Mar 31, 2018
Report on the Standalone IND AS Financial Statements
We have audited the accompanying standalone IND AS financial statements of Castex Technologies Limited (''the Company''), which comprise the balance sheet as at 31st March 2018,the statement of profit and loss[including other comprehensive income], the statement of cash flows and the statement of changes in equity for the year then ended, and a summary of the significant accounting policies and other explanatory information(hereinafter referred to as "standalone Ind AS financial statements")
Management''s Responsibility for the standalone IND AS Financial Statements
The management and company''s board of directors is responsible for the matters specified in section 134(5) of the Companies Act, 2013 ("the Act") 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], cash flows and changes in equity of the company in accordance with the accounting principles generally accepted in India, including the Indian accounting standards [Ind AS] prescribed under section 133 of the Act, read with companies ( Indian Accounting Standards ) rules 2015.
This responsibility also includes the 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 the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS 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 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 thereunder 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 Ins AS financial statements are free from material misstatements.
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 auditor''s 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 company''s 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 company''s management and 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.
Our 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 accounting principles generally accepted in India including the IND AS, of the state of affairs of the company as at March 31, 2018 and itsProfit and loss account for the year ended March 31,2018 ,total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matter
Notwithstanding anything contained in the standalone Ind AS financial statements of Castex Technologies Limitedas on 31.03.2018, affects the true & fair opinion over the same, but following is a list of matters, considere d significant for the users of the standalone Ind AS financial statements, adequately disclosed by the management:
A corporate insolvency resolution process ("CIRP") has been initiated against Castex Technologies Limited (''the Company'') vide an order of Chandigarh bench of the National Company Law Tribunal (NCLT) dated December 20, 2017 under the provisions of the insolvency and bankruptcy code 2016 (Code). Pursuant to the order, the power of the Board of directors stands suspended and are exercisable by MrDinkar T. Venkatasubramanian, who was appointed as interim resolution professional (IRP) by the NCLT vide order dated December 20, 2017 and was consequently confirmed as Resolution Professional (RP) by the Committee of Creditors (CoC) in its meeting held on January 12, 2018. Accordingly Mr. Dinkar T. Venkatasubramanian took control of management and operations of the company. As the powers of the Board of Directors had been suspended, the above results have not been adopted by Board of Directors. However, These Standalone Ind AS financial statements have been signed by Sanjay Arora ( Whole Time Director) and taken on record by the RP..
1. The company has been continuously making losses, consequently its net worth is negative and the company''s total liabilities exceeded its total assets. This indicates the existence of material uncertainty that may cast significant doubt on the company''s ability to continue as a going concern. However, in view of the Corporate Insolvency Resolution Process in respect of the company, which is in progress, the accounts have been prepared on a going concern basis (Refer Note [2.1 ] to Financial Statements).
2. Considering the current operating level of the company , and the ongoing CIRP it is not possible to determine:
a. Impairment if any , in the economic value of fixed assets, capital work in progress and tools & die;
b. Diminution, if any, in the value of investment.
(Refer Note [2.8,2.13,2.14 ] to Financial Statements)
3. In respect of various claims submitted by the financial, operational & other creditors of the Company to the RP pursuant to Insolvency and Bankruptcy Code, 2016, that are currently under consideration / verification/ reconciliation. Pending finalization of resolution plan, we are unable to comment on the consequential impact, if any, on the accompanying statement [Refer Note [2.1 ] to financial Statements]
4. Trade receivables, loans & advances and other recoverable at March 31, 2018, which also includes balances from the group entities, are subject to confirmation/reconciliation and recoverability assessment thereof is under process. (Refer Note [2.11 ] to Financial Statements)
5. In terms of sections 25(2)(c) and 28(1)(a) of IBC 2016, the CoC has approved the raising of interim finance in its meeting held on 12th March, 2018, Accordingly, the Company has entered into an agreement with ECL Finance Limited, a Mumbai based subsidiary Company of Edelweiss Financial Services Limited and availed interim finance facility up to INR 30,00,00,000 (Rupees Thirty Crores) under the Facility Agreement dated 11, April, 2018, (Refer Note 2.12 in significant accounting policies)
6. The financial statements for the year ended 31 March 2017 was carried out and reported by Manoj Mohan & Associates. whose report has been furnished to us by the management and which has been relied upon by us for the purpose of our audit.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in exercise of powers conferred by sub section (11) of section 143 of the act, we give in annexure A, a statement on the matters specified in paragraph 3 & 4 of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the company so far as it appears from our examination of those books;
(c) The balance sheet, the statement of profit and loss [including other comprehensive income],the cash flow statement and the statement of changes in equity dealt with by this report are in agreement with the relevant books of account;
(d) In our opinion, the aforesaid standalone IND AS financial statements comply with the Indian Accounting Standards specified under section 133 of the Act, read with the relevant rules there under;
(e) On the basis of the written representations received from the directors as on 31stMarch 2018 and 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; and
(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 B". Our report expresses an unmodified opinion on the adequacy and the operating effectiveness of the company''s internal financial controls over financial reporting; and
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 as amended, according to the explanations and information given to us:
i. The company has disclosed the impact of pending litigations on its financial position in its standalone IND AS financial statements [Refer Note no. 3.27.5].
ii. The company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the company.
Annexure - A to the Independent Auditors'' Report
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the standalone IND AS financial statements for the year ended 31st March 2018.
I. In respect of fixed assets:
a. The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b. As explained to us, fixed assets, according to the practice of the company, have been physically verified by the management at reasonable intervals. , the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and nature of its assets. According to the information and explanation given to us , no material discrepancies were noticed on such physical verification.
c. According to the information and explanations 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 the company. However, none is made available to us as they are pledged with the financial institutions.
II. In respect of inventories: We have been informed that the inventories are physically verified during the period by the Company at reasonable intervals. The frequency of physical verification, in our opinion, is reasonable having regard to the size of the company and nature of its business. The discrepancies noticed on verification between the physical inventories and the book records were not material in relation to the operation of the company and the same have been properly dealt with in the books of account.
III. The company, during the year, has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (''the Act'').Accordingly, paragraph 3(iii) of the Order is not applicable to the company.
