Mar 31, 2018
INDEPENDENT AUDITORâS REPORT TO THE MEMBERS OF WIRES & FABRIKS (S.A.) LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying Ind AS financial statements of Wires & Fabriks (S.A) Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss (including Other Comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
MANAGEMENTâS RESPONSIBILITY FOR THE 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 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 (Ind AS) specified under Section 133 of the Act, read with relevant rules issued thereunder. 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; 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.
AUDITORâS RESPONSIBILITY
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs of the Company as at 31st March, 2018, and its financial performance including other comprehensive income, its cash flows and the change in equity for the year ended on that date.
OTHER MATTERS
The comparative financial information of the Company for the year ended 31st March, 2017 and the transition date opening Balance Sheet as at 1st April, 2016 included in these Ind AS financial statements, are based on the statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the previous auditors whose report for the year ended 31st March, 2017 and 31st March, 2016 dated 30th May, 2017 and 25th May, 2016 respectively expressed an unmodified opinion on those financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us. Our opinion on the Ind AS financial statements and our report on Other Legal and Regulatory Requirements below is not modified in respect of these matters.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
I. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
II. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance sheet, the Statement of Profit and Loss and the Cash Flow Statement and the Statement of Changes in Equity dealt with by this report are in agreement with the books of account;
(d) In our opinion, the aforesaid Ind AS financial statements comply with the 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 as on 31st March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ.
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements. (Refer Note 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.
Hi. There has been no delay in transferring amounts, which were required to be transferred to the Investor Education and Protection Fund by the Company.
The Annexure referred to in our report to the members of Wires & Fabriks (S.A.) Limited (âthe Companyâ) for the year ended on 31st March 2018. 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 programme of physical verification of its fixed assets. In accordance with this programme, certain fixed assets were physically verified by the Management during the year and according to the information and explanations given to us, no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
c) According to the information and explanations given to us and the records examined by us including registered title deeds, we report that, the title deeds, comprising all the immovable properties of land and buildings are held in the name of the Company as at the Balance Sheet date.
ii. According to the information and explanations given to us, the inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable and no material discrepancies were noticed on physical verification.
iii. In our opinion and according to the information and explanation given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly Clauses (iii) (a) and clause (iii) (b) and clause (iii) (c) of paragraph 3 of the order is not applicable.
iv. Based on our audit procedure and on the basis of information and explanations given to us by the management, we are of opinion that the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013.
v. In our opinion and according to the information and explanation given to us, the Company has not accepted any deposit from the public during the year. Accordingly, clause (v) of paragraph 3 of the order is not applicable.
vi. We have broadly reviewed the books of account maintained by the Company pursuant to the rules prescribed by the Central Government for maintenance of cost records under section 148 (1) of the Act, and are of the opinion that prima facie the prescribed accounts and records have been made and maintained.
vii. According to the information and explanations given to us in respect of statutory and other dues:
(a) The Company has been regular in depositing undisputed statutory dues, including Provident Fund, Employees State Insurance, Income Tax, Service Tax, Sales Tax, Duty of Customs, Duty of Excise, Goods and service tax, Cess and other statutory dues with the appropriate authorities during the year. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March 2018 for a period of more than six months from the date of becoming payable.
(b) According to the information and explanations given to us, details of dues of Sales Tax which have not been deposited as on 31st March 2018 on account of dispute are given below:
Particulars |
Financial year to which the matter pertains |
Forum where matter is pending |
Amount |
Sales Tax |
2004-05 |
West Bengal Commercial Taxes Appellate and Revisional Board |
295184 |
Sales Tax |
2011-12 |
West Bengal Commercial Taxes Appellate and Revisional Board |
95896 |
viii. On the basis of the records examined by us and the information and explanations given to us, the company has not defaulted in repayment of dues to Banks and financial institution. The Company did not have any outstanding debentures during the year.
ix. The Company did not raise any money by way of initial public officer and further public offer (including debt instrument) during the year. To the best of our knowledge and belief and according to the information and explanations given to us, term loans availed by the company were applied for the purpose for which the loans were obtained.
x. According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid or provided for managerial remuneration in accordance with requisite approvals mandated by the provisions of Sec 197 read with Schedule V to the Companies Act, 2013.
xii. To the best of our knowledge and belief and according to the information and explanations given to us, the company is not a Nidhi Company. Accordingly, clause (xii) of paragraph 3 of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records, the Company has not made any preferential allotment or private placement of shares or fully or partially convertible debentures during the year.
xv. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the company has not entered into non-cash transactions with the directors or persons as per section 192 of the Companies Act, 2013. Accordingly, clause (xv) of paragraph 3 of the Order is not applicable.
xvi. According to the information and explanation given to us, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause (xvi) of paragraph 3 of the Order is not applicable.
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 (âTHE ACTâ)
We have audited the internal financial controls over financial reporting of Wires & Fabriks (S.A.) Limited to the extent records available with us in Conjunction with our audit of the financial statements of the company as of and for the year ended 31st March 2018.
MANAGEMENTâS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companyâs management is responsible for establishing and maintaining internal financial controls. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITORSâ RESPONSIBILITY
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company.
For, S. K. Agrawal &Co.
Chartered Accountants
Place: Kolkata JKChoudhury
Date: 30th May 2018 Partner
Membership No.: 009367
Mar 31, 2016
TO THE MEMBERS OF WIRES AND FABRIKS (S.A.) LIMITED
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of WIRES AND FABRIKS (S.A) LIMITED, which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
MANAGEMENTâS RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance 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 and Companies (Accounting Standards) Amendment rules, 2016. 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
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the 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 control 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, 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 Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, and its profit and its cash flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe orderâ) issued by The Central Government, in terms of Sub-Section 143 of the Act we give in the Annexure-A, a statement of the matters specified in paragraph 3 and 4 of the order.
