Mar 31, 2015
We have audited the accompanying financial statements of M/s Amforge
Industries Limited ("the Company"),which comprise the Balance Sheet as
at 31st March 2015, 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
The Company''s Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the 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 internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
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 andmatters 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 auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company''s
preparation of the financial statements that give 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 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 affairs of the Company as at
31st March 2015, and its Profit and its Cash Flows for the year ended on
that date.
Emphasis of Matters
We draw attention Note 21(4) to the financial statements which,
describes overdue business advance given to a Company amounting to Rs.
21,658/- thousand.
Report on other Legal and Regulatory Requirements
(I) As required by the Company (Auditor''s Report) Order 2015 issued by
the Central Government of India of sub-section (11) of section 143 of
the Act (hereinafter referred to as the Order), 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 Annexure a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
(II) 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 appears from our examination of those
books.
(c) The Balance Sheet, the 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 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 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the other matters included in the Auditor''s Report
and to our 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 21(1) to the
financialstatements.
(ii) The Company did not have any long-term contracts including
derivatives 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.
Annexure referred to in paragraph (I) 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) The fixed assets are physically verified by the management during
the financial year, which, in our opinion is reasonable having regard
to size of the Company and the nature of its assets and no material
discrepancies have been noticed on such verification.
2. The nature of business of the Company does not require it to have
any inventory. Hence, the requirement of clause (ii) of paragraph 3of
the said Order is not applicable to the Company.
3. 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 Companies Act, 2013.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of fixed assets and for the sale of services. Further, on the
basis of our examination of the books and records of the Company and
according to the information and explanations given to us, no major
weakness has been noticed or reported.
5. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
covered under Section 73 to 76 of the Companies Act,2013 and the rules
made there under as notified.
6. As informed to us, the Central Government has not prescribed
maintenance of cost records under sub-section (1) of Section 148 of the
Act.
7 (a) According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, the Company is
regular in depositing the undisputed statutory dues, including Provident
Fund, Employees ''State Insurance, Income-tax, Sales tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty and other material statutory dues,
as applicable with the appropriate authorities in India. There were no
arrears outstanding as at the last day of the financial year for a
period of more than six months from the date of they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of duty
of Excise, duty of Customs, Sales tax include value added tax, and
Income tax as at 31st March 2015 which have not been deposited on
account of a dispute, are as follows;
Name of the Nature of Period to Forum where
statute dues which the dispute is
amount pending
relates
Central Excise Excise Duty F.Y. 2003-04 CESTAT Mumbai
Act, 1944 Asst./ Addl./
Joint Commissioner
of Central Excise
Central Sales Sales Tax F.Y.2005-06 Commissioner of
Tax Act Appeals
(Sales Tax)
Central Sales Sales Tax F.Y. 2005-06 Joint Commissioner
Tax Act of Sales Tax
Income Tax Income Tax F.Y. 2006-07 Commissioner
Act,1961 of Income
Tax
Income Tax Income Tax F.Y. 2004-05 Income Tax
Act,1961 Appellate
Tribunal (ITAT)
Name of the Amtount
statute in Rs.
000
Central Excise 46,524/-
Act, 1944
Central Sales 2,057/-
Tax Act
Central Sales 11,175/-
Tax Act
Income Tax 5,367/-
Act,1961
Income Tax 10,102/-
Act,1961
According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of wealth tax
and service tax which have not been deposited on account of any
dispute.
(c) There were no amounts required to be transferred to Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 2013.
8. The Company has accumulated losses more than fifty percent of its
net worth as at the end of the financial year and it has not incurred
any cash losses during the current financial year ended on that date
and in the immediately preceding financial year.
9. According to the records of the Company examined by us and as per
the information and explanations given to us, the Company has not
defaulted in repayment of dues to financial institutions, banks and
debenture holders as at the balance sheet date.
10. 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 bank sand financial institution.
