Mar 31, 2023
VRL LOGISTICS LIMITED
Report on the Audit of the Ind-AS Financial Statements Opinion
We have audited the accompanying Ind-AS financial statements of VRL LOGISTICS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity, the Statement of Cash Flows for the year then ended and the Notes to the Ind-AS financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind-AS financial statements give the information required by the Companies Act, 2013, (âthe Actâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (India Accounting Standards) Rules, 2015, as amended, (Ind-AS) and with other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2023, the profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the Ind-AS financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditorâs Responsibilities for the Audit of the Ind-AS Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Ind-AS financial statements under the provisions of the Companies Act, 2013 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
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Ind-AS financial statements of the current period. These matters were addressed in the context of our audit of the Ind-AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report.
Sr. no. |
Key audit matter description |
How the scope of our audit addressed the key audit matter |
1. |
Revenue recognition and measurement Refer to Note 1(l) (Accounting policies) and Note 23 and Note 30 of the financial statements for aggregate revenue from sale of products and services recognised as required by the applicable Ind AS. For the year ended March 31, 2023, the Company recognised revenues aggregating to INR 2,91,489.81 lakhs. The Company has high volume of transactions each day recorded across various branches and through agencies using complex information technology systems which are linked to the financial reporting process. A high number of sale transactions in the goods transport and bus operations business are settled in cash. Further, Standards on Auditing mandate a presumed significant risk of fraud in revenue recognition. Management is required to make certain key judgements relating to identifying contracts with customers, performance obligations involved in contracts, determining transaction price which involves variable consideration elements, allocation of the transaction price to such performance obligations and satisfaction of performance obligations. Risk identified: Due to the materiality of the item to the financial statements, complexities involved including high inherent risk associated with cash transactions, information technology systems relied on and Managementâs judgement involved for ensuring appropriateness of accounting treatment of revenue generated from goods transport and bus operations business, this matter has been identified as a key audit matter for the current yearâs audit. |
Our procedures included: Accounting policies: Understood the revenue and receivable business process for goods transport and bus operations and assessed the appropriateness of the accounting policy adopted by the Company for revenue recognition.and measurement. Tests of controls: Evaluated the design and implementation of the key financial and Information Technology (IT) controls around the revenue recognition process including controls around evidence of service delivery, price approvals, cash collection and timing of transactions including cut off. Tested operating effectiveness of above identified key controls over the recognition and measurement of revenue during the year and as at year end. Tests of details: - Inspected the internal audit reports for any observations reported based on such internal audits conducted at branches during the year on rotation basis to evaluate if any such observations materially impact the financial statements or impact our assessment of relevant key internal financial controls tested as above or otherwise materially impacts recognition and measurement of revenue. - Performed test of details on a sample of revenue transactions recorded during the year including specific periods before and after year end. For the samples selected, inspected supporting documents such as invoices, contracts, goods consignment notes, evidence of delivery of service, cash receipt, etc. - On a sample basis, compared the daily cash collection with the bank deposit reconciliation prepared by each branch and agency and submitted to Head office periodically by tracing the same to relevant bank statements. - Tested the appropriateness and rationale for specific manual journal entries impacting recognition and measurement of revenue, as well as other adjustments made in the preparation of the financial statements, selected through a combination of risk-based and high-value transactions selection criteria. Performing substantive analytical procedures: Performed substantive analytical procedures like occupancy analysis for bus operations, tonnage growth, price yield growth, etc. We also evaluated the appropriateness and adequacy of the related disclosures made in the financial statements for revenue recorded during the year. We also assessed as to whether the disclosures in respect of revenue were adequate. |
Sr. no. |
Key audit matter description |
How the scope of our audit addressed the key audit matter |
2. |
Lease Accounting - Ind AS 116 Refer to Note 1(e) (Accounting policies) and Note 41 of the accompanying financial statements. The Company has a high volume of lease contracts owing to the nature of its operations which are spread across India. The application of Ind AS 116 involves use of significant judgements and estimates including determination of leases, lease term including termination and renewal option, use of practical expedients, and discount rates for each lease etc. Risk identified: Owing to the inherent subjectivity related to principal assumptions such as discount rates, we have identified the application of Ind AS 116 as a key audit matter for the current year audit. |
Our procedures included: Accounting policies: Understanding and assessed the appropriateness of the accounting policy adopted by the Company for leases. Tests of controls: Obtained an understanding of the Managementâs process for identification of leasing arrangements which are considered to be within the scope of Ind AS 116, Leases, and tested the design and effectiveness of Managementâs controls relating to identification and accounting of lease contracts and disclosures. Tests of details: - Reviewed the overall impact analysis prepared by the Management including completeness of lease contracts, lease term and application of practical expedients. - Tested the reasonableness of key assumptions used including discount rate, lease terms and measurement principles. - Tested the inputs and calculations of the right-of-use assets and lease liability, prepared by the Management for each material lease contract. - Verified the integrity and arithmetical accuracy of Ind AS 116 calculations for each sample, through recalculation of the Ind AS 116 adjustments. We also evaluated the appropriateness and adequacy of disclosures made in the financial statements with respect to lease liability and right of use assets recorded during the year, in accordance with Ind AS 116. |
Information Other than the Ind-AS Financial Statements and Auditorâs Report Thereon
The Company''s Board of Directors is responsible for the other information. The other information comprises the Director''s Report and Report on Corporate Governance but does not include the Ind-AS financial statements and our auditor''s report thereon.
Our opinion on the Ind-AS 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 Ind-AS financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the Ind-AS financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor''s report, 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.
Managementâs Responsibilities for the Ind-AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind-AS 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 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.
In preparing the Ind-AS financial statements, Management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Ind-AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind-AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Ind-AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠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 Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by 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.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of the users of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Ind-AS financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Ind-AS 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
As required by the Companies (Auditor''s Report) Order, 2020, (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the said Order, to the extent applicable.
As required by section143(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 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, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid Ind-AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with relevant rules issued thereunder.
e) On the basis of the written representations received from the Directors of the Company as on March 31, 2023, and taken on record by the Board of Directors, none of the Directors of the Company are disqualified as on March 31,2023, from being appointed as a Director in terms of section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
g) According to information and explanations given to us and based on our examination of the records of the Company, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 of the Act.
h) 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 Ind-AS financial statements - Refer Note 32 to the Ind-AS financial statements.
ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at March 31,2023.
iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31,2023.
iv) The Management has represented that as per the requirements of sub-clause (i) and (ii) of Rule 11(e):
a) to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b) to the best of its knowledge and belief, no funds have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
Based on such audit procedures performed by us which are considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided above, contain any material misstatement.
v) As per information and explanation represented by Management and based on the records of the Company, the dividend proposed in the previous year, declared and paid by the Company during the current year is in accordance with Section 123 of the Act, as applicable.
The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
vi) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company w.e.f. April 1,2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31,2023.
