Mar 31, 2023
Vinyl Chemicals (India) Limited
Report on the Standalone Ind AS Financial Statements
Opinion
We have audited the accompanying Standalone Ind AS Financial Statements of Vinyl Chemicals (India) Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS Financial Statements give the information required by the Companies Act, 2013 (âthe Actâ) 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 together with the Companies (Indian Accounting Standard) Rules, 2015 (Ind AS) and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2023, and its Profit, Total Comprehensive Income, its Cash Flows and Changes in Equity for the year ended on that date.
Basis for Opinion
We have conducted our audit of the Standalone Ind AS Financial Statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditorâs Responsibilities for the Audit of the Standalone Ind AS 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 (ICAI) together with the independence requirements that are relevant to our audit of the Standalone Ind AS Financial Statements under the provisions of the Act and the Rules made thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIâs 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 Standalone Ind AS 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.
Information other than the Standalone Ind AS Financial Statements and Auditorâs Report thereon
The Companyâs Board of Directors are responsible for the preparation of the other information. The other information comprises of the information included in the Management Discussion and Analysis Report, Directorsâ Report including Annexures to the Directorsâ Report, Corporate Governance Report and Information for Shareholders but does not include the Standalone Ind AS Financial Statements and Auditorâs Report thereon.
Our opinion on the Standalone Ind AS Financial Statements does not cover the other information and we do not express any form of assurance or conclusions thereon.
In connection with our audit of the Standalone Ind AS Financial Statements, our responsibility is to read the other information and in doing so, consider whether the other information is materially inconsistent with the Standalone Ind AS Financial Statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, 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.
Management''s Responsibility for the Standalone Ind AS 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 Standalone Ind AS 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 accounting principles generally accepted in India, including Ind AS. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of accounting records, relevant to the preparation and presentation of the Standalone Ind AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Ind AS Financial Statements, Management is responsible for assessing the Companyâs 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 are responsible for overseeing the Companyâs financial reporting process.
Auditor''s Responsibility for the Audit of Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS Financial Statements as a whole are free from material misstatement, whether due to fraud or error and to issue an Auditorâs 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 standalone Ind AS 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 Standalone Ind AS 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 control 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 Management.
⢠Conclude on the appropriateness of Managementâs 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 Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the Standalone Ind AS 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 auditors'' 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 Standalone Ind AS Financial Statements, including the disclosures and whether the Standalone Ind AS Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Ind AS 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 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, 2020 (âthe Orderâ) issued by the Government of India in terms of Section 143(11) of the Act, we give in the Annexure âAâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have 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, Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement 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 Ind AS Financial Statements comply with the Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the Directors as on 31st March, 2023 and taken on record by the Board of Directors, none of the Directors are disqualified as on 31st March, 2023 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 control over financial reporting.
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with the requirements of Section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its Directors during the year are 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 Standalone Ind AS Financial Statements - Refer Note 34 to the Standalone Ind AS Financial Statements;
ii. The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise;
iii. There has been no delay in transferring amounts required to be transferred, to the Investor Education and Protection Fund.
iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds have been
advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries ") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. (a) The Dividend proposed in the previous year, declared and paid by the Company during the year is in
accordance with Section 123 of the Companies Act, 2013.
(b) The Board of Directors have proposed Dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of Dividend proposed is in accordance with Section 123 of the Companies Act.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from 1st April, 2023 and accordingly, Rule 11(g) of Companies (Audit and Auditors) Rule 2014 is not applicable for financial year ended 31st March, 2023.
For Khanna & Panchmia Chartered Accountants Firm Reg. No. 136041W
Devendra Khanna Partner
Place : Mumbai Membership No. 038987
Date : 4th May, 2023 UDIN #23038987BGXBBJ1931
Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Vinyl Chemicals (India) Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS 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 accounting principles generally accepted in India, including Accounting Standards (Ind AS) specified under Section 133 of the Act read with the Companies (Indian Accounting Standard) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
While conducting the 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 of the Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the Ind AS 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 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 Ind AS 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS 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 Ind AS and accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit, total comprehensive income, its cash flows and changes in the equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Government of India in terms of Section 143(11) of the Act, we give in the Annexure âAâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have 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, Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement 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 Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31st March, 2018 and 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 control over financial reporting.
(g) 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 Ind AS financial statements - Refer Note 30 to the Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund.
Annexure âAâ to the Independent Auditor''s Report
(Referred to in Paragraph 1 under the heading of "Report on Other Legal and Regulatory Requirementsâ^ 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) As explained to us, the fixed assets have been physically verified by the Management in accordance with the phased programme of verification, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. According to information and explanation given to us, no material discrepancies were noticed on such verification.
c) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the Management, the title deeds of immovable properties are held in the name of the Company.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on such physical verification.
(iii) According to the information and explanations given to us, 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 Act. Accordingly, Clause 3 (iii) (a), (b) and (c) of the Order are not applicable and hence, not commented upon.
(iv) According to the information and explanations given to us, the Company has not granted any loans, made investment or provided guarantee, which are covered by the provisions of section 185 and 186 of the Companies Act 2013. Hence, reporting under Clause 3(iv) of the Order is not applicable.
(v) The Company has not accepted any deposits from the public. Accordingly, Clause 3(v) of the Order is not applicable.