11. In our opinion, and according to the information and explanations
given to us, the Company has not raised any term loans during the year.
12. During the course of our examination of the books and records of
the Company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have we been informed of any such instance by the
Management.
For J.Singh & Associates
Chartered Accountants
(Firm Reg. No. 110266W)
CA.S.P.Dixit
(Partner)
M. No. 041179.
Place:Mumbai
Dated: May,2015
Mar 31, 2014
We have audited the accompanying financial statements of AMFORGE
INDUSTRIES LIMITED (''the Company'') which comprise the Balance Sheet as
at 31st March 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
We draw attention to the Note 21(i) in regarding Significant Accounting
Policies of the Company, wherein it is stated that the Company''s
financial statements have been prepared on going concern basis.
It is pertinent to note that
(i) The accumulated losses as at 31st March, 2014 are Rs. 4,21,913.58
thousands, which is more than 50% of the net worth of the Company.
(ii) The Company has however, continued trading activities during the
year.
Our opinion is not qualified in respect of the above matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, 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 the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet ,the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Companies Act,
1956; and
e. on the basis of written representations received from the directors
as on 31st March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
The Annexure referred to in paragraph 3 of our report to the members of
Amforge Industries Limited (''the Company'') for the year ended 31st
March 2014.
We report that
1 In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) As explained to us ,the fixed assets have been physically verified
by the management at regular intervals in accordance with a phased
programmed of verification adopted by the Company, which in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets had been carried out at the year end. According to
the information and explanations given to us, no material discrepancies
were noticed on such verification.
(c) In our opinion, the Company has not disposed off any fixed assets
during the year and the going concern status of the Company is not
affected.
2. In respect of its inventories:
(a) According to the information and explanations given to us, there
are no inventories at the year end date, hence there is no question of
physical verification.
(b) The procedure of physical verification of inventory followed by the
management was reasonable and adequate in relation to the size of the
company and the nature of its business during the year.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on such
verification.
3. According to the information and explanations given to us, in
respect of loans, secured or unsecured, granted or taken by the Company
to / from companies, firms or other parties covered in the Register
maintained under section 301 of the Companies Act, 1956;
(a) The Company has not granted any loans to companies, firms or other
parties covered in the Register maintained under section 301 of the
Companies Act, 1956.
(b) The Company has taken inter corporate deposits in the nature of
unsecured loans aggregating to Rs. 40,900 thousand from a company and a
firm covered in the Register maintained under section 301 of the
Companies Act, 1956.
(c) The rate of interest and other terms and conditions on which such
loans have been taken by the Company are "at arm''s length basis "and
prima facie, not prejudicial to the interest of the Company.
(d) However, there is no stipulation as to repayment of principal and
interest but are however repayable on demand.
4. In our opinion and according to the information and explanations
given to us, there are 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.
5. In respect of transactions entered in the Register maintained under
section 301 of the Companies Act, 1956:
(a) In our opinion and to the best of our knowledge and belief and
according to the information and explanations given to us, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section ; and
(b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of such
contracts or arrangements have been made at prices which are prima
facie reasonable having regards to the prevailing market prices at the
relevant time
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
and consequently the provisions of section 58 A, 58 AA or any other
relevant provisions of the Companies Act, 1956 and the Rules framed
there under and the directives issued by the Reserve Bank of India are
not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. In our opinion and according to the information and explanations
given to us, the Company is not required to maintain cost records
pursuant to rules made by the Central Government for the maintenance of
cost records under section 209(1)(d) of the Companies Act, 1956 during
the year.
9. In respect of statutory dues:
(a) According to the records of the Company, it has been regular in
depositing undisputed statutory dues including investor education and
protection fund, income tax, sales tax, wealth tax, service tax, custom
duty, excise duty and other statutory dues with the appropriate
authorities during the year.
According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid dues were
outstanding as at 31st March, 2014 for a period of more than six months
from the date of becoming payable.
