Mar 31, 2019
Report on the audit of the financial statements Opinion
1. We have audited the accompanying financial statements of Visaka Industries Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2019, and the Statement of Profit and Loss including other comprehensive income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2019, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows for the year then ended.
Basis for opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditorâs Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
4. 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. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter |
How our audit addressed the key audit matter |
Appropriateness of capitalisation of costs as per Ind AS 16 Property, Plant and Equipment |
We have performed procedures, including the following, in relation to testing of capitalisation of costs: |
- Refer to Note-2 (p) (Significant Accounting Policies) and Note-4.1 (Property, plant and equipment) of the enclosed financial statements. |
- Understood, evaluated and tested the design and operating effectiveness of key controls relating to capitalisation of various costs incurred in relation to Property Plant and Equipment. |
- During the year, the Company capitalised Rs.10,373 lakhs as Property, plant and equipment in respect of its plants at Jhajjar and Miryalguda for manufacture of cement boards and solar panels respectively. |
- Performed test of details with focus on those items that we considered significant due to their amount or nature and tested a number of items capitalised during the year against underlying supporting documents to ascertain nature of costs and whether they meet the recognition criteria provided in the Ind AS 16, Property, Plant and Equipment in this regard. |
- Given the significance of the capital expenditure during the year, there is a riskthat elements of costs that are ineligible for capitalisation in accordance with the recognition criteria provided in Indian Accounting Standard 16, Property, Plant and Equipment are capitalised. |
- Reviewed the other costs tested during the course of our audit and debited to Statement of Profit and Loss Account, to ascertain whether these meet the criteria for capitalization. Our procedures as mentioned above did not identify any costs that had been inappropriately capitalised. |
Other Information
5. The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements and our auditorâs report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of management and those charged with governance for the financial statements
6. The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, changes in equity 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. 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 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.
7. In preparing the 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. Those Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs responsibilities for the audit of the financial statements
8. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 financial statements.
9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances; Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements 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 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 auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
10. 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.
11. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
12. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
13. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure B, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
14. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity 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.
(e) On the basis of the written representations received from the directors as on March 31, 2019 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2019 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 with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure Aâ.
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, 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 38 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2019.
Report on the Internal Financial Controls with reference to financial statements under Clause (i) of Sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls with reference to financial statements of Visaka Industries Limited (âthe Companyâ) as of March 31, 2019 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
2. 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 (ICAI). 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 Act.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on the Companyâs internal financial controls with reference to financial statements 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 deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. 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 with reference to financial statements was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, 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.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system with reference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements
6. A companyâs internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial controls with reference to financial statements 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 companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to financial statements
7. Because of the inherent limitations of internal financial controls with reference to financial statements, 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 with reference to financial statements to future periods are subject to the risk that the internal financial control controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at March 31, 2019, 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.
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) The title deeds of immovable properties, as disclosed in Note 4.1 on fixed assets to the financial statements, are held in the name of the Company.
ii. The physical verification of inventory have been conducted at reasonable intervals by the Management during the year. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii), (iii) (a), (iii)(b) and (iii)(c) of the said Order are not applicable to the Company.
iv. The Company has not granted any loans or made any investments, or provided any guarantees or security to the parties covered under Section 185 and 186. Therefore, the provisions of Clause 3(iv) of the said Order are not applicable to the Company.
v. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Sections 73, 74, 75 and 76 or any other relevant provisions of the Act and the Rules framed thereunder to the extent notified, with regard to the deposits accepted from the public. According to the information and explanations given to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal on the Company in respect of the aforesaid deposits.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products.
We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
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 regular in depositing the undisputed statutory dues, including provident fund, employeesâ state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess, goods and service tax and other material statutory dues, as applicable, with the appropriate authorities. Also refer note 38 to the financial statements regarding managementâs assessment on certain matters relating to provident fund.
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of service tax and goods and service tax which have not been deposited on account of any dispute. The particulars of dues of income tax, sales tax, duty of customs, duty of excise, value added tax, entry tax as at March 31, 2019, which have not been deposited on account of a dispute, are as follows:
Name of the statute |
Nature of dues |
Amount (Rs. In lakhs)* |
Period to which the amount relates |
Forum where the dispute is pending |
Income Tax Act, 1961 |
Income tax |
18.58 |
Financial year 2015-16 |
Commissioner (Appeals), Hyderabad |
Central Excise Act, 1944 |
Excise duty |
14.86 |
August 2013 to January 2016 |
Assistant commissioner Central excise Pune |
Central Excise Act, 1944 |
Excise duty |
57.49 |
March 2006 to November 2015 |
Commissioner (Appeals), Bangalore |
Customs, Central Excise & Service tax Drawback Rules, 1995 |
Duty draw back |
152.1 |
July 2009 to March 2011 |
Joint Secretary, Revisionary Authority, New Delhi. |
Central Sales tax Act, 1956 |
Central Sales tax |
9.02 |
Financial year 2008-09 |
Telangana VAT Appellate Tribunal, Hyderabad |
Central Sales tax Act, 1956 |
Central Sales tax |
7.92 |
Financial year 2008-09 |
Commercial Taxes Tribunal, Lucknow |
Bihar VAT Act, 2005 |
VAT/Interest |
3.77 |
Financial year 2005-06 |
Joint Commissioner (Appeals), Patna |
Orissa VAT Act, 2004 |
VAT/Penalty |
10.97 |
October 2009 to March 2011 |
Orissa Sales Tax Tribunal, Bhubaneswar |
Kerala VAT Act, 2003 |
VAT/Interest |
4.28 |
Financial year 2015-16 |
Deputy Commissioner Appeals, Commercial Taxes, Ernakulum |
Jharkhand VAT Act, 2005 |
VAT/Penalty |
20.38 |
Financial year 2010-11 |
Commissioner of commercial taxes, Ranchi |
West Bengal VAT Act, 2005 |
Interest |
123.16 |
Financial year 2010-11 |
Additional Commissioner of Sales tax, Kolkata |
Orissa Entry tax Act 1999 |
Entry tax/Penalty |
10.38 |
October 2009 to March 2011 |
Orissa Sales Tax Tribunal, Bhubaneswar |
*Net of amount paid under protest - Rs.40.61 lakhs.
viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders as at the balance sheet date.
ix. The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments) and term loans. Accordingly, the provisions of Clause 3(ix) of the Order are not applicable to the Company.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosures specified under Section 133 of the Act.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under audit. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any non cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/E-300009
N.K. Varadarajan
Place: Secunderabad Partner
Date: May 03, 2019 Membership Number: 090196
Mar 31, 2018
Independent Auditorsâ Report
To
The Members of
Visaka Industries Limited
Report on the Indian Accounting Standards (Ind AS)
Financial Statements
1. We have audited the accompanying financial statements of Visaka Industries Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 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.
