Mar 31, 2015
We have audited the accompanying standalone financial statements of
Apple Finance Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2015, the Profit and Loss Statement, 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 Standalone 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 standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act and Rules made
thereunder including the accounting standards and matters which are
required to be included in the audit report.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards, pronouncements 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 a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial control
system over the 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, 2015 and its profit and cash flows for the year ended on
that date, subject to:
a) Point No.1 of Note '19' regarding going concern assumption of the
Company.
b) Point No.11 of Note '19' regarding non- consideration of Deferred Tax
Assets (Net) amounting to Rs. 168,451,676.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government 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.
2. As required by Section 143(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 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 Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notified under Section 133 of the Act read with Rule 7 of the Companies
(Accounts) Rules, 2014.
e. On the basis of the written representations received from the
Directors as on March 31, 2015, 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.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under 'Report on Other Regulatory
Requirements' section of our report of even date)
Matters required as per Paragraphs 3 and 4 of the Companies
(Auditor's Report) Order, 2015
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Management has verified all the assets during the year. We have
been informed that no material discrepancies have been noticed on the
assets physically verified by the Management.
2. (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 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. We have
been informed that no material discrepancies between the physical
stocks and the book records were noticed on such verification.
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 are in general adequate internal control procedures,
commensurate with the size of the Company and the nature of its
business, with regard to purchase of inventory and fixed assets, and
for sale of goods and services and we have not observed any major
weaknesses in internal control.
5. The Company has not accepted deposits from public during the year and
hence, the directives issued by the Reserve Bank of India and the
provisions of Sections 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the rules framed thereunder are not applicable.
6. We have been informed that the Central Government has not
prescribed the maintenance of Cost records under Section 148(1) of the
Companies Act, 2013.
7. (a) We have been informed that during the year under review, the
Company has regularly deposited all undisputed statutory dues including
the Provident Fund, Employees' State Insurance Scheme, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax,
Cess and any other statutory dues, wherever applicable. There were no
arrears as at 31st March, 2015 for a period of more than six months from
the date they became payable.
(b) According to the information and explanations given to us and based
on the records of the Company examined by us, there are no dues of
Income Tax or Wealth Tax or Service Tax or Sales Tax or Customs Duty or
Excise Duty or Cess which have not been deposited on account of any
disputes.
(c) There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of reporting delay in transferring such
sums does not arise.
8. The Company's accumulated losses at the end of the financial year
are more than fifty per cent of its net worth and the Company has made
cash profit in the current financial year and also in the previous
financial year.
9. The Company has not defaulted in respect of payment of dues to
banks, financial institutions and debenture- holders.
10. The Company has not given any guarantees for loans taken by others
from bank or financial institutions and hence, Clause (x) of paragraph
3 of the Order is not applicable to the Company.
11. The Company has not obtained term loans and hence, Clause (xi) of
paragraph 3 of the Order is not applicable to the Company.
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 Mahendra Kumbhat and Associates
Chartered Accountants
Firm Regn. No.105770W
Amar Chand Bagrecha
Partner
Membership No.56605
Place: Mumbai
Date: May 29, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Apple Finance
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2014, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended and a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act,1956 ("the Act") read with the General Circular No.15/2013 dated
September 13, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, 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 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, subject to:
a) Point No.1 of Note ''19'' regarding going concern assumption of the
Company.
b) Point No.11 of Note ''19'' regarding non-consideration of Deferred Tax
Assets (Net) amounting to ''188,449,777.
(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 of
the Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the 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, 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 Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with Accounting Standards notified
under the Act read with the General Circular No.15/2013 dated September
13, 2013 of the Ministry of Corporate Affairs in respect of Section 133
of the Companies Act, 2013.
e. On the basis of the written representations received from the
Directors as on March 31, 2014, taken on record by the Board of
Directors, none of the Directors is disqualified as on March 31, 2014,
from being appointed as a Director in terms of Section 274(1)(g) of the
Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 1 under ''Report on Other Regulatory
Requirements'' section of our report of even date)
Matters required as per Paragraphs 4 and 5 of the Companies (Auditor''s
Report) Order, 2003
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Management has verified all the assets during the year. We have
been informed that no material discrepancies have been noticed on the
assets physically verified by the Management.
(c) The Company has not disposed of substantial part of fixed assets
during the year.
2. (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 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. We have
been informed that no material discrepancies between the physical
stocks and the book records were noticed on such verification.
3. (a) The Company has not taken loans from companies, firms and
other parties listed in the Register maintained under Section 301 of
the Act.