2. 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 purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statements of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the book of account.
(d) In our opinion, the aforesaid standalone financial statement comply with the Accounting Standard specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014 and Companies (Accounting Standards) Amendment Rules, 2016
(e) On the basis of the written representations received from the directors as on 31* March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31* March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ.
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the company has disclosed the impact of pending litigations on its financial position in its financial statements -Refer Note 29 to the financial statements.
ii. the Company did not have any long-term contract including derivatives contract for which there were any material foreseeable losses.
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE âAâ to independent auditorsâ report
REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSâ OF OUR REPORT OF EVEN DATE.
As required by the Companies (Auditorâs Report) Order, 2016 (âthe orderâ) issued by the Central Government of India in terms of Sub-Section (II) of Section 143 of the Companies Act, 2013 and on the basis of such checks as we considered appropriate and the information and explanations given to us, we further report that:
1. a) The Company has maintained proper records of Fixed Assets showing full particulars including quantitative details and situation of fixed assets.
b) The Company has a programme of physical verification of its fixed assets which, in our opinion, is reasonable having regard to the size of the Company and the nature of its business. In accordance with such programme, the management has physically verified fixed assets during the year and no material discrepancies were noticed on such verification.
c) We have checked and found that the title deeds of all immovable properties are held in the name of Company
2. The Management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification.
3. The Company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnership or other parties covered in the Register maintained under section 189 of the Companies Act, 2013.
4. In our opinion and according to the information and explanations given to us, the Company has not given loan and guarantee, made investment and provided securities in terms of provision of section 18S and 186 of the Companies Act 2013.
5. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under are not applicable.
6. We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the companies Act, 2013 in respect of the products of the Company and are of the opinion that, prima-facie, the prescribed accounts and records have been made and maintained. However, we have not made any detailed examination of cost records, to ascertain the accuracy and completeness thereof.
7. a) According to the information and explanations given to us, and on the basis of our examination of the books of account,
the Company has generally been regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, custom duty, excise duty, value added tax, cess and any other material statutory dues applicable to it and there is no outstanding as on 31st March, 2016 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us there are no dues in respect of Income-tax, sales-tax, service tax, custom duty, excise duty and value added tax that have not been deposited with the appropriate authorities on account of any dispute except: :-
Nature of Dues |
Amount (Rs.) |
Period to which the amount relates |
Forum where dispute is pending |
Sales Tax |
2,95,184 |
2004-05 |
West Bengal Commercial Taxes Appellate and Revisional Board, Kolkata |
Sales Tax |
1,92,731 |
2006-07 |
West Bengal Commercial Taxes Appellate and Revisional Board, Kolkata |
Sales Tax |
1,54,817 |
2007-08 |
Senior Joint Commissioner of Sales Tax, Oharamtala Circle , Kolkata |
Sales Tax |
2,17,636 |
2010-11 |
West Bengal Commercial Taxes Appellate and Revisional Board, Kolkata |
Sales Tax |
6,07,929 |
2011-12 |
West Bengal Commercial Taxes Appellate and Revisional Board, Kolkata |
Sales Tax |
1,37,954 |
2011-12 |
Rajasthan Tax Board, Ajmer |
Sales Tax |
10,36,520 |
2012-13 |
Senior Joint Commissioner of Sales Tax, Oharamtala Circle , Kolkata |
Sales Tax |
7,45,030 |
2012-13 |
Rajasthan Tax Board, Ajmer |
Excise |
5,20,230 |
2010-11 |
Central Excise & Service Tax Appellate Tribunal, Kolkata |
8. On the basis of examination of the books of accounts and other records of the Company, we are of the opinion that the Company has not defaulted in repayment of loans to banks. Further the Company does not have any debentures, loan from financial institution or Government.
9. According to the information and explanations given to us, and on the basis of our examination of the books of account, the Company has not raised any money by way of initial public offer or further public offer or debt instruments. The term loan availed by the Company were applied for the purpose for which the loans were obtained.
10. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the officers and employees of the Company has been noticed or reported during the year.
11. According to the information and explanations given to us, and on the basis of our examination of the books of account, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provision of Section 197 read with Schedules V of the Companies Act, 2013.
12. The Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the Order are not applicable to the company.
13. According to the information and explanations given to us, and on the basis of our examination of the books of account, transactions with the related parties are in compliance with Section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards
14. According to the information and explanations given to us, and on the basis of our examination of the books of account, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us, and on the basis of our examination of the books of account, Company has not entered into any non-cash transactions with directors or persons connected with him.
16. According to the information and explanations given to us, the provisions of Section 4S-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
ANNEXURE âBâ TO INDEPENDENT AUDITORSâ REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF WIRES AND FABRIKS (S.A.) LIMITED
REFERRED TO IN PARAGRAPH 2(F) UNDER THE HEADING âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSâ OF OUR REPORT OF EVEN DATE.
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 (âTHE ACTâ)
To The Members of Wires and Fabriks (S.A.) Limited,
We have audited the internal financial controls over financial reporting of Wires and Fabriks (S.A) Limited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
MANAGEMENTâS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companyâs Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITORâS RESPONSIBILITY
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing as specified under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companyâs assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
EXPLANATORY PARAGRAPH
We also have audited, in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act, the financial statements of Company, which comprise the Balance Sheet as at March 31, 2016, and the related 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, and our report dated May 2S, 2016 expressed an unqualified opinion thereon.
For S.S.KOTHARI & CO.
