Mar 31, 2019
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying Financial Statements of Amal Limited (the Company), which comprise the Balance Sheet as at March 31, 2019, and the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flows and the Statement of changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
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 Companies Act, 2013 (the Act) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (Ind AS) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2019 and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Financial Statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor''s Responsibility for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the Financial Statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Financial Statements of the current period. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matter described below to be the key audit matter to be communicated in our report.
Key audit matter |
Auditor''s response |
Revenue from sale of goods to holding company Significant revenue of the Company is generated through Sale of Goods to its holding company. Occurrence of such transactions and their pricing on an arm''s length basis were significant areas of audit focus. |
Our procedures included but were not limited to: - Obtaining a detailed understanding of the processes, controls and policies of the management with respect to related party transactions. - Evaluation of the design of controls including approvals and related compliances. - Testing implementation and operating effectiveness of the controls that address risks relating to the occurrence and the pricing. - Performing following procedures on the samples selected: - Reading and verification of the terms of the purchase orders. Performing corroborative inquiries for the business rational on pricing and relevant terms and conditions, including sighting evidences of transaction of similar products on identical terms with unrelated parties. - Verification of necessary approvals as per the authorisation matrices. - Verification of documentary evidences around deliveries and subsequent realisation, and obtaining balance confirmations. - Performing analytical procedures and trend analysis - Assessing adequacy and appropriateness of the disclosures in the Financial Statements. |
Information other than the Financial Statements and Auditor''s Report thereon
- The Board of Directors of the Company is responsible for the other information. The other information comprises the information included in the Corporate profile, Letter to shareholders, Directors'' report and its annexure, Management Discussion and Analysis, Corporate Governance report and Performance trend but does not include Financial Statements and our Auditor''s Report thereon.
- Our opinion on the Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.
- In connection with our audit of the Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Financial Statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
- If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Management''s Responsibility for the Financial Statements
The Board of Directors of the Company is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Financial Statements, the Management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the financial reporting process of the Company.
Auditor''s responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor''s Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management.
- Conclude on the appropriateness of use of the going concern basis of accounting by the Management and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor''s Report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor''s Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our Auditor''s Report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
1. As required by Section 143(3) of the Act, based on our audit we report, to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, the Statement of Cash Flow and the Statement of changes in equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid Financial Statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the Directors as on March 31, 2019 taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2019 from being appointed as a Director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A.
Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of Section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act.
h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Financial Statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 (the Order) issued by the Central Government in terms of Section 143(11) of the Act, we give in the Annexure B Statement on the matters specified in paragraphs 3 and 4 of the Order.
(Referred to in paragraph 1(f) under ''Report on other legal and regulatory requirements'' section of our report of even date)
Annexure A to the Independent Auditor''s Report
Report on the internal financial controls over financial reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (the Act)
We have audited the internal financial controls over financial reporting of Amal Limited (the Company) as of March 31, 2019 in conjunction with our audit of the Financial Statements of the Company for the year ended on that date.
Management''s responsibility for internal financial controls
The Management of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to policies of the Company, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the judgement of the Auditors, including the assessment of the risks of material misstatement of the Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of internal financial controls over financial reporting
Internal financial control over financial reporting of a company is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Internal financial control over financial reporting of a company includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of the Management and Directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of assets of the Company that could have a material effect on the financial statements.
Inherent limitations of internal financial controls over financial reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2019, based on the criteria for internal financial control over financial reporting established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Annexure B to the Independent Auditor''s Report
(Referred to in paragraph 2 under ''Report on other legal and regulatory requirements'' section of our report of even date)
1. a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) Some of the fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed | transfer deed | conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties, are held in the name of the Company as at the Balance Sheet date, except for the following land and buildings:
Particulars of the land and building |
Gross Block as at March 31, 2019 (Rs. 000) |
Net Block as at March 31, 2019 (Rs. 000) |
Remarks |
Freehold land at Ankleshwar |
333 |
333 |
The title deeds are in the name of Amal Products Limited, |
Freehold land at Atul |
220 |
220 |
former name of the Company. |
Leasehold land at Ankleshwar |
2,885 |
2,701 |
|
Building (residential flat) at Atul |
232 |
206 |
|
Building (residential flats) at Ankleshwar |
838 |
743 |
The title deeds are in the name of Amal Rasayan Limited, former name of the Company. |
2. As explained to us, the inventories (other than goods in transit) were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
3. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013 (the Act).
4. The Company has not granted any loans, made investments other than in mutual funds or provided guarantees and hence reporting under Clause (iv) of the Order is not applicable.
5. According to the information and explanations given to us, the Company has not accepted any deposit during the year and unclaimed deposits, hence reporting under Clause (v) of the Order is not applicable.
6. The maintenance of cost records has not been specified by the Central Government under Section 148(1) of the Act.
7. According to the information and explanations given to us, in respect of statutory dues:
a) The Company has generally been regular in depositing undisputed statutory dues, including provident fund, employees'' state insurance, income tax, cess, goods and service tax and other material statutory dues applicable to it to the appropriate authorities.
b) There were no undisputed amounts payable in respect of provident fund, employees'' state insurance, income tax, cess, goods and service tax and other material statutory dues in arrears as at March 31, 2019 for a period of more than six months from the date they became payable.
c) There are no disputed dues of income tax and goods and service tax which have not been deposited as on March 31, 2019.
Details of dues of sales tax which have not been deposited as on March 31, 2019 on account of disputes are given below:
Name of the statute |
Nature of dues |
Forum where the dispute is pending |
Period to which the amount relates |
Amount (Rs. 000) |
The Gujarat Sales Tax Act, 1969 |
Sales tax (including interest and penalty) |
High Court of Gujarat |
1999-00 |
1,039 |
The Gujarat Sales Tax Act, 1969 |
Sales tax (including interest and penalty) |
Joint Commissioner, Surat |
2001-02 to 2003-04 |
5,247 |
CST Act, 1956 |
Sales tax (including interest and penalty) |
Gujarat Value Added Tax Tribunal, Ahmedabad |
2003-04 |
331* |
*net of Rs. 50,000/- paid under protest
8. The Company has not taken any loans or borrowings from financial institutions, banks and government or has not issued any debentures. Hence reporting under Clause (viii) of the Order is not applicable to the Company.
9. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under Clause (ix) of the Order is not applicable.
10. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
11. In our opinion and according to the information and explanations given to us, the Company has paid | provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12. The Company is not a Nidhi Company and hence reporting under Clause (xii) of the Order is not applicable.
13. In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Act, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the Financial Statements etc, as required by the applicable accounting standards.
14. During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under Clause (xiv) of CARO 2016 is not applicable to the Company.
15. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or Directors of the holding, subsidiary or associate company or persons connected with them and hence provisions of Section 192 of the Act are not applicable.
16. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
For Deloitte Haskins & Sells LLP
Chartered Accountants
Firm Registration number: 117366W | W-100018
(Samir R. Shah)
Mumbai Partner
April 18, 2019 Membership number: 101708
Mar 31, 2018
Report on the Ind AS Financial Statements
01. We have audited the accompanying Ind AS Financial Statements of Amal Ltd (the Company) which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of changes in equity for the year then ended and a summary of the significant Accounting Policies and other explanatory information.
Managementâs responsibility for the Ind AS Financial Statements
02. The Board of Directors of the Company is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (the Act) with respect to the preparation of these Ind AS Financial Statements that give a true and fair view of the financial position, financial performance including Other Comprehensive Income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other Accounting Principles generally accepted in India.
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 judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate Internal Financial Controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
03. Our responsibility is to express an opinion on these Ind AS Financial Statements based on our audit.
04. In conducting 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 and the Order issued under Section 143(11) of the Act.
05. We conducted our audit of the Ind AS Financial Statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS Financial Statements are free from material misstatement.
06. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS Financial Statements. The procedures selected depend on the Auditorâs judgement, including the assessment of the risks of material misstatement of the Ind AS Financial Statements, whether due to fraud or error. In making those risk assessments, the Auditor considers Internal Financial Controls relevant to the preparation of the Ind AS Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the Accounting Policies used and the reasonableness of the accounting estimates made by the Directors of the Company, as well as evaluating the overall presentation of the Ind AS Financial Statements.
07. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS Financial Statements.
Opinion
08. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Ind AS and other Accounting Principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its profit (including Other Comprehensive Income), its cash flows and the changes in equity for the year ended on that date.
Other matter
09. The Financial Statements of the Company for the year ended March 31 2017, were audited by the M|s Haribhakti & Co. LLP Chartered Accountants, the predecessor Auditor.
Our opinion on the Ind AS Financial Statements is not modified in respect of this matter.
Report on other legal and regulatory requirements
10. As required by Section 143(3) of the Act, based on our audit on the separate Financial Statements we report, to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and the Statement of changes in equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid Ind AS Financial Statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act.
e) On the basis of the written representations received from the Directors of the Company as on March 31, 2018 taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2018 from being appointed as a Director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the Internal Financial Controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Internal Financial Controls of the Company over financial reporting.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its Ind AS Financial Statements.
ii) The Company did not have any longterm contracts including derivative contracts for which there were any material foreseeable losses.
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
11. As required by the Companies (Auditorâs Report) Order, 2016 (the Order) issued by the Central Government in terms of Section 143(11) of the Act, we give in Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.
Referred to in paragraph 10(f) under âReport on other legal and regulatory requirementsâ Section of our report of even date.
Report on the Internal Financial Controls Over financial reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (the Act)
01. We have audited the Internal Financial Controls over financial reporting of Amal Ltd (the Company) as of March 31, 2018 in conjunction with our audit of the Ind AS Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
02. The Management of the Company is responsible for establishing and maintaining Internal Financial Controls based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over financial reporting (the Guidance Note) issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate Internal Financial Controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to policies of the Company, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs responsibility
03. Our responsibility is to express an opinion on the Internal Financial Controls of the Company over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of Internal Financial Controls. These Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate Internal Financial Controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
04. Our audit involves performing procedures to obtain audit evidence about the adequacy of the Internal Financial Controls system over financial reporting and their operating effectiveness. Our audit of Internal Financial Controls over financial reporting included obtaining an understanding of Internal Financial Controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the Auditorâs judgement, including the assessment of the risks of material misstatement of the Financial Statements, whether due to fraud or error.
05. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the Internal Financial Controls system over financial reporting of the Company.
Meaning of Internal Financial Controls over financial reporting
06. The Internal Financial Controls over financial reporting of a company is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Financial Statements for external purposes in accordance with Generally Accepted Accounting Principles. Internal Financial Controls over financial reporting of a company includes those policies and procedures that a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company, b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of the Financial Statements in accordance with Generally Accepted Accounting Principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of Management and Directors of the Company and c) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the assets of the Company that could have a material effect on the Financial Statements.
Inherent limitations of Internal Financial Controls over financial reporting
07. Because of the inherent limitations of Internal Financial Controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the Internal Financial Controls over financial reporting to future periods are subject to the risk that the Internal Financial Controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
08. In our opinion, to the best of our information and according to the explanations given to us the Company has, in all material respects, an adequate Internal Financial Controls system over financial reporting and such Internal Financial Controls over financial reporting were operating effectively as at March 31, 2018, based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note issued by the Institute of Chartered Accountants of India.
Referred to in paragraph 11 under âReport on other legal and regulatory requirementsâ Section of our report of even date
01. a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) Some of the fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed | transfer deed | conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and acquired buildings which are freehold, are held in the name of the Company as at the Balance Sheet date, except the following:
Particulars of the land and building |
Gross Block as at March 31, 2018 (Rs. â000) |
Net Block as at March 31, 2018 (Rs. â000) |
Name of entity on the title deed |
Freehold Land at Ananda, Ankleshwar N.H. 8 |
333 |
333 |
Amal Products Ltd |
Freehold Land at Atul Par River Plot No.16 & 22 |
220 |
220 |
Amal Products Ltd |
Eight Flats at GIDC Ankleshwar |
1,277 |
764 |
Amal Rasayan Ltd |
One Flat at Utpal Nagar |
309 |
211 |
Amal Products Ltd |
Leasehold Land at Ankleshwar |
4,297 |
2,748 |
Amal Products Ltd |
02. As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
03. The Company has not granted any loans, secured or unsecured, to Companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.