Managementâs Responsibility for the Ind AS Financial
Statements
2. The Companyâs Board of Directors is responsible for the matters stated in Section 134.(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements to 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 the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. 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 the 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.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules made there under including 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.
5. We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing specified under Section 14.3(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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.
6. 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 auditorsâ 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 Companyâs 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 the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
7. 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
8. 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 accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its total comprehensive income (comprising of profit and other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matter
9. The comparative financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 1, 2016 included in these Ind AS financial statements, are based on the previously issued statutory financial statements for the years ended March 31, 2017 and March 31,
2016 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by the predecessor auditor who expressed an unmodified opinion vide reports dated May 05, 2017 and May 10, 2016 respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to the Ind AS have been audited by us.
Our opinion is not qualified in respect of these matters.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditorâs Report) Order, 2016, issued by the Central Government of India in terms of sub-section (11) of section 14.3 of the Act (âthe Orderâ), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4. of the Order.
11. As required by Section 14.3 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the 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 Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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 with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A.
(g) With respect to the other matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014., in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
i. The Company has disclosed the impact, if any, of pending litigations as at March 31, 2018 on its financial position in its Ind AS financial statements - Refer Note 38.
ii. The Company did not have any long-term contracts including derivative contracts as at March 31, 2018.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018.
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2018.
Report on the Internal Financial Controls under Clause
(i) of Sub-section 3 of Section 14.3 of the Act
1. We have audited the internal financial controls over financial reporting of Visaka Industries 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
2. 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 (ICAI). 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 Act.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing deemed to be prescribed under section 14.3(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. 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.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial
Reporting
6. A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over
Financial Reporting
7. 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
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 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.
Referred to in paragraph 10 of the Independent Auditorsâ Report of even date to the members of Visaka Industries Limited on the financial statements as of and for the year ended March 31,2018.
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) The title deeds of immovable properties, as disclosed in Note 4..1 on fixed assets to the financial statements, are held in the name of the Company
ii. The physical verification of inventory have been conducted at reasonable intervals by the Management during the year. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii), (iii)(a), (iii)(b) and (iii)
(c) of the said Order are not applicable to the Company.
iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made, and guarantees and security provided by it.
v. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Sections 73, 74., 75 and 76 or any other relevant provisions of the Act and the Rules framed there under to the extent notified, with regard to the deposits accepted from the public. According to the information and explanations given to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal on the Company in respect of the aforesaid deposits.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 14.8(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
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 regular in depositing the undisputed statutory dues, including provident fund, employeesâ state insurance, professional tax, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess, goods and service tax with effect from July 1,2017 and other material statutory dues, as applicable, with the appropriate authorities.
Name of the statute |
Nature of dues |
Amount (Rs. In Lacs)* |
Period to which the amount relates |
Forum where the dispute is pending |
Central Excise Act, 1944 |
Excise duty |
14.86 |
August 2013 to January 2016 |
Assistant commissioner Central excise Pune |
Central Excise Act, 1944 |
Excise duty |
57-49 |
March 2006 to November 2015 |
Commissioner (Appeals), Bangalore |
Customs, Central Excise & Service tax Drawback Rules, 1995 |
Duty draw back |
152.1 |
July 2009 to March 2011 |
Joint Secretary, Revisionary Authority, New Delhi. |
Central Sales tax Act, 1956 |
Central Sales tax |
9.02 |
2008-09 |
Telangana VAT Appellate Tribunal, Hyderabad |
Central Sales tax Act, 1956 |
Central Sales tax |
7.92 |
2008-09 |
Commercial Taxes Tribunal, Lucknow |
Bihar VAT Act, 2005 |
VAT/Interest |
3-77 |
2005-06 |
Joint Commissioner (Appeals), Patna |
Orissa VAT Act, 2004 |
VAT/Penalty |
10.97 |
October 2009 to March 2011 |
Orissa Sales Tax Tribunal, Bhubaneswar |
Kerala VAT Act, 2003 |
VAT/Interest |
4.28 |
2015-16 |
Deputy Commissioner Appeals, Commercial Taxes, Ernakulam |
Jharkhand VAT Act, 2005 |
VAT/Penalty |
20.38 |
2010-11 |
Commissioner of commercial taxes, Ranchi |
West Bengal VAT Act, 2005 |
VAT |
85.09 |
2009-10 |
Additional Commissioner of Sales tax, Kolkata |
Orissa Entry tax Act 1999 |
Entry tax/ Penalty |
10.38 |
October 2009 to March 2011 |
Orissa Sales Tax Tribunal, Bhubaneswar |
*Net of amount paid under protest |
Rs,46.77 Lacs. |
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of income tax, service-tax, goods and service tax which have not been deposited on account of any dispute. The particulars of dues of sales tax, duty of customs, duty of excise, value added tax, entry tax as at March 31, 2018 which have not been deposited on account of a dispute, are as follows:
viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders as at the balance sheet date.
ix. In our opinion, and according to the information and explanations given to us, the moneys raised by way of initial public offer or further public offer (including debt instruments) and term loans have been applied for the purposes for which they were obtained.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi. The Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014. are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Accounting Standard (AS)
18, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014..
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under audit. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any noncash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 4.5-IA of the Reserve Bank of India Act, 1934.. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For Price Waterhouse & Co
Chartered Accountants LLP
Firm Registration No.: 304.026E/ E-300009
Sunit Kumar Basu
Place: Hyderabad Partner
Date: May 7, 2018 Membership Number 55000
Mar 31, 2017
Independent Auditors'' Report
To
The Members of Visaka Industries limited
Report on the Financial Statements
We have audited the accompanying financial statements of Visaka Industries limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss, the 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 ("the Act") with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the 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 the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2017, 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 ("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, 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, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with 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, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 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 "Annexure B".
(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 financial statements - Refer Note 35 to the financial statements;
ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv) The Company has provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and these are in accordance with the books of accounts maintained by the Company. Refer Note 38 to the financial statements.
The Annexure referred to in our report to the members of the Company for the year ended on 31st March, 2017. We report that:
(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 a periodical manner, which in our opinion is reasonable, having regard to the size of the Company and the nature of its business. No material discrepancies were noticed on such physical verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The inventories have been physically verified during the year by the management. The discrepancies noticed on verification between the physical stocks and book records were not material.