(vi) The Cost records prescribed under Section 148(1) of the Act are not applicable to the Company and hence, Clause 3(vi) of the Order is not applicable.
(vii) (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company has generally been regular in depositing undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Goods and Services Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other statutory dues as applicable, with the appropriate authorities. There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Goods and Services Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.
(b) According to information and explanations given to us and the records of the Company examined by us, in our opinion, there were no dues which have not been deposited in respect of Income tax, Sales Tax, Service Tax, Goods and Services Tax, Customs Duty, Excise Duty and Value Added Tax on account of any dispute except as mentioned below:
Name of Statute |
Nature of Dues |
Amount in Rs. |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act,1961 |
Income Tax |
4,58,439 |
AY 2009-10 to 2013-14 |
Commissioner (Appeals) |
Sales Tax Act |
Sales Tax in Various States |
6,92,83,362 |
2005-06 to 2007-08, 2009-10, 2010-11 |
Joint Commissioner (Appeals), Maharashtra Sales Tax Tribunal |
(viii) In our opinion and according to information and explanations given to us, the Company has not accepted any loans or borrowings from bank, financial institutions or government and has not issued any debentures.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence, reporting under clause 3(ix) of the Order is not applicable.
(x) Based upon the audit procedures performed and according to the information and explanations given to us, no fraud by the Company or any fraud on the Company by its officer/employees has been noticed or reported during the year nor have we been informed about any such case by the Management.
(xi) In our opinion and according to information and explanations given to us, the Company has paid/ provided remuneration in accordance with requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Companies Act, 2013.
(xii) As the Company is not Nidhi Company, the reporting under clause 3(xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv)During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence, reporting under clause 3(xiv) of the order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year, the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence, provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi)The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure âBâ to the Independent Auditor''s Report
(Referred to in Paragraph 2(f) under the heading of "Report on Other Legal and Regulatory Requirementsâ of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Vinyl Chemicals (India) Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial control 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 judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial control system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting, is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of Management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper Management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of information and explanations given to us, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such financial controls over financial reporting are operating effectively as at March 31, 2018 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Khanna & Panchmia
Chartered Accountants
Firm Reg. No. 136041W
Ketan Panchmia
Place : Mumbai Partner
Date : 23rd May, 2018 Membership No. 038985
Mar 31, 2016
To
The Members of
Vinyl Chemicals (India) Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Vinyl Chemicals (India) Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
While conducting the audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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, 2016 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, 2016 (âthe Order") issued by the Government of India in terms of Section 143(11) of the Act, we give in the Annexure âA" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have 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, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March 2016 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2016 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 Companyâs internal financial control over financial reporting.
(g) With respect to other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, 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 24 to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise.
iii. There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question of delay in transferring such sums does not arise.
ANNEXURE âAâ TO THE INDEPENDENT AUDITOR''S REPORT (Referred to in Paragraph 1 under the heading of "Report on Other Legal and Regulatory
Requirementsâ 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) As explained to us, the fixed assets have been physically verified by the Management in accordance with the phased programme of verification, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. According to information and explanation given to us, no material discrepancies were noticed on such verification.
c) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the Management, the title deeds of immovable properties are held in the name of the Company.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on such physical verification.
(iii) According to the information and explanations given to us, 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. Accordingly, Clause 3 (iii) (a), (b) and (c) of the Order are not applicable and hence not commented upon.
(iv) According to the information and explanations given to us, the Company has not granted any loans, made investment or provided guarantee, which are covered by the provisions of Section 185 and 186 of the Companies Act, 2013. Hence, reporting under Clause 3(iv) of the Order is not applicable.
(v) The Company has not accepted any deposits from the public. Accordingly, Clause 3(v) of the Order is not applicable.
(vi) The Cost records prescribed under Section 148(1) of the Act are not applicable to the Company and hence Clause 3(vi) of the Order is not applicable.
(vii) (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income tax, Sales tax, Service tax, Customs duty, Excise duty, value added tax, cess and other statutory dues, as applicable with the appropriate authorities. There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrears as at March 31, 2016 for a period of more than six months from the date they became payable.
(b) According to the records of the Company, there were no dues which have not been deposited in respect of Income tax, Sales Tax, Service Tax, Customs Duty, Excise Duty and Value Added Tax on account of any dispute except as mentioned below-
Name of Statute |
Nature of Dues |
Amount in Rs. |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act |
Penalty U/s 271(1)(c) |
9,77,148 |
A Y 2006-07 |
ITAT Mumbai |
Income Tax Act |
Assessment U/s 143(3) |
5,80,010 |
A Y 2011-12 |
CIT(Appeals), Mumbai |
Income Tax Act |
Assessment U/s 143(3) |
2,75,260 |
A Y 2012-13 |
CIT(Appeals), Mumbai |
Income Tax Act |
Assessment U/s 143(3) |
3,80,800 |
A Y 2013-14 |
CIT(Appeals), Mumbai |
Maharashtra Value Added Tax Act |
Assessment Dues |
81,77,742 |
A Y 2006-07 |
JC (Appeal V), Sales Tax Office, Mumbai |
Central Sales Tax Act |
Assessment Dues |
42,78,179 |
A Y 2006-07 |
JC (Appeal V), Sales Tax Office, Mumbai |
Maharashtra Value Added Tax Act |
Assessment Dues |
62,67,349 |
A Y 2009-10 |
JC (Appeal V), Mumbai |
Maharashtra Value Added Tax Act |
Assessment Dues |
1,02,90,811 |
A Y 2005-06 |
JC (Appeal), RAI-F-001, Sales Tax Office, Navi Mumbai |
Central Sales Tax Act |
Assessment Dues |
6,82,692 |
A Y 2005-06 |
JC (Appeal), RAI-F-001, Sales Tax Office, Navi Mumbai |
Maharashtra Value Added Tax Act |
Assessment Dues |
3,78,84,795 |
A Y 2010-11 |
JC (Appeal I), Mumbai |
(viii) In our opinion and according to information and explanations given to us, the Company has not defaulted in repayment of its loans and borrowings to financial institutions, banks, government or dues to debentures holders.