(b) The disputed statutory dues aggregating to Rs. 87293 thousand that
have not been deposited on account of matters pending before
appropriate authorities are as under:
S. Name of the Nature of the Forum where dispute Amount
No statute dues is pending Rs. 000s
1 Central Excise Excise Duty CESTAT Mumbai 46,524
Act, 1944 Asst./Addl./Joint
Commissioner of
Central Excise.
2 Customs Act Customs Duty CESTAT Mumbai 12,068
3 Sales Tax Act Sale Tax Commissioner of 2,057
Appeals
(Sales Tax)
4 Sales Tax Act Sale Tax Joint Commissioner
of Sales Tax 11,175
5 Income Tax Act, Income Tax Commissioner of 5,367
1961 Income Tax (Appeals)
6 Income Tax Act, Income Tax Income Tax Appellate 10102
1961 Tribunal (ITAT)
Total 87,293
10. The Company has accumulated losses more than fifty percent of its
net worth as at the end of the financial year and the Company has
incurred cash losses during the current financial year, as well as in
the immediately preceding financial year.
11. Based on our audit procedure and on the basis of the information
and explanations given by the management, we are of the opinion that
the Company has not defaulted in the repayment of dues to financial
institutions and banks. The Company does not have any borrowings by way
of debentures.
12. According to the information and explanation given to us, we are
of the opinion that the company has maintained adequate records where
the company has granted loans and advances on the basis of security by
way of pledge of shares.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, clause 4(xiii) of the Companies
(Auditors'' Report) Order 2003 is not applicable to the Company.
14. The Company is not dealing in securities. However, in respect of
its investments the Company has maintained proper records of the
transactions and contracts as well as timely entries have been made
therein. These investments have been held by the Company in its own
name.
15. 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.
16. On the basis of the records examined by us, we have to state that,
the Company has not taken any term loans during the year.
17. According to the Cash Flow Statement and other records examined by
us and the information and explanations given to us, on an overall
examination of the Balance Sheet of the Company, we are of the opinion
that, funds raised on short term basis have prima facie not been used
for long term investment.
18. The Company has not made any preferential allotment of shares
during the year.
19. No debentures have been issued by the Company during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of examination of books and records of the
Company carried out in accordance with the generally accepted auditing
practices and according to the information and explanations given to
us, no fraud on or by the Company , noticed or reported during the year
nor have we been informed of such case by the Management.
For BANSAL & ASSOCIATES
Chartered Accountants
Firm Registration No. 100985W
S.K. BANSAL
(Proprietor)
M.No.12288
Place: Mumbai
Date: 29th May, 2014.
Mar 31, 2012
1. We have audited the attached Balance Sheet of AMFORGE INDUSTRIES
LIMITED as at 31st March, 2012 and also the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date both
annexed thereto together referred to us financial statements. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial.
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 any material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes,
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 and
amended by (Amendment) Order, 2004 issued by the Central Government of
India in terms of sub section (4A) of section 227 of the Companies Act,
1956 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 enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
Audit;
(b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
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 & 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;
(e) On the basis of the written representations received from the
directors, as on 31st March, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
(f) Attention is invited to the following:
(1) Note no. 1(2) regarding the discontinuation of the manufacturing
operations at its Chinchwad Plant and selling of the substantial assets
at such plant.
(2) Note no. 6, regarding the assignment of the debt payable to one of
the Company against the amount receivable from the Company.
(g) Attention is also invited to Note No. 1(I), significant accounting
policies of the Company, wherein it is stated that the company's
financial statements have been prepared on "going concern" basis. It is
pertinent to note that
i) The accumulated losses as at 31.3.2012 are Rs. 4,11,638.88
thousands, which is more then 50% of the net worth of the Company.
ii) Company has sold of its entire assets lying at its only
manufacturing plant at Chinchwad during the year.
iii) The Company has however, continued trading activities pursuant to
disposal of its assets at such plant.