IV. In our opinion and according to the information and explanations given to us, the company has complied during the year with the provisions of section 185 and 186 of the Act, with respect to the loans, investments, guarantees and security.
V. Since the company has not accepted any deposit from public, the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under with regard to the deposits accepted from the public are not applicable.
VI. The Central Government has prescribed the maintenance of cost records under section (1) of section 148 of the Companies Act, and on the basis of records produced before us for our verification; we are of the opinion that, prima facie, the prescribed accounts and cost records have been maintained. However, we are neither required to carry out nor have carried out any detailed examination of such accounts & records.
VII. (a) According to the information and explanations given to us and on the basis of our examination of the records of the company, the company has not 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, value added tax, cess, Goods and Services Tax and other statutory dues with appropriate authorities during the year ended 31st March 2018. The outstanding dues as on the date of the balance sheet i.e. March31, 2018 were Rs.2931.14 Lakhs. According to information and explanation given to us, arrears of undisputed statutory dues outstanding for a period of more than 6 months as on March 31,2018 were Rs. 1512.19 Lakhs.
(b) According to the information and explanation given to us, and as per our verification of records of the company, the company has not paid/deposited following statutory dues on account of disputes:
S.No. |
Name of Statute |
Period to which it pertains |
Forum where dispute is pending |
Amount (Rs. In Lakh) |
1 |
Excise/Service Tax |
2008 to 2014 |
Commissioner Central Excise (Appeals) |
98.21 |
2 |
Income Tax |
2006 to 2016 |
Income Tax Appellate Tribunals |
1688.53 |
3 |
Sale Tax |
2015-16 |
Appeals under process |
2.55 |
Total |
1789.29 |
VIII. Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, A corporate insolvency resolution process ("CIRP") has been initiated against the company vide an order of Chandigarh bench of the National Company Law Tribunal (NCLT) dated December20, 2017 under the provisions of the insolvency and bankruptcy code 2016 (Code). Pursuant to the order, the power of the Board of directors stands suspended and are exercisable by Mr Dinkar T. Venkatasubramanian, who was appointed as interim resolution professional (IRP) by the NCLT vide order dated December22, 2017 and was consequently confirmed as Resolution Professional (RP) by the Committee of Creditors (CoC) in its meeting held on January12, 2018.
IX. According to the information and explanations given to us, and as per our verification of the records of the company, the company, during the year, has not raised moneys by way of initial public offer or further public offer(Including debt instruments). The term loans availed by the company have been applied for the purpose for which the loans were obtained.
X. According to the information and explanations given to us, no fraud by the company or on the company by its officers or employees has been noticed or reported during the Year ended 31st March 2018.
XI. According to the information and explanations give to us and based on our examination of the records of the company, the company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
XII. In our opinion, and according to the information and explanations given to us, the company is not a Nidhi company. Therefore, the provisions of Clause 3 (xii) of the Order are not applicable to the company.
XIII. According to the information and explanations given to us and as per our verification of the records of the company all transactions with the related parties are in compliance with the Sections 177 and 188 of the Companies Act, 2013 where applicable and the details have been disclosed in the IND AS financial statements as required by the applicable accounting standards.
XIV. According to the information and explanations given to us and as per our verification of the records of the company, the company has not made any preferential allotment of shares.
XV. According to the information and explanations given to us, and as per our verification of the records of the company, 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.
XVI. In our opinion, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3 (xvi) of the order are not applicable to the company.
Annexure - B to the Independent Auditors'' Report
Report on the Internal Financial Controls over financial reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act") of Castex Technologies Limited
We have audited the internal financial controls over financial reporting of Castex Technologies Limited ("the Company") as of 31st March 2018 in conjunction with our audit of the standalone IND AS financial statements of the company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The management and company''s board of directors are 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 ("the Guidance Note"). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, 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 system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone IND AS financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
A corporate insolvency resolution process ("CIRP") has been initiated against Castex Technologies Limited (''the Company'') vide an order of Chandigarh bench of the National Company Law Tribunal (NCLT) dated December 20, 2017 under the provisions of the insolvency and bankruptcy code 2016 (Code). Pursuant to the order, the power of the Board of directors stands suspended and are exercisable by Mr Dinkar T. Venkatasubramanian, who was appointed as interim resolution professional (IRP) by the NCLT vide order dated December 20, 2017 and was consequently confirmed as Resolution Professional (RP) by the Committee of Creditors (CoC) in its meeting held on January 12, 2018. The power of the Board of Directors have been suspended and assigned to Resolution Professional.
In our opinion to the best of our information and according to the explanations given to us, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31stMarch 2018, 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.
For Raj Gupta & Co
Chartered Accountants
Firm''s registration number: 000203N
Gunjandeep Singh
[Partner]
Membership Number: 529555
Place : New Delhi
Dated: JUNE 5, 2018
Mar 31, 2016
TO THE MEMBERS OF CASTEX TECHNOLOGIES LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of Castex Technologies Limited ("the company"), which comprise the balance sheet as at 31stMarch 2016, the statement of profit and loss, for the six months ended 31st March 2016, the cash flow statement for the six months ended on that date, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The company''s board of directors is responsible for the matters specified in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the accounting principles generally accepted in India, including the accounting standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the 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 the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone 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 standalone 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone 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. 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 standalone 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 2016 and its loss and its cash flows for the six months ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub section (11) of section 143 of the act, we give in the annexure A , a statement on the matters specified in paragraph 3 & 4 of the Order.
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 appears from our examination of those books;
c) the balance sheet, the statement of profit and loss, and the cash flow statement dealt with by this report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with the accounting standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors as on 31st March 2016 and taken on record by the board of directors, none of the directors is disqualified as on 31stMarch 2016, from being appointed as a director in terms of Section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure B; and
g) With respect to the other matters included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit & Auditors) Rules, 2014, in our opinion and to best of 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 standalone financial statements(Refer to Note 2.24).
ii) The company did not have any long-term contract including derivatives contract for which there were any material foreseeable losses.
iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the company.
Annexure - A to the Independent Auditors'' Report
Re: Castex Technologies Limited
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the standalone financial statements for the six months ended 31st March 2016.
