Mar 31, 2015
1. We have audited the accompanying financial statements of ZENITH
BIRLA (INDIA) LIMITED ("the Company"), which comprise the 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.
Management's Responsibility for the Financial Statements
2. The Company's Board of Directors 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 the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; design, implementation
and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements, that give a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial control system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of 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.
5. 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.
6. Emphasis of Matter:
We draw attention to the following matter in Notes to the financial
statements:
Note no. 49 in the financial statements which indicates that the
company has accumulated losses and its net worth has been fully eroded.
The company has incurred a net loss/net cash loss during the current
and previous years and the Company's current liabilities exceeded its
current assets as at the Balance Sheet date. These conditions, along
with other matters, indicate the existence of a material uncertainty
that may cast significant doubt about the Company's ability to continue
as a going concern. However, the financial statements of the company
have been prepared on a going concern basis for the reasons stated in
the said Note.
Our opinion is not modified in respect of this matter.
7. Basis for Qualified Opinion
1. With reference to Note no. 44 regarding the non provision by the
company of the interest amounting to Rs. 32.70 crores on its working
capital facilities from banks during the year. Had this amount been
provided for, the loss would have been higher by Rs. 32.70 crores and
Secured loans would have been higher by an amount of Rs. 32.70 crores.
2. The Company has not complied with the provisions of sections 74 or
any other relevant provisions of the Act and the Companies (Acceptance
of Deposits) Rules 2014 with regard to non-repayment of deposits and
interest on due date, maintenance of liquid assets to the extent
required as well as not fully complying with the orders passed by The
Company Law Board.
3. With reference to Note no. 42 regarding the company not having the
balance confirmations for its party balances and hence our inability to
state whether these balances are recoverable / payable to the extent
stated.
8. Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, subject to the effects of the matters
described in the basis for Qualified Opinion paragraph the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March 2015.
b) In the case of the statement of Profit and Loss ,of the loss 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.
9. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
10. As required by section 143(3) of the Act, we report that:
a. we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. in our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books;
c. the Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d. in our opinion, the aforesaid financial statements comply with the
applicable Accounting Standards specified under Section 133 of the Act,
read with 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
f. 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, in our opinion and to the best of our information and
according to the explanations given to us:
i) As per the best estimates made by the management on the basis of
opinion taken, the Company is of the view that the ongoing litigations
as at the reporting date would not have a material impact on its
financial position;
ii) Based upon the assessment made by the company, there are no
material foreseeable losses on its long term contracts that may require
any provisioning.
iii) In view of there being no amount(s) required to be transferred to
the Investor Education and Protection Fund for the year under audit the
reporting under this clause is not applicable.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph 7 under the heading of "report on other legal
and regulatory requirement" of our report of even date.
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of Fixed
Assets as at 31st March 2014. These details are however yet to be
updated for the year. The Company has started the process of updating
these.
(b) The fixed assets are physically verified by the Management
according to a phased programme designed to cover all the items over a
period of three years, which in our opinion, is reasonable having
regard to the size of the company and nature of its assets. However
during the year the Company has not adhered to the programme of
physical verification in its Khopoli and Murbad Units.
ii. (a) The Inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of inventory records, in our
opinion the Company is maintaining proper records of inventory. As
informed to us no material discrepancies were noticed on physical
verification.
(a) The Company has granted unsecured loans to three companies covered
in the register maintained under section 189 of the Act. The maximum
amount involved during the year was Rs. 10664.69 lacs and year-ended
balance was Rs. 10556.42 lacs
(b) As explained to us no amounts of principal and interest has become
due during the year.
(c) In view of our comments in (b) above, para iii(b) of the Order is
not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanation given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) In our opinion, and according to the information and explanations
given to us, in respect of compliance by the company with the
directives issued by the Reserve Bank of India, the provisions of
Section 74 or any other relevant provisions of the Act and the rules
framed there under, with regard to the deposits accepted from the
public, we have to state that these have not been complied with in
respect to non repayment of deposits and interest on due date and
maintenance of liquid assets to the extent required as per Rule 13 of
the Companies (Acceptance of Deposit) Rules,2014. The Company has also
not fully complied with the orders passed by Company Law Board.