(ix) In our opinion and according to information and explanations given to us, the Company has not raised any money by way of initial Public Offer or further public offer and term loans during the year. Accordingly, Clause 3(ix) of the Order is not applicable.
(x) Based upon the audit procedures performed and according to the information and explanations given to us, no fraud by the Company or any fraud on the Company by its officers/employees has been noticed or reported during the year nor have we been informed about any such case by the Management.
(xi) In our opinion and according to information and explanations given to us, the Company has paid/provided remuneration in accordance with requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Companies Act, 2013.
(xii) As the Company is not Nidhi Company, the reporting under clause 3(xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause 3(xiv) of the order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence provisions of Section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Annexure âBâ to the Independent Auditor''s Report (Referred to in Paragraph 2(f) under the heading of "Report on Other Legal and Regulatory Requirementsâ of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Vinyl Chemicals (India) Limited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Note") and the Standards on Auditing, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting 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 control system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial control system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of information and explanations given to us, the Company has, in all materials respects, an adequate internal financial control system over financial reporting and such financial controls over financial reporting are operating effectively as at March 31, 2016 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 Khanna & Panchmia
Chartered Accountants
Firm Reg. No. 136041W
Ketan Panchmia
Place: Mumbai Partner
Date : 18th May, 2016 Membership No. 038985
Mar 31, 2015
We have audited the accompanying financial statements of Vinyl
Chemicals (India) Limited ("the Company"), which comprise the Balance
Sheet as at March 31,2015, 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's Responsibility for the Financial Statements
The Management and Board of Directors of the Company are responsible
for the matters stated in Section 134(5) of the Companies Act, 2013
('the Act') with respect to the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of Companies (Accounts) Rules, 2014. This responsibility
includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company
and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; design,
implementation and maintenance of adequate internal financial controls,
that are operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. These Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial controls relevant to the Company's
preparation of the financial statements, that give a true and fair
view, in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial control
system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the Company's Management and Board of Directors, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at 31st March 2015, its profit 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 the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we further report that:
a. we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the aforesaid financial statements comply with the
applicable Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules 2014;
e. on the basis of written representations received from the directors
as on March 31,2015 and taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act;
f. In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 24 to the
financial statements;
(ii) The Company did not have any long-term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise;
(iii) There has been no delay in transferring amounts, as required to
be transferred, to the investor education fund by the Company.
Annexure to Independent Auditors' Report
Referred to in Paragraph 1 under the heading "Report on Other Legal and
Regulatory Requirements" 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. We are informed that the fixed assets have been physically verified
by the Management during the year. There is a regular programme of
verification, which, in our opinion, is reasonable having regard to
size of the Company and nature of its assets. No material discrepancies
were noticed on such verification.
3. The Management has physically verified the inventories of the
Company during the year. In our opinion, the frequency of verification
is reasonable.
4. In our opinion, the procedures for physical verification of
inventories followed by Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
5. On the basis of our examination of the records of the Company, we
are of the opinion that the Company has maintained proper records of
inventories. The discrepancies noticed on verification between the
physical verification and book records, not being material, were
appropriately dealt with.
6. The Company has not granted any loans, secured or unsecured, to the
companies, firms or other parties listed in the register maintained
under Section 189 of the Companies Act, 2013. In view of this, Clauses
iii (a) and (b) are not applicable to the Company and hence, not
reported upon.
7. There is adequate internal control system 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 and services.
There is no continuing failure to correct weaknesses in internal
control system.
8. The Company has not accepted any deposits from the public covered
under Section 73 to 76 of the Companies Act, 2013.
9. We are informed that the Central Government has not prescribed the
maintenance of cost records by the Company under Section 148(1) of the
Act, for the product dealt with by the Company.
10. According to the books and records as produced and examined by us
in accordance with generally accepted auditing practices in India and
also based on Management representations, the Company is regular in
depositing undisputed statutory dues including Provident Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other material statutory dues
with the appropriate authorities and there are no arrears of
outstanding statutory dues as at the last day of the financial year for
a period of more than six months from the date it became payable.
11. According to the information and explanations given to us and also
based on the Management's Representation, there have been no dues of
Income tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty and Cess that have not been deposited on account of any dispute as
at the balance sheet date except as detailed below-
Name of Statute Nature of Dues Amount in Rs.
