Mar 31, 2014
We have audited the accompanying financial statements of Abhishek
Corporation Ltd. ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, the Statement of Profit and Loss for the year then
ended and the 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 and
financial performance of the Company in accordance with the accounting
principles generally accepted in India including Accounting Standards
referred to in Section 211 (3C) of the Companies Act, 1956 ("the Act").
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s 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. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014; and
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and (C) In the case of the Cash Flow
Statement, of the Cash Flows for the year ended on that date
Report on Other Legal and Regulatory Requirements
1. 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 and the Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss
comply with the Accounting Standards referred to in section 211 (3C) of
the Act;
e. On the basis of the written representations received from the
directors as on March 31, 2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274(1)(g) of the
Act
Annexure as referred to in paragraph (3) of the Auditor''s Report to the
members of Abhishek Corporation Ltd for the year ended on 31 March 2014
i a) The Company has maintained proper records showing full particulars
including quantitative details and situation
of fixed assets.
b) The fixed Assets have been physically verified by the management at
reasonable intervals. No material discrepancies were noticed on such
verification by the management.
c) During the year, the Company has not disposed off a substantial part
of fixed assets.
ii In respect of its inventories:
a) As explained to us, the management at the regular intervals and at
end of the year physically verified inventories.
b) In our opinion and according to the information and explanation
given to us, the procedure of physical verification of inventories
followed by the management is 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 adequate stock record for stock
of stores and spares. As explained to us the discrepancies noticed on
physical verification of stock of raw material and finished goods were
not material.
iii a) During the year, Company has obtained a loan of Rs. 94,14,162/-
from Directors and their relatives including any
firms/companies in which they are substantially interested. The terms
and conditions of this loan are prima facie not prejudicial to the
interest of the Company.
b) It is seen that, during the year, repayment of Rs. 1,42,36,876/- is
made.
c) 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 Company Act 1956.
iv In our opinion and according to the information and explanation
given to us there is generally adequate internal control procedures,
commensurate with the size of the Company and nature of its business
with regard to purchase of inventories, fixed assets and with regard to
sale of goods. Further, during the course of audit, we have neither
come across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control procedures.
v a) According to the information and explanation given to us, we are
of the opinion that the particulars of contracts and arrangement that
need to be entered into the register maintained under Sec. 301 of the
Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the contracts and arrangements entered in the register
maintained under Sec. 301 of the Companies Act, 1956 and exceeding the
value of Rupees Five Lacs in respect of any party during the year have
been made at prices which are reasonable having regards to prevailing
market prices at the relevant time.
vi During the year under review the Company has not accepted any amount
by way of Fixed Deposits pursuant to provisions of section 58A, 58AA,
rules there under and the directives issued by RBI.
vii In our opinion, the Company''s present internal audit system is
commensurate with its size and nature of it''s business.
viii We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(1)(d) of the said Act in
respect of textile industry and are of the opinion that prima facie,
the prescribed accounts and records have been made and maintained.
However, we have not made a detailed examination of the records.
ix a) According to the information and explanation given to us, the
Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund, Income
Tax, Wealth Tax, Sales Tax, Purchase Tax, Custom Duty, Excise Duty,
Cess, Entry Tax & Service Tax except following dues which are due since
more than six months but still not paid
i. Tax Deducted At Source Rs. 1,15,89,556/-
ii. Provident Fund Rs. 10,77,220/-
iii. Professional Tax Rs. 22,28,250/-
b) The disputed statutory dues have not been deposited on account of
disputed matters pending before appropriate authorities as on March 31,
2014, are as under:
? in lacs
Sr. No. Authority Item Amount
1 Additional Commissioner of Central Excise Central Excise 15.70
2 Commissioner of Central Excise Custom Duty 88.29
3 Commissioner of Central Excise Service Tax 73.51
4 Regional Provident Fund Commissioner Provident Fund 91.64
x During the year the Company has incurred cash loss of Rs.