(h) In our opinion and to the best of our information and according to
the explanations given to us, in view of the opinion given by us vide
para (f) and (g)above, the said accounts read together with the notes
thereon give the information required by the Companies Act 1956, in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) in the case Statement of the Profit and Loss, of the Loss for the
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure To The Auditors' Report
Referred to in paragraph 3 of our report of even date
1 In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at regular intervals in accordance with a phased
programme of verification adopted by the Company, which in our opinion,
is reasonable having regard to the size of the Company and the nature
of its assets had been carried out at the year end. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification.
(c) The Company has disposed of entire fixed assets at its Chinchwad
plant during the year and its going concern concept had been adversely
affected.
2. In respect of its inventories:
(a) According to the information and explanations given to us, there
are no inventories at the year end date, hence there is no question of
physical verification.
(b) The procedure of physical verification of inventories followed by
the management were reasonable and adequate in relation to the size of
the company and the nature of its business during the year.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on such
verification.
3. According to the information and explanations given to us, in
respect of loans, secured or unsecured, granted or taken by the Company
to/from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956;
(a) The Company has not granted any loans to companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
(b) The Company has taken inter corporate deposits in the nature of
unsecured loans aggregating to Rs. 32100 thousand from three companies
and a firm and a director covered in the register maintained under
section 301 of the Companies Act, 1956.
(c) The rate of interest and other terms and conditions on which such
loans have been taken by the Company are "at arms length basis" and
prima facie, not prejudicial to the interest of the Company.
(d) However, there are no stipulation as to repayment of principal and
interest but are repayable on demand.
4. In our opinion and according to the information and explanations
given to us, there are 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.
5. In respect of transactions entered in the register maintained under
section 301 of the Companies Act, 1956:
(a) In our opinion and to the best of our knowledge and belief and
according to the information and explanations given to us, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section ; and
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are prima facie reasonable
having regards to the prevailing market prices at the relevant time
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
and consequently the provisions of section 58 A, 58 AA or any other
relevant provisions of the Companies Act, 1956 and the Rules framed
there under and the directives issued by the Reserve Bank of India are
not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. In our opinion and according to the information and explanations
given to us, the Company is not required to maintain cost records
pursuant to rules made by the Central Government for the maintenance of
cost records under section 209(1)(d) of the Companies Act, 1956 during
the year.
9. In respect of statutory dues:
(a) According to the records of the Company, it has been regular in
depositing undisputed statutory dues including investor education and
protection fund, income tax, sales tax, wealth tax, service tax, custom
duty, excise duty and other statutory dues except wealth tax, tax
collected at source aggregating to Rs. 50.90 thousands with the
appropriate au- thorities during the year.
According to the information and explanations given to us, no
undisputed amounts pay- able in respect of aforesaid dues except wealth
tax, tax collected at source aggregating to Rs. 50.90 thousands were
outstanding as at 31st March, 2012 for a period of more than six months
from the date of becoming payable.
(b) The disputed statutory dues aggregating to Rs. 78151 thousands that
have not been de- posited on account of matters pending before
appropriate authorities are as under:
Sr Name of the statute Nature Forum where dispute is Amount
No. of the pending Rs.'000s
1 Central Excise Act, Excise CESTAT Mumbai Asst 48557
1944 Duty ./Addl./Jt.Commissioner
of Central Excise.
2 Customs Act Customs CESTAT Mumbai 12068
Duty
3 Sales Tax Act Sale Tax Commissioner of 2057
Appeals (Sales Tax)
4 Income Tax Act, 1961 Income Tax Commissioner of 15469
Income Tax (Appeals)
Total 78151
10. The Company has accumulated losses more than fifty percent of its
net worth as at the end of the financial year and the Company has not
incurred cash losses during the current financial year, however, there
were cash losses in the immediately preceding financial year.