Chartered Accountants
CENTRE POINT
Firmâs Registration No. 302034E
21, Old Court House Street,
Kolkata - 700 001 R N BARDHAN
Partner
The 2Sth day of May, 2016 M. No. 017270
Mar 31, 2015
We have audited the accompanying standalone financial statements of
WIRES AND FABRIKS (S.A) LIMITED, which comprise the Balance Sheet as at
31st March, 201S, 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 STANDALONE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters
stated in Section 134(S) of the Companies Act, 2013 ("the Act")
with respect to the preparation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies(Accounts) Rules, 2014. This responsibility also
includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company
and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies making
judgments and estimates that are reasonable and prudent and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
AUDITOR'S RESPONSIBILITY
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 201S, and its profit and its cash flows for the year
ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order, 201S issued
by The Central Government, in terms of Sub-Section 143 of the Act we
give in the Annexure a statement of the matters specified in paragraph
3 and 4 of the order.
2. 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
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statements of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statement comply
with the Accounting Standard specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules,2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 201S taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 201S
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, the company
has adequate internal financial controls over financial reporting of
the company and the operating effectiveness of such control.
(g) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. the company does not have any pending litigation which would impact
its financial position.
ii. the Company did not have any long-term contract including
derivatives contract for which there were any material foreseeable
losses.
iii. there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Referred to in paragraph I under the heading "Report on Other Legal
and Regulatory Requirements" of our report of even date.
As required by the Companies (Auditor's Report) Order, 201S (as
amended) issued by the Central Government of India in terms of
Sub-Section (II) of Section 143 of the Companies Act, 2013 and on the
basis of such checks as we considered appropriate and the information
and explanations given to us, we further report that:
1. a) The Company has maintained proper records of Fixed Assets showing
full particulars including quantitative details and situation of fixed
assets.
b) The Company has a programme of physical verification of its fixed
assets which, in our opinion, is reasonable having regard to the size
of the Company and the nature of its business. In accordance with such
programme, the management has physically verified fixed assets during
the year and no material discrepancies were noticed on such
verification.
2. a) The inventory lying at all locations except in transit and with
third parties have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verifications of inventories
followed by management are reasonable and adequate in relation to the
size of the Company and nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records on inventories
and the discrepancies noticed on the physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
3. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
under section 189 of the Companies Act, 2013.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventories and fixed assets and
for the sale of goods and services. During the course of our audit, we
have not observed any major weaknesses in internal control system.
5. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India and
the provisions of Section 73 to 76 or any other relevant provisions of
the Companies Act, 2013 and the rules framed there under are not
applicable.
6. We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 148(11) of the companies Act,
2013 in respect of the products of the Company and are of the opinion
that, prima-facie, the prescribed accounts and records have been made
and maintained. However, we have not made any detailed examination of
cost records, to ascertain the accuracy and completeness thereof.
7. a) According to the information and explanations given to us, and on
the basis of our examination of the books of account, the Company has
generally been regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, employees' state
insurance, income-tax, sales-tax, custom duty, wealth tax, service tax,
value added tax, cess and any other material statutory dues applicable
to it and there is no outstanding as on 31st March, 201S for a period
of more than six months from the date they became payable.
b) According to the information and explanations given to us there are
no dues in respect of Income-tax, sales-tax, wealth tax, service tax,
custom duty, excise duty and cess that have not been deposited with the
appropriate authorities on account of any dispute except: :-
Nature Amount Period to which Forum where dispute is pending
of Dues Rs. the amount
relates
Sales Tax 295184 2004-0S West Bengal Commercial Taxes Appellate and
Revisional Board, Kolkata
Sales Tax 192731 2006-07 West Bengal Commercial Taxes Appellate and
Revisional Board, Kolkata
Sales Tax 154817 2007-08 Senior Joint Commissioner of Sales Tax,
Dharamtala Circle, Kolkata
Sales Tax 39001 2008-09 West Bengal Commercial Taxes Appellate and
Revisional Board, Kolkata
Sales Tax 200650 2009-10 West Bengal Commercial Taxes Appellate and
Revisional Board, Kolkata
Sales Tax 217636 2010-11 West Bengal Commercial Taxes Appellate and
Revisional Board, Kolkata
Sales Tax 623805 2011-12 West Bengal Commercial Taxes Appellate and
Revisional Board, Kolkata
Sales Tax 1406167 2011-12 The Appellate Authority-Ill, Commercial
Taxes, Jaipur
Sales Tax 1775202 2012-13 The Appellate Authority-Ill, Commercial
Taxes, Jaipur
Excise 520230 2010-11 Central Excise & Service Tax Appellate
Tribunal, Kolkata
c) According to the information and explanations given to us the amount
which are required to be transferred to investor education and
protection fund in accordance with the relevant provision of the
Companies Act, 1956 and rules there under has been transferred to such
funds within time.
8. The Company has neither accumulated losses as at 31st March, 2015
nor incurred any cash losses during the financial year ended on that
date or in the immediately preceding financial year.
9. The Company has not defaulted in repayment of dues to financial
institution or bank or debenture holders as may be ascertained from the
examination of the books of account and other records of the Company.
10. According to information and explanations given to us the Company
has not given any guarantee to banks and financial institutions for
loans taken by others.
11. To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were applied for the purpose for which the loans were obtained.
12. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For S.S.KOTHARI &CO.
Centre Point Chartered Accountants
21, Old Court House Street, Firm's Registration No. 302034E
Kolkata - 700 001 R N BARDHAN
Partner
The 27th day of May, 2015 M. No. 017270
Mar 31, 2014
We have audited the accompanying financial statements of Wires &
Fabriks (S.A.) Limited, which comprise the Balance Sheet as at March,
31,2014, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended and a summary of significant accounting policies
and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and Cash Flows of the Company in accordance with
the accounting standard generally accepted in India including
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 19S6 ("the Act"), read with the General Circular 15/2013 dated
13th 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
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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgement, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an opinion on the
effectiveness of the entity''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the 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 :
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014 ;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date;
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date;
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As stated by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227 (4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 & 5 of the Order.