(i) (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, have been physically verified by the management at reasonable intervals. In our opinion, the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such physical verification.
(c) According to the information and explanations 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 the Company.
(ii) We have been informed that the inventories are physically verified during the period by the management at reasonable intervals. The frequency of physical verification, in our opinion, is reasonable having regard to the size of the company and nature of its business. The discrepancies noticed on verification between the physical inventories and the book records were not material in relation to the operation of the Company and the same have been properly dealt with in the books of account.
(iii) The company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013 during the period under review:
(a) Since the company has not granted any loans during the period under review, the provisions of this subparagraph are not applicable to the Company.
(b) In regards to the loans granted in the earlier years, the schedule of repayment is stipulated and there is no irregularity in this regard.
(c) No amount is overdue for more than 90 days as on 31st March, 2016.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act 2013 in respect of loans, investments, guarantees and security.
(v) The Company has not accepted any deposits from the public. Therefore, the provisions of clause (v) of paragraph 3 of the Companies (Auditor''s Report) Order, 2016 are not applicable to the Company.
(vi) The Central Government has prescribed the maintenance of cost records under section 148 (1) of the Companies Act 2013 (''the Act''). On the basis of records produced before us for our verification, we are of the opinion that, prima facie, the prescribed accounts and cost records have been maintained. However we are neither required to carry out nor have carried out any detailed examination of such accounts & records.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records
of the company, the company has 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, value added tax, cess and any other statutory dues with appropriate authorities during the six months ended 31st March, 2016. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at Mach 31, 2016 for a period of more than six months from the date on when they become payable.
(b) According to information and explanations given to us, and the records of the company examined by us ,dues of income tax, sales tax, service tax, custom duty, excise duty, value added tax and cess which have not been deposited on account of matters pending before appropriate authorities are as follows:
Sr. No. |
Name of the Statute |
Nature of Dues |
Period to which the amount relates |
Forum where dispute is pending |
Amount (Rs. in lacs) |
1 |
Central Excise Act |
Excise |
2007 |
Excise Deptt. |
9.12 |
2 |
Central Excise Act |
Excise |
2010 |
Tribunal Bench, Delhi |
2.59 |
3 |
Central Excise Act |
Excise |
2010 |
Commissioner Appeals, Jaipur |
3.41 |
4 |
Central Excise Act |
Excise |
2012 |
Commissioner Appeals, Jaipur |
6.51 |
5 |
Central Excise Act |
Excise |
2014 |
Commissioner Appeals, Jaipur |
37.84 |
6 |
Central Excise Act |
Excise |
2015 |
Additional Commissioner Appeals, Alwar |
24.16 |
7 |
Central Service Tax |
Service Tax |
2007 |
Service tax Deptt. |
0.30 |
8 |
Central Service Tax |
Service Tax |
2008 |
Service tax Deptt. |
0.07 |
9 |
Central Service Tax |
Service Tax |
2008 |
Tribunal, Delhi |
3.58 |
10 |
Central Service Tax |
Service Tax |
2008 |
Tribunal, Delhi |
2.42 |
11 |
Central Service Tax |
Service Tax |
2010 |
Commissioner Appeals, Jaipur |
0.74 |
12 |
Central Service Tax |
Service Tax |
2012 |
Commissioner Appeals, Jaipur |
5.99 |
13 |
Central Service Tax |
Service Tax |
2015 |
Excise Deptt. |
5.27 |
14 |
Sales Tax |
Sales Tax |
2014 |
Noida Commercial Tax Authority-UP |
1.76 |
15 |
Income Tax Act, 1961 |
Income Tax |
Block Assessment from A.Y. 2006-2007 to 2012-2013 |
Income Tax Appellant Tribunal, Delhi |
1,455.90 |
Total |
1559.66 |
(viii) According to the information and explanations given to us and as per our verification of the records of the company, the Company has defaulted in repayment of installments and interest on term loans to banks during the period. Note No. 2.27 of the financial statements contains details in this regard.
(ix) According to the information and explanations given to us, the company has not raised moneys by way of initial public offer or further public offer(including Debt instruments). The term loans availed by the company have been applied for the purpose for which the loans were obtained.
(x) According to the information and explanations given to us, no fraud on or by the company or by its officers or employees has been noticed or reported during the six months ended 31st March 2016.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion, and according to the information and explanations given to us, the company is not a Nidhi company. Therefore, the provisions of Clause 3 (xii) of the Order are not applicable to the Company.
(xiii) According to the information and explanations given to us and as per our verification of the records of the company all transactions with the related parties are in compliance with the Section 177 and 188 of the Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and as per our verification of the records of the company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the period under review. Accordingly the provisions of Clause 3 (xiv) of the order are not applicable to the Company.
(xv) According to the information and explanations given to us and as per our verification of the records of the company, the company has not entered into any non-cash transactions with directors or persons connected with it .Accordingly, the provisions of Clause 3 (xv) of the order are not applicable to the Company.
(xvi) In our opinion, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3 (xvi) of the order are not applicable to the Company.
Annexure-B to the Independent Auditors'' Report
Report on the Internal Financial Controls under Clause (I) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act"
We have audited the internal financial controls over financial reporting of CASTEX TECHNOLOGIES LIMITED ("the Company") as of 31st March 2016 in conjunction with our audit of the standalone financial statements of the Company for the Six months ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, 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 system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future year are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For & on behalf of
Manoj Mohan & Associates
Chartered Accountants
ICAI Firm Regd. No.009195C
Sd/-
(Manoj Kumar Agarwal)
Place : New Delhi Partner
Dated : 30th May, 2016 Membership No -76980
Sep 30, 2015
We have audited the accompanying Standalone financial statements of
CASTEX TECHNOLOGIES LIMITED (Formerly Known as Amtek India Ltd.) ("the
company"), which comprise the balance sheet as at 30th September 2015,
the statement of profit and loss & the cash flow statement for the year
then ended, and a summary of significant accounting policies and other
explanatory information.
Management's Responsibility for the Standalone Financial Statements
The company's board of directors is responsible for the matters
specified in section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these Standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the company in accordance with the
accounting principles generally accepted in India, including the
accounting standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes the 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 the frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable
and prudent; and design, implementation and maintenance of adequate
internal financial control, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the Standalone
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 Standalone
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 thereunder.