(vi) We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India the maintenance of cost records has been
prescribed under subsection (1) of section 148 of the Companies
Act,2013, and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the records with a view to determine
whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion except
for dues in respect of Dividend Distribution Tax, Tax Deducted at
source, Professional Tax, Tax Collected at Source, Service Tax, and
Provident Fund, the Company is generally regular in depositing the
undisputed statutory dues including Wealth Tax, Excise Duty Custom
Duty,Cess and other material statutory dues, as applicable, with the
appropriate authorities. The following balances remain in arrears as at
the last day of financial year for a period exceeding six months from
the date they become payable.
Nature of Dues Amount Outstanding
(in Rs.)
Tax Deducted at Source 1846145
Profession Tax 20550
Tax collected at Source 40763
Service Tax 158043
Provident Fund 579895
Dividend Distribution Tax 35908091
Interest on Dividend Distribution Tax 16158641
(b) According to the information and explanation given to us and the
records of the company examined by us, there were no disputed dues in
respect of Income Tax, Wealth Tax, Service Tax, and Cess. The
particulars of dues of Custom Duty , Excise Duty and Sales Tax as at
March 31,2015, which have not been deposited on account of disputes,
are as follows:
Name of Statute Amount Period to which
(Rs. in Lacs) relates amount Forum
where dispute is
pending
Customs Act, 1962 82.00 1998-1999 Tribunal
3.45 1985-1986 High Court
Central Excise Act, 1959 129.78 1995-1996 Commissioner
appeal
Central Sales Tax Act and 78.88 1995-1996 Tribunal
Local Sales Tax
(c) There was a delay of 21 days in transferring the amount required to
be transferred to Investor Education and Protection Fund in accordance
with the relevant provisions of the Act.
(viii) The Company's accumulated loss as at March 31 2015, exceeded its
net worth. The Company has incurred cash losses in the current
financial year as well as in the immediately preceding financial year.
(ix) According to the records of the Company examined by us and the
information and explanations given to us, there has been default in
payments to the banks since August, 2012 and the Company's outstanding
as at 31st March 2015, as per the notice received from the banks, is
Rs. 21583.43 lacs plus interest of Rs. 5821.25 lacs for the period upto
March 2015.
(x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks and financial institutions.
(xi) The Company has not raised new term loan during the year. The term
loans outstanding at the beginning of the year have been applied for
the purpose for which they were raised.
(xii) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanation given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For Thakur, Vaidyanath Aiyar & Co.
Chartered Accountants
Firm Reg. No. 000038N
Place: Mumbai C V Parameswar
Date: 30.05.2015 Partner
Mem. No. 11541
Mar 31, 2014
We have audited the accompanying financial statements of ZENITH BIRLA
(INDIA) LIMITED ("the Company), which comprise the Balance Sheet as at
March 31,2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. Basis for
Qualified Opinion
1. With reference to Note No. 45 regarding the non provision by the
Company of the interest amounting to Rs. 2,551.72 lacs on its working
capital facilities from Banks during the year Had this amount been
provided for, the loss would have been higher by Rs. 2,551.72 lacs and
Secured Loans would have been higher by an amount of Rs. 2,551.72 lacs.
2. The Company has not complied with the provisions of sections 58A,
58AA or other relevant provisions of the Act and the Companies
(Acceptance of Deposits) Rules, 1975 with regard to non-repayment of
deposits and interest on due date, maintenance of liquid assets to the
extent required as well as not intimating the appropriate authorities
of such defaults.
3. With reference to Note No. 42-regarding the Company not having the
balance confirmations for its party balances and hence our inability to
state whether these balances are recoverable/payable to the extent
stated.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, subject to the effects of the matters
described in the basis for Qualified opinion paragraph the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b) In the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.;
d) In our opinion, the Balance Sheet, Statement of Profit and loss and
Cash Flow Statement comply with the 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 written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 1 under the heading of "report on other
legal and regulatory requirements "of our report of even date.
1. (a) The Company has maintained records showing full
particulars,including quantitative details and situation of fixed
assets as at 31st March, 2013. These details are however yet to be
updated for the year. The Company has however started the process of
updating these.
(b) The fixed assets are physically verified by the Management
according to a phased programme designed to cover all the items over a
period of three years, which in our opinion, is reasonable having
regard to the size of the Company and nature of its assets. However
during the year the Company has not adhered to the programme of
physical verification
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
2. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of inventory records, in our
opinion, the Company is maintaining proper records of inventory. As
informed to us no material discrepancies were noticed on physical
verification.
3. (a) The Company has granted unsecured loans to two companies covered
in the register maintained under Section 301
of the Act. The maximum amount involved during the year was Rs. 679.53
lacs and year-end balance was Rs. 679.53 lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of
such loans are not prima facie prejudicial to the interest of the
Company.