2. As required by Section 227(3) of the Act, we report that :
a. We have obtained all 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 and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt by this report comply with the
Accounting Standards referred to in section 211(3C) of the Companies
Act, 1956, read with the General Circular 15/2013 dated 13th Sept. 2013
of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013 and
e. On the basis of the written representations received from the
directors as on March 31,2014, and taken on record by the Board of
Directors, none of the directors are disqualified as on March 31,2014,
from being appointed as a director in terms of Section 274(1)g of the
Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in Paragraph I under the heading "Report on other Legal
and Regulatory Requirements" of our report of even date)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a programme of physical verification of fixed
assets in a phased manner so as to cover all the assets 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. In accordance with
the said programme, fixed assets other than Furniture & Fixtures were
physically verified during the year and according to the information
and explanations given to us, no material discrepancies were noticed on
such verification.
(c) During the year, the company has not disposed off substantial part
of fixed assets.
2. (a) The inventory lying at all locations except in transit and with
third parties has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory.
(d) The discrepancies noticed on physical verification were not
material and the same have been properly dealt with in the books of
account.
3. (a) According to the information and explanations given to us, the
Company has not granted loans, secured or unsecured from companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 19S6. Hence, clauses (iii) (b), (c) & (d) of
the order are not applicable.
(b) According to the information and explanations given to us, 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 Companies Act, 19S6. Hence, clauses (iii) (f) & (g) of the
order are not applicable
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for purchases of inventory, fixed assets and for the sale of
goods and service. During the course of our audit, no major weakness
has been noticed in the internal controls.
5. (a) On the basis of representation made by the management and
scrutiny of books of accounts carried out by us, the particulars of
contracts or arrangements that need to be entered in the Register in
pursuance of Section 301 of the Companies Act, 19S6 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements required to be entered in the Register u/s 301 of
Companies Act, 19S6 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. According to the information and explanations given to us and on
the basis of our checking during the course of audit, the Company has
not accepted any deposits from the public during the year.
7. In our opinion, the internal audit of Company carried out during
the year by firms of Chartered Accountants appointed by the Company
have been commensurate with the size of the Company and the nature of
its business.
8. The Central Government has prescribed maintenance of cost records
under Section 209 (1)(d) of the Companies Act, 19S6 for the products of
the company and such accounts and records have been made and maintained
by the company. However we have not made a detailed examination of the
records with a view to determine whether they are accurate.
9. (a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income tax, wealth tax, service tax, sales
tax, customs duty, excise duty, cess and other statutory dues
applicable to it. According to the information and explanations given
to us, no undisputed amounts payable in respect of income tax, sales
tax, wealth tax, service tax, customs duty, excise duty and cess were
outstanding as at 31.03.2014 for a period of more than six months from
the date they become payable.
(b) According to the records of the Company, there are no dues of
income tax, wealth tax, service tax, sales tax, customs duty, excise
duty and cess which have not been deposited on account of any dispute
except: :-
Nature Amount Period to which
of Dues the amount relates
Sales Tax 295183 2004-05
192731 2006-07
295782 2007-08
39001 2008-09
200650 2009-10
230066 2010-11
1092282 2011-12
4328280 2011-12
833939 2010-11
Entry Tax 1389401 2006-07, 2007-08
& 2008-09
379100 2009-10
538640 2010-11
Excise 520230 2010-11
Nature Forum where dispute is pending
of Dues
Sales Tax West Bengal Commercial Taxes Appellate & Revisional
Board, Kolkata
West Bengal Commercial Taxes Appellate &
Revisional Board, Kolkata
West Bengal Commercial Taxes Appellate &
Revisional Board, Kolkata
West Bengal Commercial Taxes Appellate &
Revisional Board, Kolkata
West Bengal Commercial Taxes Appellate &
Revisional Board, Kolkata
Senior Joint Commissioner of Sales Tax, Dharamtala
Circle, Kolkata
Senior Joint Commissioner of Sales Tax, Dharamtala
Circle, Kolkata
The Appellate Authority-Ill, Commercial Taxes,
Jaipur
The Appellate Authority-Ill, Commercial Taxes,
Jaipur
Entry Tax Hon''ble High Court, Jaipur
Dy. Commissioner (Appeals)-lll, Jaipur
Dy. Commissioner (Appeals)-lll, Jaipur
Excise Central Excise &Service Tax Appellate Tribunal,Kolkata
10. The Company has not incurred any cash loss during the financial
year covered by our audit and the immediately preceding financial year
and has no accumulated loss.
11. The Company has not defaulted in repayment of dues to financial
institution or bank or debenture holders.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund, nidhi or mutual benefit fund /
society.
14. The Company has maintained proper records of the transactions and
contracts in respect of dealing in shares & securities and timely
entries have been made therein. All shares & securities have been held
by the Company in its own name.
15. The Company has not given any guarantee for loan taken by others
during the year.
16. According to the information and explanations given to us, term
loans availed by the Company were, prima facie, applied during the year
for the purposes for which the loans were obtained.
17. According to the cash flow statement and other records examined by
us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have prima facie, not been used
during the year for long term investment.
18. The Company has not made any issue of shares during the year.
19. The Company has not issued debenture during the year.
20. The Company has not made any public issue during the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, no fraud on or by the company has
been noticed or reported during the course of audit.