(b) The Company has granted loan to one party required to be listed in
the Register to be maintained under Section 301 of the Act, the maximum
amount outstanding at any time during the year for this loan is Rs.
47,90,500 and the year end balance is Rs.47,90,500 which is interest
free.
(c) In our opinion, the terms and conditions, wherever applicable, on
which loan is granted are not prima facie prejudicial to the interest
of the Company, except interest free loan granted.
(d) Loan granted by the Company is without stipulation of repayment
term and hence, we are unable to comment upon regularity of repayment
or otherwise and overdue amount.
4. In our opinion and according to the information and explanations
given to us, there are in general adequate internal control procedures,
commensurate with the size of the Company and the nature of its
business, with regard to purchase of fixed assets, and for sale of
services and we have not observed any major weaknesses in internal
control.
5. According to the information and explanations given to us, the
Company has not entered into the transactions requiring to be entered
in the Register maintained under Section 301 of the Act.
6. The Company has not accepted deposits from public during the year
and hence, the provisions of Sections 58A and 58AA of the Act and the
rules thereunder are not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with size and nature of its business.
8. We have been informed that the Central Government has not prescribed
the maintenance of Cost records under Section 209(1)(d) of the Act.
9. a) We have been informed that during the year under
review, the Company has regularly deposited all undisputed statutory
dues including the Provident Fund, Investor Education and Protection
Fund, Employees'' State Insurance Scheme, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other
statutory dues, wherever applicable. There were no arrears as at 31st
March, 2014 for a period of more than six months from the date they
became payable.
b) According to the information and explanations given to us, disputed
statutory dues not deposited are nil.
10. The Company''s accumulated losses at the end of the financial year
are more than fifty per cent of its net worth and the Company has made
cash profit in the current financial year and also in the previous
financial year.
11. The Company has not defaulted in respect of payment of dues to
banks, financial institutions and debenture-holders.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. As informed to us, the Company is not a chit fund or a nidhi/mutual
benefit fund/society and hence, Clause (xiii) of paragraph 4 of the
Order is not applicable.
14. In our opinion, the Company has maintained proper records of the
transactions and contracts in respect of investments in shares,
securities, debentures and other investments and timely entries have
been made therein. Except shares of Spectrum Alkyd Resins Limited, all
the investments are held by the Company in its own name.
15. The Company has not given any guarantees for loans taken by other
companies and hence, Clause (xv) of paragraph 4 of the Order is not
applicable to the Company.
16. The Company has not obtained term loans during the year and hence,
Clause (xvi) of paragraph 4 of the Order is not applicable to the
Company.
17. The Company has not raised fund on short-term basis during the
year; and hence, the question of same being used for any long term
investments does not arise.
18. During the year, no preferential allotment of shares has been made
to the parties and companies covered in the Register maintained under
Section 301 of the Act.
19. According to the information and explanation given to us, during
the period covered by our audit report, the Company has not issued any
debentures, and hence the question of creation of security does not
arise.
20. Since the Company has not come out with public issue during the
year, clause (xx) of paragraph 4 of the Order is not applicable.
21. According to the information and explanation given to us, no fraud
on or by the Company has been noticed or reported during the year.
For Mahendra Kumbhat & Associates
Chartered Accountants
Firm Regn. No.105770W
Amar Chand Bagrecha
Partner
Membership No.56605
Place: Mumbai
Date: May 14, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Apple Finance
Limited ("the CompanyÂ), which comprise the Balance Sheet as at March
31, 2013, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended and a summary of the significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956 ("the ActÂ) and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal
controls relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatements, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal controls 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 the Management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give 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, subject to:
a) Point No.1 of Note Â19'' regarding Âgoing concern'' assumption of the
Company.
b) Point No.11 of Note Â19'' regarding non-consideration of Deferred Tax
Assets (Net) amounting to f 194,230,222
(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 loss for
the year ended on that date, and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
OrderÂ) issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the 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 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 Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
e. On the basis of the written representations received from the
Directors as on March 31, 2013, taken on record by the Board of
Directors, none of the Directors is disqualified as on March 31, 2013,
from being appointed as a Director in terms of Section 274(1)(g) of the
Act.
Annexure to the Independent Auditors'' Report
(Referred to in paragraph 1 under ÂReport on Other Regulatory
Requirements'' section of our report of even date)
Matters required as per Paragraphs 4 and 5 of the Companies (Auditor''s
Report) Order, 2003:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Management has verified all the assets during the year. We
have been informed that no material discrepancies have been noticed on
the assets physically verified by the Management.