(iii) The company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, paragraph 3 (iii) (a) to (c) of the Order is not applicable.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to loans, investments, guarantees and securities made.
(v) In our opinion and according to the information and explanations given to us, the Company has complied with the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under, in respect of deposits accepted. We are informed that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal.
(vi) We have broadly reviewed the cost records maintained by the Company as prescribed under sub-section (1) of section 148 of the Act, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained.
Name of the Statute |
Nature of dues |
Amount (Rs, in Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Income-Tax Act, 1961 |
Income Tax |
11.99 |
2007-08 |
CIT (Appeals) Hyderabad |
Income-Tax Act, 1961 |
Income Tax |
24.23 |
2008-09 |
CIT (Appeals) Hyderabad |
Income-Tax Act, 1961 |
Income Tax |
6.79 |
2010-11 |
CIT (Appeals) Hyderabad |
Income-Tax Act, 1961 |
Income Tax |
9.41 |
2011-12 |
CIT (Appeals) Hyderabad |
Income-Tax Act, 1961 |
Income Tax |
13.44 |
2009-10 |
CIT (Appeals) Hyderabad |
Central Excise Act, 1944 |
Excise Duty |
873.85 |
2003-04 & 2004-05 |
CESTAT, Chennai |
Central Excise Act, 1944 |
Penalty |
1323.85 |
2003-04 & 2004-05 |
CESTAT, Chennai |
Central Excise Act, 1944 |
Excise Duty |
14.86 |
August.13 to January.16 |
Asst Commissioner Central Excise Pune |
Customs, Central Excise & Service Tax Drawback Rules, 1995 |
Duty Draw Back |
152.10 |
July 2009 to March 2011 |
Joint Secretary, Revisionary Authority, New Delhi. |
Central Sales Tax Act, 1956 |
Central Sales Tax |
9.02 |
2008-09 |
Telangana VAT Appellate Tribunal, Hyderabad |
Central Sales Tax Act, 1956 |
Central Sales Tax |
7.92 |
2008-09 |
Commercial Taxes Tribunal Lucknow |
Bihar VAT Act 2005 |
VAT/Interest |
3.77 |
2005-06 |
Joint Commissioner (Appeals) |
Orissa VAT Act, 2004 |
VAT/Penalty |
10.97 |
October 2009 to March 2011 |
Orissa Sales Tax Tribunal, Bhubaneswar |
Karala VAT Act,2003 |
VAT/Interest |
0.23 |
2010-11 |
Deputy Commissioner (Appeals),Commercial Taxes, Ernakulam |
(vii) (a) According to the information and explanations given to us and the records of the Company examined by us, the Company is regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, value added tax, wealth tax, service tax, customs duty, excise duty, cess and any other statutory dues as applicable with the appropriate authorities and there were no arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and records of the Company examined by us, the particulars of income tax, sales tax, valued added tax, wealth tax, service tax, customs duty, excise duty or cess as at 31st March, 2017 which have not been deposited on account of any dispute pending, are as under:
(viii) The Company has not defaulted in repayment of loans or borrowing to a financial institution, banks and Governments.
Name of the Statute |
Nature of dues |
Amount (Rs, in Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Jharkhand VAT Act,2005 |
VAT/Penalty |
20.38 |
2010-11 |
Commissioner of Commercial Taxes Ranchi |
Orissa Entry Tax Act 1999 |
Entry Tax/Penalty |
10.38 |
October 2009 to March 2011 |
Orissa Sales Tax Tribunal, Bhubaneswar |
(ix) The Company did not raise any money by way of initial public offer or further public offer during the year. In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which the loans were obtained other than amounts temporarily invested pending utilization of the funds for the intended use.
(x) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3 (xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with section 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any noncash transactions with directors or persons connected with him. Accordingly, paragraph 3 (xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Visaka Industries Limited ("the Company") as of 31st March 2017 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s 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 (''ICAI''). 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 company''s 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.
Auditors'' 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 "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, 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 controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s 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 Company''s internal financial controls 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, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2017, 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 M.Anandam & Co.
Chartered Accountants
(Firm''s Registration No. 000125S)
A.V.Sadasiva
Place: Secunderabad Partner
Date: 5th May, 2017 Membership No.018404
Mar 31, 2016
Independent Auditors'' Report
To
The Members of visaka Industries Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Visaka Industries limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the 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 ("the Act") with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
auditor''s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the 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, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 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 ("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 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, the Statement of Profit and Loss,
and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with 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 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 "Annexure B".
(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 financial statements - Refer Note 34 to the financial statements;
ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
(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 a periodical manner, which in our opinion is reasonable, having regard to the size of the Company and the nature of its business. No material discrepancies were noticed on such physical verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The inventories have been physically verified during the year by the management. The discrepancies noticed on verification between the physical stocks and book records were not material.
(iii) The company has not granted any loans, secured or unsecured to companies, firms, Limited Liability
Partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, paragraph 3 (iii) (a) to (c) of the Order is not applicable.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to loans, investments, guarantees and securities made.
(v) In our opinion and according to the information and explanations given to us, the Company has complied with the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under, in respect of deposits accepted. We are informed that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal.
(vi) We have broadly reviewed the cost records maintained by the Company as prescribed under sub-section (1) of section 148 of the Act, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained.