04. The Company has not granted any loans, made investments or provided guarantees and hence reporting under Clause (iv) of the CARO 2016 Order is not applicable.
05. According to the information and explanations given to us, the Company has not accepted any deposit during the year and unclaimed deposits, hence reporting under Clause (v) of the CARO 2016 Order is not applicable.
06. The maintenance of cost records has not been specified by the Central Government under Section 148(1) of the Companies Act, 2013.
07. According to the information and explanations given to us, in respect of statutory dues:
a) The Company has been regular in depositing undisputed statutory dues, including provident fund, employeesâ state insurance, income tax, sales tax, service tax, excise duty, value added tax, cess, goods and service tax and other material statutory dues applicable to it to the appropriate authorities.
b) There were no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income tax, sales tax, service tax, excise duty, value added tax, cess, goods and service tax and other material statutory dues in arrears as at March 31, 2018 for a period of more than 6 months from the date they became payable.
c) There are no disputed dues of income tax, service tax, excise duty, value added tax and goods and service tax which have not been deposited as on March 31, 2018. Details of dues of sales tax which have not been deposited as on March 31, 2018 on account of disputes are given below:
Name of the statute |
Nature of dues |
Forum where the dispute is Pending |
Period to which the amount Relates |
Amount (Rs. â000) |
The Gujarat Sales Tax Act, 1969 |
Sales tax (including interest and penalty) |
High Court of Gujarat |
1999-00 |
1,039 |
The Gujarat Sales Tax Act, 1969 |
Sales tax (including interest and penalty) |
Joint Commissioner, Surat |
2001-02 to 2003-04 |
5,247 |
CST Act, 1956 |
Sales tax(including interest and penalty) |
Gujarat Value Added Tax Tribunal, Ahmedabad |
2003-04 |
331* |
*net of Rs. 50,000/- paid under protest
08. The Company has not taken any loans or borrowings from financial institutions, banks and government or has not issued any debentures. Hence reporting under Clause (viii) of the Order is not applicable.
09. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under Clause (ix) of the CARO 2016 Order is not applicable.
10. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
11. In our opinion and according to the information and explanations given to us, the Company has paid | provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
12. The Company is not a Nidhi Company, and hence reporting under Clause (xii) of the CARO 2016 Order is not applicable.
13. In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the Related Parties and the details of Related Party Transactions have been disclosed in the Financial Statements etc. as required by the applicable Accounting Standards.
14. We have been informed that the provisions of Section 42 of the Companies Act, 2013 are not applicable to the preferential allotment of equity shares made during the year in accordance with the scheme earlier approved by the Board for Industrial and Financial Restructuring under erstwhile Sick Industrial Companies Act, 1985. Hence, reporting under Clause (xiv) of the CARO Order 2016 is not applicable.
15. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any noncash transactions with its Directors or persons connected with them and hence provisions of Section 192 of the Companies Act, 2013 are not applicable.
16. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
For Deloitte Haskins & Sells LLP
Chartered Accountants
Firm Registration Number: 117366W | W-100018
(Samir R. Shah)
Mumbai Partner
April 20, 2018 Membership Number: 101708
Mar 31, 2017
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Amal Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and a summary of significant accounting policies and other explanatory information, (hereinafter referred to as "Ind AS Financial Statements")
Management''s responsibility for the Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Ind AS financial statements that give a true and fair view of state of affairs (the financial position), profit (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate Internal Financial Controls and ensuring their operating effectiveness and the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers Internal Financial Controls relevant to the Company''s preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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 Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at March 31, 2017, its profit (financial performance including other comprehensive income), its cash flows and changes in equity for the year ended on that date.
Emphasis of Matter
We draw attention to note 27 of Ind AS financial statement, wherein as per provision of "The Sick Industrial Companies (Special Provisions) Repeal Act, 2003", the modified sanctioned scheme (MS - 13) approved by BIFR in its meeting held on July 01, 2013 continues to be in place. In view of the above, books of account have been prepared on going concern basis.
Our opinion is not modified in respect of this matter.
Other Matter
The comparative financial information of the Company for the year ended March 31, 2016 and the transition date opening balance sheet as at April 01, 2015 included in these Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by us whose report for the year ended March 31, 2016 and March 31, 2015 dated April 22, 2016 and April 24, 2015 respectively expressed an unmodified opinion on those financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
Our opinion is not modified in respect of this matter.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditors'' Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in "Annexure 1", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss, Cash Flow Statement and the Statement of Changes in Equity dealt with by this report are in agreement with the books of account;
d. In our opinion, the aforesaid Ind AS financial statements comply with the Indian 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 March 31, 2017, and taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2017 from being appointed as a Director in terms of Section 164 (2) of the Act;
f. With respect to the adequacy of the Internal Financial Controls over financial reporting of the Company and the operating effectiveness of such controls, we give our separate report in "Annexure - 2".
g. With respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements - refer note 22 on Contingent liabilities.
(ii) The Company did not have any long-term contracts including derivative contracts. Hence, the question of any material foreseeable losses does not arise;
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
(iv) The company has provided requisite disclosures in its Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from November 08, 2016 to December 30, 2016 and these are in accordance with the books of account maintained by the company -refer note 31.
Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' in the Independent Auditors'' Report of even date to the members of Amal Ltd on the IND AS financial statements for the year ended March 31, 2017
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of its Property, plant and equipment.
(b) During the year, Property, plant and equipment have not been physically verified by the Management. However, there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanation given to us, the title deeds of immovable properties other than self- constructed properties recorded as Property, plant and equipment in the books of account of the Company as on March 31 , 201 7 are held in the name of the Company.
(ii) The inventory has been physically verified by the Management during the year. In our opinion, the frequency of verification is reasonable. As informed, no material discrepancies were noticed on physical verification carried out during the year.
(iii) As informed, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly, paragraph 3 (iii) (a), 3 (iii)(b) and 3 (iii)(c) of the Order are not applicable to the Company.
(iv) Based on information and explanation given to us in respect of loans, investments, guarantees and securities, the Company has complied with the provisions of Section 185 and 186 of the Act.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 of the Act and the rules framed there under.