"INDIA STEAMSHIP HOUSE"
For S.S.KOTHARI &CO
21, Old Court House Street Chartered Accountants
Kolkata - 700 001 R N BARDHAN
Partner
The 17th day of May, 2014 M. No.17270
Firm Reg. No. 302034E
Mar 31, 2013
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of WIRES &
FABRIKS (S.A.) LIMITED, which comprise the Balance Sheet as at March,
31, 2013, the Statement of Profit and Loss and Cash Flow Statement for
the year ended and a summary of significant accounting policies and
other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial osition,
financial performance of the Company in accordance with the accounting
principles generally accepted in India including
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
AUDITORS'' RESPONSIBILITY
Our 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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor''s judgement, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements subject to
our comments/observations given hereunder, give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India :
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date;
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date;
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As stated by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227 (4A) of the Act, we give in theAnnexure a statement on the matters
specified in paragraphs 4 & 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a. We have obtained all 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 and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d. In our opinion, the Balance sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in section 211(3C) of the Companies Act, 1956 and
e. On the basis of the written representations received from the
directors as on March 31, 2013, and taken on record by the Board of
Directors, none of the directors are disqualified as on March 31, 2013,
from being appointed as a director in terms of Section 274(1 )g of the
Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in Paragraph 1 under the heading "Report on other Legal
and Regulatory Requirements" of our report of even date)
1. (a) The company''s has maintained proper records showing full
particulars including quantitative details and situation of
fixed assets.
(b) The Company has a programme of physical verification of fixed
assets in a phased manner so as to cover all the assets 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. In accordance with
the said programme, fixed assets other than Furniture & Fixtures were
physically verified during the year and according to the information
and explanations given to us, no material discrepancies were noticed on
such verification.
(c) During the year, the company has not disposed off substantial part
of fixed assets.
2. (a) The inventory lying at all locations except in transit and with
third parties has been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory.
(d) The discrepancies noticed on physical verification were not
material and the same have been properly dealt with in the books of
account.
3. (a) According to the information and explanations given to us, the
Company has not granted loans, secured or unsecured
from companies, firms or other parties covered in the Register
maintained under Section 301 of the Companies Act, 1956. Hence, clauses
(iii) (b), (c) & (d) of the order are not applicable.
(b) According to the information and explanations given to us, 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 Companies Act, 1956. Hence, clauses (iii) (f) & (g) of the
order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for purchases of inventory, fixed assets and for the sale of
goods and service. During the course of our audit, no major weakness
has been noticed in the internal controls.
5. (a) On the basis of representation made by the management and
scrutiny of books of accounts carried out by us, the particulars of
contracts or arrangements that need to be entered in the Register in
pursuance of Section 301 of the Companies Act, 1956 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements required to be entered in the Register u/s 301 of
Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. According to the information and explanations given to us and on
the basis of our checking during the course of audit, the Company has
not accepted any deposits from the public during the year.
7. In our opinion, the internal audit of Company carried out during
the year by firms of Chartered Accountants appointed by the Company
have been commensurate with the size of the Company and the nature of
its business.
8. The Central Government has prescribed maintenance of cost records
under Section 209 (1)(d) of the Companies Act, 1956 for the products of
the company and such accounts and records have been made and maintained
by the company. However we have not made a detailed examination of the
records with a view to determine whether they are accurate.
9. (a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income tax, wealth tax, service tax, sales
tax, customs duty, excise duty, cess and other statutory dues
applicable to it. According to the information and explanations given
to us, no undisputed amounts payable in respect of income tax, sales
tax, wealth tax, service tax, customs duty, excise duty and cess were
outstanding as at 31.03.2013 for a period of more than six months from
the date they become payable.
(b) According to the records of the Company, there are no dues of
income tax, wealth tax, service tax, sales tax, customs duty, excise
duty and cess which have not been deposited on account of any dispute
except :-
10. The Company has not incurred any cash loss during the financial
year covered by our audit and the immediately preceding financial year
and has no accumulated loss.
11. The Company has not defaulted in repayment of dues to financial
institution or bank or debenture holders.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund, nidhi or mutual benefit fund /
society.
14. The Company has maintained proper records of the transactions and
contracts in respect of dealing in shares & securities and timely
entries have been made therein. All shares & securities have been held
by the Company in its own name.
15. The Company has not given any guarantee for loan taken by others
during the year.
16. According to the information and explanations given to us, term
loans availed by the Company were, prima facie, applied during the year
for the purposes for which the loans were obtained.
17. According to the cash flow statement and other records examined by
us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have prima facie, not been used
during the year for long term investment.
18. The Company has not made any issue of shares during the year.
19. The Company has not issued debentures during the year.
20. The Company has not made any public issue during the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, no fraud on or by the company has
been noticed or reported during the course of audit.
"INDIA STEAMSHIP HOUSE"
For S.S.KOTHARI & CO.
21, Old Court House Street Chartered Accountants
Kolkata - 700 001 R N BARDHAN
Partner The 30,h day of May, 2013 M. No. 17270
Firm Reg. No. 302034E
Mar 31, 2012
We report that we have audited the Balance sheet of WIRES AND FABRIKS
(S.A.) LIMITED as at 31st March, 2012 and the statement of Profit &
Loss of the Company for the year ended on that date and Cash Flow
Statement for the year ended on that date as attached hereto which are
in agreement with the Company's books of account, as submitted to us.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. 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 statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
On the basis of the written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on March 31, 2012 from
being appointed as a director under clause (g) of sub section (1) of
Section 274 of the Companies Act, 19S6.
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. In our opinion, proper books of account have been kept by the
Company as required by law so far as it appears from our examination of
those books.
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with
Accounting Policies and Notes appearing there in, comply with the
applicable accounting standards referred to in sub section (3C) of
section 211 of the Companies Act, 19S6 and give the information
required by the Companies Act, 19S6 in the manner so required and the
Balance Sheet gives a true and fair view of the state of the
Company's affairs as at 31st March, 2012. Profit and Loss Account
gives a true and fair view of the profit for the year ended on that
date and the Cash Flow Statement gives a true and fair view of the cash
flows of the Company for the year ended on that date.