(c) As explained to us no amount of principal and interest has become
due during the year.
(d) In view of our comment in (c) above, para 4(iii)(d) of the Order is
not applicable to the Company.
(e) The Company has taken unsecured interest free loan from one company
covered in the register maintained under Section 301 of the Act. The
maximum amount outstanding anytime during the year was Rs. 45 lacs and
the year-end balance was Rs,45 lacs.
(f) In our opinion and according to the information and explanation
given to us the terms and conditions of such loan are not primafacie
prejudicial to the interest of the Company
(g) In respect of the aforesaid loan, as explained to us no amount of
principle has become due during the year.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. (a) According to the information and explanations given to us, there
were no contracts or arrangements referred to in Section 301 of the Act
that required to be entered in the register maintained under the
section.
(b) Since there were no contracts or arrangements with any parties
referred to in Section 301 of the Act, the provisions of this clause
are not applicable.
6. In our opinion and according to the information and explanations
given to us, in respect of compliance by the Company with the
provisions of Section 58A and 58AA or any other relevant provisions of
the Act and the Companies (Acceptance of Deposits) Rules, 1975, with
regard to the deposits accepted from the public, we have to state that
these have not been complied with in respect to non repayment of
deposits and interest on due date, maintenance of liquid assets to the
extent required as per Rule 3A of the Companies (Acceptance of Deposit) Rules,1975, accepting fresh deposits after the default, as well as not intimating the appropriate authorities of such defaults.
7. The Company has appointed a firm of Chartered Accountants for
carrying out the internal audit functions. The internal audit coverage
has been done only at Tarapur unit and not at any of the other
locations. In our opinion, the scope and coverage of the audit require
enhancement to make it commensurate with the size of the Company and
nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209 (1) (d) of the
Companies Act,1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. (a) According to the information and explanation given to us and the
records of the Company examined by us, in our opinion except for dues
in respect of Dividend Distribution Tax, Tax Deducted at Source, Profe
-ssion Tax, Tax Collected at Source, Service Tax, and Provident Fund,
the Company is generally regular in depositing the undisputed statutory
dues including Wealth Tax, Excise Duty, Custom Duty, Cess and other
material statutory dues, as applicable, with the appropriate authorities.
The following balances remain in arrears as at the last day of the
financial year for a period exceeding six months from the date they
became payable:
Nature of Dues Amount Outstanding (in)
Tax Deducted at Source 3,36,740
Profession Tax 22,775
Tax Collected at Source 10,140
Service Tax 192
Provident Fund 2,27,930
Dividend Distribution Tax 3,59,08,091
Interest on Dividend Distribution Tax 1,18,49,670
(b) According to the information and explanation given to us and the
records of the Company examined by us, there were no disputed dues in
respect of Income Tax, Wealth Tax, Service Tax and Cess. The
particulars of dues of customs duty, excise duty and sales tax as at
March 31,2014, which have not been deposited on account of disputes,
are as follows:
Name of Statute Amount Period to which Forum where dispute is
(in lacs) amount relates pending
Customs Act,1962 82.00 1998-1999 Tribunal
3.45 1985-1986 High Court
Central Excise 129.78 1995-1996 Commissioner Appeals
Act,1959
Central Sales 78.88 1995-1996 Tribunal
Tax Act and
Local Sales Tax
10. The Company''s accumulated loss as at March 31,2014 exceeded fifty
percent of its net worth. The Company has incurred cash losses in the
current financial year as well as in the immediately preceding
financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, there has been default in
payments to the banks since August, 2012 and the Company''s outstanding
as at 31st March, 2014, as per the notice received from the banks, is Rs.
21,583.43 lacs plus interest of Rs. 523.15 lacs for the period February
and March, 2014.
12. 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 clause 4(xiii) of the Companies
(Auditor''s report) Order, 2003 is not applicable to the Company.
14. In respect of shares, securities, debentures and other investments
dealt or traded by the Company, proper records have been maintained in
respect of the transactions and contracts and timely entries have been
made therein. All the investments are held by the Company in its own
name.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks and financial institutions.
16. The Company has raised new term loan during the year. The term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purposes for which they were raised.
17. On the basis of an overall examination of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on short term basis
which have been used for long-term investment during the year.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under Section
301 of the Act, during the year.
19. The Company has not issued any debentures during the year, and does
not have any debentures outstanding at the year end.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For THAKUR, VAIDYANATH AIYAR & CO.