The Company has received share application money in earlier years towards which shares are to be issued as per Modified Sanctioned Scheme(MS-13) approved by Board for Industrial and Financial Reconstruction (BIFR). Considering the exemptions available under the Scheme approved by BIFR and pending approval for listing from Stock Exchanges, such share application money pending allotment has not been treated as public deposit under the Act.
(vi) According to the information and explanation given to us, Central Government has not prescribed the maintenance of cost records for any of the products of the Company under subsection (1) of Section 148 of the Act and the rules framed there under.
(vii) (a) According to the information and explanation given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing with appropriate authorities, undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and any other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and any other material statutory dues applicable to it, were outstanding, at the year end, for a period of more than six months from the date they became payable.
(c) According to the information and explanation given to us, the dues outstanding with respect to, income tax, sales tax, service tax, value added tax, customs duty, excise duty on account of any dispute, are as follows:
Name of the statute |
Nature of dues |
Amount Rs. in 000 |
Period to which the amount relates |
Forum where dispute is pending |
The Gujarat Sales Tax Act, 1969 |
Sales tax (including interest and penalty) |
1,039 |
1999-00 |
High Court of Gujarat |
The Gujarat Sales Tax Act, 1969 |
Sales tax (including interest and penalty) |
5,247 |
2001-02 to 2003-04 |
Joint Commissioner, Surat |
CST Act, 1956 |
Sales tax (including interest and penalty) |
381* |
2003-04 |
Gujarat VAT Tribunal, Ahmedabad |
* Out of the above, Rs.50,000/- has been paid under protest by the Company towards dues.
(viii) According to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to financial institution, bank, government or dues to debenture holder.
(ix) The Company has neither raised money by way of public issue offer nor has obtained any term loans. Therefore, paragraph 3(ix) of the Order is not applicable to the Company.
(x) 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 material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such instance by the Management.
(xi) According to the information and explanations given to us, managerial remuneration has been paid l provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Therefore, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions entered into by the Company with the related parties are in compliance with Sections 177 and 188 of the Act, where applicable. The details of such related party transactions have been disclosed in the IND AS financial statements as required under IND AS 24, Related Party Disclosures specified under Section 133 of the Act.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Therefore, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him during the year.
(xvi) According to the information and explanation given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
For Haribhakti & Co. LLP
Chartered Accountants
Firm Registration Number 103523W | W-100048
B L Shah
Mumbai Partner
April 21, 2017 Membership Number 122071
Mar 31, 2016
To the Members of Amal Ltd
Report on the Financial Statements
We have audited the accompanying financial statements of Amal Ltd (''Company''), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, 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
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (''Act'') with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls and ensuring their operating effectiveness and the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016, its profit and its cash flows for the year ended on that date.
Emphasis of matter
We draw attention to Note 31 of the financial statements of the Company wherein the Board of Directors of the Company has approved the proposed merger of the Company with Atul Ltd and has submitted the Modified Draft Rehabilitation Scheme (MDRS) ("Merger Scheme") to the Board for Industrial and Financial Reconstruction (BIFR) through IDBI Bank Ltd (Operating Agency) for obtaining their approval. Under the proposed Scheme, the entire undertaking of Amal Ltd together with all assets and liabilities will be transferred to Atul Ltd. In view of above, books of account have been prepared on going concern basis.
Our opinion is not modified in respect of this matter.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditors'' Report) Order, 2016 ("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-1", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of written representations received from the Directors as on March 31, 2016, and taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2016 from being appointed as a Director in terms of Section 164 (2) of the Act;
f. With respect to the adequacy of the Internal Financial Controls over financial reporting of the Company and the operating effectiveness of such controls, we give our separate Report in "Annexure-2".
g. With respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 22 on Contingent liabilities;
(ii) The Company did not have any long-term contracts including derivative contracts; hence, the question of any material foreseeable losses does not arise;
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' in the Independent Auditor''s Report of even date to the Members of Amal Ltd on the financial statements for the year ended March 31, 2016
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of its fixed assets.
(b) During the year, fixed assets have not been physically verified by the Management. However, there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanation given to us, the title deeds of immovable properties other than self constructed properties recorded as fixed assets in the books of account of the Company as on March 31, 2016 are held in the name of the Company.
(ii) The inventory has been physically verified by the Management during the year. In our opinion, the frequency of verification is reasonable. As informed, no material discrepancies were noticed on physical verification carried out during the year.
(iii) As informed, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly, paragraph 3 (iii) (a), 3 (iii)(b) and 3 (iii)(c) of the Order are not applicable to the Company.
(iv) Based on information and explanation given to us in respect of loans, investments, guarantees and securities, the Company has complied with the provisions of Section 185 and 186 of the Act.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 of the Act and the rules framed there under.
The Company has received share application money in earlier years towards which shares are to be issued as per Modified Sanctioned Scheme(MS-13) approved by Board for Industrial and Financial Reconstruction (BIFR). Considering the exemptions available under the Scheme approved by BIFR and pending approval for listing from Stock Exchanges, such share application money pending allotment has not been treated as public deposit under the Act.
(vi) We have broadly reviewed the books of account maintained by the Company in respect of products where the maintenance of cost records has been specified by the Central Government under sub-section (1) of Section 148 of the Act and the rules framed there under and we are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
(vii) (a) According to the information and
explanation given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing with appropriate authorities, undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and any other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and any other material statutory dues applicable to it, were outstanding, at the year end, for a period of more than six months from the date they became payable.
(c) According to the information and explanation given to us, the dues outstanding with respect to income tax, sales tax, service tax, value added tax, customs duty, excise duty on account of any dispute, are as follows:
Name of the statute |
Nature of dues |
Amount Rs. in 000 |
Period to which the amount relates |
Forum where dispute is pending |
The Gujarat Sales Tax Act, 1969 |
Sales Tax (Including Interest and Penalty) |
5247 |
2001-02 to 2003-04 |
Joint Commissioner, Surat |
CST Act, 1956 |
Sales Tax (Including Interest and Penalty) |
381* |
2003-04 |
Gujarat VAT Tribunal, Ahmedabad |
* Out of the above, Rs. 50,000/- has been paid under protest by the Company towards dues.
