Company for the year ended 31st March, 2013.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 ofthe
Companies Act, 1956. Consequently, the provisions of clauses iii (b),
iii(c) and iii (d) of the order are not applicable to the Company.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
taken loans secured or unsecured from companies, firms or other parties
listed in the register maintained under Section 301 ofthe Companies
Act, 1956
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size ofthe Company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in Section 301
ofthe Act have been entered in the Register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the Company with parties covered u/s
301 of the Act and aggregating during the year to Rs. 5,00,000/- ( Rs.
Five Lacs ) or more in respect of each party has been made at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
6. The Company has not accepted any deposits from the public covered
under Section 58A and 58AA of the Companies Act, 1956.
7. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-Section(1) of Section 209 of the Act
and we are of the opinion that prima facie the prescribed accounts and
records have been made and maintained.
9. (a) 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 to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2013 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
10. The Company does not have any accumulated loss and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
has invested in shares and proper records & timely entries have been
made therein. The Investments specified are held in their own name.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the information given by the
management, we report that the Company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2013, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the company
has not made any preferential allotment of shares during the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For Sarda Soni Associates
Chartered Accountants
FRN: 117235W
Place: Mumbai Manoj Kumar Jain
Date: 29/05/2013 (Partner)
Membership No. : 120788
Mar 31, 2012
We have audited the attached Balance Sheet of the M/s. VHCL INDUSTRIES
LIMITED as at 31sti March 2012 and also Statement of Profit & Loss
Account and the Cash Flow Statement of the Company for the year ended
31 st March 2012 annexed hereto, 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.
We conducted our audit in accordance with Auditing Standards generally
accepted in India. Those standards require That we plan and perform the
audit to obtain reasonable assurance about whether the financial
Statements are free of material misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosure in financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003, as
amended by Companies (Auditor's Report) (Amendment) Order, 2004 issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956 and on the basis of such checks we considered appropriate and
according to the information and explanation given to us during the
course of audit, we enclose in Annexure hereto statement on the matters
specified in paragraphs 4 A 5 of the said Order.
2. Further to our comments in the Annexure referred to in paragraph
above, we report that:-
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of the
books.
c) The Balance Sheet, Statement of Profit & Loss Account and Cash Flow
Statement referred to in this Report are in agreement with the books of
account,
d) In our opinion, the Balance Sheet, Statement of Profit & Loss
Account and Cash Flow Statement dealt with by this report are in
compliance with the mandatory Accounting Standards referred to in
section 211 (3C) of the Companies Act, 1956 to the extent applicable
except reported separately.
e) On the basis of written representations received from the
Directors/Companies as on 31st March 2012 and taken on record by the
Board of Directors, we report that none of the Directors arc
disqualified as on 31st March 2012 from being appointed as a director
in terms of clause (g) of sub-section (I) of section 274 of the
Companies Act,1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the Significant Accounting Policies and other notes thereon, give
the information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
1) In so far as it relates to the Balance Sheet, of the state of
affairs of the Company as at 31st March 2012.
2) In so far as it relates to the Statement of Profit & Loss Account,
of the Profit of the C, for the year ended on that date.
3) In the case of Cash Flow Statement, of the cash flows of the Company
for the year ended on that date.
REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE
1. Fixed Assets :
a) The Company has maintained proper records showing full particutars
including quantitative details and situation of fixed assets.
b) As per the in formation and explanations given to us, the Company
has a system of physical verification of all fixed assets and
accordingly the management has physically verified the fixed assets. In
our opinion the frequency of the verification is reasonable'. No
material discrepancies have been noticed on verification.
c) During the year, the Company has not disposed off a substantial part
of fixed assets.
2. Inventory :
a) In our opinion, the procedures of physical verification of stocks
followed by the Management at reasonable intervals is satisfactory.
b) The Company is maintaining proper records of Inventory. No material
discrepancies have been noticed on physical verification of stocks as
compared to book record in so far as appears from our examination of
the books,
3. Loans and Advances
a) The Company has not granted any loans to Companies, firms or other
parties listed in the Register maintained under Section 301 off the
Companies Act, 1956. The other sub-clauses 3(b) to 3(d) of the Report
are not applicable
b) The Company has taken loans secured or unsecured from Companies,
firms or other parties listed in the Register maintained under Sect ion
301 of the Companies Act, 1956. The terms and conditions of such loans
are not prejudicial to the interest of the Company.
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business.
