Auditor Report of Asahi Songwon Colors Ltd.
Mar 31, 2023
ASAHI SONGWON COLORS LIMITED
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Asahi Songwon Colors Limited ("the Companyâ), which comprise the standalone Balance Sheet as at March 31 2023, the standalone statement of Profit and Loss (including other Comprehensive Income), the standalone statement of changes in Equity and the standalone statement of Cashflows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information ("here in referred as standalone financial statementâ).
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 Companies Act, 2013 ("the Actâ) 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 2023, and its loss and other comprehensive loss, Change in Equity and its cash flows for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibility for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act 2013 and the Rules made there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the Standalone financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
The Company''s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company''s annual report, but does not include the financial statements and our auditor''s report thereon. The other information is expected to be made available to us after the date of this auditor''s report. The Company''s annual report is expected to be made available to us after the date of this auditor''s report.
Our opinion on the Standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.
MANAGEMENTâS AND BOARD OF DIRECTORâS RESPONSIBILITIES FOR STANDALONE FINANCIAL STATEMENTS
The Company''s Management and Board of Directors are responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Actâ) 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. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone financial statements, the Board of Directors is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
AUDITORâS RESPONSIBILITIES FOR THE AUDIT OF STANDALONE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the Standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)0) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management and Board of Directors.
⢠Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting in preparation of standalone financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current year and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Corresponding figures for the year ended 31st March 2022 have been audited by another auditor who expressed an unmodified opinion dated 19th May, 2022 on the financial statements of the Company for the year ended 31st March, 2022. Our opinion on the financial statements is not modified in respect of this matter.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (Including other Comprehensive Income), Standalone Statement of changes in Equity and the Standalone Statement of Cash Flows dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31 March, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2023 from being appointed as a director in terms of Section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure Bâ; and
3. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
a) The Company has disclosed the impact of pending litigations on its financial position in its Standalone financial statements in note 40.
b) The Company did not have any long- term contracts including derivative contracts for which there were any material foreseeable losses.
c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
d) (i) The management has represented that, to the
best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
⢠directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever ("Ultimate Beneficiariesâ) by or on behalf of the Company or
⢠provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ii) The management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall:
⢠directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiariesâ) by or on behalf of the Funding Party or
⢠provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries; and
(iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (d) (i) and (d) (ii) contain any material mis-statement.
e) The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend. As stated in note 48 to the standalone Ind AS financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
4. With respect to the matter to be included in the Auditor''s Report under Section 197(16) of the Act:
In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.
For Talati and Talati LLP
Chartered Accountants FRN: 110758W/W100377
Place: Ahmedabad Date: May 29, 2023 UDIN: 23188150BGQHGJ6466
CA Kushal Talati
Partner
Membership No. 188150
Mar 31, 2018
REPORT ON THE sTANDALONE INDIAN ACCOUNTING standards (ind as) financial statements
We have audited the accompanying standalone Ind AS financial statements of ASAHI SONGWON COLORS LIMITED (âthe Companyâ) which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
managementâs responsibility for the standalone ind as financial statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind As financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income and cash flows of the Company in accordance with the Indian Accounting Standards (IAS) specified under Section 133 of the Act, of the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
auditorâs responsibility
Our responsibility is to express an opinion on these the standalone Ind AS financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under and the Order issued under section 143(11) of the Act.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Ind AS and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018 and its Profit, (including other comprehensive income,) its cash flows and the changes in equity for the year ended on that date.
OTHER MATTER
The comparative financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 1, 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended March 31, 2017 and March 31, 2016 dated July 25, 2017 and August 22, 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by section 143 (3) of the Act, based on our audit, we report, to the extent applicable that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Indian Accounting Standards specified under section 133 of the Act;
e. On the basis of written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
f. With respect to adequacy of Internal Financial Controls over financial reporting of the company and the operating effectiveness of such controls , refer to our separate report in âAnnexure-Aâ.
g. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The company has disclosed the impact of all pending litigations which have impact on its financial position in its Standalone Ind AS financial statements;
(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
(iii) There has been no delay in transferring the amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure-Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
We have audited the internal financial controls over financial reporting of Asahi Songwon Colors Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Standalone Ind AS financial statements of the Company for the year ended on that date.
managementâs responsibility for internal FINANCIAL CONTROLs
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
auditorsâ responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls systems over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs Judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLs OvER FINANCIAL REPORTING
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles , and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
INHERENT LIMITATIONs OF INTERNAL FINANCIAL controls over FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies of procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting was operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reports issued by the Institute of Chartered Accountants of India.
Referred to in paragraph 1 under the heading âReport on Other Legal & Regulatory Requirementsâ section of our report of even date to the members of Asahi Songwon Colors Limited on the standalone Ind AS Financial Statements of the Company as of and for the year ended March 31,2018:
1. In respect of Fixed Assets :
(a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The company has regular programme of physical verification of by which all Fixed Assets are verified in phased manner over period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the company and nature of its assets. According to information and explanation given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanation given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of company.
2. In respect of Inventories:
According to information and explanation given to us, the physical verification of inventory has been conducted at reasonable intervals during the year. In our opinion, the frequency of such physical verification is reasonable. Based on the information and explanations given to us, no material discrepancies were noticed on such physical verification
3. According to information and explanation given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (C) of the Order are not applicable to the Company and hence not commented upon.
4. In our opinion and according to the information and explanations given to us, the Company has not granted loan or made investment or given guarantee or provided security as provided in the section 185 and 186 of the Companies Act, 2013.
5. According to information and explanation given to us, the Company has not accepted any deposits from the public 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 Act and the Companies (Acceptance of Deposit) Rules, 2014 (as amended). Accordingly, the provisions of clause 3 (v) of the Order are not applicable to the Company and hence not commented upon.