(viii) According to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to financial institution, bank, government or dues to debenture holder.
(ix) The Company has neither raised money by way of public issue offer nor has obtained any term loans. Therefore, paragraph 3(ix) of the Order is not applicable to the Company.
(x) 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 material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such instance by the Management.
(xi) According to the information and explanations given to us, managerial remuneration has been paid | provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Therefore, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions entered into by the Company with the related parties are in compliance with Sections 177 and 188 of the Act, where applicable. The details of such related party transactions have been disclosed in the financial statements as required under Accounting Standard (AS) 18, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Therefore, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him during the year.
(xvi) According to the information and explanation given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Referred to in paragraph 2 (f) under ''Report on Other Legal and Regulatory Requirements'' in the Independent Auditor''s Report of even date to the members of Amal Ltd on the financial statements for the year ended March 31, 2016
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (''Act'')
We have audited the internal financial controls over financial reporting of Amal Ltd (''Company'') as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s responsibility for Internal Financial Controls
The Company''s Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India ("ICAI"). These responsibilities include the design, implementation and maintenance of adequate Internal Financial Controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' responsibility
Our responsibility is to express an opinion on the Company''s Internal Financial Controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing specified under section 143(10) of the Act to the extent applicable to an audit of Internal Financial Controls, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate Internal Financial Controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the Internal Financial Controls system over financial reporting and their operating effectiveness.
Our audit of Internal Financial Controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s Internal Financial Controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s Internal Financial Control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The company''s Internal Financial Control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of
Management and Directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent limitations of Internal Financial Controls over financial reporting
Because of the inherent limitations of Internal Financial Controls over financial reporting, including the possibility of collusion or improper Management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the Internal Financial Controls over financial reporting to future periods are subject to the risk that the Internal Financial Control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate Internal Financial Controls system over financial reporting and such Internal Financial Controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
For Haribhakti & Co. LLP
Firm Registration Number 103523W
Chartered Accountants
(B L Shah)
Mumbai Partner
April 22, 2016 Membership Number 122071
Mar 31, 2015
We have audited the accompanying financial Statements of Amal Ltd
(Company), which comprise the Balance Sheet as at March 31, 2015, the
Statement of Profit and Loss, 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
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (Act) with respect to the
preparation of the financial Statements that give a true and fair view
of the financial position, financial performance and cash flows of the
Company in accordance with the accounting principles generally accepted
in India, including the Accounting Standards specified under Section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,
2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls and ensuring their operating
effectiveness and the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial
Statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors' responsibility
Our responsibility is to express an opinion on the financial Statements
based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial Statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial Statements. The procedures
selected depend on the auditors' judgment, including the assessment of
the risks of material misstatement of the financial Statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial Statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial Statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
Statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial Statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, its loss and its cash flows for the year ended on
that date.
Emphasis of matter
We draw attention to Note 31 to the financial Statements of the Company
wherein the Board of Directors of the Company has approved the proposed
merger of the Company with Atul Ltd and is in the process of submitting
the Modified Draft Rehabilitation Scheme (MDRS) (Merger Scheme) to the
Board for Industrial and financial Reconstruction (BIfR) through IDBI
Bank Ltd (Operating Agency) for obtaining their approval. Under the
proposed scheme, the entire undertaking of Amal Ltd together with all
assets and liabilities will be transferred to Atul Ltd. In view of
above, books of account have been prepared on a going concern basis.
Our opinion is not modified in respect of this matter.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditors' 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,
to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
flow Statement dealt with by this Report are in agreement with the
books of account;
d) In our opinion, the aforesaid financial Statements comply with the
Accounting Standards specified under Section 133 of the Act read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the Directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the Directors is disqualified as on March 31, 2015 from being
appointed as a Director in terms of Section 164 (2) of the Act;
f) With respect to the other matters to be included in the Auditors'
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its
financial position in the financial Statements  Refer Note 22 on
Contingent Liabilities;
ii) The Company did not have any long- term contracts including
derivative contracts; hence, the question of any material foreseeable
losses does not arise;
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection fund by the Company.
Referred to in paragraph 1 under 'Report on
Other Legal and Regulatory Requirements' in the Independent Auditors'
Report of even date to the members of Amal Ltd on the financial
Statements for the year ended 31-03-2015
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets.
b) During the year, certain fixed assets have been physically verified
by the management and there is a regular programme of verification
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. As informed, no material
discrepancies were noticed on such verification.
ii) a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
b) 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) The Company is maintaining proper records of inventory. As informed,
no material discrepancies were noticed on physical verification carried
out during the year.
iii) As informed, the Company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under Section 189 of the Act. Accordingly, the provisions
stated in paragraph 3 (iii)(a) and 3 (iii)(b) of the Order are not
applicable.
iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, we have not
observed any continuing failure to correct any major
weaknesses in aforesaid internal control system of the Company.
v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the provisions of Sections 73 to 76 of the Act and the rules
framed there under.
vi) We have broadly reviewed the books of account maintained by the
Company in respect of products where the maintenance of cost records
has been specified by the Central Government under sub-section (1) of
Section 148 of the Act and the rules framed there under and we 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 records with a view to determine whether they are
accurate or complete.
vii) a) The Company is generally regular in depositing with appropriate
authorities, undisputed statutory dues including provident fund,
employees' state insurance, income tax, sales tax, wealth tax, service
tax, value added tax, customs duty, excise duty, cess and any other
material statutory dues applicable to it.
b) According to the information and explanation given to us, the dues
outstanding with respect to, income tax, sales tax, wealth tax, service
tax, value added tax, customs duty, excise duty or cess, as applicable
to it, on account of any dispute, are as follows:
Name Nature of Amount Period Forum where of the dues to dispute is Rs. in
000 statute which pending the amount relates The Sales Tax 5247 2001-02
Joint Gujarat (including to 2003- Commissioner, Sales interest and 04
Surat Tax Act, penalty) 1969 CST Act, Sales Tax 381* 2003-04 Gujarat
VAT 1956 Tribunal, (including Ahmadabad interest and penalty) *Out of
the above, Rs. 50,000/- has been paid under protest by the Company
towards dues.
c) According to the information and explanations given to us, there
were no amounts which were required to be transferred to the Investor
Education and Protection fund by the Company.
viii) The accumulated losses of the Company are more than fifty percent
of its net worth. further, the Company has incurred cash losses during
the financial year covered by our audit but not in the immediately
preceding financial year.
ix) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to financial
institution, bank or debenture holder.
x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xi) The Company has not obtained any term loans.
