Mar 31, 2015
We have audited the financial statements of YASHRAJ CONTAINEURS LIMITED
("the Company"), which comprise the Balance Sheet as at 31st March,
2015, the Statement of Profit and Loss,the Cash Flow Statement for the
year then ended, and a summary of the significant accounting policies
and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies(Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
AUDITORS' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10)of the Act. Those Standards require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the companies (Auditor's Report) order, 2015 (the
order) issued by the central government of India in exercise of power
conferred by sub section (11) of the companies Act 2013, We give in the
Annexure a statement on the matters specified in paragraph 3 and 4 of
the order.
2. As required by Section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
c. The balance sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with books of
account.
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanation given to us :
i. In our opinion, the Company has disclosed the impact for all
pending litigations on its financial position in its financial
statements.
ii. In our opinion, the Company has made all provisions, as required
by law or accounting standards, for foreseeable losses on long term
contracts including derivative contracts.
iii. There were no amounts which were required to be transferred to the
investors Education And Protection Fund by the company.
THE ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE OUR REPORT OF EVEN DATE
TO THE MEMBERS OF YASHRAJ CONTAINEURS LIMITED ON THE ACCOUNTS OF THE
COMPANY FOR THE YEAR ENDED 31ST MARCH, 2015
1. (a) The Company has maintained Proper Records showing Full
Particulars including Quantitative Details and situation of Fixed
Assets.
(b) All the assets have been physically verified by the Management
during the year and there is a Regular Program of Verification which,
in our opinion, is Reasonable having regard to the size of the Company
and the nature of its Fixed Assets. No material discrepancies were
noticed on such verification.
2. (a) The Inventory has been physically verified during the year by the
Management. In our opinion, the frequency of verification is Reasonable.
(b) The procedures of Physical Verification of Inventories followed by
the Management are Reasonable and Adequate in relation to the size of
the Company and the Nature of its Business.
(c) The Company is maintaining Proper Records of Inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3. The Company has granted Unsecured loans to parties covered in the
register maintained under section 189 of the Companies Act, 2013.
There are no covenants, so we are not able to comment about repayment,
the rate of interest and other terms and conditions of loans given by
the company.
4. In our opinion and according to the information and explanations
given to us, there are adequate Internal Control Procedures
Commensurate with the Size of the Company and the nature of its
Business with regard to the Purchases of Inventory, Fixed Assets and
Sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in Internal Controls.
5. The Company has not accepted any Deposits from the Public.
6. Maintenance of Cost Records has not been specified by the central
government under sub section (1) of section 148 of the Companies Act,
2013.
7. (a) In our opinion, the Company is Regular in depositing with
Appropriate Authorities Undisputed Statutory Dues except for few delays
including Provident Fund, Investor Education Protection Fund, Employees
state Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise
Duty, Cess and other Material Statutory Dues applicable to it. According
to the information & explanations given to us there were outstanding
statutory dues as on 31st March, 2015 for a period of more than six
months from the date they became payable.
Sr. Name of Nature Period Amount Remarks
No. the Statue (Rs.)
1 Sales Tax CST April'14 to Sept'14 35,19,598/-
2 Sales Tax VAT April'14 to Sept'14 8,50,525/-
(b) According to the information and explanations given to us, the
amounts payable in respect of service tax, and excise duty which have
not been deposited on account of any dispute.
Name of Amount Period Forum Amount Date
Statutory for Where The Agreed of
dues Which it Dispute is Payment
Related Pending
Excise Duty 31,60,831 2012-13 Addl. Comm, Vapi Nil Nil
(c) There is no amount required to be transferred to investor education
and protection fund.
8. The accumulated losses at the end of the financial year are more
than 100% (Hundred Percent) of its net worth however has incurred cash
losses during the financial year covered by our audit & the immediately
preceding financial year.
9. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders except those details as stated
below.
Sr. Name of the Principal Interest Total
No. financial Institution (Rs.) (Rs.) (Rs.)