For KALYANIWALLA & MISTRY LLP
Chartered Accountants
Firm Reg. No.: 104607W / W100166
Cyrus A. Nariman
Partner
Membership No.: 102643
UDIN: 23102643BGVOFG1171
Mar 31, 2018
Independent Auditorâs Report
To the Members of VRL Logistics Limited
Report on the Financial Statements
1. We have audited the accompanying financial statements of VRL Logistics Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (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 (âInd ASâ) 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 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.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on these financial statements based on our audit.
4. 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.
5. 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 these 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 financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. 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.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on these financial statements.
Opinion
8. 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 including Ind AS specified under Section 133 of the Act, of the state of affairs (financial position) of the Company as at 31 March 2018, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Order'') issued by the Central Government of India in terms of Section 143(11) of the Act, we give in Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
10. Further to our comments in Annexure A, 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 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 it appears from our examination of those books;
c) the financial statements dealt with by this report are in agreement with the books of account;
d) in our opinion, the aforesaid financial statements comply with Ind AS specified under Section 133 of the Act;
e) on the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as at 31 March 2018 from being appointed as a director in terms of Section 164(2) of the Act;
f) we have also audited the internal financial controls over financial reporting (IFCoFR) of the Company as at 31 March 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date and our report dated 26 May 2018 as per Annexure B expressed an unmodified opinion;
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 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in 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 were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company;
iv. the disclosure requirements relating to holdings as well as dealings in specified bank notes were applicable for the period from 8 November 2016 to 30 December 2016 which are not relevant to these financial statements. Hence, reporting under this clause is not applicable.
Annexure to the Independent Auditorâs Report of even date to the members of VRL Logistics Limited, on the financial statements for the year ended 31 March 2018
Annexure A
Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, and to the best of our knowledge and belief, we report that:
i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the Company and the nature of its assets.
(c) The title deeds of all the immovable properties (which are included under the head âProperty, plant and equipment'') are held in the name of the Company.
(ii) In our opinion, the management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies between physical inventory and book records were noticed on physical verification.
(iii) The Company has not granted any loan, secured or unsecured to companies, firms, Limited Liability Partnerships (LLPs) or other parties covered in the register maintained under Section 189 of the Act. Accordingly, the provisions of clauses 3(iii)(a), 3(iii)(b) and 3(iii)(c) of the Order are not applicable.
(iv) In our opinion, the Company has not entered into any transaction covered under Sections 185 and 186 of the Act. Accordingly, the provisions of clause 3(iv) of the Order are not applicable.
(v) In our opinion, the Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (1) of Section 148 of the Act in respect of sale of power and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) (a) The Company is regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, to the appropriate authorities. Further, no undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than six months from the date they become payable.
(b) The dues outstanding in respect of income-tax, sales-tax, service-tax, duty of customs, duty of excise and value added tax on account of any dispute, are as follows:
Name of the statute |
Nature of dues |
Amount ('' in Lakhs) |
Amount paid under Protest ('' in Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Disallowance of prior period expenses, expenses incurred towards construction of building, notional interest on funds provided to Vijayanand Printers Limited and Interest levied under Section 234B and 234C |
149.06 |
149.06 |
2003-04 (Assessment year) |
Income Tax Appellate Tribunal |
Demand of tax not deducted at source on body building charges, contribution to power evacuation facilities, etc. |
105.73 |
105.73 |
2007-08 (Assessment year) |
Income Tax Appellate Tribunal |
|
Revenue from sale of power considered as Section 80IA income, disallowance of communication expenses, disallowance of certain expense treating as personal expenses, etc. |
220.46 |
Nil |
2008-09 (Assessment year) |
Commissioner of Income Tax (Appeals) |
|
Demand of tax not deducted at source on body building charges. |
1.75 |
1.75 |
2008-09 (Assessment year) |
Income Tax Appellate Tribunal |
|
Disallowance of lease rent paid for leased land, amortisation of leasehold improvements and disallowance of certain expense treating as personal expenses |
3.18 |
Nil |
2010-11 (Assessment year) |
Income Tax Appellate Tribunal |
|
Disallowance of certain expenditure such as advances claimed as bad debts and disallowance of certain expense treating as personal expenses |
25.01 |
Nil |
2012-13 (Assessment year) |
Income Tax Appellate Tribunal |
|
Disallowance of Section 80IA deduction for income from Sale of Certified Emission Reductions (CERs) and disallowance of certain expense treating as personal expenses |
197.96 |
Nil |
2013-14 (Assessment year) |
Commissioner of Income Tax (Appeals) |
Name of the statute |
Nature of dues |
Amount ('' in Lakhs) |
Amount paid under Protest ('' in Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Disallowance of Section 80IA deduction for income from Sale of Certified Emission Reductions (CERs) and disallowance of certain expense treating as personal expenses |
210.33 |
Nil |
2014-15 (Assessment year) |
Commissioner of Income Tax (Appeals) |
Disallowance of minimum alternate tax credit taken on Education cess and surcharge against the normal tax liability and Interesst levied under Section 234B and 234C |
174.19 |
174.19 |
2015-16 (Assessment year) |
Commissioner of Income Tax (Appeals) |
|
Customs Act, 1962 |
Customs duty on import of aircraft and related interest/ penalties/fines |
1,569.02 |
688.05 |
2007-08 (Financial year) |
Customs, Excise and Service Tax Appellate Tribunal (Ahmedabad) |
Finance Act, 1994 |
Non-refund of Service tax paid |
242.88 |
2000-01 to 2001-02 |
Customs, Excise and Service Tax Appellate Tribunal (Bengaluru) |
|
Service tax arising due to re-classification of services |
328.45 |
April 2014 to February 2017 |
Commissioner of Service Tax |
||
Employees'' State Insurance Act,1948 |
Contribution on drivers'' wages |
12.92 |
3.17 |
October 2005 to January 2006 |
High Court of Karnataka |
(viii) The Company has not defaulted in repayment of loans or borrowings to any bank or financial institution or government during the year. The Company did not have any outstanding debentures during the year.
(ix) The Company did not raise moneys by way of further public offer (including debt instruments). In our opinion, the term loans were applied for the purposes for which the loans were obtained.
(x) No fraud by the Company or on the Company by its officers or employees has been noticed or reported during the period covered by our audit.
(xi) Managerial remuneration has been paid and provided by the Company in accordance with the requisite approvals mandated by the provisions of Section 197 of the Act read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi Company. Accordingly, provisions of clause 3(xii) of the Order are not applicable.
(xiii) In our opinion, all transactions with the related parties are in compliance with Sections 177 and 188 of the Act, where applicable, and the requisite details have been disclosed in the financial statements etc., as required by the applicable Ind AS.
(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures.
(xv) In our opinion, the Company has not entered into any non-cash transactions with the directors or persons connected with them covered under Section 192 of the Act.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Annexure B
Independent Auditorâs report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
1. In conjunction with our audit of the financial statements of VRL Logistics Limited (âthe Companyâ) as at and for the year ended 31 March 2018, we have audited the internal financial controls over financial reporting (IFCoFR) of the Company as at that date.