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
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 any such instance by the management.
for Haribhakti & Co. LLP
firm Registration number 103523W
Chartered Accountants
Bhavik L Shah
Mumbai Partner
April 24, 2015 Membership Number 122071
Mar 31, 2014
We have audited the accompanying Financial Statements of Amal Limited
(''the Company''), which comprise the Balance Sheet as at March 31, 2014,
the Statement of Profit and Loss 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,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of Section 211
of the Companies Act, 1956 (''the Act''). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the Financial Statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these Financial
Statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the Financial Statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the Financial Statements. The procedures
selected depend on the auditors'' judgment, including the assessment of
the risks of material misstatement of the Financial Statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the Financial Statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of 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 Financial Statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the Accounting Principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
We draw attention to Note 33 of the Financial Statements, wherein as
stated, the Board for Industrial and Financial Reconstruction (BIFR),
in its meeting held on July 01,2013, has approved the modified
sanctioned scheme of the Company and necessary steps, as envisaged
under the Scheme for revival, are being taken. In view of above, books
of account have been prepared on going concern basis. Our opinion is
not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2003 (''the
Order'') issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227 (3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub- section (3C) of Section 211 of the Act;
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 Act.
Annexure to the Report of the Auditors [Referred to in paragraph 1
under ''Report on Other Legal and Regulatory Requirements'' in the
Independent Auditors'' Report of even date to the members of Amal
Limited on the Financial Statements for the year ended March 31, 2014]
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets.
(b) During the year, certain fixed assets have been physically verified
by the management and there is a regular programme of verification
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. As informed, no material
discrepancies were noticed on such 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.
(ii) (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) 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) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification carried
out at the end of the year.
(iii) As informed, the Company has neither granted nor taken any loan,
secured or unsecured, from any company, firm or other party covered in
the register maintained under Section 301 of the Act. Accordingly,
provisions of clause 4 (iii) (b) (c) (d) (f) and (g) of the Order are
not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct any major
weaknesses in the aforesaid internal control system of the Company.
(v) 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 that need 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.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Sections 58A and 58AA of the Act and the rules
framed there under.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) 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 we 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.
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees'' state
insurance, income-tax, sales-tax, wealth- tax, service tax, customs
duty, excise duty, cess and other material statutory dues applicable to
it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income- tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of dispute, are as follows:
Name of the Nature of dues Amount
statute (Rs. ''000)
The Gujarat Sales
Tax Sales Tax 1,039
Act, 1969
The Gujarat Sales
Tax Sales Tax 5,629*
Act, 1969
Name of the Statue Period to which Forum where dispute
the amount is pending
relates
The Gujarat Sales Tax
Act, 1969 1999-00 Gujarat VAT Tribunal,
Ahmedabad
The Gujarat Sales Tax
Act, 1969 2001-02 to 2003-04 Joint Commissioner,
Vadodara
*Out of the above, Rs. 50,000/- has been paid under protest by the
Company towards dues for year 2003-04.
(x) In our opinion, the accumulated losses of the Company as at March
31, 2014 are more than 50% of its net worth as at the end of the year.
Further, the Company has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institution, bank or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans & advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi |
mutual benefit fund | society. Therefore, the provisions of clause 4
(xiii) of the Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Order are not applicable to the
Company.
(xv) 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 or financial institutions during the year.
(xvi) The Company has not obtained any term loans.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short term basis during the year have been used
for long term investment.
(xviii) According to the information and explanations given to us, 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.
(xix) According to the information and explanations given to us, no
debentures have been issued by the Company during the year.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) 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 Haribhakti & Co
Firm Registration Number: 103523W
Chartered Accountants
Atul Gala
Mumbai Partner
April 25, 2014 Membership Number: 048650
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Amal Ltd ("the
Company"), which comprises the Balance Sheet as at March 31,2013,the
Statement of Profitand 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 referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whetherduetofraudorerror.
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 theauditto 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 auditors'' 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
thefinancial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to providea basis for ouraudit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date;and
(c) in the case of the Cash Flow Statement,of the cash flows for the
year ended on that date.
Emphasis of Matter
We draw attention to Note No. 32 of the Financial Statements regarding
the preparation of financial statements on a going concern basis for
reasons stated therein and filing of Draft Rehabilitation Scheme for
approval of Board of Industrial and Financial Reconstruction (BIFR).
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' 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 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 comply with the Accounting Standards referred to in
subsection (3C) of Section 211 of the Companies Act, 1956;
(e) On the basis of written representations received from the
Directors, as on March 31, 2013 and taken on record by the Board of
Directors, none of the Director is disqualified as on March 31, 2013
from being appointed as a Director in terms of Clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956;
Referred to in paragraph 1 under''Report on Other Legal and Regulatory
Requirements'' in the Independent Auditors'' Report of even date to the
members of Amal Limited on the financial statements for the year ended
March 31, 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
during the year and there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. As informed, no material discrepancies
were noticed on such 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.
ii. (a) The inventory has been physically verified by the Management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) 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) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification carried
out at the end of the year.
iii. (a) As informed, 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 Companies Act, 1956. Accordingly,
the provisions stated in paragraph 4 (iii) (b), (c) and (d) of the
Order are not applicable.
(b) The Company has taken interest free loan from one party covered in
the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year and
the year-end balance of loans taken from such party wasRs. 1,668.47 (in
''000).
(c) In our opinion, terms and conditions for such interest free loan
are not, prima facie, prejudicial to the interest ofthe Company.
(d) As informed to us, no repayment was due during the year of
principal amount of loan taken by the Company.
iv. In our opinion and according to the information and explanations
given to us, there exists an adequate Internal Control System
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct any major
weaknesses in the aforesaid internal control system ofthe company.
v. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in Section 301 of the Companies Act, 1956 that needs to be
entered into the register maintained under Section 301 have been so
entered.