1 Term Loan IDBI 103,450,000 102,533,691 205,983,691
2 Non Conv Deb. 27,500,000 29,176,545 56,676,545
The company had in Principle received an approval from IDBI for One
Time Settlement of all its dues at Rs 13.10 Crores wherein the company
was liable to pay Rs. 26.26 Crores as per the schedule provided above,
the company has till date has made a payment of Rs. 8.64 Crores and
accordingly has reversed the difference of OTS and the actual payment
on a pro rata basis which till date amounts to Rs 5.65cr.
Further it is observed the Company has not been following the OTS
scheme as the repayment is not according to the OTS Scheme, in view of
which the OTC may get void. The company has started providing interest
on the balance loan however interest provision which has been reversed
on the basis of OTS and Interest from the date of OTS till 2014 is yet
to be provided and accordingly the profits of the company are
overstated.
10. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
11. In our opinion, the Term Loans have been applied for the Purpose
for which they were obtained.
12. According to the information and explanation given to us, No Fraud
on or by the Company has been Noticed or Reported during the course of
our Audit.
For KAKARIA & ASSOCIATES
Chartered Accountants
Firm Regn. No.: 104558W
(Kakaria Ujwal K.)
Place : Mumbai Partner
Date : 08/08/2015 Membership No.: 35416
Mar 31, 2014
We have audited the accompanying financial statements of YASHRAJ
CONTAINEURS LIMITED (the Company), which comprise the Balance Sheet as
at March 31, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 (the Act) 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 and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
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 misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s 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 Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements. 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 of
the Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. The Balance Sheet, 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 Accounting Standards notified
under 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.
e. On the basis of the written representations received from the
directors as on March 31, 2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2014,
from being appointed as a director in terms of Section 274(1) of the
Act.
THE ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE OUR REPORT OF EVEN DATE
TO THE MEMBERS OF YASHRAJ CONTAINEURS LIMITED ON THE ACCOUNTS OF THE
COMPANY FOR THE YEAR ENDED 31ST MARCH, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of
our audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, not all fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals. The
inventories at the end of year are Rs. 93,462,202/-.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the
Company has granted loans to Seven Parties, covered in the register
maintained under Section 301 of the Companies Act, 1956. In aggregate
the maximum amount involved during the year was Rs. 252,576,735/- and
in aggregate the year-end balance of loans taken from such was Rs.
227,745,414/-
(b) There are no covenants, so we are not able to comment that whether
the rate of interest and other terms and conditions of loans given and
taken by the company are prejudicial to the interest of the company.
However we are informed that unsecured loans given are interest free,
so in our opinion the rate of interest are prima facie prejudicial to
the interest of the company. Further we are informed that unsecured
loans taken are interest free, so in our opinion the rate of interest
are prima facie prejudicial to the interest of the company.
(c) In absence of any covenants/agreements for repayment of principal
amount and interest in respect of loans granted and taken, we have not
made any comments about regularity in respect of the receipt and
repayments of principal amount & interest. However the Company informed
that the loan is granted to the Companies under the same management,
the loan is interest free and is repayable on demand.
(d) The Company informed that loan is repayable on demand and therefore
the question of overdue amounts does not arise.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, The Company has
taken unsecured loans from Seven parties covered in the register
maintained under section 301 of the Companies Act. In aggregate the
maximum amount involved during the year was Rs. 342,271,687/- and in
aggregate the year-end balance of loans taken from such was Rs.
269,398,348/-.
f) In our opinion, the rate of interest where applicable and other
terms and conditions on which deposits have been taken from Companies,
firms or other parties listed in the register maintained under Section
301 of Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company.
g) The Company is regular in repaying the principal amounts as
stipulated and also in the payment of interest, where applicable, in
case of deposits taken from Companies, firms or other parties listed in
the register maintained under Section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct anyweaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act does not exceeds five lacs rupees in a financial year
therefore requirement of reasonableness of transactions does not
arises.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
7. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act, and we are of the opinion that prima facie the prescribed accounts
and records have been made & maintained.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection
Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, cess to the extent applicable
and any other statutory dues have generally been regularly deposited
with the appropriate authoritiesexcept there have been delay in few
cases. According to the information and explanations given to us there
were no outstanding statutory dues as on 31st of March, 2014 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, the
amounts payable in respect of service tax, and excise duty which have
not been deposited on account of any dispute.