Managementâs Responsibility for Internal Financial Controls
2. The Companyâs Board of Directors 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 (âthe Guidance Note'') issued by the Institute of Chartered Accountants of India (âthe 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 the Company''s 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 Act.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on the Company''s IFCoFR based on our audit. We conducted our audit in accordance with the Standards on Auditing, issued by the ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of IFCoFR, and the Guidance Note 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 IFCoFR were 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 IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining an understanding of IFCoFR, 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 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 Company''s IFCoFR.
Meaning of Internal Financial Controls over Financial Reporting
6. A Company''s IFCoFR 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 IFCoFR include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. Because of the inherent limitations of IFCoFR, 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 IFCoFR to future periods are subject to the risk that IFCoFR 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, adequate internal financial controls over financial reporting and such controls were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Walker Chandiok & Co LLP
Chartered Accountants
Firm Registration No. 001076N / N500013
per Bharat Shetty
Partner
Membership No.: 106815
Place : Hubballi
Date: 26 May 2018
Mar 31, 2017
To the Members of VRL Logistics Limited
Report on the Financial Statements
1. We have audited the accompanying financial statements of VRL Logistics Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2017, 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 Financial Statements
2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the state of affairs (financial position), profit (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 (âInd ASâ) 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 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.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on these financial statements based on our audit.
4. 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.
5. 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 these 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 financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on these financial statements.
Opinion
8. 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 including Ind AS specified under Section 133 of the Act, of the state of affairs (financial position) of the Company as at 31 March 2017, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other matter
9. The Company had prepared separate sets of statutory financial statements for the year ended 31 March 2016 and 31 March 2015 in accordance with Accounting Standards prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) on which we issued auditor''s reports to the shareholders of the Company dated 23 May 2016 and 25 May 2015 respectively. These financial statements have been adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have also been audited by us. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Order'') issued by the Central Government of India in terms of Section 143(11) of the Act, we give in Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
11. Further to our comments in Annexure A, 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 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 it appears from our examination of those books;
c) the financial statements dealt with by this report are in agreement with the books of account;
d) in our opinion, the aforesaid financial statements comply with Ind AS specified under Section 133 of the Act;
e) on the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as at 31 March 2017 from being appointed as a director in terms of Section 164(2) of the Act;
f) we have also audited the internal financial controls over financial reporting (IFCoFR) of the Company as at 31 March 2017 in conjunction with our audit of the financial statements of the Company for the year ended on that date and our report dated 19 May 2017 as per Annexure B expressed an unmodified opinion;
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 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. the Company, as detailed in Note 32 to the financial statements, has disclosed the impact of pending litigations on its financial position;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company;
iv. the Company, as detailed in Note 10 to the financial statements, has made requisite disclosures in these financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November 2016 to 30 December 2016. Based on the audit procedures performed and taking into consideration the information and explanations given to us, in our opinion, these are in accordance with the books of account maintained by the Company.
Annexure to the Independent Auditorâs Report of even date to the members of VRL Logistics Limited, on the financial statements for the year ended 31 March 2017
Annexure A
Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the
Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, and to the best of our knowledge and belief, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the Company and the nature of its assets.
(c) The title deeds of all the immovable properties (which are included under the head âProperty, plant and equipment'') are held in the name of the Company.
(ii) In our opinion, the management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies between physical inventory and book records were noticed on physical verification.
(iii) The Company has not granted any loan, secured or unsecured to companies, firms, Limited Liability Partnerships (LLPs) or other parties covered in the register maintained under Section 189 of the Act. Accordingly, the provisions of clauses 3(iii)(a), 3(iii)(b) and 3(iii)(c) of the Order are not applicable.
(iv) In our opinion, the Company has not entered into any transaction covered under Sections 185 and 186 of the Act. Accordingly, the provisions of clause 3(iv) of the Order are not applicable.
(v) In our opinion, the Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (1) of Section 148 of the Act in respect of sale of power and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) (a) The Company is regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, to the appropriate authorities. Further, no undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than six months from the date they become payable.
(b) The dues outstanding in respect of income-tax, sales-tax, service-tax, duty of customs, duty of excise and value added tax on account of any dispute, are as follows:
Statement of disputed dues
Name of the statute |
Nature of dues |
Amount (Rs.in Lakhs) |
Amount paid under Protest (Rs.in Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Disallowance of prior period expenses, expenses incurred towards construction of building, notional interest on funds provided to Vijayan and Printers Limited and Interest levied under Section 234B and 234C |
377.15 |
296.41 |
2003-04 (Assessment year) |
Commissioner of Income Tax (Appeals) |
Demand of tax not deducted at source on body building charges, contribution to power evacuation facilities, etc. |
105.73 |
105.73 |
2007-08 (Assessment year) |
Income Tax Appellate Tribunal |
|
Revenue from sale of power considered as Section 80IA income, disallowance of communication expenses, Air Charter expenses, etc. |
220.46 |
Nil |
2008-09 (Assessment year) |
Commissioner of Income Tax (Appeals) |
|
Demand of tax not deducted at source on body building charges. |
1.75 |
1.75 |
2008-09 (Assessment year) |
Income Tax Appellate Tribunal |
|
Disallowance of lease rent paid for leased land, amortization of leasehold improvements and disallowance of aircraft expenditures with assumption that directors of the Company used Company''s assets for personal purposes. |
3.18 |
Nil |
2010-11 (Assessment year) |
Income Tax Appellate Tribunal |
|
Disallowance of certain expenditure such as advances claimed as bad debts and proportionate disallowance of aircraft expenditure with assumption that directors of the Company used Company''s assets for personal purposes. |
6.25 |
Nil |
2012-13m (Assessment year) |
Commissioner of Income Tax (Appeals) |
|
Disallowance of Section 80IA deduction for income from Sale of Certified Emission Reductions (CERs) and personal usage of aircraft expenditure with assumption that directors of the Company used Company''s assets for personal purposes. |
197.96 |
Nil |
2013-14 (Assessment year) |
Commissioner of Income Tax (Appeals) |
Income Tax Act, 1961 |
Disallowance of Section 80IA deduction for income from Sale of Certified Emission Reductions (CERs) and personal usage of aircraft expenditure with assumption that directors of the Company used Company''s assets for personal purposes. |
210.33 |
Nil |
2014-15 (Assessment year) |
Commissioner of Income Tax (Appeals) |
Customs Act, 1962 |
Customs duty on import of aircraft and related interest/ penalties/fines |
1,569.02 |
688.05 |
2007-08 (Financial year) |
Customs, Excise and Service Tax Appellate Tribunal (Ahmedabad) |
Employees'' State Insurance Act,1948 |
Contribution on drivers'' wages |
12.92 |
3.17 |
October 2005 to January 2006 |
High Court of Karnataka |
(viii) The Company has not defaulted in repayment of loans or borrowings to any bank or financial institution or government during the year. The Company did not have any outstanding debentures during the year.