(b)ln our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rs. five lacs have been entered into
during the financial year at prices which are reasonable having regard
to the prevailing market prices at the relevanttime.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Sections 58A and 58AA of the Act and the rules
framed thereunder.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. 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 we are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. ix. (a) The
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employees'' state insurance, income-tax, sales-tax,
wealth- tax, service tax, custom duty, excise duty, cess and other
material statutory dues applicabletoit.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income- tax,
sales-tax, wealth-tax, service tax; custom duty, excise duty, cess and
other undisputed statutory dues were outstanding at the year end, for a
period of more than six months from the date they became payable.
x. In our opinion, the accumulated losses of the Company as at March
31,2013 are more than 50% of its net worth at the end of the year.
Further, the Company had incurred cash loss during preceding year but
has not incurred any cash loss during the current financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institution, bank or debenture holders.
xii. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi |
mutual benefit fund | society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor''s Report) Order, 2003 (as amended)
are not applicable to the Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 (as amended) are not applicable to the Company
xv. 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 or financial institutions during theyear.
xvi. The Company has not obtained any term loans.
xvii. According to the information and explanations given to us and on
an overall examination of the balance Sheet of the Company, we report
no funds raised on a short-term basis during the year have been used
for long-term investment.
xviii.According to the information and explanations given to us,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.
xix. According to the information and explanations given to us, no
debentures have been issued by the Company during the year.
xx. The Company has not raised any money by public issues during the
year.
xxi. 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 Haribhakti & Co.
Chartered Accountants
Firm Registration No. 103523W
Atul Gala
Mumbai Partner
April 26,2013 Membership No. 048650
Mar 31, 2012
1. We have audited the attached Balance Sheet of Amal Limited ('the
Company') as at March 31, 2012 and also the related Statement of Profit
and Loss and the 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 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), 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'), we give 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 paragraph 3 above, we report that:
i. 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;
ii. 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;
iii. 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;
iv. 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 211 of
the Companies Act, 1956;
v. On the basis of the written representations received from the
Directors, as on March 31, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
March 31, 2012 from being appointed as a Director in terms of Clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
vi. Without qualifying our opinion, we draw attention to Note 32 of
annual accounts, with regard to preparation of financial statements on
a going concern basis for reasons stated therein and filing of Draft
Rehabilitation Scheme for approval of Board of Industrial and Financial
Reconstruction (BIFR) after review of operating agency.
vii. 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 Act, in the manner so required and also give, read in
particular with Note 32, 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, 2012;
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 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 Amal Limited on the financial statements for the year ended
March 31, 2012
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets.
(b) The fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As informed, no
material discrepancies were noticed on such 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
of by the Company during the year.
(ii) (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) 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) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification carried
out at the end of the year.
(iii) (a) As informed, 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 Companies Act, 1956.
Accordingly, the provisions stated in paragraph 4
(iii) (b), (c) and (d) of the Order are not applicable.
(b) The Company has taken interest free loan from one party covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs 1,66,847 (in '000)
and the year-end balance of loans taken from such party was Rs 1,66,847
(in '000).
(c) In our opinion, the rate of interest and other terms and conditions
for such loans are not, prima facie, prejudicial to the interest of the
Company.
(d) As informed to us, no repayment was due during the year of
principal amount of loan taken by the Company.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct any major
weaknesses in the aforesaid internal control system of the Company.
(v) According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements
referred to in Section 301 of the Companies Act, 1956 that need to be
entered into the register maintained under Section 301 have been so
entered.
Further, in our opinion and according to the information and
explanations given to us, the transactions made in pursuance of such
contracts or arrangements exceeding value of Rupees five lakhs have
been entered into during the financial year at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Sections 58A and 58AA of the Act and the rules
framed there under.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) 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 we are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained.
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees' state
insurance, income-tax, sales-tax, wealth-tax, service tax, customs
duty, excise duty, cess and other material statutory dues applicable to
it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year-end, for
a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of the statute Nature of dues Amount Period to
which the Forum
where
dispute
(Rs.in
'000) amount
relates is
pending
The Gujarat Sales
Tax Act, 1969 Sales Tax 1,039 1999-00 Gujarat
VAT
Tribunal
The Gujarat Sales
Tax Act, 1969 Sales Tax 1,864 2001-02 Gujarat
VAT
Tribunal
The Gujarat Sales
Tax Act, 1969 Sales Tax 2,385 2002-03 Gujarat
VAT
Tribunal
The Gujarat Sales
Tax Act, 1969 Sales Tax 1,380* 2003-04 Gujarat
VAT
Tribunal
* Out of the above, Rs 50,000/- has been paid under protest by the
Company.
(x) In our opinion, the accumulated losses of the Company as at March
31, 2012 are more than 50% of its net worth as at the end of the year.
Further, the Company has incurred cash loss during the current year and
in the immediately preceding previous year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi |
mutual benefit fund | society. Therefore, the provisions of Clause
4(xiii) of the Companies (Auditor's Report) Order, 2003 (as amended)
are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of Clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) 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 or financial institutions during the year.
(xvi) The Company has not obtained any term loans.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that funds raised to the tune of Rs 12,884 (in '000) on short-term basis
have been used for long-term investment, majority of which is on
account of additions to fixed assets.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotments of shares during the
year to parties and companies covered in the register maintained under
Section 301 of the Act.
(xix) According to the information and explanations given to us, no
debentures have been issued by the Company during the year.
(xx) The Company has not raised money by way of public issue during the
year.
(xxi) 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 Haribhakti & Co.
Chartered Accountants
Firm Registration No. 103523W
Rakesh Rathi
Place: Mumbai Partner
Date: May 5, 2012 Membership No. 45228
Mar 31, 2010
1. We have audited the attached Balance Sheet of Amal Ltd as at March
31, 2010 and also the Profit and Loss Account and the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Management of the
Company. 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 (Auditorsà Report) Order, 2003 as
amended by The Companies (Auditorsà Report) (Amendment) Order, 2004
(together with the ÃOrderÃ) issued by the Central Government of India
in terms of Sub-section (4A) of Section 227 of The Companies Act, 1956
of India (the ÃActÃ) 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 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 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 the
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in Sub-section (3C) of Section 211 of
The Companies Act, 1956;
e) On the basis of written representations received from the Directors
as on March 31, 2010 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on March 31, 2010
from being appointed as a Director in terms of Clause (g) of
Sub-section (1) of Section 274 of The Companies Act, 1956;
f) Attention is invited to the following note in schedule 14.
