Mar 31, 2015
We have audited the accompanying financial statements of CARNATION
INDUSTRIES LIMITED ('the company'), which comprise the balance sheet as
at 31 March 2015, the statement of profit and loss and the cash low
statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the financial statements
The Company's Board of directors is responsible for the matters stated
in section 134(5) of the companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these financial statements that
give a true and fair view of the financial position, financial
performance and cash lows 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards 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 aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit/loss and its cash lows for the year
ended on that date.
Emphasis of Matters
We draw attention to the following matter in the Notes to the financial
statements:
(i) Note 16(a) to the financial statements which describes the overdue
receivables from a related party.
Our opinion 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, 2015 ("the
Order") issued by the Central Government of India in terms of
subsection (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143 (3) of 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
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 and the cash
low statement dealt with by this Report are in agreement with the books
of accounts;
(d) In our opinion, the aforesaid financial statements comply with the
accounting standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of section 164(2) of the
Act; and
(f) With respect to the other matters to be included in the Auditors'
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 28(ii) to
the 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- Refer Note
28(xv) to the financial statements;
iii. There has been no delay transferring amounts, required to be
transferred, to the Investor Education and protection Fund by the
company.
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors Report to the
members of the company on the financial statements for the year ended 31
March 2015, we report that:
1. The company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. As
informed to us all fixed assets (except lying with outside parties)
have been physically verified by the management at reasonable intervals
and no material discrepancies were noticed on such verification.
2. The management has conducted physical verification of inventory at
the end of the year (except stock lying with outside parties). The
procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business. The company is maintaining
proper records of inventory and no material discrepancies were noticed
on such physical verification.
3. The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act 2013.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. Further, on the basis of our examination of the books
and records of the Company, carried out in accordance with the
generally accepted auditing practices in India, we have neither come
across nor have we been informed of any instance of a continuing
failure to correct major weakness in the aforesaid internal control
procedures.
5. The Company has not accepted any deposits from the public.
6. The Central Government has prescribed the maintenance of cost
records under section 148(1) of the Companies Act, 2013 for the
products of the company. We have broadly reviewed such records
maintained by the company and are of the opinion that prima facie, the
prescribed 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 the records of the Company, the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund, Employees' State Insurance, Income Tax, Sales-Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Value Added Tax, Cess and Other
Statutory Dues applicable to it with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Service Tax, Custom Duty, Excise Duty and Value Added Tax were
outstanding at the year end for a period of more than six months from
the date they became payable.
Further according to the records of the Company, there are no dues
outstanding of Sales Tax, Income Tax, Custom Duties, Wealth Tax,
Service Tax, Excise Duty, Value Added Tax, Cess on Account of any
dispute other than the following:
Name of the Nature of Dues Amount Forum Where
Status (Rs.) Dispute
is Pending
West Bengal Value Value 100.13 lacs Before the West
Added Tax Act, Added Tax for Bengal Commercial
2003 the Financial Taxes Applellate
Year 2007-2008 & Revisional
Board.
Cental Excise Duty and Penalty 136.56 lacs Before the
Act, 1944 Commissioner
(Appeal - I & II)
of Central Excise.
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 does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
9. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to bank.
10. In our opinion and according to the information and the
explanations given to us, the company has not given any guarantee for
loans taken by others from banks or financial institutions.
11. The term loans were applied for the purpose for which the loans
were obtained.
12. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For JAIN & BAGARIA
Chartered Accountants
B. K. Agarwal
27/8A, Waterloo Street (Partner)
Kolkata - 700 069 Membership No.065361
Dated : 26th May, 2015 FRN : 310045E
Mar 31, 2014
We have audited the accompanying financial statements of CARNATION
INDUSTRIES LIMITED ("the company"), which comprises the Balance Sheet
as at March, 31, 2014, the statement of Profit & Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
2. Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
the Accounting Standards referred to in sub-section (3C) of Section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
3. Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
4. Opinion
In our opinion and to the best our information and according to the
explanations given to us, the financial statements read with notes
thereon give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India :
a) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2014.
b) In the case of the statement of Profit & Loss of the PROFIT for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
5. Report on Other Legal and Regulatory Requirements
5.1 As required by the Companies (Auditors'' Report) Order, 2003 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.
5.2 As required by Section 227(3) of the Act, we report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
iii) The Balance Sheet, statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
iv) In our opinion, the Balance Sheet, statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Sub-Section 3 (C) of Section 211 of
the Companies Act, 1956.
v) On the basis of written representations received from the Directors,
as on 31st March 2014 and taken on record by the Board of Directors, we
report that 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.
vi) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the Act
nor has it issued any rules under the said section, prescribing the
manner in which such cess is to be paid, no cess is due and payable by
the company.
vii)We have relied upon the management''s representation relating to the
disclosures in the financial statements regarding (a) Segment reporting
(Note No. 28 (x)) & (b) related party disclosures (Note No. 28(xii)).