(vii) (a) According to the information and explanations given to us and the records of the Company examined by us, the Company is regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, value added tax, wealth tax, service tax, customs duty, excise duty, cess and any other statutory dues as applicable with the appropriate authorities and there were no
Name of the statute |
nature of the Dues |
amount (I in lakhs) |
period to which the amount relates |
forum where dispute is pending |
Income-Tax Act, 1961 |
Income Tax |
9.72 |
2009-10 |
CIT (Appeals), Hyderabad |
Central Excise Act, 1944 |
Excise Duty |
873.85 |
2003-04 & 2004-05 |
CESTAT, Chennai |
Central Excise Act, 1944 |
Penalty |
1323.85 |
2003-04 & 2004-05 |
CESTAT, Chennai |
Customs, Central Excise & Service Tax Drawback Rules, 1995 |
Duty Draw Back |
152.10 |
July 2009 to March 2011 |
Joint Secretary, Revisionary Authority, New Delhi. |
Central Sales Tax Act, 1956 |
Central Sales Tax |
9.02 |
2008-09 |
Telangana VAT Appellate Tribunal, Hyderabad |
Central Sales Tax Act, 1956 |
Central Sales Tax |
7.92 |
2008-09 |
Commercial Taxes Tribunal, Lucknow |
Central Sales Tax Act, 1956 |
Central Sales Tax |
0.54 |
October 2009 to March, 2011 |
Additional Commissioner of Sales Tax, Bhubaneswar |
Central Sales Tax Act, 1956 |
Central Sales Tax/ Penalty |
3.21 |
2012-13 & 2013-14 |
Additional Commissioner of Sales Tax, Bhubaneswar |
West Bengal VAT Act, 2003 |
Value Added Tax |
137.20 |
2011-12 |
Joint Commissioner of Commercial Taxes, Midnapur |
Bihar VAT Act, 2005 |
VAT/Interest |
3.77 |
2005-06 |
Joint Commissioner (Appeals), Patna |
Orissa VAT Act, 2004 |
VAT/Penalty |
10.97 |
October 2009 to March 2011 |
Orissa Sales Tax tribunal,Bhubaneswar |
Karala VAT Act, 2003 |
VAT/Interest |
2.29 |
2015-16 |
Deputy Commissioner (Appeals),Commercial Taxes,Ernakulam |
Karala VAT Act, 2003 |
VAT/Interest |
0.83 |
2009-10 |
Deputy Commissioner (Appeals),Commercial Taxes,Ernakulam |
Karala VAT Act, 2003 |
VAT/Interest |
0.85 |
2010-11 |
Deputy Commissioner (Appeals),Commercial Taxes,Ernakulam |
Jharkhand VAT Act, 2005 |
VAT/Penalty |
20.38 |
2010-11 |
Commissioner of Commercial Taxes, Ranchi. |
arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and records of the Company examined by us, the particulars of income tax, sales tax, valued added tax, wealth tax, service tax, customs duty, excise duty or cess as at 31st March, 2016 which have not been deposited on account of any dispute pending, are as under:
(viii) The Company has not defaulted in repayment of loans or borrowing to a financial institution, banks and Governments.
name of the statute |
nature of the dues |
amount (I in lakhs) |
period to which the amount relates |
forum where dispute is pending |
Orissa Entry Tax Act 1999 |
Entry Tax/Penalty |
10.38 |
October 2009 to March 2011 |
Orissa Sales Tax Tribunal, Bhubaneswar |
Orissa Entry Tax Act 1999 |
Entry Tax/Penalty |
3.33 |
2012-13 &2013-2014 |
Additional Commissioner of Sales Tax, Bhubaneswar |
(ix) The Company did not raise any money by way of initial public offer or further public offer during the year. In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which the loans were obtained other than amounts temporarily invested pending utilization of the funds for the intended use.
(x) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3 (xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the
We have audited the internal financial controls over financial reporting of Visaka Industries Limited ("the Company") as of 31 March 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
management''s responsibility for internal financial controls
The Company''s management is responsible for establishing
Company, transactions with the related parties are in compliance with section 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any noncash transactions with directors or persons connected with him. Accordingly, paragraph 3 (xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
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 (''ICAI''). 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 company''s 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.
auditors'' 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 "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, 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 controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s 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 Company''s internal financial controls 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, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 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 mAnandarn & co.
Chartered Accountants
(Firm''s Registration No. 000125S)
A.V.Sadasiva
Place: Secunderabad Partner
Date: 10th May, 2016 M.No.018404
Mar 31, 2015
We have audited the accompanying financial statements of Visaka
Industries Limited ("the Company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss, the 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 ("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 the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143 (10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on 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, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 36 to the
financial statements;
ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Auditors' Report
The Annexure referred to in our report to the members of the Company
for the year ended on 31st March, 2015. We report that:
(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 a periodical manner, which in our opinion is
reasonable, having regard to the size of the Company and the nature of
its business. No material discrepancies were noticed on such physical
verification.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company has maintained proper records of its inventories. The
discrepancies noticed on verification between the physical stocks and
book records were not material.
(iii) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods. During
the course of our audit, no major weakness has been noticed in the
internal control system in respect of these areas.
(v) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of sections 73 to 76 or any
other relevant provisions of the Act and the rules framed there under,
in respect of deposits accepted. We are informed that no order has been
passed by the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any court or any other tribunal.
(vi) In our opinion and according to the information and explanations
given to us, the Company has made and maintained accounts and records
prescribed by the Central Government under sub-section (1) of section
148 of the Act.
(vii) (a) According to the information and explanations given to us
and the records of the Company examined by us, the Company is
regular in depositing undisputed statutory dues including provident
fund, employees' state insurance, income-tax, sales-tax, value added
tax, wealth tax, service tax, customs duty, excise duty, value added
tax, cess and any other statutory dues as applicable with the
appropriate authorities and there were no arrears of outstanding
statutory dues as at the last day of the financial year concerned for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and
records of the Company examined by us, the particulars of income tax,
sales tax, valued added tax, wealth tax, service tax, customs duty,
excise duty or cess as at 31st March, 2015 which have not been
deposited on account of any dispute pending, are as under:
Name of the Statute Nature of the Amount
Dues (Rs. In Lakhs)
Income-Tax Act, 1961 Income Tax 9.72
Central Excise Act, Excise Duty 873.85
1944
Central Excise Act, Penalty 1323.85
1944
Central Sales Tax Act, Central Sales Tax 9.02
1956
Central Sales Tax Act, Central Sales Tax 8.80
1956
West Bengal VAT Act, VAT 137.20
2003
Bihar VAT Act, 2005 VAT/Interest 3.77
Central Sales Tax Act, Central Sales Tax/ 0.54
1956 Penalty
Orissa VAT Act, 2004 VAT/Penalty 55.30
Service Tax Service Tax 1.76
(Finance Act, 1994)
Service Tax Service Tax 1.67
(Finance Act, 1994)
Service Tax Service Tax 2.09
(Finance Act, 1994)
Service Tax Service Tax 1.64
(Finance Act, 1994)
Customs, Central Duty Draw Back 152.10
Excise & Service Tax
Drawback Rules, 1995
Orissa Entry Tax Act Entry Tax/Penalty 16.38
1999
Name of the Statute Period to which
the amount relates
Income-Tax Act, 1961 2009-10
Central Excise Act, 2003-04 &2004-05
1944
Central Excise Act, 2003-04 &2004-05
1944
Central Sales Tax Act, 2008-09
1956
Central Sales Tax Act, 2008-09
1956
West Bengal VAT Act, 2011-12
2003
Bihar VAT Act, 2005 2005-06
Central Sales Tax Act, October 2009 to March, 2011
1956
Orissa VAT Act, 2004 October 2009 to March 2011
Service Tax January 2005 To September
(Finance Act, 1994) 2005
Service Tax October 2005 To March 2006
(Finance Act, 1994)
Service Tax April 2006 To September 2006
(Finance Act, 1994)
Service Tax October 2006 to February 2007
(Finance Act, 1994)
Customs, Central July 2009 to March 2011
Excise & Service Tax
Drawback Rules, 1995
Orissa Entry Tax Act October 2009 to March 2011
1999
Name of the Statute Forum where
dispute is pending
Income-Tax Act, 1961 CIT (Appeals)