6. The Central Government has prescribed maintenance of Cost Records under section 148(1) of the Companies Act, 2013 in respect of manufacturing activities of the Company. We have broadly reviewed the accounts and records of the Company in this connection and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate or complete.
7. According to information and explanations given to us in respect of statutory dues and on the basis of our examination of the books of account, and records:
(a) the Company has generally been regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Goods and Service Tax, Value added Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2018 for a period of more than six months from the date on when they become payable.
(b) According to the information and explanations given to us, there are no material dues of income tax, sales tax, and service tax value added tax, wealth tax, duty of customs, Goods and Service Tax and Cess which have not been deposited with the appropriate authorities on account of any dispute.
8. According to the information and explanations given by the management,, the Company has not defaulted in repayment of loan or borrowing to financial institution, bank, government or dues to debenture holders.
9. According to the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term loans. According to information and explanation given to us the term Loans raised during the year were,prima facie,utilized by the Company for the purpose for which they were raised.
10. According to the information and explanations given by the management, we report that no fraud by the Company or no fraud on the company by its officers or employees of the Company has been noticed or reported during the year.
11. According to the information and explanations given to us, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act.
12. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii) of the Order are not applicable to the Company.
13. In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Standalone Ind AS Financial Statements as required by the applicable Indian accounting standards.
14. According to the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
15. According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16. In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
For Mahendra N. shah & Co
Chartered Accountants
ICAI FRN 105775W
Chirag M. shah
Place: Ahmedabad Partner
Date: 29/05/2018 Membership No. 045706
Mar 31, 2015
We have audited the accompanying financial statements of Asahi Songwon
Colors Limited("the Company"), which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the financial Statements The Company's
Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 ("the Act") with respect to the
preparation of these financial statements, that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies(Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; 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 financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the 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 controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
(b) in the case of the Statement of Profit and Loss, of the 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, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, 2013, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order to the extent applicable.
2. As required by Section 143(3) of the Companies Act, 2013, 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards specified
under section 133 of the Companies Act, 2013, read with Rule 7 of
Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of section 164(2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending
litigations on its financial position in its financial statements.
(ii) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to Independent Auditors' Report
Referred to in paragraph 1 of the Auditors' Report of even date to the
members of Asahi Songwon Colors limited on the financial statements as
at and for the year ended 31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets, according to the practice of the
company, are physically verified by the management at reasonable
intervals, in phased verification programme, which in our opinion, is
reasonable looking to the size of the Company and the nature of its
business. As explained to us, on such physical verification of fixed
assets, no major discrepancies have been noticed.
2. (a) During the year, the inventories have been physically
verified, by the Management at regular intervals, except for the stock
lying with the outside parties, which have, however, been confirmed by
them. In our opinion, the frequency of verification is reasonable.
(b) In our opinion and according to the information and
explanations given to us, the procedure of the 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) On the basis of our examination of records of the inventories, we
are of the opinion that, the Company has maintained proper records of
inventories. As explained to us, no material discrepancies were noticed
on physical verification of inventories as compared to the book
records.
3. As per the information and explanations given to us, the Company
has not granted any loans, secured or unsecured loans to Companies,
firms or other parties listed in the register maintained under Section
189 of the Companies Act, 2013.
4. In our opinion and as per 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 with regards to
purchase of inventory and fixed assets and sale of goods and services.
During the course of our audit, no major weaknesses in the internal
control system have been noticed and there is no continuing failure in
the same.
5. According to the information and explanations given to us, as the
company has not accepted any deposits from the public, Therefore the
provision of clause(v) of paragraph 3 of the CARO 2015 are not
applicable to the Company.
6. According to the information and explanation provided for the
provisions of clause 3(vi) of the Order are not applicable to the
company as the company is not covered by the Companies (Cost Records
and Audit) Rules, 2014. The company does maintain cost records in
accounting system as per financial data, however the detailed
examination has not been made to determine whether they are sufficient
accurate or correct.
7. (a) In our opinion and as per the information and explanations
given to us, the Company is generally regular in depositing undisputed
statutory dues including provident fund, employees state insurance,
income tax, sales tax, service tax, Value added Tax, custom duty,
excise duty, Investor Education and Protection Fund and cess and other
statutory dues, if any, with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax,
Service Tax, Custom Duty and Excise Duty / Cess were in arrears, as at
31st March, 2015 for a period of more than six months from the date of
they become payable.
(b) The disputed dues on account of income tax, which have remained
unpaid as on 31.03.2015 are as follows:
Name of
the
Statute Nature of Amount of Demand Year to
Which forum where
Dispute is Pending
Dues net of Deposits Amount
Relates
Income
]Tax Act,
1961 Income Tax 554,840 2001-2002 The said Demand is
outstanding because
of non disposal of
the application
filed u/s 154
Income
Tax Act,
1961 Income Tax 1,344,550 2002-2003 Income Tax
Appellate Tribunal
Ahmedabad
Income
Tax Act,
1961 Income Tax 2,755,672 2004-2005 Commissioner of
Income Tax (Appeal)
Income
Tax Act,
1961 Income Tax 151,555 2006-2007 Commissioner of
Income Tax (Appeal)
Income
Tax Act,
1961 Income Tax 953,530 2008-2009 Commissioner of
Income Tax (Appeal)
Income
Tax Act,
1961 Income Tax 793,947 2009-2010 Commissioner of
Income Tax (Appeal)
Income
Tax Act,
1961 Income Tax 16,470 2010-2011 Income Tax
Appellate Tribunal
Ahmedabad
Income
Tax Act,
1961 Income Tax 272,520 2011-2012 Income Tax
Appellate Tribunal
Ahmedabad
(c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules there under has been
transferred to such fund within time.
