Mar 31, 2015
We have audited the accompanying financial statements of Yuvraaj
Hygiene Products Limited (the 'Company') which comprises of Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss and Cash
flow statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
2. MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The management and Board of Directors of the Company are responsible
for the matters stated in Section 134(5) of the Companies Act, 2013
(the 'Act') with respect to the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
rule 7 of Companies (Accounts) Rules, 2014. This responsibility
includes maintenance of adequate accounting records in accordance with
the provision of the Act, for safeguarding the assets of the Company
and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; design,
implementation and maintenance of adequate internal financial controls,
that are operating effectively for ensuring the accuracy and
completeness of 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.
3. AUDITOR'S RESPONSIBILITY
a) Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our
audit in accordance with Standards on Auditing specified under Section
143(10) of the Act. Those standards require that comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
b) An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedure selected depends 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 and 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 management, and Board
of Directors, as well as evaluating the overall presentation of the
financial statements.
c) We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our qualified audit opinion.
4. BASIS FOR QUALIFIED OPINION
a. As per Management's estimate Goodwill has a life of 25 years and
accordingly the Company has written off goodwill for 3 years and 3
months in this year's Statement of Profit and loss amounting to Rs.
33.65 lacs, which in our opinion is not in accordance with Accounting
Standard prescribed u/s 133 of the Act read with Rule 7 of Companies
(Accounts) Rules, 2014. Had Goodwill been written off on a systematic
basis (SLM) over a maximum period of 5 years, the Loss would have been
understated by Rs. 134.59 lacs and the Reserves and Surplus negative
balance would have understated by similar amount.
b. We also draw attention to Note no. 25M to the financial statements
relating to Debit or credit balances on whatever account are subject to
confirmation from parties / authorities concerned, the impact on
financials thereof cannot be ascertained.
5. QUALIFIED OPINION
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter in
paragraph 4a and possible effects of matters in paragraph 4b described
in Basis for Qualified Opinion paragraph, the aforesaid financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the Company as at 31st March, 2015 its loss and its cash
flows for the year ended on that date.
6. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (Auditor's Report) Order, 2015 (the
'Order') issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the said
order As required by Section 143(3) of the Act, we further report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
b) Except for the possible effects of the matter described in the Basis
of Qualified Opinion paragraph above, in our opinion, proper books of
accounts, as required by law have been kept by the Company, so far as
it appears from our examination of the 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) Except for the possible effects of the matter described in the Basis
of Qualified Opinion paragraph above, in our opinion, the aforesaid
financial statements comply with the applicable Accounting standards
specified under the 133 of the Act read with the Rule 7 of the
Companies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors
as on 31st March, 2015 and 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; and
f) In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
* The Company has disclosed the impact of pending litigations as at
31st March, 2015 on its financial position in its financial statements.
(Refer note 23 of the Financial Statements);
* The Company did not have any long-term contracts including derivative
contracts; as such the question of commenting on any material
foreseeable losses thereon does not arise; and
4 There has not been an occasion in case of the Company during the year
under report to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise.
Annexure to referred to in paragraph 6 of our report of even date to the
members of YUVRAAJ HYGIENE PRODUCTS LIMITED on the accounts of the
company for the year ended 31st March, 2015
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that;
i. In respects of the Company's fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets. However
the maintenance needs to be improved.
(b) As explained to us, fixed assets have been physically verified by
the management at all locations at reasonable intervals. As informed to
us no material discrepancies were noticed on such verification.
ii. In respect of the Company inventories:
(a) The inventories have been physically verified during the year at
reasonable intervals by the Management.
(b) As explained 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) The Company is maintaining proper records of inventories. The
discrepancies noticed on verification between the physical stocks and
book records were not material and have been properly dealt with in the
books of account.
iii. The Company has not granted any loans, secured or unsecured,
to/from companies, firms or other parties covered in the register
maintained under Section 189 of the Act, except unsecured loans from
directors and relatives amounting to Rs Rs. 6.79 lakhs
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories and fixed assets and the sale of goods.