As required by the Companies (Auditor's Report) Order, 2003 as
amended by Companies (Auditor's Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of section 227 of
Companies Act, 19S6 and on the basis of such checks of the books and
records of the Company as we considered appropriate and the information
and explanations given to us during the course of audit, we state that
in our opinion:-
i. a. The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. The Company has a programmed of physical verification of fixed
assets in a phased manner so as to cover all the assets 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. In accordance with
the said programme, fixed assets other than Office Equipments were
physically verified during the year and according to the information
and explanations given to us, no material discrepancies were noticed on
such verification.
c. During the year, the Company has not disposed off a substantial
part of fixed assets.
ii. a. The inventories lying at all location except in transit and
with third parties has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
c. On the basis of our examination of the records we are of the
opinion that the Company is maintaining proper records of inventory.
d. The discrepancies noticed on physical verification were not
material and the same have been properly dealt with in the books of
accounts.
iii. a. According to the information and explanations given to us, the
Company has not granted loans, secured or unsecured from companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 19S6. Hence, clauses (iii) (b),(c) & (d) of
the order are not applicable. b. According to the information and
explanations given to us, 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 Companies Act, 19S6.
Hence, clauses (iii) (f) & (g) of the order are not applicable.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for 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 controls.
v. a. On the basis of representative made by the management and
scrutiny of books of accounts carried out by us, the particulars of
contracts or arrangements that need to be entered in the Register in
pursuance of Section 301 of the Companies Act, 19S6 have been so
entered. b. In our opinion and according to the information and
explanations given to us, transactions made in pursuance of contracts
or arrangements required to be entered in the Register U/s 301 of
Companies Act, 19S6 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi. According to the information and explanations given to us and on
the basis of our checking during the course of audit, the Company has
not accepted any deposits from the public during the year.
vii. In our opinion, the internal audit of Company carried out during
the year by firms of Chartered Accountants appointed by the Company
have been commensurate with the size of the Company and the nature of
its business.
viii. According to the information given to us, the Central Government
has prescribed maintenance of cost records under Section 209 (1)(d) of
the Companies Act, 19S6 for products of the Company. We have broadly
reviewed the accounts and records of the Company in this connection and
are of the opinion, that prima-facie, the prescribed accounts and
records have been made and maintained. We have not, however, carried
out a detailed examination of the same to determine whether they are
accurate and complete.
ix. a. According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income tax, wealth tax, service tax, sales
tax, customs duty, excise duty, cess and other statutory dues
applicable to it. According to the information and explanations given
to us, no undisputed amounts payable in respect of income tax, sales
tax, wealth tax, service tax, customs duty, excise duty and cess were
outstanding as at 31.03.2012 for a period of more than six months from
the date they become payable.
b. According to the records of the Company, there are no dues of
income tax, wealth tax, service tax, sales tax, customs duty, excise
duty and cess which have not been deposited on account of any dispute
except as follows:-
Nature Amount Period to which Forum where dispute is
of Dues the amount relates pending
Income Tax 1,66,108 2007-08 The Asstt. Commissioner of
Income Tax, Circle-3,
Esplanade East, Kolkata
3,39,424 2009-10 The Asstt. Commissioner of
Income Tax, Circle-3,
Esplanade East, Kolkata
Sales Tax 1,13,551 2004-05 West Bengal Commercial
Taxes Appellate and
Revisional Board
1,92,731 2006-07 West Bengal Commercial
Taxes Appellate and
Revisional Board
2,9S,782 2007-08 West Bengal Commercial
Taxes Appellate and
Revisional Board
65,27,996 2008-09 Senior Jt. Commissioner of
Sales Tax, Dharmatala
Circle, Kolkata
10,11,146 2008-09 Dy. Commissioner (Appeal)
- III, Jaipur
17,71,594 2009-10 Dy. Commissioner (Appeal)
- III, Jaipur
x. The company has not incurred any cash loss during the financial
year covered by our audit and the immediately preceding financial year
and has no accumulated loss.
xi. The company has not defaulted in repayment of dues to financial
institution or bank or debenture holders.
xii. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. The Company is not a chit fund, nidhi or mutual benefit
fund/society.
xiv. The Company has maintained proper records of the transactions and
contracts in respect of dealing in shares & securities and timely
entries have been made therein. All shares & securities have been held
by the Company in its own name.
xv. The Company has not given any guarantee for loan taken by others
during the year.
xvi. According to the information and explanation given to us, term
loans availed by the Company were, prima facie, applied during the year
for the purposes for which the loans were obtained.
xvii.According to the cash flow statement and other records examined by
us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have prima facie, not been used
during the year for long term investment.
xviii. The Company has not made any issue of shares during the year.
xix. The Company has not issued debenture during the year.
xx. The Company has not made any public issue during the year.
xxi. Based upon the audit procedures performed and information and
explanations given by the management, no fraud on or by the company has
been noticed or reported during the course of audit.
"INDIA STEAMSHIP HOUSE" For S.S.KOTHARI & CO.
21, Old Court House Street Chartered Accountants
Kolkata - 700 001 R N BARDHAN
Partner
The 9th day of August, 2012 M. No.17270
Firm Reg. No. 302034E
Mar 31, 2011
We report that we have audited the Balance Sheet of WIRES AND FABRIKS
(S.A.) LIMITED as at 31st March, 2011 and the Profit & Loss Account of
the Company for the year ended on that date and Cash Flow Statement for
the year ended on that date as attached hereto which are in agreement
with the Company's books of account, as submitted to us. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. 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 statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
On the basis of the written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on March 31, 2011 from being appointed
as a director under clause (g) of sub-section (1) of Section 274 of the
Companies Act, 1956.