Name of Period for Forum Where Amount
Statutory Amount Which the Dispute agreed
Dues it Related is Pending
Excise Duty 95,87,553 2011-12 Tribunal, Nil
Ahmedabad
Excise Duty 31,60,831 2012-13 Addl.Comm,Vapi Nil
Name of statutory Date of Payment
Excise Duty Paid Rs.10,00,000 as Pre-Deposit.
Excise Duty Nil
10. The accumulated losses at the end of the financial year are more
than 100% (Hundred Percent) of its net worth,however has incurred cash
losses during the financial year covered by our audit .
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders except those details as stated
below:
Name of the financial Principal (Rs.) Interest (Rs.) Total (Rs.)
Institution
Term Loan IDBI 103,450,000 84,341,691 187,791,691
Non ConvDeb 27,500,000 29,176,545 56,676,545
The company had in Principle received an approval from IDBI for One
Time Settlement of all its dues at Rs 167,119,951/- wherein the company
was liable to pay Rs. 239,920,236 as per the schedule provided above,
the company has till date has made a payment of Rs. 77,445,000 and
accordingly has reversed the difference of OTS and the actual payment
on a pro rata basis which till date amounts to Rs 5.65cr.
Further during the previous years it is observed the Company has not
been following the OTS scheme and has not made the repayment
accordingly in view of which the OTS may get void. The company has
started providing interest on the loan other than stated over. However
interest provision which has been reversed on the basis of OTS, and
Interest from the date of OTS, till current year is yet to be provided,
and accordingly the loss of the company are understated.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has made preferential allotment of shares during the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For KAKARIA & ASSOCIATES
Chartered Accountants
Firm Regn. No.: 104558W
Jaiprakash H. Shethiya
Partner
Membership No.: 108812
Place : Mumbai
Date : 9.8.2014
Mar 31, 2013
We have audited the accompanying financial statements of Yashraj
Containeurs Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2013, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub- section (3C) of section
211 of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India subject to provision of future liabilities of gratuity amount not
ascertained, Profit Before Tax for the year is overstated and
liabilities to that extent are understated hence these accounts to that
extent are not in conformity with section 209(3) of the Companies Act,
1956 and AS-15 (revised 2005) on "Employees Benefits".
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 Profit and Loss Account, of the Profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956; except for
Accounting Standard (AS) -15 (revised 2005) on "Employee Benefits" as
stated above.
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company
THE ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE OUR REPORT OF EVEN DATE
TO THE MEMBERS OF YASHRAJ CONTAINEURS LIMITED ON THE ACCOUNTS OF THE
COMPANY FOR THE YEAR ENDED 31ST MARCH, 2013.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals. However the
inventories at the end year are 103,404,617/-.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has granted loans to Eight Parties, covered in the register maintained
under Section 301 of the Companies Act, 1956. In aggregate the maximum
amount involved during the year was Rs. 51,595,240 and in aggregate the
year-end balance of loans taken from such was Rs. 10,906,408
(b) There are no covenants, so we are not able to comment that whether
the rate of interest and other terms and conditions of loans given and
taken by the company are prejudicial to the interest of the company.
However we are informed that unsecured loans given are interest free,
so in our opinion the rate of interest are prima facie prejudicial to
the interest of the company. Further we are informed that unsecured
loans taken are interest free, so in our opinion the rate of interest
are prima facie prejudicial to the interest of the company.
(c) In absence of any covenants/agreements for repayment of principal
amount and interest in respect of loans granted and taken, we have not
made any comments about regularity in respect of the receipt and
repayments of principal amount & interest. However the Company informed
that the loan is granted to the Companies under the same management,
the loan is interest free and is repayable on demand.
(d) The Company informed that loan is repayable on demand and therefore
the question of overdue amounts does not arise.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, The Company has
taken unsecured loans from Four parties covered in the register
maintained under section 301 of the Companies Act. In aggregate the
maximum amount involved during the year was Rs. 111,760,416 and in
aggregate the year-end balance of loans taken from such was Rs.