Further on the basis of our examination of the books and records of the
Company and according to the information or explanations given to us,
no major weakness has not been noticed or reported.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
covered under Section 73 to76 of the Companies Act, 2013 during the
period covered by audit.
vi. On the basis of records produced, we are of the opinion that prima
facie cost records and accounts prescribed by the Central Government
under Section 148(1) of the Act, in respect of products of the Company
covered under the rules under said section have been maintained.
However we are neither required to carry out nor have carried out any
detailed examination of such accounts and records.
vii. In respect of statutory dues,
(a) According to information and explanation given to us and based on
the records of the company examined by us, the company is regular in
depositing the undisputed statutory dues, including Income Tax, Sales
Tax, Customs Duty, Cess and other statutory dues as applicable, with
the appropriate authorities in India; There have been delays in respect
of Profession Tax and Income Tax deducted at source. We have been
informed that there are no undisputed statutory dues as at the year-end
outstanding for a period of more than six months from the date they
become payable, except balances dues of income tax self assessment tax
of Rs. 449,510/ for AY 2013-14 (including interest till the date of
filing the return for the above year).
(b) According to information and explanation given to us and based on
the records of the company examined by us, the particulars of dues of
sales tax including value added tax, as at 31st March, 2015 which have
not been deposited on account of any dispute, are as follows:-
Name of the Nature of the Amount in Rs. Period to which the
Statute Dues amount relates (FY)
Central Sales Sales Tax and 250,664 2005-06
Tax Act,1956 Interest
Central Sales Sales Tax and 880,877 2008-09
Tax Act,1956 Interest
Central Sales Sales Tax and 600,360 2009-10
Tax Act,1956 Interest
Central Sales Sales Tax and 3203,613 2010-11
Tax Act,1956 Interest
Central Sales Sales Tax and 380,924 2010-11
Tax Act,1956 Interest
5,316,438
Name of the Forum where the dispute is pending
Statute
Central Sales Deputy Commissioner of Sales
Tax Act,1956 Tax(Appeals) CBD Belapur, Navi Mumbai
Central Sales Deputy Commissioner of Sales
Tax Act,1956 Tax(Appeals) CBD Belapur, Navi Mumbai
Central Sales Deputy Commissioner of Sales
Tax Act,1956 Tax(Appeals) CBD Belapur, Navi Mumbai
Central Sales Deputy Commissioner of Sales
Tax Act,1956 Tax(Appeals) CBD Belapur, Navi Mumbai
Central Sales Deputy Commissioner of Sales
Tax Act,1956 Tax(Appeals) CBD Belapur, Navi Mumbai
(c) There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of reporting delay in transferring such
sums does not arise
viii. The accumulated losses of the company at the end of the financial
year are less than fifty percent of its net worth. The Company has
incurred cash loss during the financial year covered by our audit but
not during the immediately preceding financial year
ix. According to information and explanation given to us and based on
the records of the company examined by us, the Company has not
defaulted in repayment of dues to Financial Institutions and banks and
has not issued any debentures.
x. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from a bank or financial institution during the year
xi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
it was obtained.
xii. During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have we been informed of any such instance by the
Management.
For P.P.Jayaraman & Co.
Chartered Accountants
Firm Registration No. 104139W
P.P.Jayaraman
Proprietor
Membership No. 041354
Place: Thane
Date: 30th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Yuvraaj
Hygiene Products Limited (the Company) which comprises of Balance Sheet
as at March 31, 2014 and also the Statement of Profit and Loss account
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
September 13, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 and General Circular 08/2014
dated April 4,2014 with respect to the Financial Statement and in
accordance with the accounting principles generally accepted in India.