Note No 12 regarding the going concern assumption for preparing the
accounts. Though the net worth of the Company is substantially
negative, since the Company has started operations w.e.f. July 2009 as
per the reconstruction scheme sanctioned (SSÃ09) by Board for
Industrial and Financial Reconstruction (BIFR) and hence, is a going
concern.
g) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with the notes thereon, and attached thereto 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 March 31, 2010;
(ii) in the case of the Profit and Loss Account, of the loss for the
year ended on that date; and
(iii) in case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Report of the Auditors
Referred to in paragraph 3 of the Auditorsà Report of even date to the
Members of Amal Ltd on the financial statements for the year ended
March 31, 2010
(i) The nature of the CompanyÃs activities during the period is such
that clauses (xiii) and (xiv) of paragraph 4 of The Companies
(AuditorÃs Report) Order, 2003 are not applicable to the Company for
the period.
(ii) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets except at the Ankleshwar plant.
(b) All the assets have not been physically verified by the Management
during the year but there is a regular program of verification which,
in our opinion, is reasonable, having regard to the size of the Company
and the nature of its assets.
(iii) (a) The inventory has been physically verified during the year by
the Management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the Management is adequate in relation to the size of the Company and
the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification between the physical
stocks and the book records were not material.
(iv) In our opinion and according to the information and explanations
given to us, the Company has not granted any loan, secured or unsecured
to companies, firms, or other parties covered in the register
maintained under Section 301 of The Companies Act, 1956. Hence the
provisions of Clause 4 (iii) of The Companies (AuditorÃs Report) Order,
2003 are not applicable to the Company.
(v) According to the information and explanations given to us, the
Company has taken unsecured loan from companies, firms or other parties
covered in the register maintained under Section 301 of The Companies
Act, 1956. Accordingly the provisions of Clause 4 (iii) of The
Companies (AuditorÃs Report) Order, 2003 are applicable to the Company.
(vi) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and with regard to
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
(vii) According to the information and explanations given to us, we are
of the opinion that there are contracts or arrangements referred to in
Section 301 of The Companies Act, 1956. Accordingly the provisions of
Clause 4 (v) of The Companies (AuditorÃs Report) Order, 2003 are
applicable to the Company.
(viii) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits within the
meaning of Section 58A, 58AA or any other relevant provisions of The
Companies Act, 1956, and the rules framed there under. Accordingly, the
provisions of Clause 4 (vi) of The Companies (AuditorÃs Report) Order,
2003 are not applicable to the Company.
(ix) In our opinion, the Company has an adequate internal audit system
commensurate with the size of the Company and the nature of its
business.
(x) We have broadly reviewed the books of account relating to
materials, labour and other items of cost to be maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209 (1)(d) of The Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
records have been maintained.
(xi) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues, including income tax, wealth
tax, service tax, custom duty, excise duty, cess and other material
statutory dues.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty, cess and other material statutory dues
were in arrears, as at March 31, 2010 for a period of more than six
months from the date they became payable except as under:
(Rs. thousands)
Period to which the
Name of the statute Nature of dues Amount
amount relates
The Companies Act, Investor Education and
3.00 1992-93
1956 Protection Fund
The Companies Act, Investor Education and
5.00 1993-94
1956 Protection Fund
The Companies Act, Investor Education and
5.00 1983-84
1956 Protection Fund
The Companies Act, Investor Education and
6.00 1983-84
1956 Protection Fund
The Companies Act, Investor Education and
29.86 1992-93
1956 Protection Fund
Name of the statute Date of
Due date
payment
The Companies Act, 24-11-1999 Not yet paid
1956
The Companies Act, 23-04-2000 Not yet paid
1956
The Companies Act, 22-10-1990 Not yet paid
1956
The Companies Act, 19-11-1990 Not yet paid
1956
The Companies Act,In 1999-2000 Not yet paid
1956
(c) According to the information and explanations given to us, there
are no dues of sales tax, service tax, income tax, customs duty, wealth
tax, excise duty and cess which have not been deposited on account of
any dispute.
(xii) The accumulated losses of the Company have exceeded 100% of its
net worth as at the end of the year. The Company has a positive PBDT
during the financial year covered by our audit, however, the Company
incurred PBDT loss in the immediately preceding financial year.
(xiii) In our opinion and according to the information and explanations
given to us, we are of the opinion that the Company has not defaulted
in the payment of dues to bank during the current year.
(xiv) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities. Accordingly
the provisions of Clause (xii) of paragraph 4 of The Companies
(AuditorÃs Report) Order, 2003 are not applicable to the Company.
(xv) 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 or financial institutions. Accordingly the provisions
of Clause (xv) of paragraph 4 of The Companies (AuditorÃs Report)
Order, 2003 are not applicable to the Company.
(xvi) In our opinion and according to the information and explanations
given to us, term loans have been applied for the purpose for which
they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short term basis have been used for long term
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
Section 301 of The Companies Act, 1956. Accordingly, the provisions of
Clause 4 (xviii) of The Companies (AuditorÃs Report) Order, 2003 are
not applicable to the Company.
(xix) According to the information and explanations given to us, no
debentures have been issued by the Company during the year nor were any
debentures outstanding at the beginning of the year. Accordingly, the
provisions of Clause 4 (xix) of The Companies (AuditorÃs Report) Order,
2003 are not applicable to the Company.
(xx) According to the information and explanations given to us, the
Company has not raised any money through public issue during the year.
Accordingly, the provisions of Clause 4 (xx) of The Companies
(AuditorÃs Report) Order, 2003 are not applicable to the Company.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For and on behalf of
V R Parekh & Co.
Chartered Accountants
Firm Registration Number 114058W
V R Parekh
Valsad Proprietor
May 25, 2010 Membership No. 7474