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 Standalone financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the Standalone financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the Standalone
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 Standalone 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 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
Standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid Standalone financial
statements, give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
a) in the case of the balance sheet, of the state of affairs of the
company as at September 30, 2015;
b) in the case of the statement of profit and loss, of the Loss for the
year ended on that date; and
c) in the case of the cash flow statement, of the cash flow 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 Act, we give in annexure - 1, a
statement on the matters specified in paragraph 3 & 4 of the Order.
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 appears from our examination of those
books.
c) the balance sheet, the statement of profit and loss, and the cash
flow statement dealt with by this report are in agreement with the
books of account.
d) In our opinion, the aforesaid Standalone financial statements comply
with the accounting standards specified under section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014
e) On the basis of written representations received from the directors
as on 30th September 2015, taken on record by the board of directors,
none of the directors is disqualified as on 30th September 2015, from
being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters included in the Auditor's Report
in accordance with Rule 11 of the Companies (Audit & Auditors) Rules,
2014, in our opinion and to our best of our information and according
to the explanations given to us :
i) The company has disclosed the impact of pending litigations on its
financial position in its Standalone financial statements (Refer to
note no  2.25).
ii) The company did not have any long-term contract including
derivatives contract for which there were any material foreseeable
losses.
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the company.
Annexure 1 referred to under paragraph 1 of the Report on Other Legal
and Regulatory Requirements of the Auditors' Report
Re: CASTEX TECHNOLOGIES LIMITED (Formerly Known as Amtek India Ltd.)
('the Company')
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of the fixed
assets.
(b) All the fixed assets have been physically verified by the
management during the year. There is a regular program of verification,
which, in our opinion, is reasonable having regard to the size of the
company and nature of its assets. As per the information/reports
submitted by the company, no material discrepancies have been noticed
on such verification.
(ii) (a) We have been informed that the inventory of stores and spares
are physically verified during the year by the management on a
continuous basis as per program of perpetual inventory. The inventories
of other items have been physically verified at the year-end. The
frequency of physical verification, in our opinion, is reasonable
having regard to the size of the company and nature of its business.
(b) In our opinion and according to the explanation given to us, the
procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification by the management between the
physical stock and book records, though not material, have been
properly dealt with in the books of account and are not material.
(iii) (a) The Company during the year under report, has given unsecured
loans and advances to its Subsidiaries, associates, joint ventures,
firms or other parties covered in the register maintained under section
189 of the Companies Act, 2013 ('the Act'). The balance outstanding as
at the end of the year and maximum balance at any time during the year
was Rs. 20,709.72 lacs and Rs. 20,709.72 lacs respectively.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest, wherever applicable and other terms
and conditions are not prima-facie prejudicial to the interest of the
company.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and nature of its business, with regard to
the purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control system of the company.
(v) Since the company has not accepted any deposit from public, the
provisions of section 73 to 76 and the rules framed there under with
regard to filing of statutory returns as required under these
provisions and the relevant rules are not applicable to the company.
(vi) We have broadly reviewed the cost records maintained by the
company and report that prima-facie, the directions specified by the
Central Government under sub-section (1) of section 148 of the
Companies Act, with regard to maintenance of cost records have been
complied with.
(vii) (a) According to the information and explanations given to us and
as per the records of the company, the company has been regular in
depositing undisputed statutory dues including provident fund, income
tax, wealth tax, service tax, duty of custom, duty of excise, value
added tax, cess and other statutory dues with appropriate authorities
during the year.
(b) According to information and explanations given to us, the
following dues of income tax, sales tax, wealth tax, service tax custom
duty, excise duty, value added tax and cess Which have not been
deposited on account of matters pending before appropriate authorities
are as under:
Sr. Name of the
Statute Nature Year to which Forum where Amount
No. of Dues the amount dispute is (Rs.
relates pending in lacs)
1 Central
Excise Act Excise 2012 Commissioner
Appeals, 6.51
Jaipur
2 Central
Excise Act Excise 2007 Excise Deptt. 9.12
3 Central
Excise Act Excise 2010 Commissioner
Appeals, 3.41
Jaipur
4 Central
Excise Act Excise 2010 Tribunal
Bench, 2.59
Delhi
5 Central
Service Tax Service
Tax 2007 Service
tax Deptt. 0.30
6 Central
Service Tax Service
Tax 2008 Service
tax Deptt. 0.07
7 Central
Service Tax Service
Tax 2010 Commissioner
Appeals, 0.74
Jaipur
8 Central
Excise Act Excise 2014-15 Additional 24.16
Commissioner
Appeals, Alwar
9 Central
Service Tax Service
Tax 2013 to
2015 Deputy
commissioner 4.98
of central
Excise
10 Income Tax
Act, 1961 Income
Tax Block
Assessement Income Tax
Appellant 1125.31
from A.Y.
2005-2006 Tribunal,
Delhi
to 2012-
2013
Total 1,177.19
(c) As per the information and explanations given to us and based on
the records of the company produced to us, the company does not have
any amount that is required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the Act
and the rules made there under.
(viii) The company does not have accumulated losses as at the end of
this financial year and has not incurred cash losses during the current
financial year under report and also during the immediately preceding
financial year.
(ix) According to the information and explanations given to us and as
per our verification of the records of the company, there had been
delays in payment of instalments and Interest of term loan to the
bank/financial institution during the year. The amount overdue as on
the date of balance sheet was Rs.14,023.67 Lacs Principal and
Rs.7,352.44 Lacs interest with Average delay of less than 90 Days
(x) According to the information and explanations given to us,the
company has given corporate guarantee of Rs.32,300 Lacs for the loans
availed by Subsidiaries, associates, joint ventures and other group
companies from banks and financial institutions and terms and
conditions are not prejudicial to the interests of the company.
(xi) According to the information and explanations given to us, the
term loans availed by the company have been applied for the purpose for
which the loans were obtained.