66,74,20,371/-. Further during the previous year the Company has
incurred cash losses of Rs. 65,32,59,053/-. Thereby Company''s net worth
has become negative and the Company has become a sick unit under the
provisions of the Sick Industrial Companies Act.
xi In our opinion and according to the explanations and Company given
to us, Corporate Debt Restructuring (CDR) Scheme has failed and
withdrawn by the bankers, due to non-compliances of the terms and
conditions of the CDR scheme, on the part of the Company. Interest on
these loans has been provided at the rates as per the original
sanctions. In the result Company is defaulted in repayment of the loans
as are mentioned in Note 4A and Note 6 of the Balance Sheet.
xii As Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities,
paragraph 4(xii) of the Order is not applicable.
xiii As the Company is not chit fund/ nidhi / mutual benefit funds /
society to which the provisions of special statute relating to chit
fund are applicable, paragraph 4(xiii) of the Order is not applicable.
xiv As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
xv The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
xvi During the year, the Company has not obtained any term loan from
banks or financial institutions.
xvii In our opinion and according to the explanations and information
given to us and on overall examination of the balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long-term investment and vice-versa. However, all the long
term loans are recalled and hence re-classified under "Other Current
Liabilities".
xviii During the year the Company has not made any preferential
allotment of shares.
xix The Company has not issued any debentures during the year.
xx During the year, since the Company has not raised money by way of
Public Issue, 4(xx) of the Order is not applicable.
xxi Based upon the audit procedure performed and information and
explanation given by the management we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended on 31st March, 2014.
For Shrikant & CO.
Chartered Accountants FRN: 110186
Date : 14th August, 2014 Shrikant Shirdhonkar
Place : Kolhapur Proprietor M. No. 015703
Mar 31, 2013
1. We have audited the attached Balance Sheet of Abhishek Corporation
Ltd, Kolhapur as at 31st March 2013 and the Profit and Loss Account of
the Company for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company''s
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
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 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 issued
by the Central Government of India in terms of sub section (4-A) of
Section 227 of ''The Companies Act, 1956'' of India (the Act'') and on the
basis of the books and records of the company as we considered
appropriate and according to the information and explanation given to
us, we enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said order.
4. Further to our comments in the annexure referred to in the
paragraph (1) above we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by Law have been
kept by the Company so far as appears from our examination those books.
c) The Balance Sheet and 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 3(c) of Section 211 of the
Companies Act, 1956.
e) On the basis of written representations received from Directors, as
on 31st March 2013, and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March,
2013 from being appointed as a Director in terms of Clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
f) 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, 2013.
ii) in the case of Profit and Loss Account of the Loss for the year
ended on that date.
iii) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE AS REFERRED TO IN PARAGRAPH (3) OF THE AUDITOR''S REPORT TO THE
MEMBERS OF ABHISHEK CORPORATION LTD (FORMERLY ABHISHEK MILLS LIMITED)
FOR THE YEAR ENDED ON 31 MARCH 2013
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The fixed Assets have been physically verified by the management at
reasonable intervals. No material discrepancies were noticed on such
verification by the management.
c) During the year, the Company has not disposed off a substantial part
of fixed assets. (ii) In respect of its inventories:
a) As explained to us, the management at the regular intervals and at
end of the year physically verified inventories.
b) In our opinion and according to the information and explanation
given to us, the procedure of physical verification of inventories
followed by the management is 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 adequate stock record for stock
of stores and spares. As explained to us the discrepancies noticed on
physical verification of stock of raw material and finished goods were
not material.
(iii) a) During the year, company has obtained a loan of Rs.
3,00,000/-from Mr A R Mohite, director of the company. The terms and
conditions of this loan are prima facie not prejudicial to the interest
of the company.
b) It is seen that, during the year, repayment of Rs. 61,54,901/- is
made.
c) The company has not granted any Loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301.