Income Tax Act Assessment U/s 143(3) 4,27,420
Income Tax Act Assessment U/s 143(3) 5,80,010
Income Tax Act Assessment U/s 143(3) 2,75,260
Maharashtra Value Assessment Dues 81,77,742
Added Tax Act
Central Sales Tax Assessment Dues 42,78,179
Act
Maharashtra Value Assessment Dues 62,67,349
Added Tax Act
Maharashtra Value Assessment Dues 1,02,90,811
Added Tax Act
Central Sales Tax Assessment Dues 6,82,692
Act
Maharashtra Value Assessment Dues 3,78,84,795
Added Tax Act
Name of Statute Period to which Forum where dispute is
the amount relates pending
Income Tax Act A Y 2010-11 ITAT, Mumbai
Income Tax Act A Y 2011-12 CIT(Appeals), Mumbai
Income Tax Act A Y 2012-13 CIT(Appeals), Mumbai
Maharashtra Value A Y 2006-07 JC (Appeals V), Sales
Added Tax Act Tax Office, Mumbai
Central Sales Tax A Y 2006-07 JC (Appeals V), Sales
Act Tax Office, Mumbai
Maharashtra Value A Y 2009-10 JC (Appeals V), Mumbai
Added Tax Act
Maharashtra Value A Y 2005-06 JC (Appeals),RAI-F-001,
Added Tax Act Sales Tax Office, Navi
Mumbai
Central Sales Tax A Y 2005-06 JC (Appeals),RAI-F-001,
Act Sales Tax Office, Navi
Mumbai
Maharashtra Value A Y 2010-11 JC (Appeals I), Mumbai
Added Tax Act
12. According to information and explanations given to us the amounts
which were required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act 1956(1 of 1956) and rules there under have been
transferred to such fund within time.
13. The Company has neither accumulated losses as at 31st March 2015
nor has it incurred any cash losses either in the financial year under
audit or in the immediately preceding financial year.
14. According to the records of the Company, it has not defaulted in
repayment of dues to financial institutions or banks or to debenture
holders.
15. The Company has not given any guarantee for loans taken by others
from banks or financial institutions, the terms and conditions whereof
are prejudicial to the interest of the Company.
16. We are informed that the Company has not taken any term loans
during the year.
17. As per the information and explanations given to us and on the
basis of examination of records, no fraud on or by the Company has been
noticed or reported during the year.
For KHANNA & PANCHMIA
CHARTERED ACCOUNTANTS
Firm's Registration No. 136041W
Ketan Panchmia
Mem. No. 038985
Mumbai
Dated: 18th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Vinyl
Chemicals (India) Ltd ("the Company") which comprise the Balance
Sheet as at 31st March 2014, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 (" the Act" ) (which continue to be applicable in respect
of Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs)
and in accordance with the accounting principles generally accepted in
India. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment
of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness
of the entity''s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness
of the accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements 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:
(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 the Statement of Profit and Loss, of the profit 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"), as amended, issued by
the Central Government of India in terms of sub-section (4A) of Section
227 of the Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the Order.
2. As required by Section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, 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, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
notified under the Act (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate
Affairs).
e. On the basis of written representations received from the directors
as on 31st 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 Independent Auditors'' Report
Referred to in Paragraph 1 under the heading "Report on Other Legal
and Regulatory Requirements" 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. We are informed that the fixed assets have been physically verified
by the Management during the year. There is a regular programme of
verification, which, in our opinion, is reasonable having regard to
size of the Company and nature of its assets. No material discrepancies
were noticed on such verification.
3. During the year, the Company has not disposed off a substantial part
of fixed assets.
4. The Management has physically verified the inventories of the
Company during the year. In our opinion, the frequency of verification
is reasonable.
5. In our opinion, the procedures for physical verification of
inventories followed by 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 the Company, we
are of the opinion that the Company has maintained proper records of
inventories. The discrepancies noticed on verification between the
physical verification and book records, not being material, were
appropriately dealt with.
7. The Company has not granted any loans, secured or unsecured, to the
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act,1956. In view of this, clauses
iii (b), (c) and (d) are not applicable to the Company and hence, not
reported upon.
8. During the year, the Company has not taken any loans, secured or
unsecured, from the companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act,1956. In
view of this, clauses iii (f) and (g) are not applicable to the Company
and hence, not reported upon.
9. There is adequate internal control system 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 and services.
There is no continuing failure to correct weaknesses in internal
control system.
10. On the basis of our examination of relevant records and on the
basis of representation received from the Management, particulars of
contracts or arrangements that need to be entered in the register in
pursuance of Section 301 of the Act have been so entered.
11. On the basis of our examination of the books of account, relevant
information and explanations and representations as provided by the
Company, the transactions exceeding Rs 5 lacs made in pursuance of such
contracts or arrangements have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
12. The Company has not accepted any deposits under the provisions of
Section 58A, 58AA or any other relevant provisions of the Act and the
rules framed thereunder.
13. The function of internal audit, as explained, is being carried out
by outside professionals, which, in our opinion, is commensurate with
its size and nature of its business.
14. We are informed that the Central Government has not prescribed the
maintenance of cost records by the Company under Section 209(1)(d) of
the Act, for the product dealt with by the Company.
15. According to the books and records as produced and examined by us
in accordance with generally accepted auditing practices in India and
also based on Management representations, the Company is regular in
depositing undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty,
Cess and other material statutory dues with the appropriate authorities
and there are no arrears of outstanding statutory dues as at the last
day of the financial year for a period of more than six months from the
date it became payable.