11. Based on our audit procedure and on the basis of the information
and explanations given by the management, we are of the opinion that
the Company has not defaulted in the repayment of dues to financial
institutions and banks. The Company does not have any borrowings by way
of debentures.
12. According to the information and explanation given to us, we are
of the opinion that the Company has maintained adequate records where
the Company has granted loans and advances on the basis of security by
way of pledge of shares.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies (
Auditors' Report) Order 2003 is not applicable to the Company.
14. The Company is not dealing in securities. However, in respect of
its investments the Company has maintained proper records of the
transactions and contracts as well as timely entries have been made
therein. These investments have been held by the Company in its own
name.
15. 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.
16. On the basis of the records examined by us, we have to state that,
the Company has not taken any term loans during the year.
17. According to the Cash Flow Statement and other records examined by
us and the information and explanations given to us, on an overall
examination of the financial statements of the Company, we are of the
opinion that, funds raised on short term basis have prima facie not
been used during the year for long term investment.
18. The Company has not made any preferential allotment of shares
during the year.
19. No debentures have been issued by the Company during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of examination of books and records of the
Company carried out in accordance with the generally accepted auditing
practices and according to the information and explanations given to
us, no fraud on or by the Company, noticed or reported during the year
nor have we been informed of such case by the Management.
For BANSAL AND ASSOCIATES
Chartered Accountants
(Firm Registration No. 100985W)
S.K. Bansal
Proprietor.
M.No.012288.
MUMBAI : 29th May, 2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of AMFORGE INDUSTRIES
LIMITED as at 31st March, 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
Companys management. Our responsibility is to express an opinion on
these financial
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 any material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes,
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 and
amended by (Amendment ) Order . 2004 issued by the Central Government
of India in terms of sub section (4A) of section 227 of the Companies
Act, 1956 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, subject to that:
The financial statements of the company have been prepared and
finalized on the basis of available records and documents with the
company .Due to suspension of operations at the plant since December
2008 and the subsequent lockout and labour problems since May 2009 the
relevant supportings.evidences and records were not produced for
verification during the course of our audit.
we enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above and
subject to the Para No.3 as above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
Audit;
(b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
(e) On the basis of the written representations received from the
Directors, as on 31s March, 2010, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as On
31st March ,2010 from being appointed as a Director in terms of clause
( g ) of sub-section ( 1 ) of section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon give the information required by the Companies Act 1956,
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(ii) in the case of the Profit and Loss Account, of the Loss for the
year ended on that date ; and
(iii) in the case of the Cash Flow Statement, of the cash flows for
the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT Referred to in paragraph 3 of our
report of even date
1 In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) As explained to us ,the fixed assets have been physically verified
by the management at regular intervals in accordance with a phased
programme of verification adopted by the Company, which in our opinion,
is reasonable having regard to the size of the Company and the nature
of its assets except in respect of its Chinchwad plant due to lock out
According to the information and explanations given to us , no material
discrepancies were noticed on such verification however the same have
been adjusted in the books of account.
(c) The Company has disposed off some of the fixed assets during the
year which does not form any substantial part of its fixed assets so as
to affect its going concern.
2. In respect of its inventories:
(a) According to the information and explanations given to us.due to
lockout at the plant management were unable to conduct the physical
verification of inventories.
(b) In absence of any physical verification during the year, the
procedure for such verification could not be commented upon.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper , records of its
inventories however in absence of any physical verification ,
discrepancies could not be noticed.
3. According to the information and explanations given to us, in
respect of loans, secured or unsecured, granted or taken by the Company
to / from companies, firms or other parties covered in the Register
maintained under section 301 of the Companies Act, 1956;
(a) The Company has not granted any loans to companies, firms or other
parties covered in the Register maintained under section 301 of the
Companies Act, 1956.
(b) The Company has taken inter corporate deposits in the nature of
unsecured loans aggregating to Rs. 124.30 Lacs from two companies
covered in the Register maintained under section 301 of the Companies
Act, 1956.