82,660,552.
f) In our opinion, the rate of interest where applicable and other
terms and conditions on which deposits have been taken from Companies,
firms or other parties listed in the register maintained under Section
301 of Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company.
g) The Company is regular in repaying the principal amounts as
stipulated and also in the payment of interest, where applicable, in
case of deposits taken from Companies, firms or other parties listed in
the register maintained under Section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/ s
301 of the Act does not exceeds five lacs rupees in a financial year
therefore requirement of reasonableness of transactions does not
arises.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
7. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has not been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act, & contingently the clause is not applicable to the company.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities except there have been delay in tew cases.
According to the information and explanations given to us there were no
outstanding statutory dues as on 31st of March, 2013 for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, the
amounts payable in respect of service tax, and excise duty which have
not been deposited on account of any dispute
Name of Period for Forum Where Amount Date of
Statutory Amount which the Dispute
Dues it Related is Pending Agreed Payment
SERVICE TAX 6,45,029
10. The accumulated losses at the end of the financial year are more
than 100% (Hundred Percent) of its net worth however has not incurred
cash losses during the financial year covered by our audit & the
immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders except those details as stated
below:
Sr.
No. Name of the financial
Institution Principal (Rs.) Interest (Rs.) Total (Rs.)
1. Term Loan IDBI 103,450,000 79,793,691 183,243,691
2 Non Conv Deb. - IDBI 27,500,000 29,176,545 56,676,545
The company had in Principle received an approval from IDBI for One
Time Settlement of all its dues at Rs 167,119,951/- wherein the company
was liable to pay Rs. 239,920,236 as per the schedule provided above,
the company has till date has made a payment of Rs. 76,345,000 and
accordingly has reversed the difference of OTS and the actual payment
on a pro rata basis which till date amounts to Rs 5.65cr
Further during the current year it is observed the Company has been not
following the OTS scheme and has not made the repayment accordingly in
view of which the OTS may get void. The company has started providing
interest on the balance loan however interest provision which has been
reversed on the basis of OTS and Interest from the date of OTS till
current year is yet to be provided and accordingly the profits of the
company are overstated.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2013, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For KAKARIA & ASSOCIATES
Chartered Accountants
Firm Regn. No.: 104558W
Jaiprakash H. Shethiya
Place : Mumbai Partner
Date : 13.8.2013 Membership No.: 108812
Mar 31, 2012
We have audited the attached Balance Sheet of YASHRAJ CONTAINEURS
LIMITED as at 31st March, 2012 and the Profit & Loss Account and also
the Cash Flow statement of the Company for the year ended on that date, annexed thereto. These financial statements are the responsibility of
the CompanyÃs management. Our responsibility is to express an opinion
on these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditorsà Report) Order 2003,
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
Order.
3. Without qualifying our opinion, we draw attention that the Company
had incurred substantial losses in the past resulting in the erosion of
more than fifty percent of its net worth. However considering the
management plans to revive the company, the accounts of the Company are
prepared on a going concern basis.
4. Company has made investment/provided security/given loans above the
limits specified under 372A of the Companies Act 1956, However while
obtaining the approval of share holder the Company has taken a blanket
resolution of Rs.100 Cr.
During the year the company has given loan to few of the person covered
under Section 295 of the Companies Act however approval from central
government is still pending, the year end balance of such loan is Nil.
6. Further to our comments in the Annexure referred to above, we
report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
books;
c. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
d. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956, except for Accounting Standard (AS) - 15 (revised
2005) on "Employee Benefits" as stated in clause (f) below.
e. On the basis of written representation received from such
directors, as on 31st March, 2012 and taken on record by the Board of
Directors, We report that none of the remaining directors is
disqualified as on 31st March, 2012 from being appointed as a director
in terms of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts Subject to our comments
in above paragraph regarding non compliance of future liabilities of
gratuity amount not ascertained, Profit Before Tax for the year is
overstated and liabilities to that extent are understated hence these
accounts to that extent are not in conformity with section 209(3) of
the Companies Act, 1956 and AS-15 (revised 2005) on "Employees
Benefits" read together with the Significant Accounting Policies, give
the information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March, 2012;
ii) in the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flow of the
Company for the year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF THE REPORT OF THE AUDITORSÃ TO
THE MEMBERS OF YASHRAJ CONTAINEURS LIMITED ON THE ACCOUNTS FOR THE YEAR
ENDED 31 ST MARCH, 2012..