(c) The Company has not disposed of substantial part of fixed assets
during the year.
2. (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 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. We have
been informed that no material discrepancies between the physical
stocks and the book records were noticed on such verification.
3. (a) The Company has not taken loans from companies, firms and other
parties listed in the Register maintained under Section 301 of the Act.
(b) The Company has granted loan to one party required to be listed in
the Register to be maintained under Section 301 of the Act, the maximum
amount outstanding at any time during the year for this loan is Rs.
47,90,500 and the year end balance is Rs. 47,90,500 which is interest
free.
(c) In our opinion, the terms and conditions, wherever applicable, on
which loan is granted are not prima facie prejudicial to the interest
of the Company, except interest free loan granted.
(d) Loan granted by the Company is without stipulation of repayment
term and hence, we are unable to comment upon regularity of repayment
or otherwise and overdue amount.
4. In our opinion and according to the information and explanations
given to us, there are in general adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, with regard to purchase of fixed assets, and for sale of
services and we have not observed any major weaknesses in internal
control.
5. According to the information and explanations given to us, the
Company has not entered into the transactions requiring to be entered
in the Register maintained under Section 301 of the Act.
6. The Company has not accepted deposits from public during the year
and hence, the provisions of Sections 58A and 58AA of the Act and the
rules thereunder are not applicable.
7. The Company does not have an Internal Audit system.
8. We have been informed that the Central Government has not
prescribed the maintenance of Cost records under Section 209(1)(d) of
the Act.
9. a) We have been informed that during the year under review, the
Company has regularly deposited all undisputed statutory dues including
the Provident Fund, Investor Education and Protection Fund, Employees''
State Insurance Scheme, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty, Cess and any other statutory dues, wherever
applicable. There were no arrears as at 31st March, 2013 for a period
of more than six months from the date they became payable.
b) According to the information and explanations given to us, disputed
statutory dues not deposited are nil.
10. The Company''s accumulated losses at the end of the financial year
are more than fifty per cent of its net worth and the Company has made
cash profit in the current financial year and also in the previous
financial year.
11. The Company has not defaulted in respect of payment of dues to
banks, financial institutions and debenture-holders.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. As informed to us, the Company is not a chit fund or a nidhi/
mutual benefit fund/society and hence, clause (xiii) of paragraph 4 of
the Order is not applicable.
14. In our opinion, the Company has maintained proper records of the
transactions and contracts in respect of investments in shares,
securities, debentures and other investments and timely entries have
been made therein. Except shares of Spectrum Alkyd Resins Limited, all
the investments are held by the Company in its own name.
15. The Company has not given any guarantees for loans taken by other
companies and hence, clause (xv) of paragraph 4 of the Order is not
applicable to the Company.
16. The Company has not obtained term loans during the year and hence,
clause (xvi) of paragraph 4 of the Order is not applicable to the
Company.
17. The Company has not raised fund on short term basis during the
year; and hence the question of same being used for any long term
investments does not arise.
18. During the year, no preferential allotment of shares has been made
to the parties and companies covered in the Register maintained under
Section 301 of the Act.
19. According to the information and explanation given to us, during
the period covered by our Audit Report, the Company has not issued any
debentures, and hence the question of creation of security does not
arise.
20. Since the Company has not come out with public issue during the
year, clause (xx) of paragraph 4 of the Order is not applicable.
21. According to the information and explanation given to us, no fraud
on or by the Company has been noticed or reported during the year.
For Mahendra Kumbhat and Associates
Chartered Accountants
Firm Regn. No.105770W
Amar Chand Bagrecha
Partner
Membership No.56605
Place: Mumbai
Date: May 30, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of Apple Finance limited
("the Company") as at 31st March 2012 and the Profit and Loss
Account and also the Cash Flow Statement for the year ended on that
date annexed thereto ("the financial statements"). 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
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about, whether the
financial statements are free of material misstatements. An audit
includes examining, on the 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
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956 ("the Act"), we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the Order to the extent applicable.
Further to our comments in the Annexure referred to 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, the Company has kept proper books of account as
required by law so far as it appears from our examination of those
books.
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account
(iv) 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; except for the Accounting Standard 22
"Accounting for Taxes on Income".
(v) On the basis of written representations received from the Directors
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 Act
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to
a.) Point No. 1 of Note '20'regarding going concern assumption of
the Company,
b) Point No. 11 of Note '20' regarding non- consideration of
Deferred Tax Assets (Net) amounting to f200,576,804 and read with the
other notes thereon 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 the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012.