This responsibility includes the design, implementation and maintenance
of internal controls 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 Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that 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 procedure
selected depends on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of the accounting policies used and the reasonableness of the
accounting estimates made by the management, as well as evaluating the
overall presentation ofthefinancial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. Basis for our
Qualified audit Opinion.
The Company has followed the policy of not amortising goodwill which is
not in accordance with the Accounting Standards referred to in sub
Section (3C) of Section 211 of the Companies Act, 1956. As a result
(based on the management estimation of 25 years useful life of
goodwill) the net profit for the year and good will amounts are
overstated by ''10.35 lacs each and the Reserves and Surplus negative
balance is understated by similar amount.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, 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:
- In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
- In the case of Statement of Profit and Loss, of the profit for the
year ended on that date; and
- In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order)issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
2. As required by Section 227(3) of the Act, we report that:
- 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 accounts, as required by law have
been kept by the Company, so far as it appears from our examination of
the books.
- 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.
- In our opinion, the Balance Sheet the Statement of Profit and Loss
and the Cash Flow Statement comply with the accounting standards
notified under the Act read with the General Circular 15/2013 dated
September 13, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013
- On the basis of written representations received from the directors
as on March 31, 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014 from being
appointed as a director in terms, of Section 274(1)(g) of the Act.
Annexure to Independent Auditors'' Report
(Referred to in paragraph 1 under the Heading of "report on other legal
and regulatory requirement" of our report of even date)
1. Having regard to the nature of the Company''s'' business/activities
during the year, clause (xiii) of paragraph 4 of the Order is not
applicable to the Company.
2. In respects of the Company''s fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management at
all locations at reasonable intervals. No material discrepancies
between book records and the physical inventories have been noticed on
such verification.
(c) No fixed assets have been disposed off during the year; therefore
the same has not affected the going concern status of the Company.
3. In respect of the Company inventories:
(c) The inventories have been physically verified during the year at
reasonable intervals by the Management.
(d) In our opinion and according to the information and explanation
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.
(e) The Company is maintaining proper records of inventories. The
discrepancies noticed on verification between the physical stocks and
book records were not material and have been properly dealt with in the
books of account.
4. In respect of the loans:
(a) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other
parties covered in the Register maintained under Section 301 of the
Act, except unsecured loans from directors and relatives. The maximum
amount involved in the current year amounted to Rs. 42.32 lakhs and
Balance due as the year end is Rs.0.01 lakhs.
(b) In our opinion, the rate of interest and other terms and conditions
on which such loans and advances are made are not prima facie
prejudicial to the interest of the company.
5. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in internal control system.
6. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Act,:
(a) Based on audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the
registers maintained under Section 301 of Companies Act, 1956 have been
so entered.
(b) According to information and explanation given to us, the
transactions of sales made in pursuance of contracts or arrangements
entered in the registers maintained under Section 301, during the year
have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
7. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public and
as such the question of compliances of Section 58, 58AA and other
relevant provisions of act do not arise.
8. The Company has an internal audit system but scope of the same needs
to be widened.
9. On the basis of records produced, we are of the opinion that prima
facie cost records and accounts prescribed by the Central Government
under Section 209(i)(d) of the Companies Act, 1956 in respect of
products of the Company covered under the rules under said Section have
been maintained. However we are neither required to carry out nor have
carried out any detailed examination of such accounts and records.
10. In respect of statutory dues,
(a) According to information and explanation given to us, the Company
has been regular in depositing with appropriate authorities undisputed
statutory dues, including Income Tax, Sales Tax, Customs Duty, Cess and
other statutory dues to the extent applicable to it. The dues in
relation to Wealth Tax, Service Tax, Excise Duty, Provident fund Act,
Investor Education and Protection fund Act are not applicable to the
company in this regard. There have been
delays in respect of Profession Tax and income Tax deducted at source.