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) We are informed that the fixed assets have been physically verified
by the management during the year. There is a regular program of
verification, which in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification..
(c) During the year, the Company has not disposed off a substantial
part of the fixed assets..
2. (a) The Inventories has been physically verified during the year by
the management. In our opinion, the frequency of verification
is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory.
3. (a) (i) The Company has taken unsecured loans from Six parties
covered in the register maintained under section 301 of the
Companies Act. In aggregate the maximum amount involved during the year
was Fts. 70,696,225/- and in aggregate the year-end balance of loans
taken from such was Rs 9,960,643/-.
(ii) The Company has granted unsecured loans to Seven parties covered
in the register maintained under section 301 of the Companies Act. In
aggregate the maximum amount outstanding during the year was Rs.
54,615,673/- and in aggregate the year-end balance of loans given to
such was Rs. 34,934,738/-.
(b) There are no covenants, so we are not able to comment that whether
the rate of interest and other terms and conditions of loans given and
taken by the company are prejudicial to the interest of the company.
However we are informed that unsecured loans given are interest free,
so in our opinion the rate of interest are prima facie prejudicial to
the interest of the company. Further we are informed that unsecured
loans taken are interest free, so in our opinion the rate of interest
are prima facie prejudicial to the interest of the company.
(c) In absence of any covenants/agreements for repayment of principal
amount and interest in respect of loans granted and taken, we have not
made any comments about regularity in respect of the receipt and
repayments of principal amount & interest. However the Company informed
that the loan is granted to the Companies under the same management,
the loan is interest free and is repayable on demand.
(d) The Company informed that loan is repayable on demand and therefore
the question of overdue amounts does not arise.
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 the purchases of inventory, fixed assets and
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal controls.
5. In respect of transactions covered under section 301 of the
Companies Act, 1956
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered into the register maintained under
Section 301 of the Companies Act 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contr.
or arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rupees five lakhs is
at a price which are prima facie reasonable having regards to the
prevailing market price at the relevant price.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of the business.
8. We have broadly reviewed the books of account maintained by the
company pursuant to rule made by the central government for the
maintenance of cost record under Section 209 (1) (d) of the Companies
Act, 1956 in respect to the manufacture of steel products and are of
opinion that prima facie the prescribed accounts and records have been
made and maintained. We have, however, not made a detailed examination
of the record with a view to determining whether they are accurate or
complete..
9. (a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Employeesà State Insurance,
Income-tax, Investors Education and Protection Fund, Sales-tax, Wealth
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it have generally been regularly deposited with
appropriate authorities though there has been a delay in a few cases.
(b) According to the information and explanation given to us, the
disputed statutory dues that have not been deposited are listed below
Name of Period for
Nature of Amount Which
Statutory Due Exit it Related
CENVAT CENVAT 2395215 2006-07
CENVAT CENVAT 16197295 2007-08
CENVAT CENVAT 542997 2010-11
CENVAT CENVAT 6405065 2010-11
SERVICE Tax SERVICE Tax 556200 2009-10
SERVICE Tax SERVICE Tax 1238314
SERVICE Tax SERVICE Tax 645029
Name Forum Where Amount Date 0f
fee Dispute Agreed Payment
is Pending
CENVAT 1875118 6/15/2012
CENVAT 2649311 6/21/2012
CENVAT 485997 1/24/2012
CENVAT
SERVICE Tax 556200 5/6/2011
SERVICE Tax 1238314 1/25/2012
SERVICE Tax 645029
10. The accumulated losses at the end of the financial year are more
than 100% (Hundred Percent) of its net worth however has not incurred
cash losses during the financial year covered by our audit & the
immediately preceding financial year.
'M According to the information and explanation given to us, the
Company has defaulted in repayment of dues to financial institutions,
banks and debenture holders. Further we informed that these amounts are
outstanding for a long period and exact length of period cannot be
ascertained :
Sr.
No. Name of
the financial
Institution Principal
(Rs.) Interest
(Rs.) Total
(Rs.) OTS (Rs.)