Annexure to the Auditors'' Report Referred to in paragraph 5 of our
report of even date
1. The company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. As
informed to us all fixed assets (except lying with outside parties)
have been physically verified by the management at reasonable intervals
and no material discrepancies were noticed on such verification. The
company has not disposed off substantial part of its fixed assets
during the year.
2. The management has conducted physical verification of inventory at
the end of the year (except stock lying with outside parties). The
procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business. The company is maintaining
proper records of inventory and no material discrepancies were noticed
on such physical verification.
3. The Company has neither granted nor taken any loan, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. Further, on the basis of our examination of the books
and records of the Company, carried out in accordance with the
generally accepted auditing practices in India, we have neither come
across nor have we been informed of any instance of a continuing
failure to correct major weakness in the aforesaid internal control
procedures.
5. In respect of contracts or arrangements referred to in Section 301
of the Companies Act, 1956, to the best of our knowledge and belief and
according to the information and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register, maintained under the
said Section has been so entered.
(b) Where each of such transactions is in excess of Rs.5 lacs in
respect of any party, to the best of our knowledge and as explained,
these have been made at prices which are prima facie reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
company pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Act in
respect of the Company''s products to which the said Rules are made
applicable and are of the opinion that prima facie, the prescribed
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.
9. According to the records of the Company, the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund, Investors Education and Protection Fund, Employees'' State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and Other Statutory Dues applicable to it with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of Income Tax,
Wealth Tax, Sales Tax, Service Tax, Custom Duty and Excise Duty were
outstanding at the year end for a period of more than six months from
the date they became payable. Further according to the records of the
Company, there are no dues outstanding of Sales Tax, Income Tax, Custom
Duties, Wealth Tax, Service Tax, Excise Duty, Cess on account of any
dispute other than the following:
Name of the Nature of Dues Amount (Rs.)
Status_
West Bengal Value Added Tax 100.13 lacs
Value Added for the Financial
Tax Act, 2003 Year 2007-2008
Central Excise Duty and Penalty 136.56 lacs
Act, 1944
Name of the Status Forum Where Dispute is Pending
West Bengal Value Added Before the West Bengal Commercial Taxes
Tax Act, 2003 Appellate & Revisional Board.
Central Excise Act, 1944 Before the Commissioner (Appeal - I & II)
of Central Excise.
10. The Company does not have any accumulated losses as at the end of
the year and it has not incurred any cash losses in the current
financial year and the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to bank.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi / mutual benefit
fund /societies.
14. In respect of dealing/trading in securities and other investments,
in our opinion and according to the information and explanations given
to us, proper records have been maintained of the transactions and
contracts and timely entries have been made therein. The shares,
securities and other investments have been held by the company, in its
own name.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others, from
Bank or financial institution.
16. The term loans were applied for the purpose for which the loans
were obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the company has not used funds raised on short term basis for long
term investment.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under Section
301 of the Companies Act, 1956.
19. The Company has not raised any money through a public issue during
the year.
20. Based upon the procedures performed by us for expressing our
opinion on these financial statements and information and explanations
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit.
21. Other provisions of the aforesaid order are not applicable to the
Company for the period under review.
For JAIN & BAGARIA
Chartered Accountants
J.K.Jain
27/8A, Waterloo Street (Partner)
Kolkata - 700 069 Membership No. 050019
Dated : 23rd May, 2014 FRN : 310045E
Mar 31, 2013
1. Report on the Financial Statements
We have audited the accompanying financial statements of CARNATION
INDUSTRIES LIMITED (''the company''), which comprises the Balance
Sheet as at March, 31, 2013, the statement of Profit & Loss and the
Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.
2. Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
the Accounting Standards referred to in sub-section (3C) of Section 211
of the Companies Act, 1956 (''the Act''). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
3. Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment
of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements read with Note
No.28(v) regarding impact of change in method of accounting in respect
of export incentive and other notes thereon give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India :
a) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2013.
b) In the case of the statement of Profit & Loss of the PROFIT for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
5. Report on Other Legal and Regulatory Requirements
5.1 As required by the Companies (Auditors'' Report) Order, 2003
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.
5.2 As required by Section 227(3) of the Act, we report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
iii) The Balance Sheet, statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
iv) In our opinion, the Balance Sheet, statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Sub-Section 3 (C) of Section 211 of
the Companies Act, 1956.
v) On the basis of written representations received from the Directors,
as on 31st March 2013 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March 2013
from being appointed as a Director in terms of clause (g) of Sub-
Section (1) of Section 274 of the Companies Act, 1956.
vi) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the Act
nor has it issued any rules under the said section, prescribing the
manner in which such cess is to be paid, no cess is due and payable by
the company.
vii)We have relied upon the management''s representation relating to
the disclosures in the financial statements regarding (a) Segment
reporting (Note No. 28 (x)) & (b) related party disclosures (Note No.
28(xii)).
1. The company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. As
informed to us all fixed assets (except lying with outside parties)
have been physically verified by the management at reasonable intervals
and no material discrepancies were noticed on such verification. The
company has not disposed off substantial part of its fixed assets
during the year.
2. The management has conducted physical verification of inventory at
the end of the year (except stock lying with outside parties). The
procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business. The company is maintaining
proper records of inventory and no material discrepancies were noticed
on such physical verification.
3. The Company has neither granted nor taken any loan, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. Further, on the basis of our examination of the books
and records of the Company, carried out in accordance with the
generally accepted auditing practices in India, we have neither come
across nor have we been informed of any instance of a continuing
failure to correct major weakness in the aforesaid internal control
procedures.
5. In respect of contracts or arrangements referred to in Section 301
of the Companies Act, 1956, to the best of our knowledge and belief and
according to the information and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register, maintained under the
said Section has been so entered.
(b) Where each of such transactions is in excess of Rs.5 lacs in
respect of any party, to the best of our knowledge and as explained,
these have been made at prices which are prima facie reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
company pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Act in
respect of the Company''s products to which they said Rules are made
applicable and are of the opinion that prima facie, the prescribed
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.
9. According to the records of the Company, the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund, Investors Education and Protection Fund, Employees'' State
Insurance, Income tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and Other Statutory Dues applicable to it with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of Income Tax,
Wealth Tax, Sales Tax, Service Tax, Custom Duty and Excise Duty were
outstanding at the yearend for a period of more than six months from
the date they became payable. Further according to the records of the
Company, there are no dues outstanding of Sales Tax, Income Tax, Custom
Duties, Wealth Tax, Service Tax, Excise Duty, Cess on account of any
dispute other than the following:
Name of the Nature of Dues Amount (Rs.) Forum Where
Status Dispute is Pending
West Bengal Value Added Tax 100.13 lacs Before the
West Bengal
Value Added for the Financial Commercial Taxes
Appellate
Tax Act, 2003 Year 2007-2008 & Revisional Board.
Central Excise Duty and Penalty 136.56 lacs Before the
Commissioner
Act, 1944 (Appeal - I & II) of
Central Excise.
10. The Company does not have any accumulated losses as at the end of
the year and it has not incurred any cash losses in the current
financial year and the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to bank.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi / mutual benefit
fund /societies.
14. In respect of dealing/trading in securities and other investments,
in our opinion and according to the information and explanations given
to us, proper records have been maintained of the transactions and
contracts and timely entries have been made therein. The shares,
securities and other investments have been held by the company, in its
own name.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others, from
Bank or financial institution.
16. The term loans were applied for the purpose for which the loans
were obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the company has not used funds raised on short term basis for long
term investment.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under Section
301 of the Companies Act, 1956.
19. The Company has not raised any money through a public issue during
the year.
20. Based upon the procedures performed by us for expressing our
opinion on these financial statements and information and explanations
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit.
21. Other provisions of the aforesaid order are not applicable to the
Company for the period under review.