We have been informed that there are no undisputed statutory dues as at
the year- end outstanding for a period of more than six months from the
date on which they became payable, except the income tax dues for the
year ended 31-3-2013 ( AY 2013-14 ) of Rs.10,00,000/- (Rupees Ten Lacs
only) (including interest till the date of filing of the return for the
above year).
(b) There is no disputed due on account of income tax, wealth tax,
customs duty and cess. Dues on account of Sales Tax disputed, where
such disputes are pending are mentioned below
Name of the Statute Nature of the Dues Amount Period to which
in Rs. the amount relates
Central Sales Sales Tax and 250,664 FY 2005-06,
Tax Act 1956 interest
Central Sales Sales Tax and 880,877 FY 2008-09
Tax Act 1956 interest
Name of the Statute Forun where the dispute
is pending
Central Sales Deputy Commissioner of Sales Tax(Appeals)
Tax Act 1956
Central Sales Deputy Commissioner of Sales Tax(Appeals)
Tax Act 1956
11. The Company has accumulated losses at the end of the financial
year. The Company has neither incurred cash loss during the financial
year covered by our audit nor during the immediately preceding
financial year.
12. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
Financial Institutions and banks. Further in our opinion and according
to information and explanations given to us, the Company did not have
any amount outstanding to debenture holders or non-financial banking
institutions.
13. In our opinion and 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.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing in shares, securities,
debentures. Therefore the provisions of clause 4 (xiv) of the Order are
not applicable to the Company.
15. In our opinion and 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. Hence the provisions of
the clause 4(xv) are not applicable to the company
16. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
it was obtained.
17. In our opinion and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
Company, we report that funds raised on short-term basis have been
prima facie not been used during the year for long-term investment.
18. According to the information and explanations given to us, during
the year covered by our audit, the Company has not made preferential
allotment of equity shares to partes and companies covered in the
register maintained under Section 301 of the Act.
19. According to the information and explanations given to us, during
the year covered by our report, the Company has not issued any secured
debentures.
20. During the year covered by our report, the Company has not raised
any money by way of public issue.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud by the Company and
no material fraud on the Company has been noticed or reported during
the year.
For P. P. Jayaraman & Co.,
Chartered Accountants
FRN-104139W
P. P. Jayaraman
Proprietor
MRN-41354
Place : Thane
Date: 30th May, 2014
Mar 31, 2013
We have audited the accompanying financial statements of YUVRAAJ
HYGIENE PRODUCTS LIMITED (the "Company") which comprises of Balance
Sheet as at March 31, 2013 and also 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 referred to Section 211(3C) of
the Companies Act, 1956 (the "Act") and in accordance with the
accounting principles generally accepted in India. The responsibility
includes the design, implementation and maintenance of internal
controls relevant to the preparation 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 Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that 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 procedures to obtain audit evidence about the amounts
and disclosures in the financial statements. The procedure selected
depends 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
presentation 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 the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the 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 a
true and fair view in conformity with the accounting principles
generally accepted in India:
- in the case of the Balance Sheet, of the State of Affairs of the
Company as at March 31, 2013;
- in the case of Statement of Profit and Loss, of the Profit of the
Company for the year ended on that date; and
- 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 Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order.
2. As required by Section 227(3) of the Act, we report that:
- 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 accounts, as required by law have
been kept by the Company, so far as it appears from our examination of
the books.
- 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
accounts.
- In our opinion, the Balance Sheet the Statement of Profit and Loss
and the Cash flow statement comply with the Accounting Standards to in
Section 211(3C) of the Companies Act, 1956.
- On the basis of written representation 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 Section 274(1)(g) of the Act.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 4 of our Report of even date on the Accounts
for the year ended on March 31, 2013 of Yuvraaj Hygiene Products
Limited)
1. Having regard to the nature of the Company''s business/activities
during the year, clause (xiii) of paragraph 4 of the Order is not
applicable to the Company.