(xii) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
For & on behalf of
Manoj Mohan & Associates
Chartered Accountants
ICAI Firm Regd. No.009195C
Sd/-
(Manoj Kumar Agarwal)
Place :New Delhi Partner
Dated:28th November, 2015 Membership No -76980
Sep 30, 2014
We have audited the accompanying financial statements of Amtek India
Limited ("the company") as at 30th September 2014, which comprise the
Balance Sheet as at September 30, 2014; the Statement of Profit and
Loss and the Cash Flow Statement for the year then ended; and a summary
of significant accounting policies and other explanatory information.
Management''s Responsibility for the financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") , read with the General Circular 15/2013 dated 13th September,
2013 of the Ministry of Corporate Affairs in respect of section 133 of
the Companies Act, 2013 and in accordance with the accounting
principles generally accepted in India. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
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, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence, we have obtained, is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the State of Affairs of the
Company as at September 30, 2014;
b) in the case of Statement of Profit and Loss, of the Profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the Cash Flows for 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") as amended by the Companies (Auditor''s Report) (Amendment)
Order, 2004 issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act (hereinafter referred to as
the "Order") and on the basis of such checks of books and records of
the Company as we considered appropriate and according to the
information and explanation given to us, we give in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of accounts as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
accounts;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
the Cash Flow Statement comply with the Accounting Standards notified
Under the Companies Act, 1956, read with the General Circular 15/2013
dated 13th September, 2013 of the Ministry of Corporate Affairs in
respect of section 133 of the Companies Act, 2013.
e) On the basis of written representations received from the directors
as on September 30, 2014, and taken on record by the Board of
Directors, none of the directors is disqualified as on September 30,
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 INDEPENDENT AUDITOR''S REPORT REFERRED TO IN POINT 1 OF
PARAGRAPH 5 OF OUR REPORT OF EVEN DATE OF AMTEK INDIA LIMITED FOR THE
YEAR ENDED 30th SEPTEMBER 2014
(i) (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, have been physically verified by the management at reasonable
intervals. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such physical
verification.
(c) During the year, the company has not disposed off substantial part
of the fixed assets, and the going concern status of the company is not
affected.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of physical
verification is reasonable.
(b) The procedure for physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the company and nature of its business.
(c) In our opinion, the company has maintained proper records of
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material & the same have
been properly dealt with in the books of accounts.
(iii) The Company, during the year under report, has given loans &
advances to its subsidiary companies, associates and joint ventures,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956.
(a) The balance at the end of the year and the maximum amount involved
during the year was Rs. 29,933.62 Lacs and Rs. 29,933.62 Lacs
respectively.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest, wherever applicable and other terms
and conditions are not prima facie prejudicial to the interest of the
company.
(c) In respect of the loan granted to its subsidiaries, the loan is
interest free and being repayable on demand are not overdue.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, consumable stores, fixed assets and with
regard to sale of goods and services. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in Internal Controls Systems of the Company.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangement
that need to be entered in the register required to be maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies act, 1956 in respect of any party during the year have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
(vi) The company has not accepted public deposits within the meaning
and provisions of section 58A and 58AA of the companies Act, 1956.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central government has prescribed maintenance of cost
accounting records under section 209 (1) (d) of the Companies Act,
1956. 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.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax/VAT, custom duty, excise duty and cess were in arrears, as at 30th
September, 2014 for a period of more than six months from the date they
became payable.
(c) The disputed statutory dues aggregating to Rs. 1,392.19 lacs not
deposited on account of matters being pending before appropriate
authorities are given here under:
Sr. Name of the Statute Nature Year to which
No. of Dues the amount
relates
1. Central Excise Act Excise 2007
2. Central Excise Act Service Tax 2007
3. Central Excise Act Excise 2010
4. Central Excise Act Excise 2012
5. Central Excise Act Excise 2010
6. Central Excise Act Service Tax 2008
7. Central Service Tax Service Tax 2010
8. Central Service Tax Service Tax 2014
9. Income Tax Act, 1961 Income Tax Block Assessment
from A.Y. 2005-06
to 2011-12
Sr. Name of the Statute Forum where Amount
No. dispute is (Rs.
pending in lacs)
1. Central Excise Act Excise Deptt. 9.12
2. Central Excise Act Service Tax Deptt. 0.30
3. Central Excise Act Tribunal Bench Delhi. 2.59
4. Central Excise Act Commissioner Appeals, 6.51
Jaipur
5. Central Excise Act Commissioner Appeals, 3.41
Jaipur
6. Central Excise Act Service Tax Deptt. 0.07
7. Central Service Tax Commissioner Appeals, 0.74
Jaipur
8. Central Service Tax Service Tax Deptt. 43.02
9. Income Tax Act, 1961 Income Tax 1326.43
Appellate Tribunal
Total 1392.19
(x) The company does not have accumulated losses for the year ended
30th September, 2014. Further, it has not incurred any cash loss in
current financial year or in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks, financial institutions or debenture holders.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause of
4(xiii) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors'' Report) Order,
2003 (as amended) are not applicable to the company. The company,
however, is maintaining proper records of transactions and contracts in
respect of long term investment made by it and timely entries have been
made therein. Further, all the securities including shares, debentures
and other investments have been held by the company in its own name.
(xv) The company has not given guarantees for loans taken by others
from Banks or Financial Institutions.
(xvi) According to the information and explanation given to us, in our
opinion, term loan availed by the company were, prima facie, applied by
the company during the year under report for the purpose for which the
term loans were obtained, other than temporary deployment pending
applications.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment and no long term funds have been used to finance short term
assets except permanent working capital.
(xviii) According to the information & explanation given to us, the
company, during the year under report, has not made any preferential
allotment, to parties and companies covered in the register maintained
under section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the year and
therefore the question of creating security / charge does not arise.
(xx) According to information and explanation given to us and the
records of the company examined by us, the Company has not raised any
money by public issue during the year but FCCB are converted into
equity shares.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For & on behalf of
Manoj Mohan & Associates
Chartered Accountants
ICAI Firm Regd. No.009195C
Sd/-
(Manoj Kumar Agarwal)
Place of Signature : New Delhi Partner
Dated : 24th November, 2014 Membership No -76980
Sep 30, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Amtek India
Limited ("the company") as at 30th September 2013, which comprise the
Balance Sheet as at September 30, 2013; the Statement of Profit and
Loss and the Cash Flow Statement for the 15 months period then ended;
and a summary of significant accounting policies and other explanatory
information.