8. The Company neither has any accumulated losses at the end of the
financial year as at 31st March 2015, nor has it incurred any cash
losses in the current financial year ended on that date and in the
immediately preceding financial year.
9. In our opinion and as per the information and explanations given to
us, the Company has not defaulted in repayment of dues to Banks and
Financial Institutions and debenture holders.
10. 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.
11. According to the information and explanations given to us and
based on the verification the company has availed disbursement of
sanctioned Term Loan and have been applied for the purposes for which
they were raised.
12. According to the information and explanations given to us and to
the best of our knowledge and belief, no fraud on or by Company was
noticed or reported in the course of our audit during the year.
For, Trushit Chokshi and Associates
Chartered Accountants
firm Registration No: 111072W
Trushit Chokshi
Place: Ahmedabad Proprietor
Date: 12/08/2015 Membership No.: 040847
Mar 31, 2014
We have audited the accompanying financial statements of Asahi Songwon
Colors Limited ("the Company"), which comprise the Balance Sheet as at
31st March, 2014, 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 fow 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") read with
General Circular 15/2013 dated September 13, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
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 the
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 the 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 the 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 the Management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is suffcient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 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 of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, 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 Companies Act, 1956, 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, Statement of profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, Statement of profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 read with
the General Circular 15/2013 dated September 13, 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act,
2013; and
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 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 Auditors'' Report
Referred to in paragraph 1 of the Auditors'' Report of even date to the
members of Asahi Songwon Colors Limited on the financial statements as
at and for the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company has maintained proper records showing
full particulars including quantitative details and situation of its
fixed assets.
(b) As explained to us, fixed assets, according to the practice of the
company, are physically verifed by the management at reasonable
intervals, in phased verifcation programme, which in our opinion, is
reasonable looking to the size of the Company and the nature of its
business. As explained to us, on such physical verifcation of fixed
assets, no major discrepancies have been noticed.
(c) The Company has not disposed off any substantial part of the fixed
assets during the year and the going concern status of the company is
not affected.
2. (a) During the year, the inventories have been physically
verifed, by the Management at regular intervals, except for the stock
lying with the outside parties, which have, however, been confirmed by
them. In our opinion, the frequency of verifcation is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedure of the physical verifcation 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) On the basis of our examination of records of the inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. As explained to us, no material discrepancies were noticed
on physical verifcation of inventories as compared to the book records.
3. (a) As per the information and explanations given to us,
the Company has not granted any loans, secured or unsecured loans to
Companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly clauses 3(b),
3(c) and 3(d) of Paragraph 4 of the Order are not applicable to the
company for the current year.
(b) As per the information and explanations given to us, the Company
has not taken any loans, secured or unsecured loans from Companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956. Accordingly clauses 3(f) and 3(g) of
Paragraph 4 of the Order are not applicable to the company for the
current year.
4. In our opinion and as per 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 with regards to
purchase of inventory and fixed assets and sale of goods and services.
During the course of our audit, no major weaknesses in the internal
control system have been noticed and there is no continuing failure in
the same.
5. a) Based on the audit procedure applied by us and according
to the information and explanations and representations given to us by
the management, we are of the opinion that the transactions in which
directors were interested and which need to be entered into the
register to be maintained under Section 301 of the Companies Act, 1956
have been so entered.
b) In our opinion and as per the information and explanations given to
us, the transaction made in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956 exceeding the value of rupees five lakhs in respect of any
party during the year is reasonable having regard to the prevailing
market prices at the relevant time.
6. In our opinion and as per the information and explanations given to
us, as the company has not accepted any deposits from the public,
paragraph 4(vi) of the order is not applicable to the Company.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of business.
8. According to the information and explanations given to us, the
Central Government has prescribed maintenance of cost records under
Section 209(1) (d) of the Companies Act, 1956 in respect of
manufacturing activities of the Company. We have broadly reviewed the
accounts and records of the Company in this connection and are of the
opinion, that prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, carried out a detailed
examination of the same.
9. (a) In our opinion and as per the information and explanations
given to us, the Company is generally regular in depositing undisputed
statutory dues including provident fund, employees state insurance,
income tax, sales tax, service tax, value added tax, custom duty,
excise duty and cess and other statutory dues, if any, with the
appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax,
Service Tax, Custom Duty and Excise Duty / Cess were in arrears, as at
31st March, 2014 for a period of more than six months from the date of
they become payable.
(c) The disputed dues on account of income tax which have remained
unpaid as on 31/03/2014 are as follows:
Name of the Statute Nature of Dues Amount of Demand Year to Which
net of Deposits Amount Relates
Income Tax Act, 1961 Income Tax 554,840 2001-2002
Income Tax Act, 1961 Income Tax 1,344,550 2002-2003
Income Tax Act, 1961 Income Tax 1,607,120 2003-2004
Income Tax Act, 1961 Income Tax 4,649,710 2004-2005
Income Tax Act, 1961 Income Tax 151,555 2006-2007
Income Tax Act, 1961 Income Tax 117,670 2008-2009
Income Tax Act, 1961 Income Tax 644 2009-2010
Income Tax Act, 1961 Income Tax 16,470 2010-2011
Income Tax Act, 1961 Income Tax 2,72,520 2011-2012
Name of the Statute Forum where Dispute is Pending
Income Tax Act, 1961 The said Demand is outstanding because of non
disposal of the application fled u/s 154
Income Tax Act, 1961 Income Tax Appellate Tribunal Ahmedabad
Income Tax Act, 1961 Income Tax Appellate Tribunal Ahmedabad
Income Tax Act, 1961 Commissioner of Income Tax (Appeal)
Income Tax Act, 1961 Commissioner of Income Tax (Appeal)
Income Tax Act, 1961 Commissioner of Income Tax (Appeal)
Income Tax Act, 1961 Commissioner of Income Tax (Appeal)
Income Tax Act, 1961 Commissioner of Income Tax (Appeal)
Income Tax Act, 1961 Commissioner of Income Tax (Appeal)
10. The Company has neither accumulated losses at the end of the
financial year as at 31st March 2014, nor has it incurred cash losses in
the current financial year ended on that date and in the immediately
preceding financial year.