(iv) In our opinion and according to the information and explanation
given to us there is generally adequate internal Control procedures,
commensurate with the size of the company and nature of its business
with regard to purchase of inventories, fixed assets and with regard to
sale of goods. Further, during the course of audit, we have neither
come across nor have we been informed of any continuing failure to
correct major weaknesses in the aforesaid internal control procedures.
(v) a) According to the information and explanation given to us, we are
of the opinion that the particulars of contracts and arrangement that
need to be entered into the register maintained under Sec. 301 of the
Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the contracts and arrangements entered in the register
maintained under Sec. 301 of the Companies Act, 1956 and exceeding the
value of Rupees Five Lacs in respect of any party during the year have
been made at prices which are reasonable having regards to prevailing
market prices at the relevant time.
vi) During the year under review the company has not accepted any
amount by way of Fixed Deposits pursuant to provisions of section 58A,
58AA, rules there under and the directives issued by RBI.
(vii) In our opinion, the company''s present internal audit system is
commensurate with its size and nature of it''s business.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(l)(d) of the Act in
respect of textile industry and are of the opinion that prima facie,
the prescribed accounts and records have been made and maintained.
However, we have not made a detailed examination of the records.
(ix) a) According to the information and explanation given to us, the
company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, Income Tax, Wealth
Tax, Sales Tax, Purchase Tax, Custom Duty, Excise Duty, Cess, Entry Tax
& Service Tax except following dues which are due since more than six
months but still not paid
i. Tax Deducted At Source 1,14,27,607/-
ii. Provident Fund 6,31,197/-
iii. Professional Tax 18,43,550/-
b) The disputed statutory dues have not been deposited on account of
disputed matters pending before appropriate authorities as on March 31,
2013, are as under:
Sr. No. Authority Item Amount (Rs. In Lacs)
1 Additional Commissioner Central Excise 15.70
of Central Excise
(x) During the year the Company has incurred cash loss of Rs.
65,32,59,053/- . Further during the previous year the Company has
incurred cash losses of Rs. 54,09,19,492/-. Thereby company''s net worth
has become negative and the company has become a sick unit under the
provisions of the Sick Industrial Companies Act.
(xi) In our opinion and according to the explanations and informations
given to us, Corporate Debt Restructuring (CDR) Scheme has failed and
withdrawn by the bankers, due to non-compliances of the terms and
conditions of the CDR scheme, on the part of the company. Interest on
these loans has been provided at the rates as per the original
sanctions. In the result company is defaulted in repayment of the
following loans:
(Rs. In lacs)
Ban Name Type of Credit
Facility Total Liability
including interest
Axis Bank Term Loan 2,156.21
Bank of Baroda Term Loan 3,253.40
Bank of India Cash Credit 3,693.20
Bank of India Term loan 2,276.16
Bank of India EPD Limit/
Packing credit 822.90
Bank of India Interest on EPC 131.68
Corporation Bank PCLCum FBDN-Cum-Cash
Credit 1,131.43
Corporation Bank Term Loan 1,357.25
Corporation Bank Working Capital Term loan 728.78
Corporation Bank FITL -1 49.09
Corporation Bank FITL - II 79.76
Corporation Bank FITL - III 76.84
IDBI Bank Term loan -1 1,021.88
IDBI Bank Term loan - IV 259.10
IDBI Bank Term loan - II 156.60
IDBI Bank Term loan - III 112.02
IDBI Bank Cash Credit 539.40
IDBI Bank Packing Credit 139.98
IDBI Bank CAOD/Current 2.54
IOB Term loan 3,969.06
IOB Cash Credit 870.97
IOB Packing Credit 605.08
Punjab National Bank Term Loan 2,265.27
State Bank of
Hyderabad Term loan 1,733.35
State Bank of
Hyderabad FITL 106.99
State Bank of India Term Loan 3,960.01
State Bank of
Patiala Term Loan 1,586.79
Union Bank of India Term Loan 3,352.35
(xii) As Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities,
paragraph 4(xii) of the Order is not applicable
(xiii) As the Company is not chit fund/ nidhi / mutual benefit funds /
society to which the provisions of special statute relating to chit
fund are applicable, paragraph 4(xiii) of the Order is not applicable.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
(xv) The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
(xvi) During the year, the company has not obtained any term loan from
banks or financial institutions.