(ix) In our opinion, the Company has applied moneys raised by way of initial public offer and the term loans for the purposes for which these were raised.
(x) No fraud by the Company or on the Company by its officers or employees has been noticed or reported during the period covered by our audit.
(xi) Managerial remuneration has been paid and provided by the Company in accordance with the requisite approvals mandated by the provisions of Section 197 of the Act read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi Company. Accordingly, provisions of clause 3(xii) of the Order are not applicable.
(xiii) In our opinion all transactions with the related parties are in compliance with Sections 177 and 188 of the Act, where applicable, and the requisite details have been disclosed in the financial statements etc., as required by the applicable Ind AS.
(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures.
(xv) In our opinion, the Company has not entered into any non-cash transactions with the directors or persons connected with them covered under Section 192 of the Act.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Annexure B
Independent Auditorâs report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
1. In conjunction with our audit of the financial statements of VRL Logistics Limited (âthe Companyâ) as at and for the year ended 31 March 2017, we have audited the internal financial controls over financial reporting (IFCoFR) of the Company as at that date.
Managementâs Responsibility for Internal Financial Controls
2. The Companyâs Board of Directors 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 (âthe Guidance Note'') issued by the Institute of Chartered Accountants of India (âthe 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 the Company''s 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 Act.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on the Company''s IFCoFR based on our audit. We conducted our audit in accordance with the Standards on Auditing, issued by the ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of IFCoFR, and the Guidance Note 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 IFCoFR were 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 IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining an understanding of IFCoFR, 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.
5. 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 IFCoFR.
Meaning of Internal Financial Controls over Financial Reporting
6. A Company''s IFCoFR 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 IFCoFR 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
7. Because of the inherent limitations of IFCoFR, 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 IFCoFR to future periods are subject to the risk that IFCoFR 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, adequate internal financial controls over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 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 issued by the ICAI.
For Walker Chandiok & Co LLP
Chartered Accountants
Firm Registration No. 001076N / N500013
per Bharat Shetty
Partner
Membership No.: 106815
Place : Hubballi
Date : 19 May 2017
Mar 31, 2016
1. We have audited the accompanying financial statements of VRL
Logistics Limited ( ACI-the Company ACI-), which comprise the Balance Sheet as
at 31 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
2. The Company''s Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ( ACI-the Act ACI-) 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 (as amended). This responsibility also
includes maintenance of adequate accounting records in accordance with
the provisions of the Act ADs- safeguarding the assets of the Company ADs-
preventing and detecting frauds and other irregularities ADs- selection and
application of appropriate accounting policies ADs- making judgments and
estimates that are reasonable and prudent ADs- 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
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. 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.
5. 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.
6. 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 controls relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. 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.
7. 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
8. 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 31 March 2016, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor''s Report) Order, 2016 ( ACI-the
Order ACI-) issued by the Central Government of India in terms of Section
143(11) of the Act, we give in Annexure A, a statement on the matters
specified in paragraphs 3 and 4 of the Order.
10. Further to our comments in Annexure A, as required by
Section143(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
purpose of our audit ADs-
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 ADs-
c. the financial statements dealt with by this report are in agreement
with the books of account ADs-
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 (as amended) ADs-
e. on the basis of the written representations received from the
directors as at 31 March 2016 and taken on record by the Board of
Directors, none of the directors is disqualified as at 31 March 2016
from being appointed as a director in terms of Section164(2) of the
Act ADs-
f. we have also audited the internal financial controls over financial
reporting (IFCoFR) of 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 and our report dated 23 May 2016 as per Annexure B
expressed an unmodified opinion ADs-
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. as detailed in Note 27 to the financial statements, the Company has
disclosed the impact of pending litigations on its financial position ADs-
ii. the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses ADs-
iii. there were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure A to the Independent Auditor''s Report of even date to the
members of VRL Logistics Limited, on the financial statements for the
year ended 31 March 2016
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, and to the best of our knowledge and belief, we report
that:
(i)(a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification of the
fixed assets is reasonable having regard to the size of the Company and
the nature of its assets.
(c) The title deeds of all the immovable properties (which are included
under the head ''fixed assets'') are held in the name of the Company.
(ii) In our opinion, the management has conducted physical verification
of inventory at reasonable intervals during the year and no material
discrepancies between physical inventory and book records were noticed
on physical verification.
(iii) The Company has not granted any loan, secured or unsecured to
companies, firms, Limited Liability Partnerships (LLPs) or other
parties covered in the register maintained under Section 189 of the
Act. Accordingly, the provisions of clauses 3(iii)(a), 3(iii)(b) and
3(iii)(c) of the Order are not applicable.
(iv) In our opinion, the Company has not entered into any transaction
covered under Sections 185 and 186 of the Act. Accordingly, the
provisions of clause 3(iv) of the Order are not applicable.
(v) In our opinion, the Company has not accepted any deposits within
the meaning of Sections 73 to 76 of the Act and the Companies
(Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the
provisions of clause 3(v) of the Order are not applicable.
(vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under sub-section (1) of Section 148 of the
Act in respect of sale of power and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
(vii) (a) The Company is regular in depositing undisputed statutory
dues including provident fund, employees'' state insurance, income-tax,
sales-tax, service tax, duty of customs, duty of excise, value added
tax, cess and other material statutory dues, as applicable, to the
appropriate authorities. Further, no undisputed amounts payable in
respect thereof were outstanding at the year-end for a period of more
than six months from the date they become payable.