Central Excise Act, CESTAT, Chennai
1944
Central Excise Act, CESTAT, Chennai
1944
Central Sales Tax Act, Telangana VAT Appellate Tribunal,
1956 Hyderabad
Central Sales Tax Act, Additional Commissioner of
1956 Commercial Taxes(Appeal),Lucknow
West Bengal VAT Act, Joint Commissioner of Commercial
2003 Taxes, Midnapur.
Bihar VAT Act, 2005 Joint Commissioner (Appeals)
Central Sales Tax Act, Additional Commissioner of Sales
1956 Tax, Bhubaneswar
Orissa VAT Act, 2004 Additional Commissioner of Sales
Tax, Bhubaneswar
Service Tax High Court, Nagpur
(Finance Act, 1994)
Service Tax High Court, Nagpur
(Finance Act, 1994)
Service Tax Bhandara Division, Nagpur
(Finance Act, 1994)
Service Tax Bhandara Division, Nagpur
(Finance Act, 1994)
Customs, Central Joint Secretary, Revisionary
Excise & Service Tax Authority, New Delhi.
Drawback Rules, 1995
Orissa Entry Tax Act Additional Commissioner of Sales
1999 Tax, Bhubaneswar
(c) According to the 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 made thereunder have been
transferred to such fund within time.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(ix) The Company has not defaulted in repayment of dues to a financial
institutions or banks.
(x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
the loans were obtained other than amounts temporarily invested pending
utilization of the funds for the intended use.
(xii) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For M.Anandam & Co.
Chartered Accountants
(Firm's Registration No. 000125S)
A.V.Sadasiva
Place: Secunderabad Partner
Date: 7th May, 2015 M.No.018404
Mar 31, 2014
We have audited the accompanying financial statements of Visaka
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, 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 Management is
responsible for the preparation of these financial statements that give
a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the Accounting
Standards referred to in sub- section (3C) of section 211 of the
Companies Act, 1956 ("the Act"), read with general circular 8/2014,
dated 4th April, 2014 issued by Ministry Corporate Affairs. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 read with
general circular 8/2014, dated 4th April, 2014 issued by Ministry
Corporate Affairs.
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure Re: Visaka Industries Limited Referred to in Paragraph 1under
the heading of "Report on Other Legal and Regulatory Requirements" of
our report of even date i. a. The company has maintained proper
records showing full particulars including quantitative details and
situation of fixed assets.
b. As explained to us, the fixed assets have been physically verified
by the management in a phased periodical manner, which in our opinion
is reasonable, having regard to the size of the company and the nature
of its business. No material discrepancies were noticed on such
physical verification.
c. The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern status.
ii. a. The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. The Company has maintained proper records of its inventories. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii. a. The Company has not granted any loans to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956.
b. The Company has taken unsecured loans from two parties covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was H140.16 Lakhs and the
year-end balance of loans taken is H9.16 Lakhs.
c. In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from the parties covered in the register
maintained under section 301 of the Companies Act, 1956 are not, prima
facie prejudicial to the interest of the Company.
d. The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods. During
the course of our audit, no major weakness has been noticed in the
internal control system in respect of these areas.
v. a. According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
vi. In our opinion and according to the information and explanations
given to us, the company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A, 58AA or any
other relevant provisions of the Companies Act, 1956 and the rules
framed there under, where applicable have been complied with. We are
informed that no order has been passed by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any court or
any other Tribunal.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. In our opinion and according to the information and explanations
given to us, the Company has made and maintained accounts and records
prescribed by the Central Government under section 209 (1) (d) of the
Companies Act, 1956.
ix. a. According to the information and explanations given to us and
the records of the company examined by us, the Company is regular in
depositing undisputed statutory dues including provident fund, investor
education and protection fund, employees'' state insurance, income- tax,
wealth-tax, service tax, sales tax, custom duty, excise duty, cess and
other statutory dues as applicable with the appropriate authorities and
there were no arrears of outstanding statutory dues as at the last day
of the financial year concerned for a period of more than six months
from the date they became payable.
b. According to the information and explanations given to us and
records of the Company examined by us, the particulars of sales tax,
income tax, customs duty, excise duty, service tax and wealth tax, as
at 31st March, 2014 which have not been deposited on account of dispute
pending, are as under:
Name of the Statute Nature of the Dues Amount
(Rs. In Lakhs)
Income-Tax Act, 1961 Income Tax 9.72
Central Excise Act, 1944 Excise Duty 873.85
Central Excise Act, 1944 Penalty 1323.85
Central Sales Tax Act, Central Sales Tax 3.23
1956
Central Sales Tax Act, Central Sales Tax 8.80
1956
Central Sales Tax Act, Central Sales Tax/ 1.76
1956 Penalty
Bihar VAT Act, 2005 VAT/Interest 3.77
Bihar VAT Act, 2005 VAT/Interest 0.84
Orissa VAT Act, 2004 VAT/Penalty 4.02
Orissa VAT Act, 2004 VAT/Penalty 55.30
Service Tax Service Tax 1.76
(Finance Act, 1994)
Service Tax Service Tax 1.67
(Finance Act, 1994)
Service Tax Service Tax 2.09
(Finance Act, 1994)
Service Tax Service Tax 1.64
(Finance Act, 1994)
Customs, Central Excise Duty Draw Back 152.10
& Service Tax Drawback
Rules, 1995
Orissa Entry Tax
Act 1999 Entry Tax/Penalty 16.38
Name of the Statue Period to which the Forum where
amount relates dispute is pending
Income-Tax Act, 1961 2009-10 Income Tax Appellate Tribunal,
Hyderabad
Central Excise Act, 1944 2003-04 &
2004-05 CESTAT, Chennai
Central Excise Act, 1944 2003-04 &
2004-05 CESTAT, Chennai
Central Sales Tax Act,
1956 2008-09 Appellate Deputy Commissioner
(CT), Hyderabad
Central Sales Tax Act,
1956 2008-09 Additional Commissioner
of Commercial
Taxes(Appeal),Lucknow
Central Sales Tax Act,
1956 2006-07,
2007-08 Additional Commissioner of
Sales
and 2009-11 Tax, Bhubaneswar
Bihar VAT Act, 2005 2005-06 Joint Commissioner (Appeals)
Bihar VAT Act, 2005 2006-07 Joint Commissioner of
Commercial Taxes (Patna)
Orissa VAT Act, 2004 April 2005 to Additional Commissioner of
Sales
September 2009 Tax, Bhubaneswar
Orissa VAT Act, 2004 October 2009 to Additional Commissioner of
Sales
March 2011 Tax, Bhubaneswar
Service Tax
(Finance Act, 1994) January 2005 To High Court, Nagpur
September 2005
Service Tax
(Finance Act, 1994) October 2005 to High Court, Nagpur
March 2006
Service Tax
(Finance Act, 1994) April 2006 to Bhandara Division, Nagpur
September 2006
Service Tax
(Finance Act, 1994) October 2006 to Bhandara Division, Nagpur
February 2007
Customs, Central Excise
& Service Tax Drawback
Rules, 1995 July 2009 to Joint Secretary, Revisionary
March 2011 Authority, New Delhi
Orissa Entry Tax Act 1999 October 2009 to Additional Commissioner of
Sales
March 2011 Tax, Bhubaneswar
x. The company has no accumulated losses and it has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution, bank or debenture holders.