Chartered Accountants
Firm Reg. No. 000038N
C V Parameswar
Partner
Place: Mumbai Mem. No. 11541
Date: 14th August, 2014
Mar 31, 2012
1. We have audited the attached Balance Sheet of Zenith Birla (India)
Limited as at 31st March, 2012, and the statement of Profit and Loss
and Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together the "Order"), issued by the Central Government of India
in terms of sub-section (4A) of Section 227 of 'The Companies Act,
I956' of India (the 'Act') and on the basis of such checks of the
books and records of the Company as we considered appropriate and
according to the information and explanations given to us, we give in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the Order to the extent applicable to the company.
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
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 dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 2II of
the Act;
(e) On the basis of written representations received from the
directors, as on 31st March, 20I2 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 20I2
from being appointed as a director in terms of clause (g) of
sub-section (I) of Section 274 of the Act.
(f) In our opinion and to the best of our information and according to
the explanations given to us, they said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) in the case of the statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Referred to in paragraph 3 of the Auditors' Report of even date to
the members of Zenith Birla (India) Limited on the financial statements
for the year ended 31st March, 2012.
1. (a) The Company is maintaining proper records showing particulars
including quantitative details and situation of fixed assets.
(b) The fixed assets are physically verified by the management
according to a phased programme designed to cover all the items over a
period of three years, which in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the management during the year and no material
discrepancies between the book records and the physical inventory has
been noticed,
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the Company during the year.
2. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable. Inventories lying with outside parties have been confirmed
by them at the close of the year.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. (a) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
(b) The Company has granted unsecured loans to 2 companies covered in
the register maintained under Section 30I of the Act. The maximum
amount outstanding at any time during the year was Rs 829.92 lacs and
the yearend balance is Rs 829.92 lacs.
(c) As per the information and explanations given to us the rate of
interest and the terms and conditions of the said loans are primafacie
not prejudicial to the interest of the Company.
(d) As explained to us no amount of principal and interest has become
due during the year.
(e) In view of our comment in (d) above Para 4(iii)(d) of the Order is
not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods. There is
no sale of services during the year. Further, on the basis of our
examination of the books and records of the Company, and according to
the information and explanations given to us, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control system.
5. (a) According to the information and explanations given to us the
transactions that need to be entered in the register maintained under
section 301 of the Act have been so entered.
(b) In our opinion and according to the information and explanation
given to us, these transactions in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act,1956 and exceeding the value of Rs Five lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, in respect of compliance by the Company with the
provisions of Sections 58A and 58AA or any other relevant provisions of
the Act and the Companies (Acceptance of Deposits) Rules, 1975, with
regard to the deposits accepted from the public, we have to state that
there has been a small delay in issue of Fixed Deposit Receipts to the
extent of Rs. 78.16 lacs during January and February 2012 consequent to
the change in the Registrar of the Company. According to the
information and explanations given to us, no Order has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any Court or any other Tribunal on the Company in respect
of the aforesaid deposits.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (I) of Section 209 of the
Act and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employees' state insurance, sales-tax, wealth tax, service tax,
customs duty, excise duty, cess and other material statutory dues as
applicable with the appropriate authorities. However, Dividend
Distribution Tax amounting to Rs. 359.08 lacs plus interest amounting
to Rs. 6463456.38 remained in arrears as at the last day of the
financial year, for a period exceeding six months from the date it
became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there were no disputed dues in
respect of income tax, wealth tax, service tax and cess. The
particulars of dues of custom duty, excise duty and sales-tax, as at
31st March, 2012 which have not been deposited on account of disputes
are as follows:
Name of the
Statute Amount Period to which the Forum where the
dispute
(Rs. in lacs) amount relates is pending
Customs
Act, 1962 82.00 1998-1999 Tribunal
3.45 1985-1986 High Court
Central
Excise
Act, 1944 129.78 1995-1996 Commissioner
Appeals
Central
Sales Tax
Act and Local
Sales Tax 78.88 1995-1996 Tribunal
10. The Company has no accumulated losses as at 31st March, 2012 and
it has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any bank. There were no dues to any financial
institution or debenture holder as at the Balance Sheet date.
12. 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 respect of shares, securities, debentures and other investments
dealt or traded by the Company, proper records have been maintained in
respect of the transactions and contracts and timely entries have been
made therein. All the investments are held by the Company in its own
name.
14. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks and financial institutions.