(b) The dues outstanding in respect of income-tax, sales-tax, service
tax, duty of customs, duty of excise and value added tax on account of
any dispute, are as follows:
Statement of disputed dues
Amount
paid Period to
Amount Forum
where
Name of under which the
Nature of dues (Rs. in dispute is
the
statute Protest amount
Lakhs) (Rs. in relates pending
Lakhs)
Income Tax Disallowance
of prior period
expenses, 377.15 Nil 2003-04 Commissio
ner
Act, 1961 expenses incurred
towards
construction of (Assess
ment of Income
Tax
building,
notional interest
on funds provided
to year) (Appeals)
Vijayanand
Printers Limited
and Interest
levied under
Section 234B and
234C
Amount Amount paid
Name of under
Nature of dues (Rs. in
the statute Protest
Lakhs) (Rs. in
Lakhs)
Demand of tax not deducted at
source on 105.73 105.73
body building charges,
contribution to power evacuation
facilities, etc
Revenue from sale of power
considered 220.46 Nil
as Section 80IA income,
disallowance of communication
expenses, Air Charter expenses,
etc
Demand of tax not deducted at
source on body building charges 1.75 1.75
Disallowance of prior period
expenses, provision 17.40 Nil
for lease equalization and
aircraft expenditure with
assumption that directors of the
Company used Company''s assets for
personal purposes
Disallowance of certain
expenditure such 14.11 Nil
as lease rent, amortisation of
leasehold improvements,
proportionate disallowance of
aircraft expenditure with
assumption that directors of the
Company used Company''s assets for
personal purposes
Disallowance of certain
expenditure such as 14.31 Nil
amortisation of leasehold
improvements, proportionate
disallowance of aircraft
expenditure with assumption that
directors of the Company used
Company''s assets for personal
purposes
Disallowance of certain
expenditure such 25.01 Nil
as advances claimed as bad debts
and proportionate disallowance
of aircraft expenditure with
assumption that directors of the
Company used Company''s assets for
personal purposes
Disallowance of Section 80IA
deduction for 197.96 Nil
income from Sale of Certified
Emission Reductions (CERs) and
personal usage of aircraft
expenditure with assumption that
directors of the Company used
Company''s assets for personal
purposes
Customs Customs duty on import of
aircraft and related 1,569.02 688.05
Act, 1962 interest/ penalties/fines
Employees'' Contribution on drivers'' wages 12.92 3.17
State
Insurance
Act,1948
Name of the statute Period to Forum where
which the
dispute is
amount
relates pending
2007-08 Commissioner
(Assessment of Income Tax
year) (Appeals)
2008-09 Commissioner
(Assessment of Income Tax
year) (Appeals)
2008-09 Commissioner
(Assessment of Income Tax
year) (Appeals)
2009-10 Commissioner
(Assessment of Income Tax
year) (Appeals)
2010-11 Commissioner
(Assessment of Income Tax
year) (Appeals)
2011-12 Commissioner
(Assessment of Income Tax
year) (Appeals)
2012-13 Commissioner
(Assessment of Income Tax
year) (Appeals)
2013-14 Commissioner
(Assessment of Income Tax
year) (Appeals)
Customs Act, 1962 2007-08 Customs, Excise
(Financial and Service
year) Tax Appellate
Tribunal
(Ahmedabad)
Employees'' State Insurance
Act, 1948 October High Court of
2005 to Karnataka
January 2006
(viii) The Company has not defaulted in repayment of loans or
borrowings to any bank or financial institution or government during
the year. The Company did not have any outstanding debentures during
the year.
(ix) In our opinion, the Company has applied moneys raised by way of
initial public offer and the term loans for the purposes for which
these were raised, and the idle funds which were not required for
immediate utilisation have been temporarily deployed in cash credit
account with a scheduled commercial bank.
(x) No fraud by the Company or on the Company by its officers or
employees has been noticed or reported during the period covered by our
audit.
(xi) Managerial remuneration has been paid and provided by the Company
in accordance with the requisite approvals mandated by the provisions
of Section 197 of the Act read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi Company. Accordingly,
provisions of clause 3(xii) of the Order are not applicable.
(xiii) In our opinion, all transactions with the related parties are in
compliance with Sections 177 and 188 of the Act, where applicable, and
the requisite details have been disclosed in the financial statements
etc., as required by the applicable accounting standards.
(xiv) During the year, the Company has not made any preferential
allotment or private placement of shares or fully or partly paid
convertible debentures.
(xv) In our opinion, the Company has not entered into any non-cash
transactions with directors or persons connected with them covered
under Section 192 of the Act.
(xvi) The Company is not required to be registered under Section 45-IA
of the Reserve Bank of India Act, 1934.
For Walker Chandiok ACY- Co LLP For H. K. Veerbhaddrappa ACY- Co
(Formerly Walker, Chandiok ACY- Co) Chartered Accountants
Chartered Accountants Firm''s Registration No.: 004578S
Firm''s Registration No.: 001076N/
N500013
per Khushroo B. Panthaky per Arrvvind Kubsad
Partner Partner
Membership No.: 42423 Membership No.: 85618
Place : Hubballi Place : Hubballi
Date : 23 May 2016 Date : 23 May 2016
Mar 31, 2015
1. We have audited the accompanying financial statements of VRL
Logistics Limited, ("the Company"), which comprise the Balance
Sheet as at 31 March 2015, the Statement of Profit and Loss and 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
2. 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 (as amended). 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
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. 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.
5. 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.
6. 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 controls relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial 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.
7. 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
8. 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 31 March 2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor's Report) Order, 2015
("the Order") issued by the Central Government of India in terms of
Section 143(11) of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
10. 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
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 it appears from our examination of those
books;
c. the financial statements 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 (as amended);
e. on the basis of the written representations received from the
directors as at 31 March 2015 and taken on record by the Board of
Directors, none of the directors is disqualified as at 31 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. as detailed in Note 27 to the financial statements, the Company has
disclosed the impact of pending litigations on its financial position;
ii. the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. there were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditor's Report of even date to the
members of VRL Logistics Limited, on the financial statements for the
year ended 31 March 2015
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular program of physical verification of its
fixed assets under which fixed assets are verified in a phased manner
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.
No material discrepancies were noticed on such verification.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies between physical inventory and book records were
noticed on physical verification.
(iii) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 189 of the Act. Accordingly, the provisions of clauses
3(iii)(a) and 3(iii)(b) of the Order are not applicable.
(iv) In our opinion, 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 and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
(v) The Company has not accepted any deposits within the meaning of
Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits)
Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of
the Order are not applicable.
(vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under sub-section (1) of Section 148 of the
Act in respect of sale of power and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
(vii) (a) The Company is regular in depositing undisputed statutory
dues including provident fund, employees' state insurance,
income-tax, sales-tax, wealth tax, service tax, duty of customs, duty
of excise, value added tax, cess and other material statutory dues, as
applicable, with the appropriate authorities. Further, no undisputed
amounts payable in respect thereof were outstanding at the year-end for
a period of more than six months from the date they become payable.
(b) The dues outstanding in respect of income-tax, sales-tax, wealth
tax, service tax, duty of customs, duty of excise, value added tax and
cess on account of any dispute, are as follows:
Name of Nature of dues Amount Amount
the (' in paid under
statute Lacs) protest
(' in Lacs)
Income Disallowance of prior period
expenses, 377.15 Nil
Tax expenses incurred towards
construction
Act, 1961 of building, notional interest on funds
provided to Vijayanand Printers Limited
and Interest levied under section 234B
and 234C
Demand of tax not deducted
at source 105.73 105.73
on body building charges,
contribution to power evacuation
facilities, etc.
Demand of tax not deducted at
source 1.75 1.75
on body building charges.
Revenue from sale of wind power 220.46 Nil
considered as Section 80IA income,
disallowance of communication
expenses, Air Charter expenses, etc.