(xvii) In our opinion and according to the explanations and information
given to us and on overall examination of the balance sheet of the
company, we report that no funds raised on short-term basis have been
used for long-term investment and vice-versa. However, all the long
term loans are recalled and hence re-classified under "Other Current
Liabilities".
(xviii) During the year the Company has not made any preferential
allotment of shares.
(xix) The Company has not issued any debentures during the year.
(xx) During the year, since the Company has not raised money by way of
Public Issue, 4(xx) of the Order is not applicable
(xxi) Based upon the audit procedure performed and information and
explanation given by the management we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended on 31 March, 2013
For Shrikant & CO.
FRN : 110186
Chartered Accountants
Place: Kolhaur Shrikant Shirdhonkar
Date: 26/08/2013 Proprietor
M. No. 015073
Mar 31, 2012
1. We have audited the attached Balance Sheet of Abhishek Corporation
Ltd, (formerly Abhishek Mills Limited), Kolhapur as at 31st March 2012
and the Profit and Loss Account of the Company for the year ended on
that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
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 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 issued
by the Central Government of India in terms of sub section (4-A) of
Section 227 of 'The Companies Act, 1956' of India (the 'Act') and on
the basis of the books and records of the company as we considered
appropriate and according to the information and explanation given to
us, we enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said order.
4. Further to our comments in the annexure referred to in the
paragraph (1) above we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by Law have been
kept by the Company so far as appears from our examination those books.
c) The Balance Sheet and 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 3(c) of Section 211 of the
Companies Act, 1956. .
e) On the basis of written representations received from Directors, as
on 31st March 2012, and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March,
2012 from being appointed as a Director in terms of Clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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 Profit and Loss Account of the Loss for the year
ended on that date.
iii) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE AS REFERRED TO IN PARAGRAPH (3) OF THE AUDITOR'S REPORT TO THE
MEMBERS OF ABHISHEK CORPORATION LTD (FORMERLY ABHISHEK MILLS LIMITED)
FOR THE YEAR ENDED ON 31 MARCH 2012
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation
of fixed assets.
b) The fixed Assets have been physically verified by the management at
reasonable intervals. No material discrepancies were noticed on such
verification by the management.
c) During the year, the Company has not disposed off a substantial part
of fixed assets.
(ii) In respect of its inventories:
a) As explained to us, the management at the regular intervals and at
end of the year physically verified inventories.
b) In our opinion and according to the information and explanation
given to us, the procedure of physical verification of inventories
followed by the management is 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 adequate stock record for stock
of stores and spares. As explained to us the discrepancies noticed on
physical verification of stock of raw material and finished goods were
not material.
(iii) a) During the year, company has obtained a loan of Rs.
1,85,00,000/- from Mr A R Mohite, director of the company.
The terms and conditions of this loan are prima facie not prejudicial
to the interest of the company.
b) It is seen that, during the year, repayment of Rs. 35,42,494/- is
made. Out of which, Rs. 20,20,000 is by book entry.
c) The company has not granted any Loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301.
(iv) In our opinion and according to the information and explanation
given to us there is generally adequate internal control procedures,
commensurate with the size of the company and nature of its business
with regard to purchase of inventories, fixed assets and with regard to
sale of goods. Further, during the course of audit, we have neither
cj.'ioe across nor have we been informed of any continuing failure to
correct major weaknesses in the aforesaid intern il control procedures.
(v) a) According to the information and explanation given to us, we are
of the opinion that the particulars of contracts
and arrangement that need to be entered into the register maintained
under Sec. 301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the contracts and arrangements entered in the register
maintained underSec. 301 of the Companies Act, 1956 and exceeding the
value of Rupees Five Lacs in respect of any party during the year have
been made at prices which are reasonable having regards to prevailing
market prices at the relevant time.