1.GSFC Term Loan 40,994,535 58,126,637 99,121,172 43,519,951
2 Term Loan IDBI 103,450,000 79,793,691 183,243,691 123,600,000
3 NonConvDeb. 27,500,000 29,176,545 56,676,545
The company has in Principle received an approval from IDBI for One
Time Settlement of all its Dues. A Cumulative sum of Rs. 73,845,000
P.Y. (Rs 69,845,000) has been paid against the OTS. Further during the
year under consideration, provision for interest on the above loan has
not been created.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/ society. Therefore, the provisions of clause 4 (xiii) of
the Companies (AuditorÃs Report) Order, 2003 are not applicable to
the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditorsà Report)
Order, 2003 are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, the
Company has not raised any new term loans during the year, however the
term loans outstanding at the beginning of the year were applied for
the purposes for which they were raised.
According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short-term basis have been used for long-term
investments by the company.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
19. According to the information and explanation given to us, no
debentures have been issued during the year.
20. According to the information and explanations given to us, the
Company has created securities in respect of debentures issued.
21. Based upon the audit procedures performed and information given to
us, we report that no fraud on or by the Company has been noticed or
reported during the course of our audit.
For KAKARIA & ASSOCIATES
Chartered Accountants
Firm Regn. No.: 104558W
Jaiprakash H. Shethiya
Place : Mumbai Partner
Date : 14.8.2012 Membership No.: 108812
Mar 31, 2011
We have audited the attached Balance Sheet of YASHRAJ CONTAINEURS
LIMITED, as at 31st March, 2011 and the Profit & Loss Account and also
the Cash Flow statement of the Company for the year ended on that date,
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditors' Report) Order 2003, issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
Order.
3. Without qualifying our opinion, we draw attention that the Company
had incurred substantial losses in the past resulting in the erosion of
more than fifty percent of its net worth. However considering the
management plans to revive the company, the accounts of the Company are
prepared on a going concern basis.
4. Company has made investment/provided security/given loans above the
limits specified under 372A of the Companies Act 1956, however approval
of shareholder to that extent has not been obtained.
5. During the year the company has given loan to few of the person
covered under Section 295 of the Companies Act however approval from
central government is still pending, the year end balance of such loan
is Nil.
6. Further to our comments in the Annexure referred to above, we
report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appe-rc frcrr, our examination of
the books;
c. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
d. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956, except for Accounting Standard (AS) - 15 (revised
2005) on "Employee Benefits" as stated in clause (g) below.
e. On the basis of written representation received from such
directors, as on 31st March,2011 and taken on record by the Board of
Directors, We report that none of the remaining directors is
disqualified as on 31st March, 2011 from being appointed as a director
in terms of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956.
f. Since the central government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any rules under the said section,
prescribing the manner in which the cess is to be paid, no cess is due
and payable by the company.
g. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts Subject to our comments
in above paragraph & Note 7 regarding non provision of future
liabilities of gratuity amount not ascertained, Profit Before Tax for
the year is overstated and liabilities to that extent are understated
hence these accounts to that extent are not in conformity with
section-209(3) of the Companies Act, 1956 and AS-15 (revised 2005) on
"Employees Benefits" read together with the Significant Accounting
Policies, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March, 2011;
ii) in the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flow of the
Company for the year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF THE REPORT OF THE AUDITORS' TO
THE MEMBERS OF YASHRAJ CONTAINEURS LIMITED ON THE ACCOUNTS FOR THE YEAR
ENDED 31 ST MARCH, 2011.
1.(a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) We are informed that the fixed assets have been physically verified
by the management during the year. There is a regular program of
verification, which in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) During the year, the Company has not disposed off a substantial
part of the fixed assets.
2. (a) The Inventories has been physically verified during the year by
the management. In our opinion, the frequency of verification
is reasonable. However the Inventories at the year end are NIL.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory.
3. (a) (i) The Company has taken unsecured loans from five parties
covered in the register maintained under section 301 of the Companies
Act. In aggregate the maximum amount involved during the year was Rs.
60,669,764/- and in aggregate the year-end balance of loans taken from
such was Rs 33,841,673/-.
(ii) The Company has granted unsecured loans to nine parties covered in
the register maintained under section 301 of the Companies Act. In
aggregate the maximum amount outstanding during the year was Rs.