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date.
c) In the case of the Cash Flow Statement, of cash flows for the year
ended on that date.
Annexure to the Auditors' Report
(Referred to in our Report of even date)
Matters required as per paragraphs 4 and 5 of die Companies (Auditor's
Report) Order, 2003
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The management has not verified all the assets during the year. We
have been informed that no material discrepancies have been noticed on
the assets physically verified by the management
(c) The Company has not disposed of substantial part of fixed assets
during the year.
2. (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 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. We have
been informed that no material discrepancies between the physical
stocks and the book records were noticed on such verification.
3. a) The Company has not taken loans from companies, firms and other
parties listed in the Register maintained under Section 301 of the Act
b) The Company has granted loan to one party required to be listed in
the Register to be maintained under Section 301 of the Companies Act,
1956, the maximum amount outstanding at any time during the year for
this loan is X 47,45,500 and the year end balance is Rs. 47,45,500 which
is interest free.
c) In our opinion, the terms and conditions wherever applicable on
which loan is granted, are not prima facie prejudicial to the interest
of the Company, except interest free loan granted.
d) Loan granted by the Company is without stipulation of repayment term
and hence, we are unable to comment upon regularity of repayment or
otherwise and overdue amount
4. In our opinion and according to the information and explanations
given to us, there are in general adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of fixed assets, and for sale of
services and we have not observed any major weaknesses in internal
control.
5. According to the information and explanations given to us, the
Company has not entered into the transactions requiring to be entered
in the Register maintained under Section 301 of the Act
6. The Company has not accepted deposits from public during the year
and hence, the provisions of Sections 58A and 58AA of the Act and the
rules thereunder are not applicable.
7. The Company does not have an Internal Audit system.
8. We have been informed that the Central Government has not
prescribed the maintenance of Cost records under Section 209(1) (d) of
the Act
9. a) We have been informed that during the year under review, the
Company has regularly deposited all undisputed statutory dues including
the Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance Scheme, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty, Cess and any other statutory dues, wherever
applicable. There were no arrears as at 31st March, 2012 for a period
of more than six months from the date they became payable,
b) According to the information and explanations given to us, disputed
statutory dues not deposited are nil.
10. The Company's accumulated losses at the end of the financial year
are more than fifty per cent of its net worth and the Company has made
cash profit in the current financial year and also in the previous
financial year.
11. The Company has not defaulted in respect of payment of dues to
banks, financial institutions and debenture-holders.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. As informed to us, the Company is not a chit fund or a nidhi /
mutual benefit fund/society and hence, clause (xiii) of paragraph 4 of
the Order is not applicable.
14. In our opinion, the Company has maintained proper records of the
transactions and contracts in respect of investments in shares,
securities, debentures and other investments and timely entries have
been made therein. Except shares of Spectrum Alkyd Resins Limited, all
the investments are held by the Company in its own name.
15. The Company has not given any guarantees for loans taken by other
companies and hence, clause (xv) of paragraph 4 of the Order is not
applicable to the Company.
16. The Company has not obtained term loans during the year and hence,
clause (xvi) of paragraph 4 of the Order is not applicable to the
Company.
17. The Company has not raised fund on short term basis during the
year and hence, the question of same being used for any long term
investments does not arise.
18. During the year, no preferential allotment of shares has been made
to the parties and companies covered in the Register maintained under
Section 301 of the Act
19. According to the information and explanation given to us, during
the period covered by our audit report, the Company has not issued any
debentures and hence, the question of creation of security does not
arise.
20. Since the Company has not come out with public issue during die
year, clause (xx) of paragraph 4 of the Order is not applicable.
21. According to the information and explanation given to us, no fraud
on or by the Company has been noticed or reported during the year.
For Mahendra Kumbhat & Associates
Chartered Accountants
Firm Regn. No.l05770W
Amar Chand Bagrecha
Partner
Membership No.56605
Place : Mumbai
Date : May 30, 2012
Mar 31, 2010
We have audited the attached Balance Sheet of Apple Finance Limited
("the Company") as at 31st March 2010 and the Profit and Loss Account
and also the Cash Flow Statement for the year ended on that date
annexed thereto ("the Financial Statements"). These financial
statements are the responsibility of the Companys management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about, whether the
financial statements are free of material misstatements. An audit
includes examining, on the 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.
As required by the Companies (Auditors Report) Order, 2003 ("the
Order") issued by the Central Government in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956 ("the Act"), we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the Order to the extent applicable.