Management''s Responsibility for the financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence, we have obtained, is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at September 30, 2013;
b) in the case of Statement of Profit and Loss, of the profit for the
15 months period ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the 15
months period ended on that date. Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") as amended issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure,
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of accounts as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
accounts;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
the Cash Flow Statement comply with the Accounting Standards referred
to in sub section (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on September 30, 2013, and taken on record by the Board of
Directors, none of the directors is disqualified as on September 30,
2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
f) 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
Companies Act, 1956 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.
ANNEXURE TO INDEPENDENT AUDITOR''S REPORT REFERRED TO IN POINT 1 OF
PARAGRAPH 5 OF OUR REPORT OF EVEN DATE OF AMTEK INDIA LIMITED FOR THE
15 MONTHS PERIOD ENDED 30th SEPTEMBER 2013
(i) (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, have been physically verified by the management at reasonable
intervals. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such physical
verification.
(c) During the period, the company has not disposed off substantial
part of the fixed assets, and the going concern status of the company
is not affected.
(ii) (a) The inventories have been physically verified during the
period by the management. In our opinion, the frequency of physical
verification is reasonable.
(b) The procedure for physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the company and nature of its business.
(c) In our opinion, the company has maintained proper records of
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material & the same have
been properly dealt with in the books of accounts.
(iii) The Company, during the period under report, has given loans &
advances to its Holding Subsidiary Companies, associates and joint
ventures, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(a) The balance at the end of the period and the maximum amount
involved during the period was Rs. 367.98 lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest, wherever applicable and other terms
and conditions are not prima facie prejudicial to the interest of the
company.
(c) In respect of the loan granted to its subsidiaries, the loan is
interest free and being repayable on demand are not overdue.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, consumable stores, fixed assets and with
regard to sale of goods and services. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal controls Systems of the Company.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangement
that need to be entered in the register required to be maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies act, 1956 in respect of any party during the period have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
(vi) The company has not accepted public deposits within the meaning
and provisions of section 58A and 58AA of the companies Act, 1956.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central government has prescribed maintenance of cost
accounting records under section 209 (1) (d) of the Companies Act,
1956. 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.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax/VAT, custom duty, excise duty and cess were in arrears, as at 30th
September, 2013 for a period of more than six months from the date they
became payable.
(c) The disputed statutory dues aggregating to Rs. 9,210.34 lacs not
deposited on account of matters being pending before appropriate
authorities are given here under:
Sr. Name of the
Statute Nature Year to
which Forum where Amount
No. of Dues the
amount dispute is (Rs.
relates pending in lacs)
1. Central
Excise Act Excise 2007 Excise
Deptt. 21.64
2. Central Excise
Act Excise 2007 Service
Tax Deptt. 13.81
3. Income Tax
Act, 1961 Income Tax Block
Assessment Income Tax
Appellate 9,174.89
from
A.Y. 2005-06
Tribunal to
2010-11
Total 9,210.34
(x) The company does not have accumulated losses for the period 15
months end 30th September, 2013. Further, it has not incurred any cash
loss in current financial period or in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks, financial institutions or debenture holders.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause of
4(xiii) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors'' Report) Order,
2003 (as amended) are not applicable to the company. The company,
however, is maintaining proper records of transactions and contracts in
respect of long term investment made by it and timely entries have been
made therein. Further, all the securities including shares, debentures
and other investments have been held by the company in its own name.
(xv) The company has not given guarantees for loans taken by others
from Banks or Financial Institutions.
(xvi) According to the information and explanation given to us, in our
opinion, term loan availed by the company were, prima facie, applied by
the company during the period under report for the purpose for which
the term loans were obtained, other than temporary deployment pending
applications.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment and no long term funds have been used to finance short term
assets except permanent working capital.
(xviii) According to the information & explanation given to us, the
company, during the period under report, has not made any preferential
allotment, to parties and companies covered in the register maintained
under section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the period and
therefore the question of creating security/ charge does not arise.
(xx) According to information and explanation given to us and the
records of the company examined by us, the Company has not raised any
money by public issue during the period but FCCB are converted into
equity shares.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For & on behalf of Manoj
Mohan & Associates
Chartered Accountants
Firm Regn. No. 009195C
Sd/-
(Manoj Kumar Agarwal)
Place : New Delhi Partner
Dated : 29th November 2013
Jun 30, 2010
We have audited the attached Balance Sheet of Amtek India Limited as at
30th June 2010, the Profit and Loss Account and also 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.
We conducted our audit in accordance with auditing standards generally
accepted in India (Indian GAAP). Those Standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 (as
amended) by the companies (Auditors Report) (amended) order, 2004
(together the order) issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Companies Act, 1956, we
enclose in the Annexure, a statement on the matters specified in
paragraph 4 and 5 of the said order.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion, proper books of account, as required by law, have
been kept by the Company so far as appears from our examination of
those books.
(iii) The Balance Sheet, the Profit and Loss Account and Cash Flow
Statement of the Company, dealt with by this report are in agreement
with the books of account.
(iv) In our opinion, the Balance Sheet, the Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 30m June 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
30th June 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 of our information and according to
the explanations given to us, the said 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 30th June 2010;
(b) in the case of the Profit and Loss Account, of the Profit tor the
year ended on that date; and
(c) 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 OUR REPORT OF EVEN DATE OF AMTEK
INDIA LIMITED FOR THE YEAR ENDED 30th JUNE 2010
(i) (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, have been physically verified by the management at reasonable
intervals. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the Company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such physical
verification.
(c) During the year, the Company has not disposed off substantial part
of the fixed assets and the going concern status of the Company is not
affected.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of physical verification
is reasonable.
(b) The procedure for physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) There was only one party covered in the register maintained
under Section 301 of the Companies Act, 1956 to which the Company has
granted loan. The amount outstanding as at the end of the year was
Rs.1,467.62 lacs. The maximum amount involved, at any time during the
year, had however, been Rs.1,667.94 lacs. The terms and conditions of
the loan are not the prime-facie prejudicial to the interest of the
Company. Since the loan has been granted to subsidiary only, the loan
is interest free and being repayable on demand are not overdue.