Disallowance of prior period
expenses, 17.40 Nil
provision for lease equalization and
aircraft expenditure with assumption
that directors of the Company used
Company's assets for personal purposes
Name of
the
statute Period to which Forum where
the amount dispute is
relates pending
Income
Tax
Act, 1961 2003-04 Commissioner
(Assessment of Income Tax
year) (Appeals)
2007- 08 Commissioner
(Assessment of Income Tax
year) (Appeals)
2008- 09 Commissioner
(Assessment of Income Tax
year) (Appeals)
2008- 09 Commissioner
(Assessment of Income Tax
year) (Appeals)
2009- 10 Commissioner
(Assessment of Income Tax
year) (Appeals)
Name of Nature of dues Amount Amount
the (' in paid under
statute Lacs) protest
(' in Lacs)
Income Tax Disallowance of certain
expenditure 14.11 Nil
Act, 1961 such as lease rent, amortisation
of leasehold improvements,
proportionate disallowance of
aircraft expenditure
with assumption that directors
of the Company used Company's
assets for personal purposes
Disallowance of certain
expenditure 14.31 Nil
such as amortisation of leasehold
improvements, proportionate
disallowance of aircraft
expenditure with assumption that
directors of the Company used
Company's assets for
personal purposes
Disallowance of certain
expenditure 25.01 Nil
such as Interest on income tax,
advances claimed as bad debts and
personal usage of aircraft expenditure
with assumption that directors of the
Company used Company's assets for
personal purposes
Customs Customs duty on import of
aircraft and 1,569.02 688.05
Act, 1962 related interest/ penalties/fine
Employees' Contribution on drivers' wages 12.92 3.17
State
Insurance
Act,1948
Name of
the
statute Period to which Forum where
the amount dispute is
relates pending
Income Tax
Act, 1961 2010- 11 Commissioner
(Assessment of Income Tax
year) (Appeals)
2011- 12 Commissioner
(Assessment of Income Tax
year) (Appeals)
2012- 13 Commissioner
(Assessment of Income Tax
year) (Appeals)
Customs
Act, 1962 2007-08 Customs,
(Financial Excise and
year) Service Tax
Appellate Tribunal
(Ahmedabad)
Employees'
State
Insurance
Act,1948 October 2005 High Court of
to Karnataka
January 2006
(c) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
(viii) In our opinion, the Company has no accumulated losses at the end
of the financial year and it has not incurred cash losses in the
current and the immediately preceding financial year.
(ix) The Company has not defaulted in repayment of dues to any bank or
financial institution during the year. The Company did not have any
outstanding debentures during the year.
(x) The Company has not given any guarantees for loans taken by others
from banks or financial institutions. Accordingly, the provisions of
clause 3(x) of the Order are not applicable.
(xi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
(xii) No fraud on or by the Company has been noticed or reported during
the period covered by our audit.
For Walker Chandiok & Co LLP For H. K. Veerbhaddrappa & Co
(Formerly Walker, Chandiok & Co) Chartered Accountants
Chartered Accountants
Firm Registration
No.: 001076N/N500013 Firm's Registration No.: 004578S
per Khushroo B. Panthaky per Arvind Kubsad
Partner Partner
Membership No.: 42423 Membership No.: F-85618
Place: Hubbali Place: Hubbali
Date: 25 May 2015 Date: 25 May 2015
Mar 31, 2014
Report on the Financial Statements
1. We have audited the accompanying financial statements of VRL
Logistics Limited, ("the Company"), which comprise the Balance Sheet as
at 31 March 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. 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 principles generally accepted in India, including the
Accounting Standards notified under the Companies Act, 1956 ("the Act")
read with the General Circular 15/2013 dated 13 September 2013 of the
Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
3. 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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors'' judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of Company''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2014;
ii) in the case of Statement of Profit and Loss, of the profit for the
year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. 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.
8. 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 financial statements dealt with by this report are in agreement
with the books of account;
d. in our opinion, the financial statements comply with the Accounting
Standards notified under the Companies Act, 1956 read with the General
Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013; and
e. on the basis of written representations received from the
directors, as at 31 March 2014 and taken on record by the Board of
Directors, none of the directors is disqualified as at 31 March 2014
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act.
Annexure to the Independent Auditors'' Report of even date to the
members of VRL Logistics Limited, on the financial statements for the
year ended 31 March 2014
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The Company has a regular program of physical verification of its
fixed assets under which fixed assets are verified in a phased manner
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.
No material discrepancies were noticed on such verification.
c) In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
ii) a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies between physical inventory and book records were
noticed on physical verification.
iii) a) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly, the provisions of clauses
4(iii)(b) to 4(iii)(d) of the Order are not applicable.
e) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly, the provisions of clauses
4(iii)(f) and 4(iii)(g) of the Order are not applicable.
iv) In our opinion, 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 and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
v) a) In our opinion, the particulars of all contracts or arrangements
that need to be entered into the register maintained under Section 301
of the Act have been so entered.
b) In our opinion, the transactions made in pursuance of such contracts
or arrangements 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, the Company has complied with the directives issued
by the Reserve Bank of India, the provisions of Sections 58A and 58AA
and other relevant provisions of the Act and the Companies (Acceptance
of Deposits) Rules, 1975, as applicable, 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, in this regard.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under clause (d) of sub-section (1) of
Section 209 of the Act in respect of sale of power and are of the
opinion that, prima facie, the prescribed accounts and records have
been made and maintained. However, we have not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
ix) a) The Company is regular in depositing undisputed
statutory dues including provident fund, investor education and
protection fund, employees'' state insurance, income-tax, sales-tax,
wealth tax, service tax, customs duty, excise duty, cess and other
material statutory dues, as applicable, with the appropriate
authorities. Further, no undisputed amounts payable in respect thereof
were outstanding at the year-end for a period of more than six months
from the date they become payable.
b) The dues outstanding in respect of income-tax, sales-tax, wealth
tax, service tax, customs duty, excise duty, cess on account of any
dispute, are as follows:
Name Nature of dues Amount Amount Paid Period to which
of the (Rs. in Under Protest the amount relates
statute lacs) (Rs.in lakhs) (Assessment Year)
Income Disallowance of 50.68 Nil 2003-04
Tax Act, prior period
1961 expenses and
expenses
incurred
towards
construction
of building
Notional 106.39 Nil 2003-04
interest
on funds
provided to
Vijayanand
Printers
Limited
Demand of tax 105.73 105.73 2007-08
deducted at
source on body
building charge,
power evacuation
facilities etc.
Demand of tax 1.75 1.75 2008-09
not deducted at
source on body
building charges
Revenue from 220.46 Nil 2008-09
sale of wind
power considered
as Section 80IA
income,
disallowance of
communication
expenses, Air
Charter expenses,
etc.