2. In respects of the Company''s fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) A substantial portion of the fixed assets have been physically
verified by the management during the year and in our opinion the
frequency of such verification is reasonable having regard to the size
of the Company and the nature of its assets. According to the
information and explanation given to us, no material discrepancies were
noticed on such verification.
(c) No fixed assets have been disposed off during the year; therefore
the same has not affected the going concern status of the Company.
3. In respect of the Company inventories:
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals. In our opinion, the
frequency of such verification is adequate.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of inventories
and no material discrepancies were noticed on physical verification and
they have been dealt with in the books of accounts.
4. In respect of the loans:
(a) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
Register maintained under Section 301 of the Act, except unsecured
loans from directors. The maximum amount involved in the current year
amounted to Rs. 17.02 Lacs (Balance due as the year end isRs. 17.02
Lacs)
(b) In our opinion, the rate of interest and other terms and conditions
on which such loans and advances are made are not prima facie
prejudicial to the interest of the Company.
5. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in internal control system.
6. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Act, to the best of our
knowledge and belief and according to the information and explanations
given to us:
(a) The particulars of contracts or arrangements entered in the
Register maintained in pursuance of Section 301 that needed to be
entered in the Register maintained under the said section have been so
entered.
(b) Where each of such transaction is in excess ofRs. 5 Lacs in respect
of any party, the transactions have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time.
7. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public
during the year. Therefore the provisions of the clause 4 (vi) of the
order are not applicable to the Company.
8. The Company has an internal audit system but the scope of the same
needs to be widened.
9. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government under
Section 209(1)(d) of the Companies Act, 1956 for maintenance of cost
records in respect of household cleaning products and are of the
opinion that prima-facie, the prescribed accounts and records have been
made and maintained.
10. In respect of statutory dues,
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other material statutory dues
applicable to it have been generally regularly deposited during the
year with the appropriate authorities. The dues in relation to
Provident Fund Act, Investor Education and Protection Fund are not
applicable to the company in this regard. There have been delays in
respect of Profession Tax and Income Tax deducted at source.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of above were in arrears, as at
March 31, 2013 for a period of more than six months from the date on
which they became payable.
(c) According to the information and explanation given to us, there are
no disputed dues in respect of sale tax, income tax, which have not
been deposited on account of any dispute.
11. The Company has accumulated losses at the end of the financial
year. The Company has not incurred cash loss during the financial year
covered by our audit. The Company has incurred cash loss during the
immediately preceding financial year
12. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
Financial Institutions and banks. Further in our opinion and according
to information and explanations given to us, the Company did not have
any amount outstanding to debenture holders or non-financial banking
institutions.
13. In our opinion and 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.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing in shares, securities,
debentures. Therefore the provisions of clause 4 (xiv) of the Order are
not applicable to the Company.
15. In our opinion and 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. Hence the provisions of
the clause 4(xv) are not applicable to the Company.
16. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
it was obtained.
17. In our opinion and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
Company, we report that funds raised on short-term basis have been
prima facie not been used during the year for long-term investment.
18. According to the information and explanations given to us, during
the year covered by our audit, the Company has not made preferential
allotment of equity shares to parties and companies covered in the
register maintained under section 301 of the Act.
19. According to the information and explanations given to us, during
the year covered by our report, the Company has not issued any secured
debentures.
20. During the year covered by our report, the Company has not raised
any money by way of public issue.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud by the Company and
no material fraud on the Company has been noticed or reported during
the year.
For P. P. Jayaraman & Co.,
Chartered Accountants
Firm Registration No : 104139W
P. P. Jayaraman
Proprietor
Membership No. 041354
Place : Thane
Date : 28th May 2013
Mar 31, 2010
1. We have audited the attached balance sheet of M/s. Intensive Air
Systems Limited as at 31st March 2010, the Profit and Loss Account for
the year ended 31.03.2010 and cash flow statement annexed thereto.