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. In our opinion, proper books of account have been kept by the
Company as required by law so far as it appears from our examination of
those books.
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with
Accounting Policies and Notes appearing there in, comply with the
applicable accounting standards referred to in sub section (3C) of
section 211 of the Companies Act, 1956 and give the information
required by the Companies Act, 1956 in the manner so required and the
Balance Sheet gives ? true and fair view of the state of the Company's
affairs as at 31st March, 2011. Profit and Loss Account gives a true
and fair view of the profit for the year ended on that date and the
Cash Flow Statement gives a true and fair view of the cash flows of the
Company for the year ended on that date.
As required by the Companies (Auditor's Report) Order, 2003 as amended
by Companies (Auditor's Report) (Amendment) order, 2004 issued by the
Central Government of India in terms of section 227 of Companies Act,
1956 and on the basis of such checks of the books and records of the
Company as we considered appropriate and the information and
explanations given to us during the course of audit, we state that in
our opinion:-
i) a. The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. The Company has a programme of physical verification of fixed
assets in a phased manner so as to coverall the assets 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. In accordance with
the said programme, fixed assets other than Office Equipments were
physically verified during the year and according to the informations
and explanations given to us, no material discrepancies were noticed on
such verification.
c. During the year, the Company has not disposed off a substantial
part of fixed assets.
ii) a. The inventories lying at all location except in transit and with
third parties has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
c. On the basis of our examination of the records we are of the
opinion that the Company is maintaining proper records of inventory.
d. The discrepancies noticed on physical verification were not
material and the same have been properly dealt with in the books of
accounts.
iii) a. According to the information and explanations given to us, the
Company has not granted loans, secured or unsecured from companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956. Hence, clauses (iii) (b), (c) & (d) of
the order are not applicable.
b. According to the information and explanations given to us, 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 Companies Act, 1956. Hence, clauses (iii) (f) & (g) of the
order are not applicable.
iv In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for 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 controls.
v. a. On the basis of representation made by the management and
scrutiny of books of accounts carried out by us, the particulars of
contracts or arrangements that need to be entered in the Register in
pursuance of Section 301 of the Companies Act, 1956 have been so
entered
b. In our opinion and according to the information and explanations
given to us transactions made in pursuance of contracts or arrangements
required to be entered in the Register u/s 301 of Companies Act. 1956
have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
vi. According to the information and explanations given to us and on
the basis of our checking during the course of audit, the Company has
not accepted any deposits from the public during the year,
vii. In our opinion, the internal audit of Company carried out during
the year by firms of Chartered Accountants appointed by the Company
have been commensurate with the size of the Company and the nature of
its business.
viii. The Central Government has prescribed maintenance of cost records
under Section 209 (1)(d) of the Companies Act, 1956 in respect of
generation of electricity from wind power and such accounts and records
have been made and maintained by the company. However, we have not made
a detailed examination of the records with a view to determine whether
they are accurate.
ix. a. According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income tax, wealth tax, service tax, sales
tax. customs duty, excise duty, cess and other statutory dues
applicable to it. According to the information and explanations given
to us, no undisputed amounts payable in respect of income tax, sales
tax, wealth tax, service tax, customs duty, excise duty and cess were
outstanding as at 31.03.2011 for a period of more than six months from
the date they become payable.
b. According to the records of the Company, there are no dues of income
tax, wealth tax. service tax, sales tax, customs duty, excise duty and
cess which have not been deposited on account of any dispute except :-
(i) Sales tax demand of Rs. 1,13.551/- for the year 2004-05, Rs.
6,44.801/- for the year 2007-08 and Rs. 10,47,164/- for the year
2008-09 for which appeals are pending before the West Bengal Commercial
Taxes Appellate and Revisional Board, Senior Joint Commissioner of
Sales Tax, Dharamtala Circle, Kolkata and Dy. Commissioner (Appeal) -
III, Jaipur respectively.
(ii) Service tax demand of Rs.2,65,643/- for the period from 16.06.2005
to 31.12.2005 for which appeals are pending before The Appellant
Tribunal, Customs, Excise and Service Tax, New Delhi.
(iii) Excise duty demand of Rs. 14,07,362/- for the period from April,
2002 to March, 2005 for which appeal is pending before Commissioner
(Appeal) - II of Central Excise, Kolkata.
x. The Company has not incurred any cash loss during the financial
year covered by our audit and the immediately preceding financial year
and has no accumulated loss.
xi. The Company has not defaulted in repayment of dues to financial
institution or bank or debenture holders.
xii. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. The Company is not a chit fund, nidhi or mutual benefit
fund/society.
xiv. The Company has maintained proper records of the transactions and
contracts in respect of dealing in shares & securities and timely
entries have been made therein. All shares & securities have been held
by the Company in its own name.
xv. The Company has not given any guarantee for loan taken by others
during the year.
xvi. According to the information and explanation given to us, term
loans availed by the Company were, prima facie, applied during the year
for the purposes for which the loans were obtained.
xvii. According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have prima facie, not been used
during the year for long term investment.
xviii. The Company has not made any issue of shares during the year.
xix. The Company has not issued debenture during the year.
xx. The Company has not made any public issue during the year.
xxi. Based upon the audit procedures performed and information and
explanations given by the management, no fraud on or by the company has
been noticed or reported during the course of audit.
For S.S. KOTHARI & CO.