16. According to the information and explanations given to us and also
based on the Management''s Representation, there have been no disputed
dues of Income tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty,
Excise Duty and Cess that have not been deposited on account of any
dispute as at the balance sheet date except as detailed below-
Name of Statute Nature of Dues Amount in Rs Period to which the
amount relates
Income Tax Act Assessment U/s 427420 A Y 2010-11
143(3)
Income Tax Act Assessment U/s 580010 A Y 2011-12
143(3)
Maharashtra Value
Added Tax Act Assessment Dues 8177742 A Y 2006-07
Central Sales Tax Assessment Dues 4278179 A Y 2006-07
Act
Maharashtra Value
Added Tax Act Assessment Dues 6267349 A Y 2009-10
Name of Statute Forum where
dispute is pending
Income Tax Act ITAT, mumbai
Maharashtra Value CIT(Appeals), Mumbai
Added Tax Act
Central Sales Tax Act Appeal being filed with
JC (Appeal V), Sales
Tax Office, Mumbai
Maharashtra Value JC (Appeal V),
Added Tax Ac Mumbai.
17. The Company has neither accumulated losses as at 31st March 2014
nor it has incurred any cash losses either in the financial year under
audit or in the immediately preceding financial year.
18. According to the records of the Company, it has not defaulted in
repayment of dues to financial institutions or banks or to debenture
holders.
19. The Company has not granted loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
20. In our opinion, considering the nature of activities carried on by
the Company during the year, the provisions of any special statute
applicable to chit fund/nidhi/mutual benefit fund/societies are not
applicable to it.
21. The Company has not dealt or traded in shares, securities,
debentures or other investments during the year.
22. The Company has not given any guarantee for loans taken by others
from banks or financial institutions, the terms and conditions whereof
are prejudicial to the interest of the Company.
23. We are informed that the Company has not taken any term loan during
the year.
24. On the basis of review of utilization of funds which is based on
overall examination of the balance sheet of the Company and related
information made available to us and as represented to us by the
Management, no funds raised on short-term basis have been utilized for
long term purpose.
25. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act.
26. As informed to us, the Company has not issued any debentures during
the year.
27. The Company has not raised any money by public issue during the
year.
28. As per the information and explanations given to us and on the
basis of examination of records, no fraud on or by the Company has been
noticed or reported during the year.
For D A KOTHARI & CO
CHARTERED ACCOUNTANTS
Firm''s Registration No. 105299W
D A KOTHARI
PROPRIETOR
Membership Number 6301
Mumbai
Dated: 19th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Vinyl
Chemicals (India) Ltd. (The Company") which comprise the Balance Sheet
as at 31 st March, 2013, the Statement of Profitand Loss and the Cash
Flow Statement for the year then ended and a summary of significant
accounting polic ies and other explanatory information.
Management''s Responsibility forthe 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 Acf). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditors Responsibility
Our responsibily 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 comp c with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the finandal 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 audtor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2013;
(i i ) in the case of the Statement of Profitand Loss, of the profitfor
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"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of Section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by Section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, 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 Row Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956; and
e. On the basis of written representations received from the directors
as on 31 st March, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2013, from
being appointed as a director in terms of clause (g) of sub-section
(1)of Section 274 of the Companies Act, 1956
ANNEXURE TO INDEPENDENT AUDITORS1 REPORT
REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE
1. The Company has maintained proper records showing full particulars,
including quanttative details and situation of fixed assets.
2. We are informed that the fixed assets have been physically verified
by the Management during the year. There is a regular programme
ofverification,which, in our opinion, is reasonable having regard to
sze of the Company and nature of ts assets. No material discrepancies
were noticed on such verification.
3. During the year, the Company has not disposed off a substantial
part of fixed assets.
4. The Management has physicall y verified the inventories of the
Company during the year. In our opinion, the frequency of verification
is reasonable.
5. In our opinion, the procedures for physical verification of
inventories followed by 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 the Company, we
are of the opinion that the Company has maintained proper records of
inventories. The discrepancies noticed on verification between the
physical verification and book records, not being material, were
appropriately dealt with.
7. The Company has not granted any loans, secured or unsecured, to the
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. In view of this, clauses
iii (b),(c) and (d) are not applicable to the Company and hence, not
reported upon.
8. During the year, the Company has not taken any loans, secured or
unsecured, from the companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act,1956. In
view of this, clauses iii (f) and (g) are not applicable to the Company
and hence, not reported upon.
9. There is adequate internal control system 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 and services.
There is no continuing failure to correct weaknesses in internal
control system.
10. On the basis of our examination of relevant records and on the
basis of representation received from the Management, particulars of
contracts or arrangements that need to be entered in the register in
pursuance of Section 301 of the Act have been so entered.
11. On the basis of our examination of the books of account, relevant
information and explanations and representations as provided by the
Company, the transactions exceeding Rs 5 lacs made in pursuance of such
contracts or arrangements have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
12. The Company has not accepted any deposits under the provisions of
Section 58A, 58AA or any other relevant provisions of the Act and the
rules framed thereunder.
13. The function of internal audit, as explained, is being carried out
by outside professionals, which, in our opinion, is commensurate with
its size and nature of its business.
14. We are informed that the Central Government has not prescribed the
maintenance of cost records by the Company under Section 209(1 )(d) of
the Act, for the product dealt with by the Company.