(b) Other clauses of para 4(iii) are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, Fixed Assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangement
referred to in section 301 of the act have been entered in the register
required to be maintained under section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies act, 1956 in resped of any party during the year have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
(vi) In our opinion and according to the information and explanation
given to us, the Company has complied with all the provisions of
section 58A & 58AA and any other relevant provision of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to deposits accepted from public. No order has been passed by
the Company Law Board, Reserve Bank of India, National Company Law
Tribunal or any other Court or any Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central government has prescribed maintenance of cost
accounting records under section 209 ID Id) of the Companies Act, 1956
in respect of certain machining 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 properly maintained.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax/ VAT, wealth tax, service tax, custom duty, excise duty,
cess and other material statutory dues applicable to it.
(b) The disputed statutory dues aggregating to Rs.17.03 lacs have not
been deposited on account of matters being pending before appropriate
authorities are given hereunder:
Sr. Name of the Statute Nature of Dues Year to which
No. the amount
relates
1. Central Excise Act Excise 2007
2. Central Excise Act Service Tax 2007
Total
Name of the Statue Forum where Amount
dispute is (Rs. in lacs)
pending
Central Excise Act Excise deptt 9.12
Central Excise Act Service Tax deptt 7.91
Total 17.03
(x) The Company has no accumulated losses and has not incurred any cash
loss during the year under report or in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause of
4(xiii) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 (as amended) are not applicable to the Company. The Company,
however, is maintaining proper records of transactions and contracts in
respect of long term investment made in its subsidiaries / others and
timely entries have been made therein. Further, all the securities
including shares, debentures and other investments have been held by
the Company in its own name.
(xv) The Company has not given guarantees for loans taken by others
from Banks or Financial Institutions.
(xvi) According to the information and explanation given to us. In our
opinion, term loan availed by the Company were, prima facie, applied by
the Company during the year under report for the purpose for which the
term loans were obtained, other than temporary deployment pending
applications.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short term basis have been used for long term
investment and no long term funds have been used to finance short term
assets except permanent working capital.
(xviii) According to the information & explanation given to vs. the
Company, during the year under report, has made preferential allotment
of 1,21,10,000 equity shares of Rs.2/- each at a premium of Rs.39/- per
shares against warrants issued by it in the earlier years, to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956. According to the information & explanation
given to us, the prices at which shares have been issued, is not
pre-judicial to the interest of the Company.
(xix) According to information and explanation given to us and the
records of the Company examined by us, the Company, during the year has
issued Non Convertible Debentures and has created security in favour of
the debenture holders.
(xix) According to information and explanation given to us and the
records of the Company examined by us, the Company has not raised any
money by public issue during the year.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For & on behalf of
Manoj Mohan & Associates
Chartered Accountants
Firm Regn. No. 009195C
Sd/-
Place : New Delhi (M. K. Aggarwal)
Dated : 24th November 2010 Partner
Membership No.: 76980
Jun 30, 2009
We have audited the attached Balance Sheet of Amtek India Limited as at
30th June 2009, the Profit and Loss Account and also the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the CompanyÃs
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 (Indian GAAP). Those Standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditorsà Report) Order, 2003 (as
amended) by the companies (Auditorsà Report) (amended) order, 2004
(together the order) issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Companies Act, 1956, we
enclose in the Annexure, a statement on the matters specified in
paragraph 4 and 5 of the said order.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion, proper books of account, as required by law, have
been kept by the company so far as appears from our examination of
those books.
(iii) The Balance Sheet, the Profit and Loss Account and Cash Flow
Statement of the company, dealt with by this report are in agreement
with the books of account.
(iv) In our opinion, the Balance Sheet, the Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 30th June 2009 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
30th June 2009 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 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 30th June 2009;
(b) in the case of the Profit and Loss Account, of the Profitfor the
year ended on that date; and
(c) 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 OUR REPORT OF EVEN DATE OF AMTEK
INDIA LIMITED FOR THE YEAR ENDED 30TH JUNE 2009
(i) (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, have been physically verified by the management at reasonable
intervals. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such physical
verification.
(c) During the year, the company has not disposed off substantial part
of the the fixed assets and the going concern status of the company is
not affected.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of physical verification
is reasonable.
(b) The procedure for physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and nature of of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) The Company has not taken loan from companies, firms or other
parties covered in the register maintained under Section 301 of the
Companies Act, 1956. The company has, however, given loan and advances
to one subsidiary amounting to Rs 1667.94 lacs The maximum amount
outstanding during the year was Rs 1798.93 Lacs.
(b) Since the loan has been granted to subsidiary only, the loan is
interest free and being repayable on demand are not overdue.
(c) Other clauses of para 4(iii) are not applicable to the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, Fixed Assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangement
referred to in section 301 of the act has been entered in the register
required to be maintained under section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies act, 1956 in respect of any party during the year have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
(vi) In our opinion and according to the information and explanation
given to us, the company has complied with all the provisions of
section 58A & 58AA and any other relevant provision of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to deposits accepted from public. No order has been passed by
the Company Law Board, Reserve Bank of India, National Company Law
Tribunal or any other Court or any Tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central government has prescribed maintenance of cost
accounting records under section 209 (1) (d) of the Companies Act, 1956
in respect of certain machining 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 properly maintained.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax/ VAT, wealth tax, service tax, custom duty, excise duty,
cess, Fringe Benefit Tax (FBT) and other material statutory dues
applicable to it.
(b) The disputed statutory dues aggregating to Rs.17.03 lacs have not
been deposited on account of matters being pending before appropriate
authorities are given hereunder:
Sr. Name of
the Statute Nature of
Dues Year to which Forum where Amount
No. the amount dispute is (Rs. in
lacs)
relates pending
1. Central
Excise Act Excise 2007 Excise deptt 9.12
2. Central
Excise Act Service Tax 2007 Service Tax deptt 7.91
Total 17.03
(x) The company has no accumulated losses and has not incurred any cash
loss during the year under report or in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause of
4(xiii) of the Companies (Auditorsà Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditorsà Report) Order,
2003 (as amended) are not applicable to the company. The company,
however, is maintaining proper records of transactions and contracts in
respect of long term investment made in its subsidiaries / others and
timely entries have been made therein. Further, all the securities
including shares, debentures and other investments have been held by
the company in its own name.