15. The Company has not obtained any term loan during the year.
16. On the basis of an overall examination of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long- term investment.
17. The Company has not made a preferential allotment of shares to
parties and companies covered in the register maintained under Section
30I of the Act during the year.
18. The Company has not issued any debentures during the year, and
does not have any debentures outstanding as at the year end.
19. The Company has not raised any monies by way of public issues
during the year.
20. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
21. The other clauses, (iii)(f), (iii)(g), and (xiii) of paragraph 4
of the Order, are not applicable in the case of the Company for the
current year, since in our opinion there is no matter which arises to
be reported in the aforesaid Order.
For Thakur, Vaidyanath Aiyar & Co.
Chartered Accountants
Firm Registration Number: 000038N
C. V. Parameswar
Place: Mumbai Partner
Date : 25-05-2012 M.No.: 11541
Mar 31, 2011
1. We have audited the attached Balance Sheet of Zenith Birla (India)
Limited as at 31st March, 2011, and the Profit and Loss Account and
Cash Flow Statement 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.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (AuditorÃs Report) Order, 2003, as
amended by the Companies (AuditorÃs Report) (Amendment) Order, 2004
(together the ÃOrderÃ), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of ÃThe Companies Act, 1956Ã
of India (the ActÃ) and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order
to the extent applicable to the company.
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
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Act;
(e) On the basis of written representations received from the
directors, as on 31st March, 2011 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2011
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011;
(ii) in the case of the Profit and 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 for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT
Referred to in paragraph 3 of the Auditorsà Report of even date to the
members of Zenith Birla (India) Limited on the financial statements for
the year ended 31st March, 2011.
1. (a) The Company is maintaining proper records showing particulars
including quantitative details and situation of fixed
assets. However, in respect of the CompanyÃs Divisions at Tarapur and
Murbad, the fixed asset records are in the process of being updated.
(b) The fixed assets are physically verified by the management
according to a phased programme designed to cover all the items over a
period of three years, which in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the management during the year and no material
discrepancies between the book records and the physical inventory has
been noticed, except in the case of the CompanyÃs Divisions at Tarapur
and Murbad, where the comparisons will be made once the records are
completed.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the Company during the year so as affect its going concern.
2. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of
verification is reasonable. Inventories lying with outside parties have
been confirmed by them at the close of the year.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. (a) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the maintained under
Section 301 of the Act.
(b) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods. There is
no sale of services during the year. Further, on the basis of our
examination of the books and records of the Company, and according to
the information and explanations given to us, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control system.
5. According to the information and explanations given to us, there
have been no contracts or arrangements referred to in Section 301 of
the Act during the year, to be entered in the register required to be
maintained under that Section. Accordingly, the question of commenting
on transactions made in pursuance of such contracts or arrangements
does not arise.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provisions of the Act and the
Companies (Acceptance of Deposits) Rules, 1975, with regard to the
deposits accepted from the public. According to the information and
explanations given to us, no Order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal on the Company in respect of the aforesaid
deposits.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employeesà state insurance, sales-tax, wealth tax, service tax, customs
duty, excise duty, cess and other material statutory dues as applicable
with the appropriate authorities. However, Dividend Distribution Tax
amounting to Rs 359.08 lacs remained in arrears as at the last day of
the financial year, for a period exceeding six months from the date it
became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there were no disputed dues in
respect of income tax, wealth tax, service tax and cess. The
particulars of dues of custom duty, excise duty and sales-tax, as at
31st March, 2011 which have not been deposited on account of disputes
are as follows:
Nature of dues Amount Period to Forum Where the
which the dispute is
amount Pending
(Rs. in lacs) relates pending
Custom Duty 82.00 1998-1999 Tribunal
3.45 1985-1986 High Court
Excise Duty 129.78 1995-1996 Commissioner
Appeals
Sales Tax 78.88 1995-1996 Tribunal
10. The Company has no accumulated losses as at 31st March 2011 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any bank. There were no dues to any financial
institution or debenture holder during the year.
12. 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 respect of shares, securities, debentures and other investments
dealt or traded by the Company, proper records have been maintained in
respect of the transactions and contracts and timely entries have been
made therein. All the investments are held by the Company in its own
name.
14. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks and financial institutions.
15. The Company has not obtained any term loan during the year.
16. On the basis of an overall examination of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long- term investment.
17. The Company has made a preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Act during the year and the price at which the shares have been
issued is not prejudicial to the interest of the Company.