15. According to the books and records as produced and examined by us
in accordance with generally accepted auditing practices in India and
also based on Management representations, the Company is regular in
depositing undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues with the appropriate authorties and there
are no arrears of outstanding statutory dues as at the last day of the
financial year for a period of more than six months from the date it
became payable._
16. According to the information and explanations given to us and also
based on the Managements Representation, there have been no dsputed
dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty,
Excise Duty and Cess that have not been deposited on account of any
dispute as at the balance sheet date.
17. The Company has neither accumulated losses as at 31* March, 2013
nor it has incurred any cash losses either in the financial year under
audit and in the immediately preceding financial year.
18. According to the records of the Company, it has not defaulted in
repayment of dues to financial institutions or banks or to debenture
holders.
19. The Company has not granted loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
20. In our opinion, considering the nature of activities carried on by
the Company during the year, the provisions of any special statute
applicable to chit fund/nidhi/mutual benefit fund/societies are not
applicable to it
21. The Company has not dealt or traded in shares, securities,
debentures or other investments during the year.
22. The Company has not given any guarantee for loans taken by others
from banks or financial insttutions, the terms and conditions whereof
are prejudicial to the interest of the Company.
23. We are informed that the Company has not taken any term loans
during the year.
24. On the basis of review of utilization of funds which is based on
overall examination of the balance sheet of the Company and related
information made available to us and as represented to us by the
Management, no funds raised on short-term basis have been utilized for
long term purpose.
25. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act.
26. As informed to us, the Company has not issued any debentures
during the year.
27. The Company has not raised any money by public issue during the
year.
28. As per the information and explanations given to us and on the
basis of examination of records, no fraud on or by the Company has been
noticed or reported during the year.
For and on behalf of
D. A. KOTHARI & CO
CHARTERED ACCOUNTANTS
Firm Reg. No. 105299W
D.A.KOTHARI
PROPRIETOR
Membership Number 6301
Mumbai
Dated : 24th May, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of Vinyl Chemicals (India)
Ltd. as at 31st March, 2012 and the Statement of Profit and Loss and
also 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.
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
assessing1 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.
I. 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 of the matters specified in paragraphs 4 and 5 of the said
Order.
II. Further to our comments in Annexure referred to above, we report
that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b. In our opinion, the Company has kept proper books of account as
required by law so far as appears from our examination of the 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, the Statement of Profit and Loss
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;
e. On the basis of written representation 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
subsection (1) 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, they 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 Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012.
ii. In the case of Statement of Profit and Loss, of the profit 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.
ANNEXURE REFERRED TO IN PARAGRAPH I OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF VINYL CHEMICALS (INDIA) LIMITED
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
2. We are informed that the fixed assets have been physically verified
by the Management during the year. There is a regular programme of
verification, which, in our opinion, is reasonable having regard to
size of the Company and nature of its assets. No material discrepancies
were noticed on such verification.
3. During the year, the Company has not disposed off a substantial
part of fixed assets.
4. The Management has physically verified the inventories of the
Company during the year. In our opinion, the frequency of verification
is reasonable.
5. In our opinion, the procedures for physical verification of
inventories followed by 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 the Company, we
are of the opinion that the Company has maintained proper records of
inventories. The discrepancies noticed on verification between the
physical verification and book records, not being material, were
appropriately dealt with.
7. The Company has not granted any loans, secured or unsecured, to the
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. In view of this, clauses
iii (b),(c) and (d) are not applicable to the Company and hence, not
reported upon.
8. During the year, the Company has not taken any loans, secured or
unsecured, from the companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act,1956. In
view of this, clauses iii (f) and (g) are not applicable to the Company
and hence, not reported upon.
9. There is adequate internal control system 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 and services.
There is no continuing failure to correct weaknesses in internal
control system.
10. On the basis of our examination of relevant records and on the
basis of representation received from the Management, particulars of
contracts or arrangements that need to be entered in the register in
pursuance of Section 301 of the Act have been so entered.
11. On the basis of our examination of the books of account, relevant
information and explanations and representations as provided by the
Company, the transactions exceeding Rs 5 lacs made in pursuance of such
contracts or arrangements have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
12. The Company has not accepted any deposits under the provisions of
Section 58A, 58AA or any other relevant provisions of the Act and the
rules framed there under.
13. The function of internal audit, as explained, is being carried out
by outside professionals, which, in our opinion, is commensurate with
its size and nature of its business.
14. We are informed that the Central Government has not prescribed the
maintenance of cost records by the Company under Section 209(1 )(d) of
the Act, for the product dealt with by the Company.
15. According to the books and records as produced and examined by us
in accordance with generally accepted auditing practices in India and
also based on Management representations, the Company is regular in
depositing undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees' State Insurance, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty,
Cess and other material statutory dues with the appropriate authorities
and there are no arrears of outstanding statutory dues as at the last
day of the financial year for a period of more than six months from the
date it became payable.
16. According to the information and explanations given to us and also
based on the Management's Representation, there have been no disputed
dues of Income tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty,
Excise Duty and Cess that have not been deposited on account of any
dispute as at the balance sheet date.
17. The Company has neither accumulated losses as at 31st March, 2012,
nor it has incurred any cash losses either in the financial year under
audit and in the immediately preceding financial year.