For JAIN & BAGARIA
Chartered Accountants
27/8A, Waterloo Street J.K.JAIN
Kolkata - 700 069 (Partner)
Dated: 23rd May, 2013 Membership No. 050019
FRN: 310045E
Mar 31, 2012
We have audited the attached Balance Sheet of CARNATION INDUSTRIES
LIMITED as at 31st March, 2012 and also the statement of Profit & Loss
and Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements and notes thereon are the
responsibility of the CompanyâÃÃs management. Our responsibility is to
express an opinion on these financial statements and notes thereon
based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements and notes thereon are free of material misstatement. An
audit includes examining, on test basis, evidences supporting the
amounts and disclosures in the financial statements and notes thereon.
An audit also includes assessing the accounting principles used and
significant estimates made by the management, as well as evaluating the
overall financial statements presentation. We believe that our audit
provides a reasonable basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 and on the
basis of such examination of the books and records of the Company, as
we considered appropriate and on the information and explanations given
to us during the course of our audit, we report that in our opinion:
1. The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. As
informed to us all fixed assets (except lying with outside parties)
have been physically verified by the management at reasonable intervals
and no material discrepancies were noticed on such verification. There
was no disposal of fixed assets during the year.
2. The management has conducted physical verification of inventory at
the end of the year (except stock lying with outside parties). The
procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business. The Company is maintaining
proper records of inventory and no material discrepancies were noticed
on such physical verification.
3. The Company has neither granted nor taken any loan, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. Further, on the basis of our examination of the books
and records of the Company, carried out in accordance
with the generally accepted auditing practices in India, we have
neither come across nor have we been informed of any instance of a
continuing failure to correct major weakness in the aforesaid internal
control procedures.
5. In respect of contracts or arrangements referred to in section 301
of the Companies Act, 1956, to the best of our knowledge and belief and
according to the information and explanations given to us:
(a) The particulars of contracts or arrangements referred to in section
301 that needed to be entered in the Register, maintained under the
said section has been so entered.
(b) Where each of such transactions is in excess of Rs.5 lacs in
respect of any party, to the best of our knowledge and as explained,
these have been made at prices which are prima facie reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. During the current year the Central Government has prescribed
maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Companies Act, 1956 for the products of the Company.
The Company has commenced the maintenance of such records which are in
progress.
9. According to the records of the Company, the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund, Investors Education and Protection Fund, Employees̢̈ State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other statutory dues applicable to it with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of Income Tax,
Wealth Tax, Sales Tax, Service Tax, Custom Duty and Excise Duty were
outstanding at the year end for a period of more than six months from
the date they became payable. Further according to the records of the
Company, there are no dues outstanding of Sales Tax, Income Tax, Custom
Duties, Wealth Tax, Service Tax, Excise Duty, Cess on account of any
dispute other than the following:
Name of the Nature of Dues Amount (Rs.) Forum Where
Status Dispute is Pending
West Bengal Value Added Tax 100.13 lacs Before the West
Bengal
Value Added for the Financial Commercial Taxes
Appellate
Tax Act, 2003 Year 2007-2008 & Revisional Board.
Central Excise Duty and Penalty 136.56 lacs Before the
Commissioner
Act, 1944 (Appeal - I & II) of
Central Excise.
10. The Company has no accumulated losses in excess of fifty percent
of its net worth at the end of the financial year and it has not
incurred any cash losses in the current financial year but has incurred
cash losses in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to bank.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi/ mutual benefit
fund /societies.
14. In respect of dealing/trading in securities and other investments,
in our opinion and according to the information and explanations given
to us, proper records have been maintained of the transactions and
contracts and timely entries have been made therein. The shares,
securities and other investments have been held by the Company, in its
own name.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others, from
Banks or financial institutions.
16. The term loans were applied for the purpose for which the loans
were obtained.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that the Company has temporarily used funds raised on short term basis
for long term investment.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company has not raised any money through a public issue during
the year.
20. Based upon the procedures performed by us for expressing our
opinion on these financial statements and information and explanations
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit.
21. Other provisions of the aforesaid order are not applicable to the
Company for the period under review.