Disallowance of 14.11 Nil 2010-11
certain
expenditure such
as lease rent,
amortisation of
leasehold
improvements,
proportionate
disallowance of
aircraft
expenditure with
assumption that
directors of the
Company used
Company''s assets
for personal
purposes
Disallowance of 14.31 Nil 2011- 12
certain
expenditure such
as amortisation
of leasehold
improvements,
proportionate
disallowance of
aircraft
expenditure with
assumption that
directors of the
Company used
Company''s assets
for personal
purposes
Name Nature of dues Form Where
of the Dispute is Pending
statute
Income Disallowance of Assessing officer (Post directions
Tax Act, prior period of Karnataka High Court)
1961 expenses and
expenses
incurred
towards
construction
of building
Notional Assessing officer (Post directions
interest of Karnataka High Court)
on funds
provided to
Vijayanand
Printers
Limited
Demand of tax Commissioner of Income Tax
deducted at (Appeals)
source on body
building charge,
power evacuation
facilities etc.
Demand of tax Deputy Commissioner of Income Tax
not deducted at (TDS)
source on body
building charges
Revenue from Commissioner of Income Tax
sale of wind (Appeals)
power considered
as Section 80IA
income,
disallowance of
communication
expenses, Air
Charter expenses,
etc.
Disallowance of Commissioner of Income Tax
certain (Appeals)
expenditure such
as lease rent,
amortisation of
leasehold
improvements,
proportionate
disallowance of
aircraft
expenditure with
assumption that
directors of the
Company used
Company''s assets
for personal
purposes
Disallowance of Commissioner of Income Tax
certain (Appeals)
expenditure such
as amortisation
of leasehold
improvements,
proportionate
disallowance of
aircraft
expenditure with
assumption that
directors of the
Company used
Company''s assets
for personal
purposes
x) In our opinion, the Company has no accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and the immediately preceding financial year.
xi) The Company has not defaulted in repayment of dues to any bank or
financial institution during the year. The Company did not have any
outstanding debentures during the year.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, the provisions of clause 4(xii) of the Order are not
applicable.
xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Accordingly, provisions of clause
4(xiii) of the Order are not applicable.
xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
xv) The Company has not given any guarantees for loans taken by others
from banks or financial institutions. Accordingly, the provisions of
clause 4(xv) of the Order are not applicable.
xvi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investment by the Company.
xviii) During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Act. Accordingly, the provisions of
clause 4(xviii) of the Order are not applicable.
xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
xxi) No fraud on or by the Company has been noticed or reported during
the period covered by our audit.
For Walker Chandiok & Co. LLP For H.K. Veerbhaddrappa & Co.
Chartered Accountants Chartered Accountants
Firm Registration No.: Firm Registration No.:
001076N/N500013 004578S
per Khushroo B. Panthaky per Arrvvind Kubsad
Partner Partner
Membership No.: F-42423 Membership No.: F-85618
Mumbai Hubballi
26 June 2014 26 June 2014
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of VRL
Logistics Limited, ("the Company"), which comprise the Balance Sheet as
at 31 March 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. 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 principles generally accepted in India, including 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.
Auditors'' Responsibility
3. 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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors'' judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2013;
ii) in the case of Statement of Profit and Loss, of the profit for the
year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
Report on Other Legal and Regulatory Requirements
7. 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.
8. 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 financial statements dealt with by this report are in agreement
with the books of account;
d. in our opinion, the financial statements comply with the Accounting
Standards referred to in subsection (3C) of Section 211 of the Act; and
e. on the basis of written representations received from the
directors, as at 31 March 2013 and taken on record by the Board of
Directors, none of the directors is disqualified as at 31 March 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act.
Annexture to the Auditors'' Report of even date to the members of VRL
Logistics Limited, on the financial statements for the year ended 31
March 2013
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The Company has a regular program of physical verification of its
fixed assets under which fixed assets are verified in a phased manner
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.
No material discrepancies were noticed on such verification.
c) In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
ii) a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies between physical inventory and book records were
noticed on physical verification.
iii) a) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register
maintained under Section 301 of the Act. Accordingly, the provisions of
clauses 4 (iii) (b) to 4 (iii) (d) of the Order are not applicable.
e) The Company has taken unsecured loans from two parties covered in
the register maintained under Section 301 of the Act. The maximum
amount outstanding during the year is Rs.3,045 lakhs and the year-end
balance is Nil.
f) In our opinion, the rate of interest and other terms and conditions
of loans taken by the Company are not, prima facie, prejudicial to the
interest of the Company.
g) In respect of loans taken, repayment of the principal amount and the
interest is regular.
iv) In our opinion, 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
and fixed assets and for the sale of goods and services. During the
course of our audit, no major weakness has been noticed in the internal
control system in respect of these areas.
v) a) In our opinion, the particulars of all contracts or arrangements
that need to be entered into the register maintained under Section 301
of the Act have been so entered.
b) In our opinion, the transactions made in pursuance of such contracts
or arrangements and exceeding the value of rupees five lacs 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, the Company has complied with the directives issued
by the Reserve Bank of India, the provisions of Sections 58A and 58AA
and other relevant provisions of the Act and the Companies (Acceptance
of Deposits) Rules, 1975, as applicable, 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, in this regard.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under clause (d) of sub-section (1) of
Section 209 of the Act in respect of sale of power and are of the
opinion that, prima facie, the prescribed accounts and records have
been made and maintained. However, we have not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
ix) a) The Company is regular in depositing undisputed
statutory dues including provident fund, investor education and
protection fund, employees'' state insurance, income-tax, sales-tax,
wealth tax, service tax, customs duty, excise duty, cess and other
material statutory dues, as applicable, with the appropriate
authorities. Further, no undisputed amounts payable in respect thereof
were outstanding at the year-end for a period of more than six months
from the date they become payable.
b) The dues outstanding in respect of sales-tax, income-tax, customs
duty, wealth-tax, excise duty, cess on account of any dispute, are as
follows:
Name Nature of dues Amount Amount Period to Forum where
of the (Rs. paid which the dispute is
statute in under amount pending
lakhs) protest relates
(Rs. in
lakhs)
Income Disallowance of 50.68 Nil Assessment Karnataka
Tax Act, prior period Year High Court
1961 expenses 2003-04
and expenses
incurred towards
construction of
building
Notional interest 106.39 Nil Assessment Karnataka
on funds provided Year High Court
to Vijayanand 2003-04
Printers Limited
Demand of tax not 105.73 105.73 Assessment Commissioner
deducted at Year of Income
source 2007-08 Tax
on body building (Appeals)
charges,
contribution
to power
evacuation
facilities etc.
Demand of tax not 1.75 1.75 Assessment Deputy
deducted at source Year Commissioner
on body building 2008-09 of Income Tax
charges (TDS)
Revenue from sale 220.46 Nil Assessment Commissioner
of wind power Year of Income Tax
considered as 2008-09 (Appeals)
Section 80IA
income,
disallowance of
communication
expenses, Air
Charter expenses
etc.