18. The Company has not issued any debentures during the year.
19. The management has disclosed the end use of money raised by issue
of Global Depositary Receipts and we have verified the same.
20. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
21. The other clauses, (iii)(b), (iii)(c), (iii)(d), (iii)(f),
(iii)(g), and (xiii) of paragraph 4 of the Order, are not applicable in
the case of the Company for the current year, since in our opinion
there is no matter which arises to be reported in the aforesaid Order.
For Thakur, Vaidyanath Aiyar & Co.
Chartered Accountants
Firm Registration Number: 000038N
C.V.Parameswar
Partner
M.No.: 11541
Place: Mumbai
Date : 30-05-2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Zenith Birla (India)
Limited as at 31st March, 2010, and the related Profit and Loss Account
and Cash Flow Statement for the year ended on that date annexed
thereto, which we have signed under reference to this report. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
(together the "Order"), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of The Companies Act, 1956 of
India (the Act) and on the.basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Act;
(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, 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 (I) of 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 said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Act 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 and 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 for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT
Referred to in paragraph 3 of the Auditors Report of even date to the
members of Zenith Birla (India) Limited on the financial statements for
the year ended 31st March, 2010.
1. (a) The Company is maintaining proper records showing particulars
including quantitative details and situation of fixed
assets. However, in respect of the Companys Tungabhddra Divisions at
Tarapore and Murbad, the fixed asset records are in the process of
being updated.
(b) The fixed assets are physically verified by the management
according to a phased programme designed to cover all the items over a
period of three years, which in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the management during the year and no material
discrepancies between the book records and the physical inventory has
been noticed, except in the case of the Companys Tungabhadra Divisions
at Tarapore and Murbad, where the comparisons will be made once the
records are completed.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the Company during the year so as affect its going concern.
2. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable. Inventories lying with outside parties have been confirmed
by them at the close of the year.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. (a) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained under
Section 301 of the Act.
(b) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods. There is
no sale of services during the year. Further, on the basis of our
examination of the books and records of the Company, and according to
the information and explanations given to us, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control system.
5. According to the information and explanations given to us, there
have been no contracts or arrangements referred to in Section 301 of
the Act during the year, to be entered in the register required to be
maintained under that Section. Accordingly, the question of commenting
on transactions made in pursuance of such contracts or arrangements
does not arise.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provisions of the Act and the
Companies (Acceptance of Deposits) Rules, 1975, with regard to the
deposits accepted from the public. According to the information and
explanations given to us, no Order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal on the Company in respect of the aforesaid
deposits.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (I) of Section 209 of the
Act and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, sales-tax, wealth tax, service tax, customs
duty, excise duty, cess and other material statutory dues as applicable
with the appropriate authorities. However, Advance Tax amounting to
Rs 533.70 lacs remained in arrears as at the last day of the financial
year, of which, Rs 350.22 lacs remained outstanding for a period
exceeding six months from the date they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there were no disputed dues in
respect of income tax, wealth tax, service tax and cess. The
particulars of dues of custom duty, excise duty and sales-tax, as at 31
st March, 2010 which have not been deposited on account of disputes are
as follows:
Nature of dues Amount Period to which the Forum where the
(Rs. in lacs) amount relates dispute is
pending
Custom Duty 82.00 1998-1999 Tribunal
3.45 1985-1986 High Court
Excise Duty 129.78 1995-1996 Commissioner
Appeals
Sales Tax 78.88 1995-1996 Tribunal
10. The Company has no accumulated losses as at 31st March 2010 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any bank. There were no dues to any financial
institution or debenture holder during the year.
12. 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 respect of shares, securities, debentures and other investments
dealt or traded by the Company, proper records have been maintained in
respect of the transactions and contracts and timely entries have been
made therein. All the investments are held by the Company in its own
name.
14. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks and financial institutions.
15. The Company has not obtained any term loan during the year.
16. On the basis of an overall examination of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long- term investment.
17. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
18. The Company has not issued any debentures during the year.
19. The Company has not raised any money by public issues during the
year.
20. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
21. The other clauses, (iii)(b), (iii)(c), (iii)(d), (iii)(f),
(iii)(g). and (xiii) of paragraph 4 of the Order, are not applicable in
the case of the Company for the current year, since in our opinion
there is no matter which arises to be reported in the aforesaid Order.
For Dalai & Shah
Firm Registration Number: 102021W
Chartered Accountants
S. Venkatesh
Partner
Membership Number: 037942
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