11. In our opinion and as per the information and explanations given
to us, the Company has not defaulted in repayment of dues to Banks,
Financial Institutions and Debenture Holders.
12. In our opinion and as per the information and explanations given
to us, the Company has not granted any loans or advances on the basis
of security by way of pledge of shares, debentures and other
securities.
13. The Company is not a Chit Fund, Nidhi, Mutual benefit Fund and / or
a Society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
14. In our opinion the Company has maintained proper records of the
transactions and contracts of the investments dealt in by the Company
and timely entries have been made therein. The investments made by the
company are held 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. According to the information and explanations given to us, the
term loans were applied by the Company for the purpose for which they
were obtained.
17. According to the information and explanations given to us, and on
verifcation of Cash fow and on an overall examination of the balance
sheet of the company, in our opinion, there are no funds raised on
short-term basis used for long-term investments.
18. According to the information and explanations given to us, during
the period covered by our audit, the Company has not made preferential
allotment of equity shares to parties and companies covered in the
register maintained under Section 301 of the Companies Act, 1956.
19. On the basis of the records and documents examined by us, the
Company has not issued any debenture during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us and to
the best of our knowledge and belief, no fraud on or by Company was
noticed or reported in the course of our audit during the year.
For, Trushit Chokshi and Associates
Chartered Accountants
Firm Registration No : 111072W
Trushit Chokshi
Place : Ahmedabad Proprietor
Date : 12/08/2014 Membership No. : 040847
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Asahi Songwon
Colors Limited ("the Company"), which comprise the Balance Sheet as at
31st March, 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 flow of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
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 the 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 the 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 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 financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(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 of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets, according to the practice of the
company, are physically verified by the management at reasonable
intervals, in phased verification programme, which in our opinion, is
reasonable looking to the size of the Company and the nature of its
business. As explained to us, on such physical verification of fixed
assets, no major discrepancies have been noticed.
(c) The Company has not disposed off any substantial part of the fixed
assets during the year and the going concern status of the company is
not affected.
2. (a) During the year, the inventories have been physically verified,
by the Management at regular intervals, except for the stock lying with
the outside parties, which have, however, been confirmed by them. In
our opinion, the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedure of the 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) On the basis of our examination of records of the inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. As explained to us, As explained to us, no material
discrepancies were noticed on physical verification of inventories as
compared to the book records.
3. (a) As per the information and explanations given to us, the
Company has not granted any loans, secured or unsecured loans to
Companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly clauses
3(b), 3(c) and 3(d) of Paragraph 4 of the Order are not applicable to
the company for the current year.
(b) As per the information and explanations given to us, the Company
has not taken any loans, secured or unsecured loans from Companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956. Accordingly clauses 3(f) and 3(g) of
Paragraph 4 of the Order are not applicable to the company for the
current year.
4. In our opinion and as per 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 with regards to
purchase of inventory and fixed assets and sale of goods and services.
During the course of our audit, no major weaknesses in the internal
control system have been noticed and there is no continuing failure in
the same.
5. a) Based on the audit procedure applied by us and according to the
information and explanations and representations given to us by the
management, we are of the opinion that the transactions in which
directors were interested and which need to be entered into the
register to be maintained under Section 301 of the Companies Act, 1956
have been so entered.
b) In our opinion and as per the information and explanations given to
us, the transaction made in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956 exceeding the value of rupees five lakhs in respect of any
party during the year is reasonable having regard to the prevailing
market prices at the relevant time.
6. In our opinion and as per the information and explanations given to
us, as the company has not accepted any deposits from the public,
paragraph 4(vi) of the order is not applicable to the Company.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of business.
8. According to the information and explanations given to us, the
Central Government has prescribed maintenance of cost records under
Section 209(1) (d) of the Companies Act, 1956 in respect of
manufacturing activities of the Company. We have broadly reviewed the
accounts and records of the Company in this connection and are of the
opinion, that prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, carried out a detailed
examination of the same.
9. (a) In our opinion and as per the information and explanations
given to us, the Company is generally regular in depositing undisputed
statutory dues including provident fund, employees state insurance,
income tax, sales tax, service tax, value added tax, custom duty,
excise duty and cess and other statutory dues, if any, with the
appropriate authorities. No undisputed amounts payable in respect
thereof were outstanding at the year end for a period of more than six
months from the date they became payable.
(b) There are no amounts in respects of Sales Tax, VAT, Excise Duty,
Custom and Wealth Tax and cess that have not been deposited with the
appropriate authorities on account of any dispute.
(c) The disputed dues on account of income tax which have remained
unpaid as on 31/03/2013 are as follows.