Disallowance of 14.11 Nil Assessment Commissioner
certain expenditure Year of Income Tax
such as lease rent, 2010-11 (Appeals)
amortisation of
leasehold
improvements,
proportionate
disallowance of
aircraft
expenditure with
assumption that
directors of the
Company used
Company''s assets
for personal
purposes
Central Excise Duty on 1085.35 Nil January Commissioner
Excise body building, 2003 to of Central
Act, sales September Excise &
1944 and interest 2011 Customs
thereon
x) In our opinion, the Company has no accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and the immediately preceding financial year.
xi) The Company has not defaulted in repayment of dues to any bank or
financial institution during the year. The Company did not have any
outstanding debentures during the year.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, the provisions of clause 4 (xii) of the Order are not
applicable.
xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Accordingly, provisions of clause 4
(xiii) of the Order are not applicable.
xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
xv) The Company has not given any guarantees for loans taken by others
from banks or financial institutions. Accordingly, the provisions of
clause 4 (xv) of the Order are not applicable.
xvi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investment by the Company.
xviii) During the year, the Company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained under Section 301 of the Act. Accordingly, the provisions of
clause 4 (xviii) of the Order are not applicable.
xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4 (xix) of the
Order are not applicable.
xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
xxi) No fraud on or by the Company has been noticed or reported during
the period covered by our audit.
For Walker, Chandiok & Co For H.K. Veerbhaddrappa & Co
Chartered Accountants Chartered Accountants
Firm Registration No.: Firm Registration No.:
001076N 004578S
per Amyn Jassani per Arrvvind Kubsad
Partner Partner
Membership No.: F-46447 Membership No.: F-85618
Mumbai Hubballi
10 July 2013 10 July 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of VRL Logistics Limited
(the ''Company'')as at 31 March 2012 and also the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date,
annexed thereto (collectively referred as the ''financial statements'').
These financial statements are the responsibility of the Company''s
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003 (the
''Order'') (as amended), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956
(the ''Act''), we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
4. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, 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 financial statements dealt with by this report are in agreement
with the books of account;
d) On the basis of written representations received from the directors,
as at 31 March 2012 and taken on record by the Board of Directors, none
of the directors is disqualified as at 31 March 2012 from being
appointed as a director in terms of clause (g)of sub-section (1) of
Section 274 of the Act;
e) In our opinion and to the best of our information and according to
the explanations given to us, the financial statements dealt with by
this report comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Act and 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, in the case of:
i) the Balance Sheet, of the state of affairs of the Company as at 31
March 2012;
ii) the Statement of Profit and Loss, of the profit for the year ended
on that date; and
iii) the Cash Flow Statement, of the cash flows for the year ended on
that date.
Annexure to the Auditors'' Report of even date to the members of VRL
Logistics Limited, on the financial statements for the year ended 31
March 2012
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The fixed assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification of the
fixed assets is reasonable having regard to the size of the Company and
the nature of its assets.
c) In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
ii) a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii) a) The Company has not granted any loan, secured
or unsecured to companies, firms or other parties covered in the
register maintained under Section 301 of the Act. Accordingly, the
provisions of clauses 4(iii)(b) to 4(iii)(d) of the Order are not
applicable.
e) The Company had taken unsecured loans fro two parties covered in the
register maintained under Section 301 of the Act. The maximum amount
outstanding during the year is Rs.2,659.75 lacs and the year-end
balance is Rs.155.64 lacs.
f) In our opinion, the rate of interest and other terms and conditions
of loans taken by the Company are not, prima facie, prejudicial to the
interest of the Company.
(g) In respect of loans taken, payment of the principal amount and
interest is regular.
iv) In our opinion, 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 and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
v) a) In our opinion, the particulars of all contracts or arrangements
that need to be entered into the register maintained under Section 301
of the Act have been so entered.
b) In our opinion, the transactions made in pursuance of such contracts
or arrangements 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 prevailing market prices at the relevant
time.
vi) In our opinion, the Company has complied with {the directives
issued by the Reserve Bank of India, the provisions of Sections 58A and
58AA and other relevant provisions of the Act and the Companies
(Acceptance of Deposits) Rules, 1975 as applicable} 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, in this regard.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under clause (d) of subsection (1) of
Section 209 of the Act in respect of Company''s products / services and
are of the opinion that, prima facie, the prescribed accounts and
records have been made and maintained. However, we have not made a
detailed examination of the cost records with a view to determine
whether they are accurate or complete.
ix) a) The Company is regular in depositing the undisputed statutory
dues including provident fund, investor education and protection fund,
employees'' state insurance, income tax, sales tax, wealth tax, service
tax, customs duty, excise duty, cess and other material statutory dues,
as applicable, with the appropriate authorities. Further, no undisputed
amounts payable in respect thereof were outstanding at the year-end for
a period of more than six months from the date they become payable.
b) The dues outstanding in respect of sales-tax, income-tax, customs
duty, wealth-tax, excise duty, cess on account of any dispute, are as
follows:
Name of Nature of dues Amount Period to which Forum where
the (Rs. in the amount relates dispute
statute lacs) is pending
Income Disallowance of 50.68 Assessment Year Karnataka
Tax Act, prior period 2003-04 High Court
1961 expenses and
expenses
incurred
towards
construction
of building
Notional 106.39 Assessment Year Karnataka
interest 2003-04 High Court
on funds
provided to
Vijayanand
Printers
Limited
Revenue from 220.46 Assessment Year Commissioner
sale of wind 2008-09 of Income
power considered Tax
as Section 80IA (Appeals)
income,
disallowance of
communication
expenses, Air
Charter expenses,
etc.
Finance Service tax 514.40 April 2005 to Deputy
Act, 1994 including February 2011 Commissioner
(Service interest thereon (Appeals)
tax)
Central Excise duty on 1085.35 January 2003 to Commissioner
Excise body building, September 2011 of Central
Act, scrap sales Excise &
1944 and interest Customs
thereon
x) In our opinion, the Company has no accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and the immediately preceding financial year.
xi) The Company has not defaulted in repayment of dues to any bank or
financial institution during the year. The Company did not have any
outstanding debentures during the year.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, the provisions of clause 4(xii) of the Order are not
applicable.
xiii) The Company is not a chit fund or a nidhi/ mutual benefit fund/
society. Accordingly, the provisions of clause 4(xiii) of the Order are
not applicable.
xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
xv) The Company has not given any guarantees for loans taken by others
from banks or financial institutions. Accordingly, the provisions of
clause 4(xv) of the Order are not applicable.
xvi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investment.
xviii) During the year, the Company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained under Section 301 of the Act. Accordingly, the provisions of
clause 4(xviii) of the Order are not applicable.
xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
xxi) No fraud on or by the Company has been noticed or reported during
the period covered by our audit.
Walker, Chandiok & Co. H.K. Veerbhaddrappa & Co.
Chartered Accountants Chartered Accountants
Firm Registration No: 001076N Firm Registration No: 004578S
per Khushroo B. Panthaky per Arrvvind Kubsad
Partner Partner
Membership No. F-42423 Membership No. F-85618
Date: 10 July 2012 Date: 10 July 2012
Place: MUMBAI Place: HUBLI