(vi) During the year under review the company has not accepted any
amount by way of Fixed Deposits pursuant to provisions of section 58A,
58AA, rules there under and the directives issued by RBI.
(vii) In our opinion, the company's present internal audit system is
commensurate with its size and nature of it's business.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(l)(d) of the Act in
respect of textile industry and are of the opinion that prima facie,
the prescribed accounts and records have been made and maintained.
However, we have not made a detailed examination of the records.
(ix) a) According to the information and explanation given to us, the
company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund, Income
Tax, Wealth Tax, Sales Tax, Purchase Tax, Custom Duty, Excise Duty,
Cess, Entry Tax & Service Tax except following dues which are due since
more than six months but still not paid
i. Tax Deducted At Source 10,635,440
ii. Provident Fund 22,158,036
iii. Professional Tax 1,351,275
b) The disputed statutory dues have not been deposited on account of
disputed matters pending before appropriate authorities as on March 31,
201Z, are as under:
Sr.
No. Authority Item Amount
(Rs. In Lacs)
1 High Court, Mumbai Income Tax Interest-A.Y.
2006-07 14.22
2 C.I.T. (Appeals) Income Tax Interest-A.Y.
2007-08 333.62
(x) During the year the Company has incurred cash loss of Rs.
65,32,59,053/- . Further during the previous year the Company has
incurred cash losses of Rs. 54,09,19,492/-. Thereby company's net worth
has become negative and the company has become a sick unit under the
provisions of the Sick Industrial Companies Act.
(xi) In our opinion and according to the explanations and informations
given to us, Corporate Debt Restructuring (CDR) Scheme has failed and
withdrawn by the bankers, due to non-compliances of the terms and
conditions of the CDR scheme, on the part of the company. Interest on
these loans has been provided at the rates as per the original
sanctions. In the result company is defaulted in repayment of the
following loans:
(Rs. In lacs)
Bank
Name Type of
Credit Balances Interest Others Total Rs.
Facility overdue for
including February
interest
upto and March
31/01/2012
Axis
Bank Term Loan 1,805.07 46.94 - 1,852.01
Bank
of Baroda Term Loan 2,676.84 77.59 - 2,754.44
Bank of
India Cash
Credit 3,080.19 81.39 - 3,161.58
Bank of
India Term loan 1,949.06 44.10 - 1,993.16
Bank of
India EPD Limit/
Packing
credit 716.73 14.41 - 731.14
Bank of
India Interest
on EPC 105.69 3.42 - 109.11
Corporation
Bank Cash Credit 953.51 24.80 - 978.31
Corporation
Bank Term Loan 1,136.24 29.55 - 1,165.79
Corporation
Bank Working
Capital
Term loan 610.10 15.86 - 625.96
Corporation
Bank FITL-I 41.10 1.07 - 42.17
Corporation
Bank FITL - II 66.78 1.73 - 68.51
Corporation
Bank FITL - III 64.32 1.67 - 65.99
IDBI
Bank Term loan 863.88 21.07 - 884.95
IDBI Bank Term loan 215.52 5.70 - 221.22
IDBI Bank Term loan 132.25 3.02 - 135.27
IDBI Bank Term loan 91.23 2.72 - 93.95
IDBI Bank Cash Credit 431.95 19.52 - 451.47
IDBI Bank Packing
Credit 117.85 2.96 - 120.81
IDBI Bank CAOD/
Current 2.13 0.06 - 2.19
Indian
Overseas
Bank Term loan 3,341.53 84.06 - 3,425.59
Indian
Overseas
Bank Cash Credit 783.72 19.72 11.76 815.20
Indian
Overseas
Bank Packing
Credit 440.78 11.09 - 451.87
Punjab
National
Bank Term Loan 1,901.74 48.65 - 1,950.39
State
Bank of
Hyderabad Term loan 1,539.23 32.88 (43.21) 1,528.90
State
Bank of
Hyderabad FITL 92.40 1.97 - 94.37
State
Bank of
India Term Loan 3,268.86 91.89 - 3,360.75
State
Bank of
Patiala Term Loan 1,306.16 37.27 - 1,343.43
Union
Bank of
India Term Loan 2,668.31 89.68 - 2,757.99
30,403.17 814.79 (31.46) 31,186.51
(xii) As Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities,
paragraph 4(xii) of the Order is not applicable
(xiii) As the Company is not chit fund/ nidhi / mutual benefit funds /
society to which the provisions of special statute relating to chit
fund are applicable, paragraph 4(xiii) of the Order is not applicable.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
(xv) The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
(xvi) During the year, the company has not obtained any term loan from
banks or financial institutions.