58,425,250/- and in aggregate the year-end balance of loans given to
such was Rs. 1,041,139/-.
(b) There are no covenants, so we are not able to comment that whether
the rate of interest and other terms and conditions of loans given and
taken by the company are prejudicial to the interest of the company.
However we are informed that unsecured loans given are interest free,
so in our opinion the rate of interest are prima facie prejudicial to
the interest of the company. Further we are informed that unsecured
loans taken are interest free, so in our opinion the rate of interest
are prima facie prejudicial to the interest of the company.
(c) In absence of any covenants/agreements for repayment of principal
amount and interest in respect of loans granted and taken, we have not
made any comments about regularity in respect of the receipt and
repayments of principal amount & interest. However the Company informed
that the loan is granted to the Companies under the same management,
the loan is interest free and is repayable on demand.
(d) In absence of any covenants/agreements for repayment of principal
amount and interest in respect of loans granted and taken, we have not
made any comments about whether there is any overdue amount. However
the Company informed that loan is repayable on demand and therefore the
question of overdue amounts does not arise.
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 the purchases of inventory, fixed assets and
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal controls.
5. In respect of transactions covered under section 301 of the
Companies Act,1956
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered into the register maintained under
Section 301 of the Companies Act 1956 are NIL.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rupees five lakhs is
as under in respect of any party during the year.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of the business.
8. We are informed that the Central Government has not prescribed
maintenance of cost records under clause (d) of section (1) of Section
209 of the Companies Act, 1956.
9. (a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Employees' State Insurance,Income-tax,
Investors Education and Protection Fund, Sales-tax, Wealth Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues applicable to
it have generally been regularly deposited with appropriate authorities
though there has been a delay in a few cases. Following undisputed
amount are outstanding for more than six months as on 31st March 2011.
Sr. Name of the Nature of Period Amount Date of
No. Statute Rs. Payment
1. Central Excise-duty 2004-2005 2552462 22/06/2011
Excise Act,
1944
(b) According to the information and explanation given to us, there are
no disputed statutory dues that have not been deposited
10. The accumulated losses at the end of the financial year are more
than 100% (Hundred Percent) of its net worth and has incurred cash
losses during the financial year covered by our audit & the immediately
preceding financial year.
11. According to the information and explanation given to us, the
Company has defaulted in repayment of dues to financial institutions,
banks and debenture holders. Further we informed that these amounts are
outstanding for a long period and exact length of period cannot be
ascertained :
Sr. Name of the Principal Interest Total(Rs.)
No. financial
Institution
1. GSFC Term Loan 40,994,535 58,126,637 99,121,172
2. Term Loan IDBI 103,450,000 45,082,390 148,532,390
3. Non Conv Deb. 27,500,000 29,176,545 56,676,545
The company has in Principle received an approval from IDBI for One
Time Settlement of all its Dues. A Cumulative sum of Rs.732.73 Lacs has
been paid against the OTS. Further during the year under consideration,
provision for interest on the above loan has not been created.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/ society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors' Report) Order,
2003 are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, the
Company has not raised any new term loans during the year, however the
term loans outstanding at the beginning of the year were applied for
the purposes for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
friat no funds raised on short-term basis have been used for long-term
investments by the company and no long-term funds have been used to
finance short-term investments.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
19. According to the information and explanation given to us, no
debentures have been issued during the year.
20. According to the information and explanations given to us, the
Company has created securities in respect of debentures issued.
21. Based upon the audit procedures performed and information given to
us, we report that no fraud on or by the Company has been noticed or
reported during the course of our audit.
For KAKARIA & ASSOCIATES
Chartered Accountants
Firm Regn. No.: 104558W
Jaiprakash H. Shethiya
Partner
Membership No.: 108812
Place : Mumbai
Date : 15.7.2011
Mar 31, 2010
We have audited the attached Balance Sheet of YASHRAJ CONTAINEURS LTD.
as at 31 st March, 2010 and the Profit & Loss Account and also the Cash
Flow Statement of the Company for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management.as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditors Report) Order 2003, issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
Order.