5. (a) 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 particulars of contracts and arrangements that need to
be entered into the Register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the Register maintained under Section 301 of
the Companies Act, 1956 and aggregating during the year to Rs. 5,
00,000/ - (Rs. Five Lacs) or more in respect of each party have been
made at prices which are reasonable having regard to prevailing market
prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Section 58A and 58AA of the Companies Act, 1956
and Rules framed here under. Accordingly, paragraph 4(vi) of the Order
is not applicable,
7. In our opinion, and according to information and explanation given
to us, the Company has an internal Audit system commensurate with its
size and the nature of its business.
8. The Central Government has not prescribed maintenance of cost
records under Section 209 (1) (d) of the Companies Act, 1956.
Accordingly, paragraph 4(vii) of the Order is not applicable.
9. (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of accounts in respect of undisputed
statutory dues including Provident Fund. Employees' State Insurance.
Income Tax, Wealth Tax, Service Tax, Customs Duty and other statutory
dues have been generally regularly deposited during the year with the
appropriate authorities. As explained to us, the Company did not have
any dues on account of Sales Tax, Cess, Excise duty and Investor
Education and Protection Fund.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Employees
State Insurance , Income Tax, Wealth Tax, Service Tax, Customs Duty,
Cess and other statutory dues were in arrears as at 31st March, 2011
for a period of more than six months from the date they became payable.
(c) According to the information and explanation given to us and books
and records examined by us, mere are no disputed and outstanding
amounts payable in respect of Wealth Tax, Sales Tax, Income Tax, Excise
duty, Customs duty. Service tax, Provident Fund and ESI outstanding as
at 31st March, 2012 except the following:
Name of the Nature of Forum where Amount
Statute dues dispute is pending (Rs. In Lacs)
Income Tax Income Tax CIT(Appeal), 16.22
Act. 1961 (A.Y. 2009-10) Kolkata
10. The Company does not have accumulated losses at the end of the
Financial Year. The Company has not incurred any cash loss during the
Financial Year and in the Immediately preceding year.
11. In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
similar securities. Accordingly, paragraph 4(xii) of the Order is not
applicable.
12. In our opinion and according to the information and explanations
given to us, the term loan outstanding at the end of the Financial Year
was applied for the purpose for which the loans were raised.
13. The Company has not raised any money by public issue, therefore the
requirement of disclosure by the Management on the end use of money
raised by public issues and verification of the same is not applicable.
14. In our opinion and according to the information and explanations
given to us, the Company has not used any funds raised on short term
basis for long term investment and vice versa.
15. As per information given to us, special statutes regarding chit
Fund, Nidhi or mutual benefit society are not applicable to the
Company.
16. During the year covered by our Audit Report, the Company has
invested in shares and proper records have been maintained for the
transactions and contracts and timely entries have been made therein.
The shares are held by the Company in its own name.
17. During the course of our examination of books of accounts and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanations given to us, we have not come across any instance of
fraud on or by the Company, noticed or reported during the year, that
causes the financial statements to be materially misstated, nor have we
been informed of such cases by the Management.
18. Other clauses of the Order are not applicable to Company for the
year.
Sd/-
Hiteshkumar Shah
Chartered Accountant
Place: Mumbai
Date : August 14, 2012.
Mar 31, 2011
1. We have audited the attached Balance Sheet of Jhaveri Weldflux
Limited as at March 31, 2011 and also the Profit and Loss account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material 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 (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, 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 the 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 the
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 the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the directors is disqualified as on 31 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.
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 March 31, 2011; and
b) in the case of the Profit and Loss Account, of the loss 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 Auditors' Report
ANNEXURE REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF JHAVERI WELDFLUX LIMITED FOR THE YEAR ENDED 31ST MARCH,
2011.
1) (a) The Company has no Fixed Assets as on 1st April, 2010 and as on
31st March, 2011. (b) Since the Company does not have any Fixed
Assets, the question of their physical verification does not arise.
2) (a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3) As informed, the Company has neither granted nor taken any loans,
secured or unsecured to/from companies, firms or other parties covered
in the register maintained under section 301 of the Companies Act,
1956.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit, no major weakness has
been noticed in the internal controls in respect of these areas.
5) (a) According to the information and explanations provided by the
management, we are of the opinion that the transactions that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions with parties with whom transactions
exceeding value of Rupees five lakhs have been entered into during the
financial year are at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6) The Company has not accepted any deposits from public.
7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8) To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause
(d) of sub-section (1) of section 209 of the Companies Act, 1956 for
the products of the Company.
9) (a) The Company is regular in depositing undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income-tax,
Excise Duty, cess and other statutory dues applicable to it with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of provident
fund, investor education and protection fund, employees' state
insurance, income-tax, wealth-tax, sales-tax, customs duty, excise
duty, cess and other undisputed statutory dues were outstanding, at the
year end, for a period of more than six months from the date they
became payable.