(xvii) In our opinion and according to the explanations and information
given to us and on overall examination of the balance sheet of the
company, we report that no funds raised on short-term basis have been
used for long-term investment and vice-versa. However, all the long
term loans are recalled and hence re-classified under "Other Current
Liabilities".
(xviii) During the year the Company has not made any preferential
allotment of shares.
(xix) The Company has not issued any debentures during the year.
(xx) During the year, since the Company has not raised money by way of
Public Issue, 4(xx) of the Order is not applicable
(xxi) Based upon the audit procedure performed and information and
explanation given by the management we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended on 31 March, 2012
For P. M. VARDHE & CO.
FRN: 111274W
Chartered Accountants
P. M. Vardhe
Place: Kolhaur Proprietor
Date: 02.07.2012 M. No. 031817
Mar 31, 2010
1. We have audited the attached Balance Sheet of Abhishek Corporation
Ltd, (formerly Abhishek Mills Limited), Kolhapur as at 31st March 2010
and the Profit and Loss Account of the Company for the year ended on
that date annexed thereto. These financial statements are the responsi
-bility of the Companys management. Our responsibil ity is to express
an opinion on these 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 disclo sures 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 issued
by the Central Government of India in terms of sub section (4-A) of
Section 227 of The Companies Act, 1956 of India (the Act) and on
the basis of the books and records of the company as we considered
appropriate and according to the information and explanation given to
us, we enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said order.
4. Further to our comments in the annexure referred to in the
paragraph (1) above we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by Law have been
kept by the Company so far as appears from our examination those books.
c) The Balance Sheet and 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 3(c) of Section 211 of the
Companies Act, 1956.
e) On the basis of written representations received from Directors, as
on 31sl March 2010, and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March,
2010 from being appointed as a Director in terms of Clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
f) 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, 2010.
ii) in the case of Profit and Loss Account of the Loss for the year
ended on that date.
iii) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE AS REFERRED TO IN PARAGRAPH (3) OF THE AUDITORS REPORT TO THE
MEMBERS OF ABHISHEK CORPORATION LTD (FORMERLY ABHISHEK MILLS LIMITED)
FOR THE YEAR ENDED ON 31 MARCH 2010
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The fixed Assets have been physically verified by the management at
reasonable intervals. No material discrep ancies were noticed on such
verification by the management.
c) During the year, the Company has not disposed off a substantial part
of fixed assets. (ii) In respect of its inventories:
a) As explained to us, the management at the regular intervals and at
end of the year physically verified inventories.
b) In our opinion and according to the information and explanation
given to us, the procedure of physical verifica tion of inventories
followed by the management is 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 adequate stock record for stock
of stores and spares. As explained to us the discrepancies noticed on
physical verification of stock of raw material and finished goods were
not material.
(iii) a) During the year the company has obtained a loan of Rs.
8,69,14,469/- from three related parties. The rate of interest and
other terms and conditions, are prima facie not prejudicial to the
interest of the company.
b) Since the loan has been borrowed free of interest the question of
payment of Interest does not arise.
c) The Principal amount is not overdue.
d) The company has not granted any Loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301.