Name of the
Statute Nature of
Dues Amount of
Demand Year to Which
net of Deposits Amount Relates
Income Tax Act,
1961 Income Tax 554,840 2001-2002
Income Tax Act,
1961 Income Tax 1,344,550 2002-2003
Income Tax Act,
1961 Income Tax 1,607,120 2003-2004
Income Tax Act,
1961 Income Tax 4,649,711 2004-2005
Income Tax Act,
1961 Income Tax 151,555 2006-2007
Income Tax Act,
1961 Income Tax 117,670 2008-2009
Income Tax Act,
1961 Income Tax 644 2009-2010
Income Tax Act,
1961 Income Tax 16,470 2010-2011
Income Tax Act,
1961 Income Tax 2,72,520 2011-2012
Name Forum where Dispute is Pending
Income Tax Act,
1961 The said Demand is outstanding because of
non disposal of the application filed u/s 154
Income Tax Act,
1961 Income Tax Appellate Tribunal Ahmedabad
Income Tax Act,
1961 Income Tax Appellate Tribunal Ahmedabad
Income Tax Act,
1961 Commissioner of Income Tax (Appeal)
Income Tax Act,
1961 Commissioner of Income Tax (Appeal)
Income Tax Act,
1961 Commissioner of Income Tax (Appeal)
Income Tax Act,
1961 Commissioner of Income Tax (Appeal)
Income Tax Act,
1961 Commissioner of Income Tax (Appeal)
Income Tax Act,
1961 Commissioner of Income Tax (Appeal)
10. The Company has neither accumulated losses at the end of the
financial year as at 31st March 2013, nor has it incurred cash losses
in the current financial year ended on that date and in the immediately
preceding financial year.
11. In our opinion and as per the information and explanations given
to us, the Company has not defaulted in repayment of dues to Banks,
Financial Institutions and Debenture Holders.
12. In our opinion and as per the information and explanations given
to us, the Company has not granted any loans or advances on the basis
of security by way of pledge of shares, debentures and other
securities.
13. The Company is not a Chit Fund, Nidhi, Mutual Benefit Fund and /
or a Society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
14. In our opinion the Company has maintained proper records of the
transactions and contracts of the investments dealt in by the Company
and timely entries have been made therein. The investments made by the
company are held 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. According to the information and explanations given to us, the
term loans were applied by the Company for the purpose for which they
were obtained.
17. According to the information and explanations given to us, and on
verification of Cash flow and on an overall examination of the balance
sheet of the company, in our opinion, there are no funds raised on
short-term basis used for long-term investments.
18. According to the information and explanations given to us, during
the period covered by our audit, the Company has not made preferential
allotment of equity shares to parties and companies covered in the
register maintained under Section 301 of the Companies Act, 1956.
19. On the basis of the records and documents examined by us, the
Company has not issued any debenture during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us and to
the best of our knowledge and belief, no fraud on or by Company was
noticed or reported in the course of our audit during the year.
For, Trushit Chokshi & Associates
Chartered Accountants
Firm Registration No : 111072W
Trushit Chokshi
Place : Ahmedabad (Proprietor)
Date : 19/06/2013 Membership No. : 040847
Mar 31, 2012
1. We have audited the attached Balance Sheet of ASAHI SONGWON COLORS
LIMITED as at 31st March 2012 (Ãthe Company") and also the Statement
of Profit and Loss for the year ended on that date and the Cash Flow
Statement of the Company for the year ended on that date, both annexec
thereto (together referred to as Ãfinancial 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.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in 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.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India, in terms of Section 227(4A) of the
Companies Act, 1956; we give in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said Order, to the
extent applicable to the Company.
4. Further to our comments in the Annexure referred to in paragraph 3,
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 Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956;
(e) On the basis of written representation 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) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements, read
together with the notes thereon, give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India;
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(iii) In the case of Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
Annexure to the Auditors' Report
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITOR'S REPORT OF EVEN
DATE TO THE MEMBERS OF THE ASAHI SONGWON COLORS LIMITED ON THE ACCOUNTS
FOR THE YEAR ENDED ON 31st MARCH 2012.
On the basis of such checks of books and records as we considered
appropriate and in terms of the information and explanations given to
us during course of our audit, we state that:
1. a) The Company has maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
b) As explained to us, fixed assets, according to the practice of the
company, are physically verified by the management at reasonable
intervals, in phased verification programmed, which in our opinion, is
reasonable looking to the size of the Company and the nature of its
business. As explained to us, on such physical verification of fixed
assets, no major discrepancies have been noticed.
c) The Company has not disposed off any substantial part of the fixed
assets during the year and the going concern status of the company is
not affected.
2. a) During the year, the inventories have been physically
verified, by the Management and the Internal Auditors at regular
intervals, except for the stock lying with the outside parties, which
have, however, been confirmed by them. In our opinion, the frequency of
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedure of the physical verification of inventories
followed by the Management and Internal Auditors are reasonable and
adequate in relation to the size of the company and the nature of its
business.
c) On the basis of our examination of records of the inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. Discrepancies noticed on the physical verification of the
inventories as compared to the book records were not material and have
been properly dealt with in the books of accounts.
3. a) As per the information and explanations given to us, the
Company has not granted any loans, secured or unsecured loans to
Companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly clauses 3(b),
3(c) and 3(d) of Paragraph 4 of the Order are not applicable to the
company for the current year.
b) As per the information and explanations given to us, the Company has
not taken any loans, secured or unsecured
loans from Companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly
clauses 3(f) and 3(g) of Paragraph 4 of the Order are not applicable to
the company for the current year.
4. In our opinion and as per 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 with regards to
purchase of inventory and fixed assets and sale of goods and services.
During the course of our audit, no major weaknesses in the internal
control system have been noticed and there is no continuing failure in
the same.
5. a) Based on the audit procedure applied by us and
according to the information and explanations and representations given
to us by the management, we are of the opinion that the transactions in
which directors were interested and which need to be entered into the
register to be maintained under Section 301 of the Companies Act, 1956
have been so entered.
b) In our opinion and as per the information and explanations given to
us, the transaction made in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956 exceeding the value of rupees five lakhs in respect of any
party during the year is reasonable having regard to the prevailing
market prices at the relevant time.
6. In our opinion and as per the information and explanations given to
us, as the company has not accepted any deposits from the public,
paragraph 4(vi) of the order is not applicable.