xii. According to information and explanations given to us and based on
the documents and records produced to us, the Company has not granted
any loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund/society. Accordingly the provisions of clause 4(xiii) if
the Companies (Auditors'' Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion and according to the information and explanation
given to us, the Company is not dealing in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from banks or financial institutions. Accordingly, the
provisions of clause 4(xv) of the Companies (Auditors'' Report) Order,
2003 are not applicable to the Company.
xvi. In our opinion and according to the information and explanation
given to us, the term loans have been applied for the purpose for which
they were raised other than amounts temporarily invested pending
utilization of the funds for the intended use.
xvii. In our opinion and according to the information and explanation
to us, and on an overall examination of the Balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investments.
xviii. The Company has not made any preferential allotment of shares
during the year to parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any funds on public issue and hence
disclosure on the end use of money raised by the public issue is not
applicable to the Company.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For M. Anandam& Co.,
Chartered Accountants
(Firm Regn.No.000125S)
A.V.Sadasiva
Place: Secunderabad Partner
Date: 24th May, 2014 M.No.018404
Mar 31, 2013
We have audited the accompanying financial statements of Visaka
ndustries Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2013, 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
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 n 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 nformation
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles
generally accepted in India
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013,
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit,
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books,
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account,
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956,
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date
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 a phased periodical manner, which in our opinion
is reasonable, having regard to the size of the company and the nature
of its business. No material discrepancies were noticed on such
physical verification
c. The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern status
i. a. The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business
c. The Company has maintained proper records of its nventories. The
discrepancies noticed on verification between the physical stocks and
the book records were not material
i a. The Company has not granted any loans to companies, firms or other
parties listed in the register maintained under Section 301 of the
Companies Act, 1956.
b. The Company has taken unsecured loans from two parties covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during theyearwasRs.618.39 Lakhs and the
year-end balance of loans taken is Rs.133.39 Lakhs.
c. In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from the parties covered in the register
maintained under section 301 of the Companies Act, 1956 are not, prima
facie prejudicial to the nterest of the Company.
d. The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate interna control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods. During
the course of our audit, no major weakness has been noticed in the
internal control system in respect of these areas
v. a. According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
vi. In our opinion and according to the information and explanations
given to us, the company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A, 58AA or any
other relevant provisions of the Companies Act, 1956 and the rules
framed there under, where applicable have been complied with. We are
informed that no order has been passed by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any court or
any other Tribunal
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business
viii. In our opinion and according to the information and explanations
given to us, the Company has made and maintained accounts and records
prescribed by the Centra Government under section 209 (1) (d) of the
Companies Act, 1956.
ix. a. According to the information and explanations given to us and
the records of the company examined by us, the Company is regular in
depositing undisputed statutory dues ncluding provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
wealth-tax, service tax, sales tax, custom duty, excise duty, cess and
other statutory dues as applicable with the appropriates authorities
and there were no arrears of outstanding statutory dues as at the last
day of the financial year concerned for a period of more than six
months from the date they became payable.
b. According to the information and explanations given to us and
records of the Company examined by us, the particulars of sales tax,
income tax, customs duty, excise duty, service tax and wealth tax, as
at 31st March, 2013 which have not been deposited on account of dispute
pending, are as under:
Amount
Name of the
Statute Nature of the Dues (Rs. In lakhs)
Income-Tax Act, 1961 Income Tax 17.46
Income-Tax Act, 1961 Income Tax 21.76
Central Excise
Act, 1944 Excise Duty 873.85
Central Excise
Act, 1944 Penalty 1323.85
Central Sales
Tax Act, 1956 Central Sales Tax 3.23
Bihar VAT Act, 2005 VAT 12.45
Bihar VAT Act, 2005 VAT 12.36
West Bengal
VAT Act,
2003 VAT/lnterest 13.23
Central Sales
Tax Act, 1956 Central Sales Tax 2.13
Bihar VAT Act, 2005 VAT/lnterest 3.77
Orissa VAT Act, 2004 VAT/Penalty 4.02
Central Sales Tax
Central Sales Tax
Act, 1956 1.22
Penalty
Service Tax Service
Tax 1.76
(Finance Act, 1994)
Service Tax Service Tax 1.67
(Finance Act, 1994)
Service Tax Service Tax 2.09
(Finance Act, 1994)
Service Tax Service Tax 1.64
(Finance Act, 1994)
Customs, Central
Excise S Service
Duty Draw Back 152.
Tax Drawback Rues,
1995
Name Period to which the Forum where dispute is
amount relates pending
Income-Tax Act, 1961 2008-09 CIT (Appeals)
Income-Tax Act, 1961 2009-10 CIT (Appeals)
Central Excise
Act, 1944 2003-04 &
2004-05 CESTAT, Chennai
Central Excise
Act, 1944 2003-04 &
2004-05 CESTAT, Chennai
Central Excise
Act, 1944 Appellate Deputy
2008-09 Commissioner (CT),
Hyderabad
Bihar VAT Act, 2005 Joint Commissioner
2007-08 of Commercial Taxes
(Appeal), Patna
Bihar VAT Act, 2005 Joint Commissioner
2006-07 of Commercial Taxes
(Appeal), Patna
Bihar VAT Act, 2005 Senior Joint Commissioner,
2006-07
Midnapur
Bihar VAT Act, 2005 Joint Commissioner,
2006-07 Midnapur
Central Excise
Act, 1944 Joint Commissioner
2005-06 (Appeals)
Central Excise
Act, 1944 April 2005 to
Septembe Additional Commissioner
2009 of Sales Tax, Bhubaneswar
Additional Commissioner
Central Excise
Act, 1944 2006-07 and
2007-08 of Sales Tax, Bhubaneswar
Service Tax January 2005 To High Court,
September 2005
Nagpur
Service Tax October 2005 To
March .