Further to our comments in the Annexure referred to 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, the Company has kept proper books of account as
required by law so far as it appears from our examination of those
books.
(iii) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.
(iv) In our opinion, the Balance Sheet and Profit and Loss Account
dealt with by this report comply with the Accounting Standards referred
to in subjection (3C) of Section 211 of the Companies Act, 1956; except
for Accounting Standard 22 "Accounting for Taxes on Income".
(v) On the basis of written representations received from the Directors
and taken on record by the Board of Directors, we report that none of
the Directors is disqualified as on 31 March 2010 from being appointed
as a Director in terms of clause (g) of sub-section (1) of Section 274
of the Act.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to
a) Note No. 1 of Schedule P regarding going concern assumption of the
Company.
b) Note No. 9 of Schedule P regarding non-consideration of Deferred
Tax Assets (Net) amounting to Rs. 312,235,474
and read with the other notes thereon 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 31 March 2010.
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date.
c) In the case of the Cash Flow Statement, of cash flows for the year
ended on that date.
Annexure to the Auditors Report (Referred to in our Report of even date)
Matters required as per paragraphs 4 and 5 of the Companies (Auditors
Report) Order, 2003
1.(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) The management has not verified all the assets during the year. We
have been informed that no material discrepancies have been noticed on
the assets physically verified by the management.
(c) The Company has not disposed of substantial part of fixed assets
during the year.
2.(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 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. We have
been informed that no material discrepancies between physical stocks
and the book records were noticed on such verification.
3. The Company has not taken loans from / to companies, firms and
other parties listed in the register maintained under Section 301 of
the. Act. The Company has given loan of Rs.21,25,500 to its wholly
owned subsidiary, terms and conditions of loan are prima facie not
prejudicial to the interest of the Company.
4. In our opinion and according to the information and explanations
given to us, there are in general adequate internal control procedures,
commensurate with the size of the Company and the nature of its
business, with regard to purchase of fixed assets, and for sale of
services and we have not observed any major weaknesses in internal
control.
5. According to the information arid explanations given to us, the
Company has not entered into the transactions requiring to be entered
in the Register maintained in pursuance of the Section 301 of the Act.
6. The Company has not accepted deposits from public during the year,
hence the provisions of Sections 58A and 58AAof the Act and the rules
framed thereunder are not applicable.
7. The Company does not have Internal Audit systems.
8. We have been informed that the Central Government has not
prescribed the maintenance of Cost records under Section 209 (I )(d) of
the Act.
9. a) We have been informed that during the year under review,
the Company has regularly deposited all the undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance Scheme, Income Tax, Sales Tax, Wealth Tax,
Service Tax ,Custom Duty, Excise Duty, Cess and any other statutory
dues, wherever applicable. There were no arrears as at 3 lsl March,
2010 for a period of more than six months from the date they became
payable.
b) According to the information and explanations given to us, disputed
statutory dues not deposited are nil.
10. The Companys accumulated losses at the end of the Financial year
are more than fifty per cent of its net worth and the Company has made
cash profit in the current financial year and incurred cash loss in the
previous financial year.
11. The Company has not defaulted in respect of payment of dues to
banks, financial institutions and debenture-holders.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. As informed to us, the Company is not a chit fund or a nid/ii I
mutual benefit fund / society, hence clause (xiii) of paragraph 4 of
the Order is not applicable.
14. In our opinion, the Company has maintained proper records of the
transactions and contracts in respect of investments in shares,
securities, debentures and other investments and timely entries have
been made therein. Except for some cases, all the investments are held
by the Company in its own name.
15. The Company has not given any guarantees for loans taken by other
companies hence, clause (xv) of paragraph 4 of the Order is not
applicable to the Company.
16. The Company has not obtained term loans during the year; hence
clause (xvi) of paragraph 4 of the Order is not applicable to the
Company.
.17. The Company has raised fund on short term basis during the >
year; same is not used for any long term investments.
18. During the year, no preferential allotment of shares has been made
to the parties and companies covered in the register maintained under
Section 301 of the Act.
19. According to the information and explanation given to us, during
the period covered by our audit report, the Company has not issued any
debentures, hence the question of creation of security does not arise.
20. Since the Company has not come out with public issue during the
year, clause (xx) of paragraph 4 of the Order is not applicable.
21. According to the information and explanation given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For Mahendra Kumbhat & Associates
Chartered Accountants
- Firm Regit. No. 105770W
Amar Chand Bagrecha
Partner
Membership No. : 56605
Place: Mumbai
Date : May 31, 2010