7. On the basis of internal audit reports broadly reviewed by us, we
are of the opinion that the coverage of internal audit functions
carried out by the internal auditor is commensurate with the size and
the nature of business.
8. As per the information and explanations given to us, the company is
not required to maintain the books of accounts pursuant to the rules
made by the central government, for the maintenance of cost records
prescribed under section 209 (1) (d) of the Companies Act,1956.
9. a) In our opinion and as per the information and
explanations given to us, the Company is generally regular in
depositing undisputed statutory dues including
provident fund, employees state insurance, income tax, sales tax,
service tax, Value added Tax, custom duty, excise duty and cess and
other statutory dues, if any, with the appropriate authorities.
b) As at 31st March, 2012 according to the records of the Company,
following are the particulars of disputed dues on account of Sales Tax,
VAT, Excise Duty, Custom and Income Tax.
Name
of the Nature of Amount
of Demand Year to
Which Forum where
statute Dues net of
Deposits Amount
Relates Dispute is
Pending
Income
Tax Act,
1961 Income
Tax 554,840 2001-2002 The said Demand is
outstanding because of
non disposal of the
application filed u/s
154
Income
Tax Act,
1961 Income
Tax 1,344,550 2002-2003 Income Tax Appellate
Tribunal Ahmedabad
Income
Tax Act,
1961 Income
Tax 1,607,120 2003-2004 Income Tax
Appellate Tribunal
Ahmedabad
Income
Tax Act,
1961 Income
Tax 4,649,711 2004-2005 Commissioner of
Income Tax (Appeal)
Income
Tax Act,
1961 Income
Tax 151,555 2006-2007 Commissioner of
Income Tax (Appeal)
Income
Tax Act,
1961 Income
Tax 1 17,670 2008-2009 Commissioner of Income
Tax (Appeal)
Income
Tax Act,
1961 Income
Tax 644 2009-2010 Commissioner of Income
Tax (Appeal)
Income
Tax Act,
1961 Income
Tax 3,767,096 2010-2011 The said Demand is
outstanding because of
non disposal of the
application filed u/s 154
Income
Tax Act,
1961 Income
Tax 2,186,522 2011-2012 The said Demand is
outstanding because of
non disposal of the
application filed u/s 154
10. The Company has neither accumulated losses at the end of the
financial year as at 31st March 2012, nor has it incurred cash losses
in the current financial year ended on that date and in the immediately
preceding financial year.
11. In our opinion and as per the information and explanations given
to us, the Company has not defaulted in repayment of dues to Banks and
Financial Institutions.
12. In our opinion and as per the information and explanations given
to us, the Company has not granted any loans or advances on the basis
of security by way of pledge of shares, debentures and other
securities.
13. The Company is not a Chit Fund, Nidhi, Mutual Benefit Func and /
or a Society.
14. In our opinion the Company has maintained proper records of the
transactions and contracts of the investments dealt in by the Company
and timely entries have been made therein. The investments made by the
company are held 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. According to the information and explanations given to us, the
term loans were applied by the Company for the purpose for which they
were obtained.
17. According to the information and explanations given to us, and on
verification of Cash flow and on an overall examination of the balance
sheet of the company, in our opinion, there are no funds raised on
short-term basis used for long-term investments.
18. According to the information and explanations given to us, during
the period covered by our audit, the Company has not made preferential
allotment of equity shares to parties and companies covered in the
register maintained under Section 301 of the Companies Act, 1956.
19. On the basis of the records and documents examined by us, the
Company has not issued any debenture during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us and to
the best of our knowledge and belief, no fraud on or by Company was
noticed or reported in the course of our audit during the year.
For, Trushit Chokshi & Associates
Chartered Accountants
Firm Registration No. 1 11072W
Trushit Chokshi
Place: Ahmedabad Proprietor
Date: 13.08.2012 Membership No. 040847
Mar 31, 2011
1. We have audited the attached Balance Sheet of ASAHI SONGWON COLORS
LIMITED as at 31st March 2011, and also the Profit and Loss Account for
the year ended on that date and the Cash Flow Statement for the year
ended on that date, annexed thereto. These financial statements are the
responsibility of the Company's Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in 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.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India, in terms of Section 227(4A) of the
Companies Act, 1956; we give in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said Order, to the
extent applicable to the Company.
4. Further to our comments in the Annexure referred to in paragraph 3,
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, 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, the Profit and Loss Account and
cash flow statement dealt with by this report are in compliance with
the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956;
(e) On the basis of written representation received from the directors,
as on 31st March ,2011 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2011 from being appointed as a director in terms of Clause (g) of
sub-section 1 of Section 274 of the 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
significant accounting policies and 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, 2011;
(ii) In the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(iii) In the case of Cash-Flow Statement, of the Cash-Flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITOR'S REPORT OF EVEN
DATE TO THE MEMBERS OF THE ASAHI SONGWON COLORS LIMITED ON THE ACCOUNTS
FOR THE YEAR ENDED ON 31st March 2011. On the basis of such checks of
books and records as we considered appropriate and in terms of the
information and explanations given to us during course of our audit, we
state that:
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, fixed assets, according to the practice of the
company, are physically verified by the management at reasonable
intervals, in phased verification programme, which in our opinion, is
reasonable looking to the size of the Company and the nature of its
business. As explained to us, on such physical verification of fixed
assets, no major discrepancies have been noticed.
c) The Company has not disposed off any substantial part of the fixed
assets during the year and the going concern status of the company is
not affected.
2. a) During the year, the inventories have been physically verified,
by the Management and the Internal Auditors at regular intervals,
except for the stock lying with the outside parties, which have,
however, been confirmed by them. In our opinion, the frequency of
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedure of the physical verification of inventories
followed by the Management and Internal Auditors are reasonable and
adequate in relation to the size of the company and the nature of its
business.
c) On the basis of our examination of records of the inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. Discrepancies noticed on the physical verification of the
inventories as compared to the book records were not material and have
been properly dealt with in the books of accounts.