x. The company has no accumulated losses and it has not ncurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution, bank or debenture holders
xii. According to information and explanations given to us and based
on the documents and records produced to us, the Company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities
xiii. In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund/society. Accordingly the provisions of clause 4(xiii) if
the Companies (Auditors'' Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion and according to the information and explanation
given to us, the Company is not dealing in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from banks or financial nstitutions. Accordingly, the provisions
of clause 4(xv) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the Company.
xvi. In our opinion and according to the information and explanation
given to us, the term loans have been applied for the purpose for which
they were raised other than amounts temporarily invested pending
utilization of the funds for the ntended use.
xvii. In our opinion and according to the information and explanation
to us, and on an overall examination of the Balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investments
xviii. The Company has not made any preferential allotment of shares
during the year to parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any funds on public issue and hence
disclosure on the end use of money raised by the public issue is not
applicable to the Company.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For M. Anandam &Co.,
Chartered Accountants
(Firm Regn.No.000125S)
A.V.Sadasiva
Place: Secunderabad Partner
Date: 20th May, 2013 M.No.18404
Mar 31, 2011
1. We have audited the attached Balance Sheet of Visaka Industries
Limited, as at 31st March, 2011, the Profit & 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 Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we annex hereto a statement on the matters specified in
paragraphs 4 and 5 of the said order.
4. Further to our Comments in the annexure referred to in paragraph 3
above, we report that;
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
Audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of such
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 Cash
Flow Statement dealt by this report comply with the accounting
standards referred to in Section 211(3C) of the Companies Act, 1956;
e) On the basis of written representations received from the directors,
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2011 from being appointed as a director in terms of clause (g) of sub-
section (1) of section 274 of the Companies Act, 1956;
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 the Balance Sheet, of the State of Affairs of the
company as at 31st March, 2011;
ii. in the case of the Profit & Loss account, of the Profit of the
Company for the year ended on that date; and
iii. in the case of the Cash Flow statement, of the Cash Flows for the
year ended on that date.
Annexure Re: Visaka Industries Limited
Referred to in Paragraph 3 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. According to the information and explanations given to us, the
company has a phased programme of verification of fixed assets that is
reasonable having regard to the size of the company and the nature of
its business.
c. The Company has not disposed of any substantial part of its fixed
assets so as to affect its going concern status.
ii. a. The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c. The Company has maintained proper records of its inventories. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii. a. The Company has taken an unsecured loans from two parties
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year was Rs.1082.50
Lakhs and the year-end balance of loans taken is Rs.467.06 Lakhs. The
Company has not granted loan to any party covered in the register
maintained under section 301 of the Companies Act, 1956.
b. b. In our opinion, the rate of interest and other terms and
conditions on which loans have been taken from the parties covered in
the register maintained under section 301 of the Companies Act, 1956
are not, prima facie prejudicial to the interest of the Company.
c. The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
d. There is no overdue amount of loans taken from the Company listed
in the register maintained under section 301 of the Companies Act,
1956.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods. During
the course of our audit, no major weakness has been noticed in the
internal control system in respect of these areas.
v. a. According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
vi. i. In our opinion and according to the information and explanations
given to us, the company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A, 58AA or any
other relevant provisions of the Companies Act, 1956 and the rules
framed there under, where applicable have been complied with. We
are informed that no order has been passed by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any court or
any other Tribunal.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. In our opinion and according to the information and explanations
given to us, the Company has made and maintained accounts and records
prescribed by the Central Government under section 209(1) (d) of the
Companies Act, 1956 in respect of textile division.
ix. a. According to the information and explanations given to us and
the records of the company examined by us, the Company is regular in
depositing undisputed statutory dues including provident fund, investor
education and protection fund, employees' state insurance, income-tax,
wealth-tax, service tax, sales tax, custom duty, excise duty, cess and
other statutory dues as applicable with the appropriates authorities
and there were no arrears of outstanding statutory dues as at the last
day of the financial year concerned for a period of more than six
months from the date they became payable.
b. According to the information and explanations given to us and
records of the Company examined by us, the particulars of sales tax,
income tax, customs duty, excise duty, service tax and wealth tax, as
at 31st March, 2011 which have not been deposited on account of dispute
pending, are as under:
Name of the Statute Nature of Amount
the Dues (Rs. in lakhs)
Income-Tax Act, 1961 Income Tax 2.34
Income-Tax Act, 1961 Income Tax 39.41
Central Excise Act, 1944 Excise Duty 1323.85
Central Excise Act, 1944 Penalty 1323.85
Sales Tax Act à State of Bihar VAT/Interest/ 10.93
Penalty
Central Sales Tax Act, 1956 Central Sales Tax 3.23
Service Tax (Finance Act, 1994) Service Tax 1.76
Service Tax (Finance Act, 1994) Service Tax 1.67
Service Tax (Finance Act, 1994) Service Tax 2.09
Service Tax Service Tax 1.64
(Finance Act, 1994)
Name of the Statute Period to which Forum where dispute
the amount relates is pending
Income-Tax Act, 1961 F.Y 2002-2003 DCIT
Income-Tax Act, 1961 F.Y 2007-08 CIT (Appeals)
Central Excise Act, 1944 F.Y 2003-04 &
2004-05 CESTAT, Chennai
Central Excise Act, 1944 F.Y 2003-04 &
2004-05 CESTAT, Chennai
Sales Tax Act - State of Bihar F.Y 2005-06 Joint Commissioner
(Appeals)
Central Sales Tax Act, 1956 F.Y 2008-09 Deputy Commissioner
(CT) Hyderabad
Service Tax (Finance Act, 1994) January 2005 To High Court
September 2005
Service Tax (Finance Act, 1994) October 2005 To High Court
March 2006
Service Tax (Finance Act, 1994) April 2006 To Bhandara Division,
September 2006 Nagpur
Service Tax (Finance Act, 1994) October 2006 to Bhandara Division,
February 2007 Nagpur
x. The company has no accumulated losses and it has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution, bank or debenture holders.