Chartered Accountants
R N BARDHAN
Partner
M. No. 17270
Firm Reg. No. 302034E
"INDIA STEAMSHIP HOUSE"
21, Old Court House Street
Kolkata - 700 001
The 27th day of May, 2011
Mar 31, 2010
We report that we have audited the Balance Sheet of WIRES AND FABRIKS
(S.A) LIMITED as at 31st March, 2010 and the Profit & Loss Account of
the Company for the year ended on that date and Cash Flow Statement for
the year ended on that date as attached hereto which are in agreement
with the Companys books of account, as submitted to us. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. 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 statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
On the basis of the written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on March 31, 2010 from
being appointed as a director under clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
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. In our opinion, proper books of account have been kept by the
Company as required by law so far as it appears from our examination of
those books.
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with
Accounting Policies and Notes appearing there in, comply with the
applicable accounting standards referred to in sub section (3C) of
section 211 of the Companies Act,1956 and give the information required
by the Companies Act, 1956 in the manner so required and the Balance
Sheet gives a true and fair view of the state of the Companys affairs
as at 31st March, 2010, Profit and Loss Account gives a true and fair
view of the profit for the year ended on that date and the Cash Flow
Statement gives a true and fair view of the cash flows of the Company
for the year ended on that date.
As required by the Companies (Auditors Report) Order, 2003 as amended
by Companies (Auditors Report) (Amendment) order, 2004 issued by the
Central Government of India in terms of section 227 of Companies Act,
1956 and on the basis of such checks of the books and records of the
Company as we considered appropriate and the information and
explanations given to us during the course of audit, we state
that in our opinion :
i. a. The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. The Company has a programme of physical verification of fixed
assets in a phased manner so as to cover all the assets 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. In accordance with
the said programme, fixed assets other than Furniture and Fixtures were
physically verified during the year and according to the informations
and explanations given to us, no Tnaterial discrepancies were noticed
on such verification.
c. During the year, the Company has not disposed off a substantial
part of fixed assets.
ii. a. The inventories lying at all location except in transit and with
third parties has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
c. On the basis of our examination of the records we are of the
opinion that the Company is maintaining proper records of inventory.
d. The discrepancies noticed on physical verification were not
material and the same have been properly dealt with in the books of
accounts.
iii. a. According to the information and explanations given to us, the
Company has not granted loans, secured or unsecured from companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956. Hence, clauses (iii) (b), (c) & (d) of
the order are not applicable.
b. According to the information and explanations given to us, 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 Companies Act, 1956. Hence, clauses (iii) (f) & (g) of the
order are not applicable.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for 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 controls.
v. a. On the basis of representation made by the management and
scrutiny of books of accounts carried out by us, the particulars of
contracts or arrangements that need to be entered in the Register in
pursuance of Section 301 of the Companies Act, 1956 have been so
entered.
b. In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements required to be entered in the Register u/s 301 of
Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi. According to the information and explanations given to us and on
the basis of our checking during the course of audit, the Company has
not accepted any deposits from the public during the year.
vii. In our opinion, the internal audit of Company carried out during
the year by firms of Chartered Accountants appointed by the Company
have been commensurate with the size of the Company and the nature of
its business.
viii. The Central Government has prescribed maintenance of cost records
under Section 209 (l)(d) of the Companies Act, 1956 in respect of
generation of electricity from wind power and such accounts and records
have been made and maintained by the company. However we have not made
a detailed examination of the records with a view to determine whether
they are accurate.
ix. a. According to the records of the Company, the Company is
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, investor education and protection fund,
employees state insurance, income tax, wealth tax, service tax, sales
tax, customs duty, excise duty, cess and other statutory dues
applicable to it. According to the information and explanations given
to us, no undisputed amounts payable in respect of income tax, sales
tax, wealth tax, service tax, customs duty, excise duty and cess were
outstanding as at 31.03.2010 for a period of more than six months from
the date they become payable.
b. According to the records of the Company, there are no dues of
income tax, wealth tax, service tax, sales tax, customs duty, excise
duty and cess which have not been deposited on account of any dispute
except:
(i) Sales tax demand of Rs. 1,13,551/- for the year 2004-05 and Rs.
10,63,988 for the year 2005-06 for which appeals are pending before the
West Bengal Commercial Taxes Appellate and Revisional Board and Senior
Joint Commissioner of Sales Tax, Dharamtala Circle, Kolkata
respectively.
(ii) Service tax demand of Rs.2,63,054/- for the period from 16.06.2005
to 31.12.2005 and Rs. 4,29,175/- for the period March,2007 to
January,2009 for which appeals are pending before The Commissioner
(Appeal)-I, Central Excise, Jaipur-I.
(iii) Excise duty demand of Rs 14,07,362/- for the period from April,
2002 to March, 2005 for which appeal is pending before Commissioner
(Appeal) -II, of Central Excise, Kolkata.
x. The Company has not incurred any cash loss during the financial
year covered by our audit and the immediately preceding financial year
and has no accumulated loss.
xi. Tha Company has not defaulted in repayment of dues to financial
institution or bank or debenture holders.
xii. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. The Company is not a chit fund, nidhi or mutual benefit fund /
society.
xiv. The Company has maintained proper records of the transactions and
contracts in respect of dealing in shares & securities and timely
entries have been made therein. All shares & securities have been held
by the Company in its own name.
xv. The Company has not given any guarantee for loan taken by others
during the year.
xvi. According to the information and explanation given to us, term
loans availed by the Company were, prima facie, applied during the year
for the purposes for which the loans were obtained.
xvii. According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have prima facie, not been used
during the year for long term investment.
xviii.The Company has not made any issue of shares during the year.
xix. The Company has not issued debenture during the year.
xx. The Company has not made any public issue during the year.
xxi. Based upon the audit procedures performed and information and
explanations given by the management, no fraud on or by the company has
been noticed or reported during the course of audit.
"INDIA STEAMSHIP HOUSE" for S.S.KOTHARI & CO.
21,Old Court House Street Chartered Accountants
Kolkata-700 001 Partner
The 27th day of May,2010 Membership No.177270
Firm Reg.No.302034E