(iv) In our opinion and according to the information and explanation
given to us there an generally adequate internal control procedures,
commensurate with the size of the company and nature of its business
with regard to purchase of inventories, fixed assets and with regard to
sale of goods. Further, during the course of audit, we have neither
come across nor have we been informed of any continuing failure to
correct major witness in the aforesaid internal control procedures.
(v) a) According to the information and explanation given to us, we are
of the opinion that the particulars of contracts and arrangement that
need to be entered into the register maintained under Sec. 301 of the
Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the contracts and arrangements entered in the register
maintained under Sec. 301 of the Companies Act, 1956 and exceeding the
value of Rupees Five Lacs in respect of any party during the year have
been made at prices which are reasonable having regards to prevailing
market prices at the relevant time.
(vi) During the year under review the company has not accepted any
amount by way of Fixed Deposits pursuant to provisions of section 58A,
58AA, rules there under and the directives issued by RBI.
(vii) In our opinion, the companys present internal audit system is
commensurate with its size and nature its business.
(viii) "We have broadly reviewed the books of account maintained by the
company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(1 )(d) of the Act in
respect of textile industry and are of the opinion that prima facie,
the prescribed accounts and records have been made and maintained.
However, we have not made a detailed examination of the records."
(ix) a) According to the information and explanation given to us, the
company is regular in depositing with appropri ate authorities
undisputed statutory dues including provident fund, Income Tax, Wealth
Tax, Sales Tax, Pur chase Tax, Custom Duty, Excise Duty, Cess, Entry
Tax & Service Tax except following dues which are due since more than
six months but still not paid i. TDS under section 192B 21,14,450
b) The disputed statutory dues aggregating to Rs. 4,89,60,735/- have
not been deposited on account of disputed matters pending before
appropriate authorities as on March 31, 2010, are as under:
Name of Statute Nature of Amount Forum where dispute is
pending
Income Tax Act Income Tax 4,89,60,735/- Deputy Commissioner of
1961 Dues Income Tax,
Circle II, Kolhapur
(x) The company does not have any accumulated losses as at March 31,
2010. During the year the Company has incurred cash loss of Rs.
23,02,49,162/- . Further during the previous year the Company has not
incurred any cash losses.
(xi) As on March 31, 2010 interest of New Consortium Bankers for the
month of February 2010 and March 2010 amounting Rs. 3,35,33,048/- is
due but still not paid. Further Installments of IDBI of Rs. 5,
85,3O,000/-are due but still not paid.
(xii) As Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities,
paragraph 4(xii) of the Order is not applicable
(xiii) As the Company is not chit fund/ nidhi / mutual benefit funds /
society to which the provisions of special statute relating to chit
fund are applicable, paragraph 4(xiii) of the Order is not applicable.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4( 17)
of the Order is not applicable. (xv) The Company has not given any
guarantee for loans taken by others from banks or financial
institutions. (xvi) The company has applied the term loans for which
they were obtained.
(xvii) In our opinion and according to the explanations and information
given to us and on overall examination of the balance sheet of the
company, we report that no funds raised on short-term basis have been
used for long-term investment and vice-versa.
(xviii) During the year the Company has made any preferential allotment
of 20,00,000 equity shares of Rs. 10/- each with an issue price of Rs.
25/- per shares to Mrs. Rama J. Swetta who is not a party covered in
the register maintained under section 301.The said allotment has been
made pursuant to chapter VII of Securities and Ex change Board of India
(Issue of Capital and Disclosure Requirements) Regulations, 2009. The
price at which shares have been allotted is not prejudicial to the
interest of the Company.
(xix) The Company has not issued any debentures during the year.
(xx) During the year, since the Company has not raised money by way of
Public Issue, 4(xx) of the Order is not applicable
(xxi) Based upon the audit procedure performed and information and
explanation given by the management we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended on 31 March, 2010
For B.J. INGROLE & CO.
Chartered Accountants
Place: Kolhapur B.J. Ingrole
Date: 27.05.2010 Proprietor
M. No. 14094