xii. According to information and explanations given to us and based on
the documents and records produced to us, the Company has maintained
adequate documents and records in respect of loans and advances granted
by the Company on the basis of security by way of pledge of shares,
debentures and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly the provisions of clause 4(xiii) if
the Companies (Auditors' Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion and according to the information and explanation
given to us, the Company is not dealing in shares, securities,
debentures and other investments. Accordingly, the provisions of
clause 4(xiv) of the Companies (Auditors' Report) Order, 2003 are not
applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from banks or financial institutions. Accordingly, the
provisions of clause 4(xv) of the Companies (Auditors' Report) Order,
2003 are not applicable to the Company.
xvi. In our opinion and according to the information and explanation
given to us, the term loans have been applied for the purpose for which
they were raised other than amounts temporarily invested pending
utilization of the funds for the intended use.
xvii. In our opinion and according to the information and explanation
to us, and on an overall examination of the Balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investments.
xviii. The Company has not made any preferential allotment of shares
during the year to parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any funds on public issue and hence
disclosure on the end use of money raised by the public issue is not
applicable to the Company.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, financial misappropriation of
Rs.16 Lakhs by an employee of the Company has been brought to the
notice of the Company during the year under audit and the amount
recovered through possession of employee's property which is estimated
to cover the misappropriation.
For M. Anandam & Co.,
Chartered Accountants
A.V.Sadasiva
Partner
M.No.18404
Firm Regn. No.000125S
Place: Secunderabad
Date : 27th May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Visaka Industries
Limited, as at 31st March, 2010, the Profit & 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we annex hereto a statement on the matters specified in
paragraphs 4 and 5 of the said order.
4. Further to our Comments in the annexure referred to in paragraph 3
above, we report that;
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
Audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of such
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 Cash
Flow Statement dealt by this report comply with the accounting
standards referred to in Section 21 1 (3C) of the Companies Act, 1 956;
e) On the basis of written representations received from the directors,
as on 31st March, 2010 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2010 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1 956;
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, 1 956 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, 201 0;
ii. in the case of the Profit & Loss account, of the Profit of the
Company for the year ended on that date; and
iii. in the case of the Cash Flow statement, of the Cash Flows for the
year ended on that date.
Referred to in Paragraph 3 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. According to the information and explanations given to us, the
Company has a phased programme of verification of fixed assets that is
reasonable having regard to the size of the Company and the nature of
its business. The management has carried out physical verification of
fixed assets during the year and discrepancies noted have been properly
dealt with in the books of accounts.
c. The Company has not disposed of any substantial part of its fixed
assets so as to affect its going concern status.
ii. a. The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. The Company has maintained proper records of its inventories. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii. a. The Company has taken loan from a Company covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs.295.00 lakhs and the
year-end balance of loan taken is Rs.295.00 lakhs. The Company has not
granted loan to any party covered in the register maintained under
section 301 of the Companies Act, 1 956.
b. In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from company listed in the register
maintained under section 301 of the Companies Act, 1956 are not, prima
facie prejudicial to the interest of the Company.
c. The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
d. There is no overdue amount of loans taken from the Company listed
in the register maintained under section 301 of the Companies Act, 1
956.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods. During
the course of our audit, no major weakness has been noticed in the
internal control system in respect of these areas.
v. a. According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A, 58AA or any
other relevant provisions of the Companies Act, 1956 and the rules
framed there under, where applicable have been complied with. We are
informed that no order has been passed by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any court or
any other Tribunal.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. In our opinion and according to the information and explanations
given to us, the Company has made and maintained accounts and records
prescribed by the Central
Government under section 209(1) (d) of the Companies Act, 1 956 in
respect of textile division.
ix. a. According to the information and explanations given to us and
the records of the Company examined by us, the Company is regular in
depositing undisputed statutory dues including provident fund, investor
education and protection fund, employees state insurance, income- tax,
wealth-tax, service tax, sales tax, custom duty, excise duty, cess and
other statutory dues as applicable with the appropriates authorities
and there were no arrears of outstanding statutory dues as at the last
day of the financial year concerned for a period of more than six
months from the date they became payable.
b. According to the information and explanations given to us and
records of the Company examined by us, the particulars of
sales tax, income tax, customs duty, excise duty, service tax and
wealth tax, as at 31st March, 2010 which have not been deposited on
account of dispute pending, are as under:
Name of the Statute Nature of Amount
the Dues (Rs. in lakhs)
Income-Tax Act, 1961 Income Tax 4.88
Central Excise Act, 1944 Excise Duty 1323.85
Central Excise Act, 1944 Penalty 1323.85
Sales Tax Act -
State of Bihar VAT/Interest/ 10.93
Penalty
Service Tax Service Tax 1.76
(Finance Act, 1994)
Service Tax Service Tax 1.67
(Finance Act, 1994)
Service Tax Service Tax 2.09
(Finance Act, 1994)
Service Tax Service Tax 1.64
(Finance Act, 1994)
Name of the Statute Period to which Forum where dispute
the amount relates is pending
Income-Tax Act, 1961 F.Y 2002-2003 DCIT
Central Excise Act, 1944 F.Y 2003-04 & 2004-05 CESTAT, Chennai
Central Excise Act, 1944 F.Y 2003-04 & 2004-05 CESTAT, Chennai
Sales Tax F.Y 2005-06 Joint Commissioner
(Appeals)
Service Tax January 2005 to High Court
(Finance Act,1994) September 2005
Service Tax October 2005 to High Court
(Finance Act, 1994) March 2006
Service Tax April 2006 to Bhandara Division,
(Finance Act, 1994) September 2006 Nagpur
Service Tax October 2006 to Bhandara Division,
(Finance Act, 1994) February 2007 Nagpur
x. The Company has no accumulated losses and it has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution, bank or debenture holders.
xii. According to information and explanations given to us and based on
the documents and records produced to us, the Company has maintained
adequate documents and records in respect of loans and advances granted
by the Company on the basis of security by way of pledge of shares,
debentures and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion and according to the information and explanation
given to us, the Company is not dealing in shares, securities,
debentures and other investments. Accordingly, the provisions of
clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from banks or financial institutions. Accordingly, the
provisions of clause 4(xv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
xvi. In our opinion and according to the information and
explanation given to us, the term loans have been applied for the
purpose for which they were raised other than amounts temporarily
invested pending utilisation of the funds for the intended use.
xvii. In our opinion and according to the information and explanation
to us, and on an overall examination of the Balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investments.
xviii. The Company has not made any preferential allotment of shares
during the year to parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any funds on public issue and hence
disclosure on the end use of money raised by the public issue is not
applicable to the Company.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For M. Anandam & Co.,
Chartered Accountants
A.V.Sadasiva
Partner
Place: Secunderabad M.No.18404
Date: 10th May, 2010 Firm Regn. No.0001255
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