Further to the above we report that
i) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
iii) The Balance Sheet, statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
iv) In our opinion, the Balance Sheet, statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section 3 (C) of section 211 of
the Companies Act, 1956.
v) On the basis of written representations received from the Directors,
as on 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31 st 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.
vi) 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 Notes to Accounts, give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India :
a) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2012.
b) In the case of the statement of Profit & Loss of the PROFIT for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
For JAIN & BAGARIA
Chartered Accountants
27/8A, Waterloo Street J.K.JAIN
Kolkata - 700 069 (Partner)
Dated: 29th May, 2012 Membership No. 050019
FRN: 310045E
Mar 31, 2010
We have audited the attached Balance Sheet of CARNATION INDUSTRIES
LIMITED as at 31st March 2010 and also the Profit & Loss Account & 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.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on test basis, evidences supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditors Report) order, 2003 and on the
basis of such examination of the books and records of the Company, as
we considered appropriate and on the information and explanations given
to us during the course of our audit, we report that in our opinion :
1. The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. As
informed to us all fixed assets (except lying with
processors/suppliers) have been physically verified by the management
at reasonable intervals and no material discrepancies were noticed on
such verification. There was no disposal of fixed assets during the
year.
2. The management has conducted physical verification of inventory at
the end of the year (except stock lying with outside parties). The
procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business. The company is maintaining
proper records of inventory and no material discrepancies were noticed
on such physical verification.
3. The Company has neither granted nor taken any loan, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. Further, on the basis of our examination of the books
and records of the Company, carried out in accordance with the
generally accepted auditing practices in India, we have neither come
across nor have we been informed of any instance of a continuing
failure to correct major weakness in the aforesaid internal control
procedures.
5. In respect of contracts or arrangements referred to in Section 301
of the Companies Act, 1956, to the best of our knowledge and belief and
according to the information and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register, maintained under the
said Section has been so entered.
(b) Where each of such transactions is in excess of Rs. 5 lacs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause
(d) of sub-section (1) of section 209 of the Companies Act, 1956 for
the products of the Company.
9. According to the records of the Company, the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund, Investors Education and Protection Fund, Employees State
Insurance, Income tax, Sales-tax, Wealth tax, Service tax, Custom Duty,
Excise duty, cess and other statutory dues applicable to it with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of income tax,
wealth tax, sales tax, service tax, custom duty and excise duty were
outstanding at the year end for a period of more than six months from
the date they became payable. Further according to the records of the
Company, there are no dues outstanding of sales tax, income tax, custom
duties, wealth tax, service tax, excise duty, cess on account of any
dispute other than the following:
Name of Nature of Dues Amount (Rs.) Forum Where
the Status Dispute is
Pending
Income Income Tax penalty Before the
Tax Act, for the Assessment 12.75 Lacs Commissioner
of
1961 Year 2003-04 Income Tax
(Appeals)
West Bengal Value Added Tax Before the Jt.
Value Added for the Financial 13.17 Lacs Commissioner
of
Tax Act, 2003 Year 2005-06 Sales Tax
Central Excise Duty and Penalty 136.56 lacs Before the
Act, 1944 Commissioner
(Appeal - I & II)
of Central Excise
10. The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current and
immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to bank.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi / mutual benefit
fund /societies.
14. In respect of dealing/trading in securities and other investments,
in our opinion and according to the information and explanations given
to us, proper records have been maintained of the transactions and
contracts and timely entries have been made therein. The shares,
securities and other investments have been held by the company, in its
own name.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others, from
Bank or financial institution.
16. The term loans were applied for the purpose for which the loans
were obtained.
17. We have been informed by the management that the fund raised on
short term basis have not been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act 1956.
19. The Company has not raised any money through a public issue during
the year.
20. Based upon the procedures performed by us for expressing our
opinion on these financial statements and information and explanations
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit.
21. Other provisions of the aforesaid order are not applicable to the
Company for the period under review.
Further to the above we report that :-
i) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
iv) In our opinion, the Balance Sheet , Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in Sub- Section 3 (C) of Section 211 of the
Companies Act, 1956.
v) On the basis of written representations 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.
vi) In our opinion and to the best our information and according to the
explanations given to us, the said accounts, read together with
Schedules and other Notes thereon and statements on significant
accounting policies 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 :
a) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2010.
b) In the case of the Profit & Loss Account of the Profit for the year
ended on that date; and
c) In the Case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
For JAIN & BAGARIA
Chartered Accountants
J.K. JAIN
Partner
Membership No. 050019
FRN: 310045E
27/8A, Waterloo Street Kolkata - 700 069
Dated : 6th August, 2010