(xv) The company has not given guarantees for loans taken by others
from Banks or Financial Institutions.
(xvi) According to the information and explanation given to us, In our
opinion, term loan availed by the company were, prima facie, applied by
the company during the year under report for the purpose for which the
term loans were obtained, other than temporary deployment pending
applications.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment and no long term funds have been used to finance short term
assets except permanent working capital.
(xviii) According to the information & explanation given to us, the
company, during the year under report, has not made preferential
allotment of shares/warrants to parties and companies covered in the
register maintained under section 301 of the Companies Act, 1956.
(xix) The company, during the year under report, has not issued any
debentures.
(xx) According to information and explanation given to us and the
records of the company examined by us, the Company has not raised any
money by public issue during the year.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For & on behalf of
Manoj Mohan & Associates
Chartered Accountants
Sd/-
Place:New Delhi (M. K. Aggarwal)
Dated: 2nd December 2009 Partner
Membership No. : 76980
Jun 30, 2003
We have audited the attached Balance Sheet of AMTEK INDIA LIMITED, as
on 30th June, 2003 and also the annexed Profit & Loss Account of the
Company for the year ending on that date. These financial statements
are the responsibility of 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 misstatements. An audit includes
examining on test basis evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management
as well as evaluating the overall financial statements presentation. We
believe that our audit provides a reasonable basis for our opinion and
report that:
i) 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.
ii) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
books.
iii) The Balance Sheet and Profit and Loss Account dealt With by this
report are in agreement with the books of accounts and are compliance
with the accounting standards referred in Section 211 (3c) of the
Companies Act 1956.
iv) The Balance Sheet & Profit & loss Account dealt with by this report
are in agreement with the books of accounts
v) On the basis of written representation received from Directors as on
30 th JUNE, 2003 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 30 th JUNE,
2003 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 Accounts read with notes
thereon, give the information required by the Companies Act, 1956 and
also give a true and fair view, in the case of Balance Sheet, of the
state of affairs of the Company as at 30th JUNE, 2003 and in the case
of Profit & Loss Account, of the Profit for the year ended on that
date.
vii) As required by the Manufacturing and Other Companies (Auditors
Report) Order, 1988 issued by the Central Government in terms of
Section 227 (4A) of the Companies Act, 1956 and on the basis of such
checks as we considered appropriate, we further report that:
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed assets. As
Confirmed by the company, the Fixed Assets have been physically
verified by the management, during the year. No serious discrepancies
have, however been noticed on such verification.
2. The Fixed assets have not been revalued during the year.
3. The management has conducted physical verification at reasonable
intervals in respect of finished goods, stores, spare parts and raw
materials.
4. The procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation of the size of the
company and nature of its business.
5. No material discrepancies have been noticed on physical
verification of stocks as compared to book records.
6. In our opinion, the valuation of stocks is fair and proper in
accordance with the normally accepted accounting Principles. The basis
of valuation of stocks is the same as in preceding year.
7. The Company has not taken any loans, secured or unsecured from
companies, firms or other parties listed in the Registers maintained
under Section 301 of the Companies Act, 1956, except in ordinary course
of business,
8. The Company has not granted unsecured loans to Companies, Firms or
other parties listed in the registers maintained under Section 301 of
the Companies Act, 1956,except in ordinary course of business.
9. In respect of loans and advances given by the Company during The
year, there are no stipulations for repayment of principal or any
interest thereon as per verification of records produced before us and
as confirmed by the Management.
10. In our opinion and according to the information and explanations
given to us, transactions of purchase of goods and materials and sale
of goods, materials and services made in pursuance of contracts or
arrangement entered in the register maintained U/S 30L,of the Companies
Act, 1956 and Aggregating during the year to Rs.50,000/- (Rs. Fifty
thousand) or more in respect of each party, have been made at prices
which are reasonable having regard to the prevailing market prices for
such goods, materials or services where available or their prices at
which the transactions for the similar goods or services have been made
with other parties, where comparable.
11. In our opinion, the Company has an adequate internal control
procedure commensurate with the size of the Company and the nature of
its business for the purchase of stores, raw materials including
components, plant and machinery, equipment and other assets and for the
sale of goods.
12. The Company has a system for the determination of unserviceable or
damaged goods, stores and raw materials and in our opinion adequate
provision for loss has been made in the Accounts.
13. In our opinion and according to the information and explanation
given to us, the Company has complied with the provisions of Section
58-A of the companies (Acceptance of Deposits )Rules 1975.
14. In our opinion, the Company is maintaining reasonable records for
the sale and disposal of realisable scrap. The Company has no
by-product.
15. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of the business.
16. We are informed that the Central Government has not prescribed
maintenance of cost records under Section 209(1 )(d) of the companies
Act, 1956 for any of the products of the Company.
17. The Company has been regular in depositing Statutory Dues.
18. There are no undisputed amounts payable in respect of Income Tax,
Wealth Tax, Sale Tax, Customs Duty and excise duty outstanding as at
last day of financial year concerned for a period of more than six
months from the date they became payable.
19. According to the information and explanation given to us and the
record examined by us, no personal expenses have been charged to the
revenue account other than those payable under contractual obligations
and according to generally accepted business practices.
20. In respect of dealing in Shares, Securities debentures and other
Investments the Company has maintained proper records of the
transactions and contracts and timely entries have been made therein.
The Investments/ Shares have been held by the Company in its own name.
21. The Company is not a Sick Industrial Company within the meaning of
Clause (O) of Sub-Section( 1) of Section 3 of Sick Industrial Companies
(Special Provision) Act, 1985 (1 of 1986).
For Manoj Mohan & Associates
Chartered Accountants
Place : New Delhi (Manoj Kumar Aggarwal)
Date : 27,th November, 2003 PARTNER