3. a) As per the information and explanations given to us, the Company
has not granted any loans, secured or unsecured loans to Companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956. Accordingly clauses 3(b), 3(c) and
3(d) of Paragraph 4 of the Order are not applicable to the company for
the current year. b) As per the information and explanations given to
us, the Company has not taken any loans, secured or unsecured loans
from Companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly
clauses 3(f) and 3(g) of Paragraph 4 of the Order are not applicable to
the company for the current year.
4. In our opinion and as per 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 with regards to
purchase of inventory and fixed assets and sale of goods and services.
During the course of our audit, no major weaknesses in the internal
control system have been noticed and there is no continuing failure in
the same.
5. a) Based on the audit procedure applied by us and according to the
information and explanations and representations given to us by the
management, we are of the opinion that the transactions in which
directors were interested and which need to be entered into the
register to be maintained under Section 301 of the Companies Act, 1956
have been so entered. b) In our opinion and as per the information and
explanations given to us, the transaction made in pursuance of
contracts or arrangements entered in the register maintained under
Section 301 of the Companies Act, 1956 exceeding the value of rupees
five lakhs in respect of any party during the year is reasonable having
regard to the prevailing market prices at the relevant time.
6. In our opinion and as per the information and explanations given to
us, as the company has not accepted any deposits from the public,
paragraph 4(vi) of the order is not applicable.
7. On the basis of internal audit reports broadly reviewed by us, we
are of the opinion that the coverage of internal audit functions
carried out by the internal auditor is commensurate with the size and
the nature of business.
8. As per the information and explanations given to us, the company is
not required to maintain the books of accounts pursuant to the rules
made by the central government, for the maintenance of cost records
prescribed under section 209 (1) (d) of the Companies Act,1956.
9. a) In our opinion and as per the information and explanations given
to us, the Company is generally regular in depositing undisputed
statutory dues including provident fund, employees state insurance,
income tax, sales tax, service tax, Value added Tax, custom duty,
excise duty and cess and other statutory dues, if any, with the
appropriate authorities. b) As at 31st March, 2011 according to the
records of the Company, following are the particulars of disputed dues
on account of Sales Tax, VAT, Excise Duty, Custom and Income Tax.
Name of the Nature of Amount of Year to Which Forum where
statute Dues Demand net
of Amount relates Dispute is Pending
Deposits
(Rs. In Lacs)
Income Tax
Law Income Tax 17.57 2000-2001 Income Tax
Appellate
Tribunal Ahmedabad
Income Tax Law Income Tax 3.78 2001-2002 Commissioner Of
Income Tax(Appeal)
Income Tax Law Income Tax 13.02 2001-2002 High Court of
Gujarat
Income Tax Law Income Tax 11.81 2002-2003 Income Tax
Appellate
Tribunal Ahmedabad
Income Tax Law Income Tax 16.07 2003-2004 Commissioner Of
Income Tax(Appeal)
Income Tax Law Income Tax 37.33 2004-2005 Income Tax
Appellate
Tribunal Ahmedabad
10. The Company has neither accumulated losses at the end of the
financial year as at 31st March 2011, nor has it incurred cash losses
in the current financial year ended on that date and in the immediately
preceding financial year.
11. In our opinion and as per the information and explanations given
to us, the Company has not defaulted in repayment of dues to Banks and
Financial Institutions.
12. In our opinion and as per the information and explanations given
to us, the Company has not granted any loans or advances on the basis
of security by way of pledge of shares, debentures and other
securities.
13. The Company is not a Chit Fund, Nidhi, Mutual Benefit Fund and /
or a Society.
14. In our opinion the Company has maintained proper records of the
transactions and contracts of the investments dealt in by the Company
and timely entries have been made therein. The investments made by the
company are held 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. According to the information and explanations given to us, the
term loans were applied by the Company for the purpose for which they
were obtained.
17. According to the information and explanations given to us, and on
verification of Cash flow and on an overall examination of the balance
sheet of the company, in our opinion, there are no funds raised on
short-term basis used for long-term investments.
18. The Company, during the year under review, has not made any
preferential allotment of shares.
19. On the basis of the records and documents examined by us, the
Company has not issued any debenture during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us and to
the best of our knowledge and belief, no fraud on or by Company was
noticed or reported in the course of our audit during the year.
For, Trushit Chokshi and Associates
Chartered Accountants
Firm No. : 111072W
(Trushit Chokshi)
Place :Ahmedabad Proprietor
Date :06/07/2011 Membership No. 40847
Mar 31, 2010
1. We have audited the attached Balance Sheet of ASAHI SONGWON COLORS
LIMITED as at 31st March 2010, and also the Profit and Loss Account for
the year ended on that date 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 statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in 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.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India, in terms of Section 227(4A) of the
Companies Act, 1956; we give in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said Order, to the
extent applicable to the Company.
4. Further to our comments in the Annexure referred to in paragraph 3,
we report that :-
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance sheet, the Profit and Loss Account and
cash flow statement dealt with by this report are in compliance with
the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956;
(e) On the basis of Written representation received from the directors,
as on 31st 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
Significant Accounting Policies and 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 case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(iii) In the case of Cash-Flow Statement, of the Cash-Flow for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS REPORT OF EVEN
DATE TO THE MEMBERS OF THE ASAHI SONGWON COLORS LIMITED ON THE ACCOUNTS
FOR THE YEAR ENDED ON 31st March 2010. On the basis of such checks of
books and records as we considered appropriate and in terms of the
information and explanations given to us during course of our audit, we
state that:
1. a) The Company has maintained proper records showing full
particulars including quantitative details and
situation of fixed assets.
b) As explained to us, fixed assets, according to the practice of the
company, are physically verified by the management at reasonable
intervals, in phased verification programme, which in our opinion, is
reasonable looking to the size of the Company and the nature of its
business. As explained to us, on such physical verification of fixed
assets, no major discrepancies have been noticed.
c) The Company has not disposed off any substantial part of the fixed
assets during the year and the going concern status of the company is
not affected.