3. Further to our comments in the Annexure referred to above, we
report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
books;
c. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
d. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956; subject to Point No. 3 of notes to accounts.
e. On the basis of written representations received from the directors
as on 31st March, 2010 and taken on record by the Board of Directors,
We report that none of the directors is disqualified as on 31st March,
2010 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
f. Subject to above, in our opinion and to the best of our information
and according to the explanations given to us, the said accounts read
together with the Significant Accounting Policies, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India :
i) in the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March, 2010;
ii) in the case of the Profit & Loss Account, of the Profit for the
year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH (2) OF THE REPORT OF THE AUDITORS TO
THE MEMBERS OF YASHRA. CONTAINEURS LTD. ON THE ACCOUNTS FOR THE YEAR
ENDED ON 31 ST MARCH, 2010
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixeo
assets.
(b) We are informed that the fixed assets have been physically verified
by the management during the year. There is a regular program of
verification, which in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) During the year, the company has not disposed off a substantial
part of the fixed assets.
2. (a) The Inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in à relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3. 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 the purchases of inventory, fixed assets and
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal controls.
4. In respect of transactions covered under section 301 of the
Companies Act, 1956.
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered into the register maintained under
Section 301 of the Companies Act 1956 have been so entered.
(b) According to the information and explanations given to us by the
Management, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time, details of which are as follows :
Sr.
No. Name of the Concern Nature of
Transaction Amount Involved
(Rs.)
1. Pushpanjali Drums Pvt. Ltd. Sales 5098141.00
2. Sangeeta Valia Rent A/c. Rent 1080000.00
5. The Company has not accepted any deposits from the public.
6. The Company has an Internal Audit System commensurate with its size
& nature of business.
7. We are informed that the Central Government has not prescribed
maintenance of cost records under clause (d) of section (1) of Section
209 of the Companies Act, 1956.
8. (a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Employees State Insurance,
Income-tax, Investors Education and Protection Fund, Sales-tax, Wealth
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it have generally been regularly deposited with
appropriate authorities though there has been a delay in a few cases.
Following undisputed amount are outstanding for more than six months as
on 31st March, 2010.
Sr. Name of the Nature of Period to
Which Amount Date of
No. Statute the Dues the Amount
relates Rs. Payment
1. Central Excise
Act, 1944 Excise-duty 2004-2005 2552462 -
(b) According to the information and explanations given to us, there
are no disputed statutory dues pending before appropriate authority.
9. The accumulated losses at the end of the financial year are more
than 100% (Hundred Percent) of its net worth and has not incurred cash
losses during the financial year covered by our audit.
10. The Company had got an approval for One Time Settlement IDBI Bank
further the company is in the Process of getting approval for one time
settlement with GSFC. However the company has not made payments as per
schedules, hence the company has defaulted in payments of following
loans :
Sr.
No. Name of the financial
Institution Principal Interest Total (Rs.)
1. IDBI Term Loan 5,84,05,000 2,30,53,923 8,14,58,923.
2. IDBI NonConv Deb
17.5% 2,75,00,000 2,91,76,546 5,66,76,416.
3. GSFC Term Loan 1,45,00,000 3,42,80,304 4,87,80,304.
Further we were informed that these amounts are outstanding for a long
period and exact length of period can not be ascertained. We have to
Further state that during the year under consideration no interest on
Loans stated above has been provided.
11. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
12. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
13. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
14. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
15. According to the information and explanations given to us, the
Company has not raised any new term loans during the year. The term
loans outstanding at the beginning of the year were applied for the
purposes for which they were raised.
16. According to the information and explanation given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short-term basis, have been used for long-term
investments by the company. No long-term funds have been used to
finance short-term investments except for working capital requirement.
17. During the year, the Company has not made an preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
18. According to the information and explanations given to us, no
debentures have been issued during the year.
19. According to the information and explanation given to us, the
Company has not issued any Debentures , therefore creation of
securities in respect of debentures issued does not arise.
20. Based upon the audit procedures performed and information given to
us, we report that no fraud on or by the Company has been noticed or
reported during the course of our audit.
For KAKARIA & ASSOCIATES
Chartered Accountants
Jaiprakash H. Shethiya
Partner
Membership No.: 108812
Place : Mumbai
Date : 21.8.2010