These financial statements are the responsibility of the management of
the Company. Our responsibility is to express an opinion on the
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management as well as evaluating the overall presentation of
financial statements. We believe that our audit provides a reasonable
basis for our opinion
3. As required by the Companies (Auditors Report) Order 2003 issued by
the Central Government 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 and 5 of the said order
wherever applicable.
4. Further to our comments in the annexure referred to in paragraph 3
above we report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b. In our opinion proper books of account, as required by law have
been kept by the Company so far as appears from our examination of
these books.
c. The Balance Sheet and the Profit & Loss Account dealt with by this
report are in agreement with the books of account.
d. In our opinion, these financial statements have been prepared in
compliance with the applicable accounting standards referred to in
section 211 (3C) of the Act.
e. Based on the written representation made by all the directors of
the Company as on 31st March 2010 and taken on record by the Board of
Directors of the Company and in accordance with the information and
explanations as made available, the directors of the Company do not,
prima facie have any disqualification as referred to in clause (g) of
sub section (1) to section 274 of the Act.
f. In our opinion and to the best of our information and according to
the explanations given to us, the balance sheet and profit and loss
account together with the notes thereon and attached thereto give in
the prescribed manner the information required by the "Act" and also
give respectively, a true and fair view in conformity with the
accounting principles generally accepted in India:
i) In the case of Balance Sheet of the state of affairs of the Company
as at 31st March 2010 and
ii) In the case of Profit and Loss account of the Loss for the year
ended 31st March 2010
iii) In the case of the cash flow statement, of the cash flows for the
year ended 31st March 2010.
ANNEXURE TO THE AUDIT REPORT Referred to in paragraph 3 of our report
or even date,
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) During the year, the Company has not disposed off any major plant
and machinery.
(ii) Clause regarding inventory is not applicable to this Company.
(iii) The Company had not given any loans to companies, firms, or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956. The Company had not taken any loans from
companies, firms, or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business. During the course of audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
(v) -According to the information and explanations given to us, we are
of the opinion that there are no transactions that need to be entered
into the register maintained under section 301 of the Companies Act,
1956.
(vi) In our opinion and according to the information and explanations
given to us,
the Company has not accepted any deposits from the public falls under
the provisions of section 58A and 58AA of the Companies Act, 1956.
(vii) The Company does not have an internal audit system. However the
internal controls are adquate and commensurate with the size and nature
of its business.
(viii) The clause regarding maintenance of cost records is not
applicable for this Company for the year.
(ix) (a) 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, sales tax, wealth tax, Service tax, custom duty, excise
duty, cess and other material statutory dues.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, customs duty, excise duty, and cess were in
arrears, as at 31.03.10 for a period of more than six months from the
date they became payable.
(c) According to the information and explanation given to us, there are
no dues of sales tax, income tax, custom duty, wealth tax, excise duty,
service tax and cess which have not been deposited on account of any
dispute.
(x) In our opinion, the accumulated losses of the Company exceeded more
than fifty percent of its net worth. The Company has
incurred cash loss during the financial year covered by our audit and
also has incurred cash loss during the immediate preceding financial
year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution or bank.
(xii) We are of the opinion based on the information available that the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a Chit fund or a Nidhi/
Mutual Benefit Fund/ Society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
(xiv) 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.
(xv) In our opinion and the information, the Company has not given
guarantees for loans taken by others from banks or financial
institutions.
æ(xvi) No term loans have been taken by the Company during the year
under review.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that the no funds raised on short-term basis have been used for
long-term investment. No long Terms funds have been used to finance
short- term assets except permanent working capital.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to the
parties and companies covered in the register maintained under section
301.
(xix) According to the information and explanations given to us, the
Company has not issued any debentures during the period covered by our
audit.
(xx) The Company has not made any public issue during the year under
audit.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For GMK Associates
Chartered Accountants
(Firm Regn No.006945S)
Hyderabad G Satyanarayana Murty
31/05/2010 Partner M.No.29919