(c) The rate of interest and other terms and conditions on which loans
have been taken by the Company are not prima facie, prejudicial to the
interest of the Company.
4. In our opinion and according to the information and explanations
given to us, there are reasonable internal control system which needs
to be further strengthen commensurate with the size of the Company and
the nature of its business, for the purchase of inventory and fixed
assets and for the sate of goods and services.
5. In respect of transactions entered in the Register maintained under
section 301 of the Companies Act, 1956:
(a) In our opinion and to the best of our knowledge and belief and
according to the information and explanations given to us, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section ; and
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made are of special nature for which market
prices could not be verified. As explained to us, the same are prima
facie reasonable at relevant times.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
and consequently the provisions of section 58 A, 58 AA or any other
relevant provisions of the Companies Act, 1956 and the Rules framed
there under and the directives issued by the Reserve Bank of India are
not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. As no production activity carried out during the year by the
company trie maintenance of cost records under section 209(1 )(d) of
the Companies Act, 1956 are not applicable to the Company.
9. In respect of statutory dues:
(a) According to the records of the Company , it has been regular in
depositing undisputed statutory dues including investor education and
protection fund, income tax, sales tax, wealth tax, service tax, custom
duty, excise duty and other statutory dues except Provident fund ,
Employees State Insurance and profession tax aggregating to Rs. 10.46
lacs in respect of its plant under lock out with the appropriate
authorities during the year.
According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid dues except
Provident fund, Employees State Insurance and profession tax
aggregating to Rs. 10.46 lacs were outstanding as at 31st March, 2010
for a period of more than six months from the date of becoming payable.
(b) The disputed statutory dues aggregating to Rs. 860.69 lacs that
have not been deposited on account of matters pending before
appropriate authorities are as under:
Sr. Name of the statute Nature of Forum where
dispute is pending Amount
No the dues Rs. 000s
1 Central Excise Act,
1944 Excise Duty CESTAT MumbaiAsst./
Addl./
Jt. Commissioner of
Central Excise. 48557
2 Customs Act Customs Duty CESTAT Mumbai 12068
3 Sales Tax Act Sale Tax Commissioner of Appeals
(Sales Tax) 3193
4 Income Tax Act, 1961 Income Tax Commissioner of Income
Tax (Appeals) 22251
Total 86069
10. The Company has accumulated losses more than fifty percent of its
net worth as at the end of the financial year and the Company has
incurred cash losses during the current and in the immediately
preceding financial year.
11. Based on our audit procedure and on the basis of the information
and explanations given by the management, we are of the opinion that
the Company has not defaulted in the repayment of dues to financial
institutions and banks. The Company does not have any borrowings by
way of debentures.
12. In our opinion and according to the information and explanations
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, clause 4(xiii) of the Companies
(Auditors Report) Order 2003 is not applicable to the Company.
14. The Company is not dealing in securities. However, in respect of
its investments the Company has maintained proper records of the
transactions and contracts as well as timely entries have been made
therein. These investments have been held by the Company in its own
name.
15. 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.
16. On the basis of the records examined by us , we have to state
that, the Company has not taken any term loans during the year.
17. According to the Cash Flow Statement and other records examined by
us and the information and explanations given to us, on an overall
examination of the financial statements of the Company , we are of the
opinion that, funds raised on short term basis have prima facie not
been used during the year for long term investment.
18. The Company has not made any preferential allotment of shares
during the year.
19. No debentures have been issued by the Company during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of examination of books and records of the
Company carried out in accordance with the generally accepted auditing
practices and according to the information and explanations given to
us, no fraud on or by the Company, noticed or reported during the year
nor have we been informed of such case by the Management.
For BANSAL AND ASSOCIATES
Chartered Accountants
(Firm Registration No. 100985W)
S.K.Bansal
MUMBAI: 2nd September, 2010. Proprietor.
M.No.012288
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