18. According to the records of the Company, it has not defaulted in
repayment of dues to financial institutions or banks or to debenture
holders.
19. The Company has not granted loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
20. In our opinion, considering the nature of activities carried on by
the Company during the year, the provisions of any special statute
applicable to chit fund/nidhi/mutual benefit fund/societies are not
applicable to it.
21. The Company has not dealt or traded in shares, securities,
debentures or other investments during the year.
22. The Company has not given any guarantee for loans taken by others
from banks or financial institutions, the terms and conditions whereof
are prejudicial to the interest of the Company.
23. We are informed that the Company has not taken any term loans
during the year.
24. On the basis of review of utilization of funds which is based on
overall examination of the balance sheet of the Company and related
information made available to us and as represented to us by the
Management, no funds raised on short-term basis have been utilized for
long term purpose.
25. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act.
26. As informed to us, the Company has not issued any debentures
during the year.
27. The Company has not raised any money by public issue during the
year.
28. As per the information and explanations given to us and on the
basis of examination of records, no fraud on or by the Company has been
noticed or reported during the year.
For and on behalf of
D.A. KOTHARI & CO
CHARTERED ACCOUNTANTS
Firm Reg. No. 105299W
D.A.KOTHARI
PROPRIETOR
Membership Number 6301
Mumbai
Dated: 23rd May, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of Vinyl Chemicals (India)
Ltd. as at 31st March, 2011 and the Profit and Loss Account and also
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.
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.
I. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956 we enclose in the Annexure a
statement of the matters specified in paragraphs 4 and 5 of the said
Order.
II. Further to our comments in Annexure referred to above, we report
that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b. In our opinion, the Company has kept proper books of account as
required by law so far as appears from our examination of the books;
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Profit 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;
e. On the basis of written representation 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 31st March,
2011 from being appointed as a director in terms of clause (g) of
subsection (1) 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 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 Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
ii. In the case of Profit and Loss Account, of the profit 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.
ANNEXURE REFERRED TO IN PARAGRAPH I OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF VINYL CHEMICALS (INDIA) LIMITED
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
2. We are informed that the fixed assets have been physically verified
by the Management during the year. There is a regular programme of
verification, which, in our opinion, is reasonable having regard to
size of the Company and nature of its assets. No material discrepancies
were noticed on such verification.
3. During the year, the Company has not disposed off a substantial
part of fixed assets.
4. The Management has physically verified the inventories of the
Company during the year. In our opinion, the frequency of verification
is reasonable.
5. In our opinion, the procedures for physical verification of
inventories followed by 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 the Company, we
are of the opinion that the Company has maintained proper records of
inventories. The discrepancies noticed on verification between the
physical verification and book records, not being material, were
appropriately dealt with.
7. The Company has not granted any loans, secured or unsecured, to the
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act,1956. In view of this, clauses
iii(b), (c) and (d) are not applicable to the Company and hence, not
reported upon.
8 During the year, the Company has not taken any loans, secured or
unsecured, from the companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act,1956. In
view of this, clauses iii(f) and (g) are not applicable to the Company
and hence, not reported upon.
9. There is adequate internal control system 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 and services.
There is no continuing failure to correct weaknesses in internal
control system.
10. On the basis of our examination of relevant records and on the
basis of representation received from the Management, particulars of
contracts or arrangements that need to be entered in the register in
pursuance of Section 301 of the Act have been so entered.
11. On the basis of our examination of the books of account, relevant
information and explanations and representations as provided by the
Company, the transactions exceeding Rs.5 lacs made in pursuance of such
contracts or arrangements have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
12. The Company has not accepted any deposits under the provisions of
Sections 58A, 58AA or any other relevant provisions of the Act and the
rules framed thereunder.
13. The function of internal audit, as explained, is being carried out
by outside professionals, which, in our opinion, is.commensurate with
its size and nature of its business.
14. We are informed that the Central Government has not prescribed the
maintenance of cost records by the Company under Section 209(1 )(d) of
the Act for the product dealt with by the Company.
15. According to the books and records as produced and examined by us
in accordance with generally accepted auditing practices in India and
also based on Management representations, the Company is regular in
depositing undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues with the appropriate authorities and
there are no arrears of outstanding statutory dues as at the last day
of the financial year for a period of more than six months from the
date it became payable.
16. According to the information and explanations given to us and also
based on the Managements Representation, there have been no disputed
dues of Income tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty,
Excise Duty and Cess that have not been deposited on account of any
dispute as at the balance sheet date.
17. The Company has neither accumulated losses as at 31st March, 2011
nor it has incurred any cash losses either in the financial year under
audit and in the immediately preceding financial year.
18. According to the records of the Company, it has not defaulted in
repayment of dues to financial institutions or banks or to debenture
holders.
19. The Company has not granted loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
20. In our opinion, considering the nature of activities carried on by
the Company during the year, the provisions of any special statute
applicable to chit fund/nidhi/mutual benefit fund/societies are not
applicable to it.
21. The Company has not dealt or traded in shares, securities,
debentures or other investments during the year.
22. The Company has not given any guarantee for loans taken by the
others from bank or financial institutions, the terms and conditions
whereof are prejudicial to the interest of the Company.
23. We are informed that the Company has not taken any term loans
during the year.
24. On the basis of review of utilization of funds which is based on
overall examination of the balance sheet of the Company and related
information made available to us and as represented to us by the
Management, no funds raised on short-term basis have been utilized for
long term purpose.
25. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act.
26. As informed to us, the Company has not issued any debentures
during the year.
27. The Company has not raised any money by public issue during the
year.
28. As per the information and explanations given to us and on the
basis of examination of records, no fraud on or by the Company has been
noticed or reported during the year.
For and on behalf of
D.A. KOTHARI & CO
CHARTERED ACCOUNTANTS
Firm Reg. No. 105299W
D.A. KOTHARI
PLACE: MUMBAI PROPRIETOR
DATE: 16th May, 2011 Membership Number 6301
Mar 31, 2010
We have audited the attached Balance Sheet of Vinyl Chemicals (India)
Ltd. as at 31st March 2010 and the Profit and Loss Account and also 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.
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.
I. As required by the Companies (Auditors Report) Order 2003, issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement of the matters specified in paragraphs 4 and 5 of the said
Order.
II. Further to our comments in Annexure referred to above, we report
that :
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit ;
b. In our opinion, the Company has kept proper books of accounts as
required by law so far as appears from our examination of the books.
c. The Balance Sheet; Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d. In our opinion, the Balance Sheet, Profit 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;
e. On the basis of written representation 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.
f. 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 case of Balance Sheet, of the state of affairs of the Company as
at 31st March, 2010,
(b) in case of Profit and Loss Account, of the profit for the year
ended on that date and
(c) in case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH I OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF VINYL CHEMICALS (INDIA) LIMITED
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
2. We are informed that the fixed assets have been physically verified
by the Management during the year. There is a regular programme of
verification, which, in our opinion, is reasonable having regard to
size of the Company and nature of its assets. No material discrepancies
were noticed on such verification.
3. During the year, the Company has not disposed off a substantial
part of fixed assets.
4. The Management has physically verified the inventories of the
Company during the year. In our opinion, the frequency of verification
is reasonable.
5. In our opinion, the procedures for physical verification of
inventories followed by 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 the Company, we
are of the opinion that the Company has maintained proper records of
inventories. The discrepancies noticed on verification between the
physical verification and book records, not being material, were
appropriately dealt with.
7. The Company has not granted any loans, secured or unsecured, to the
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act,1956. In view of this, clauses
iii (b),(c) and (d) are not applicable to the Company and hence, not
reported upon.
8 During the year, the Company has not taken any loans, secured or
unsecured, from the companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. In
view of this, clauses iii (f) and (g) are not applicable to the Company
and hence, not reported upon.
9. There is adequate internal control system 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 and services.
There is no continuing failure to correct weaknesses in internal
control system.
10. On the basis of our examination of relevant records and on the
basis of representation received from the Management, particulars of
contracts or arrangements that need to be entered in the register in
pursuance of Section 301 of the Act have been so entered.
11. On the basis of our examination of the books of account, relevant
information and explanations and representations as provided by the
Company, the transactions exceeding Rs 5 lacs made in pursuance of such
contracts or arrangements have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
12. The Company has not accepted any deposits under the provisions of
Section 58A, 58AA or any other relevant provisions of the Act and the
rules framed thereunder.
13. The function of internal audit, as explained, is being carried out
by outside professionals, which, in our opinion, is commensurate with
its size and nature of its business.
14. We are informed that the Central Government has not prescribed the
maintenance of cost records by the Company under Section 209(1 )(d) of
the Act, 1956 for the product dealt with by the Company.
15. According to the books and records as produced and examined by us
in accordance with generally accepted auditing practices in India and
also based on Management Representations, the Company is regular in
depositing undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues with the appropriate authorities and
there are no arrears of outstanding statutory dues as at the last day
of the financial year for a period of more than six months from the
date it became payable.
16. According to the information and explanations given to us and also
based on the Managements Representation, there have been no disputed
dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty,
Excise Duty and Cess that have not been deposited on account of any
dispute as at the balance sheet date.
17. The Company has neither accumulated losses as at 31st March 2010
nor it has incurred any cash losses either in the financial year under
audit and in the immediately preceding financial year.
18. According to the records of the Company, it has not defaulted in
repayment of dues to financial institutions or banks or to debenture
holders.
19. The Company has not granted loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
20. In our opinion, considering the nature of activities carried on by
the Company during the year, the provisions of any special statute
applicable to chit fund/nidhi/mutual benefit fund/societies are not
applicable to it.
21. The Company has not dealt or traded in shares, securities,
debentures, or other investments during the year.
22. The Company has not given any guarantee for loans taken by others
from bank or financial institutions, the terms and conditions whereof
are prejudicial to the interest of the Company.
23. We are informed that the Company has not taken any term loans
during the year.
24. On the basis of review of utilization of funds which is based on
overall examination of the balance sheet of the Company and related
information made available to us and as represented to us by the
Management, no funds raised on short-term basis have been utilized for
long term purpose.
25. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act.
26. As informed to us, the Company has not issued any debentures
during the year.
27. The Company has not raised any money by public issue during the
year.
28. As per the information and explanations given to us and on the
basis of examination of records, no fraud on or by the Company has been
noticed or reported during the year.
For and on behalf of
D.A. KOTHARI & CO.
Chartered Accountants
D.A. KOTHARI
PLACE: MUMBAI Proprietor
DATE: 25th May 2010 Membership No. 6301
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