(b) According to the records of the Company, there are no dues
outstanding of income taxes, excise duty, sales tax, cess on account of
any dispute.
(c) The Company's unit has been established in a backward area of
Khalapur. According to the "Exemption / deferral - 1988" scheme of the
Government of Maharashtra such units are entitled to differ sales tax
payments to future years. The balance outstanding as sales tax payable
upto 31st March, 2011 is Rs. 6,04,116/-.
10) The accumulated losses of the Company are more than ninety percent
of its net worth. The Company has incurred cash losses during the
financial year covered by our audit and also in the immediately
preceding financial year.
11) The Company does not have any outstanding dues to financial
institution, bank or debenture holders. Therefore the provisions of
clause (xi) of the Companies (Auditor's Report) Order, 2003 is not
applicable.
12) According to the information and explanations given to us and based
on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13) In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / Society. Therefore, the provisions of clause (xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
14) In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause (xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
16) The Company did not have any term loans outstanding during the
year.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet and cash flow statement of the
Company, we report at no funds raised on short-term basis have been
used for long-term investment by the Company.
18) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19) The Company did not have any outstanding debentures during the
year.
20) The Company has not raised any money through a public issue during
the year.
21) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
Place: MUMBAI For Hiteshkumar P. Shah
Date : 04th August, 2011. Chartered Accountant
Hiteshkumar P. Shah
( Proprietor )
M. No. 45782
Mar 31, 2010
We have audited the attached Balance Sheet of Jhaveri Weldflux Limited as
at March 31, 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 arc the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based
on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material 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.
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of Section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and S of the said Order.
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 the 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 the
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 the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the directors is disqualified as on 31 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 March 31, 2010; and
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 Auditors' Report Annexure referred to in para (3) of our
report of even date to the members of Jhaveri Weldflux Limited.
1) (a) The Company has no Fixed Assets as on 1st April, 2009 and as on
31st March, 2010.
(b) Since the Company does not have any Fixed Assets, the question of
their physical verification does not arise.
2) (a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3) As informed, the Company has neither granted nor taken any loans,
secured or unsecured to/from companies, firms or other parties covered
in the register maintained under section 301 of the Companies Act,
1956.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit, no major weakness has
been noticed in the internal controls in respect of these areas.
5) (a) According to the information and explanations provided by the
management, we are of the opinion that the transactions that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions with parties with whom transactions
exceeding value of Rupees five lakhs have been entered into during the
financial year are at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6) The Company has not accepted any deposits from public.
7) In our opinion, the Company has as internal audit system
commensurate with the size and nature of its business.
8) To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause
(d) of sub-section (1) of section 209 of the Companies Act, 1956 for
the products of the Company.
9) (a) The Company is regular in depositing undisputed statutory dues
Including Provident Fund, Employees' State Insurance, Income-tax,
Excise Duty, cess and other statutory dues applicable to it with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of provident
fund, investor education and protection fund, employees' state
insurance, income-tax, wealth-tax, sales-tax, customs duty, excise
duty, cess and other undisputed statutory dues were outstanding, at the
year end, for a period of more than six months from the date they
became payable.
(b) According to the records of the Company, there are no dues
outstanding of income taxes, excise duty, sales tax, cess on account of
any dispute.
(c) The Company's unit has been established in a backward area of
Khalapur. According to the "Exemption / deferral - 1988" scheme of
the Government of Maharashtra such units are entitled to differ sales
tax payments to future years. The balance outstanding as sales tax
payable upto 31st March, 2010 is Rs. 11,89,707/-.
10) The accumulated losses of the Company are more than ninety percent
of its net worth. The Company has incurred cash losses during the
financial year covered by our audit and also in the immediately
preceding financial year.
11) The Company does not have any outstanding dues to financial
institution, bank or debenture holders. Therefore the provisions of
clause (xi)of the Companies (Auditor's Report) Order, 2003 is not
applicable.
12) According to the information and explanations given to us and based
on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13) In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / Society. Therefore, the provisions of clause (xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to
the Company.
14) In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause (xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
16) The Company did not have any term loans outstanding during the
year.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet and cash flow statement of the
Company, we report that no funds raised on short-term basis have been
used for long-term investment by the Company.
18) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19) The Company did not have any outstanding debentures during the
year.
20) The Company has not raised any money through a public issue during
the year.
21) Based upon the audit procedures performed and Information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our audit
For Hiteshknmar Shah
Chartered Accountant
Place & Date : MUMBAI 28th June, 2010 (Proprietor) M.No.45782
Hiteshkumar P Shah