2. a) During the year, the inventories have been physically verified,
by the Management and the Internal
Auditors at regular intervals, except for the stock lying with the
outside parties, which have, however, been confirmed by them. In our
opinion, the frequency of verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedure of the physical verification of inventories
followed by the Management and Internal Auditors are reasonable and
adequate in relation to the size of the company and the nature of its
business.
c) On the basis of our examination of records of the inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. Discrepancies noticed on the physical verification of the
inventories as compared to the book records were not material and have
been properly dealt with in the books of accounts.
3. a) As per the information and explanations given to us, the Company
has not granted any loans, secured
or unsecured loans to Companies, firms or other parties listed in the
register maintained under Section 301 of the Companies act, 1956.
Accordingly clauses 3(b), 3(c) and 3(d) of Paragraph 4 of the Order are
not applicable to the company for the current year. b) As per the
information and explanations given to us, the Company has not taken any
loans, secured or unsecured loans from Companies, firms or other
parties listed in the register maintained under Section 301 of the
Companies act, 1956. Accordingly clauses 3(f) and 3(g) of Paragraph 4
of the Order are not applicable to the company for the current year.
4. In our opinion and as per 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 with regards to purchase of
inventory and fixed assets and sale of goods and services. During the
course of our audit, no major weaknesses in the internal control system
have been noticed and there is no continuing failure in the same.
5. a) Based on the audit procedure applied by us and according the
information and explanations and
representations given to us by the management, we are of the opinion
that the transactions in which directors were interested and which need
to be entered into the register to be maintained under Section 301 of
the Companies Act. 1956 have been so entered. b) In our opinion and as
per information and explanations given to us, the transaction made in
pursuance of contracts or arrangements entered in the register
maintained under Section 301 of the Companies Act. 1956 exceeding the
value of rupees five lakhs in respect of any party during the year is
reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and as per information and explanations given to us,
as the company has not accepted any deposits from the public, paragraph
4(vi) of the order is not applicable.
7. On the basis of internal audit reports broadly reviewed by us, we
are of the opinion that the coverage of internal audit functions
carried out by the internal audit department constituted by the
Management is commensurate with the size and the nature of business.
8. As per information and explanation given to us, the company is not
required to maintain the books of accounts pursuant to Rules made by
the Central Government, for the maintenance of cost records prescribed
under section 209 (l)(d) of the Companies Act, 1956.
9. a) In our opinion and as per information and explanations given to
us, the Company is generally regular in depositing undisputed statutory
dues including provident fund, employees state insurance, income tax,
sales tax, service tax, Value added Tax, custom duty, excise duty and
cess and other statutory dues, if any, with the appropriate
authorities. b) As at 31st March, 2010 according to the records of the
Company, following are the particulars of disputed dues on account of
Sales Tax, Excise Duty, Custom and Income Tax.
Name of the Nature of Amount of Period to Which Forum where
statute Dues Demand net Amount relates Dispute isPending
of Deposits
(Rs. In Lacs)
Income Tax Law Income Tax 17.57 2000-2001 Income Tax Appellate
Tribunal Ahmedabad
Income Tax Law Income Tax 3.78 2001-2002 Commissioner Of
Income Tax (Appeal)
Income Tax Law Income Tax 13.02 2001-2002 High Court ofGujarat
Income Tax Law Income Tax 11.81 2002-2003 Income Tax Appellate
Tribunal Ahmedabad
Income Tax Law Income Tax 16.07 2003-2004 Commissioner Of
Income Tax (Appeal)
Income Tax Law Income Tax 37.33 2004-2005 Income Tax Appellate
Tribunal Ahmedabad
Income Tax Law Income Tax 2.81 2006-2007 Commissioner Of Income
Tax (Appeal VI)
10 The Company has neither accumulated losses at the end of the
financial year as at 31st March 2010, nor has it incurred cash losses
in the current financial year ended on that date and in the immediately
preceding financial year.
11 In our opinion and as per information and explanations given to us,
the Company has not defaulted in repayment of dues to Banks and
Financial Institutions.
12 In our opinion and as per information and explanations given to us,
the Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13 The Company is not a Chit Fund, Nidhi, Mutual Benefit Fund and / or
a Society.
14 In our opinion the Company has maintained proper records of the
transactions and contracts of the investments dealt in by the Company
and timely entries have been made therein. The investments made by the
company are held 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 According to the information and explanations given to us, the term
loans were applied by the Company for the purpose for which they were
obtained.
17 According to the information and explanations given to us, and on
verification of Cash flow and on an overall examination of the balance
sheet of the company, in our opinion, there are no funds raised on
short- term bases used for long-term investments.
18 The Company, during the year under review, has not made any
preferential allotment of shares.
19 On the basis of the records and documents examined by us, the
Company has not issued any debenture during the year.
20 The Company has not raised any money by way of public issue during
the year.
21 According to the information and explanations given to us and to the
best of our knowledge and belief, no fraud on or by Company was noticed
or reported in the course of our audit during the year.
For, Trushit Chokshi and Associates
Chartered Accountants
Reg. No. : 111072W
(Trushit Chokshi)
Place : Ahmedabad Proprietor
Date : 25.05.2010 Membership No. 40847
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Asahi Songwon Colors Ltd. Corporate Announcements
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