Mar 31, 2015
We have audited the accompanying standalone financial statements of
Chromatic India Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2015, and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
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 financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the 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,
subject to note nos. 27, 28, 29, 30 & 35 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 Standalone Balance Sheet, of the state of
affairs of the Company as at March 31, 2015;
(b) In the case of the Standalone Statement of Profit and Loss, of the
Profit of the company for the year ended on that date and
(c) In the case of the Standalone Cash Flow Statement, of the cash
flows of the company for the year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143 (3) of 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 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; and
e) on the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act;
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements.
(ii) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
and as required on long-term contracts including derivative contracts.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of Chromatic India Limited on the standalone financial
statements for the year ended March 31, 2015, we report that:
1. In respect of its Fixed Assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. As informed, no material discrepancies were
noticed on such verification.
2. In respect of Inventories:
a) The inventories have been physically verified by the management
during the year. In our Opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) The Company has maintained proper records of inventory. As explained
to us, there were no material discrepancies noticed on physical
verification of inventories as compared to the book records.
3. In respect of the Loans, secured or unsecured, granted by the
company to companies, firms or other parties covered in the register
maintained under section 189 of the Companies Act, 2013 ('the Act')
there is no overdue amount of loan granted to said companies.
4. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, no major weakness has been noticed in the internal control
system in respect of these areas. During the course of our audit, we
have not observed any continuing failure to correct major weakness in
internal control system of the company.
5. According to the information and explanations given to us, the
company has not accepted any deposits from the public.
6. The Company is required to maintain the cost records as prescribed
by the Central Government of India under sub- section (1) of section
148 of the Companies Act for the activities carried on by the company.
We are of the opinion that primafacie the prescribed records have been
maintained. We have, however, not made a detailed examination of cost
records with a view to determine whether they are accurate or complete.
7. In respect of statutory dues:
a) Undisputed statutory dues including provident fund, investor
education and protection fund, Employees' state insurance, income-tax,
sales-tax, wealth-tax, customs duty, excise duty, have not been
regularly deposited with the appropriate authorities and there have
been slight delays in few cases.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, wealth-tax,
sales-tax, customs duty, excise duty and other undisputed statutory
dues were outstanding, at the year end, for a period of more than six
months from the date they became payable except an amount of Rs.
20,79,000/- on account of Income Tax for the A.Y. 2012-13 for which
return is also not filed, Rs. 2,30,510/- on account of Dividend
Distribution Tax for the F.Y. 2012- 13 and interest thereon.
c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 2013 and rules there under has been transferred to such
fund within time.
8. The Company has no accumulated losses at the end of the financial.
9. Based on our audit procedures and as per the information and
explanations given by the Management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders.
10. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities
11. According to the information and explanations 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.
12. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For S. K. Badjatya & Co.
Chartered Accountants
Firm Registration No. 004017C
CA. Sudhir K. Jain
Place: Mumbai Partner
Date: May 29, 2015 Membership No. 072282
Mar 31, 2014
We have audited the accompanying financial statements of Chromatic
India Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of 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 generrally
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 Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforsaid financial statements, subject to
note nos. 27, 28, 29, 30 & 34 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 March 31, 2014;
(b) In the case of the Profit and Loss Account, of the Profit of the
company for the year ended on that date and
(c) In the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As Required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet and Statement of Profit and Loss and cash flow
statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet and Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of 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 March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of Section 274(1)(g) of the Companies
Act, 1956.
Annexure to Auditors'' Report [Referred to in paragraph 1 under the
heading of "report on other legal and regulatory requirements" of our
report of even date to the members of Chromatic India Limited on the
financial statements for the year ended March 31, 2014]
1. In respect of its Fixed Assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. As informed, no material discrepancies were
noticed on such verification.
c) There was no substantial disposal of fixed assets during the year.
2. In respect of Inventories:
a) The inventories have been physically verified by the management
during the year. In our Opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) The Company has maintained proper records of inventory. As explained
to us, there were no material discrepancies noticed on physical
verification of inventories as compared to the book records. r.
3. In respect of the Loans, secured or unsecured, granted or taken, by
the company to/ from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act; 1956:
a) There are two subsidiary companies to whom the Company has granted
loans, secured or unsecured. The total amount involved is Rs. 21617.47
Lacs.
b) Loans given to subsidiaries are interest free loans and the same is
not considered as prejudicial in view of the fact that the companies
are wholly owned subsidiaries.
c) As per the management, the parties will pay principal amounts as and
when demanded.
d) There is no overdue amount of loan granted to said companies.
e) The company has taken short term loan from one company covered in
register maintained under section 301 of the Companies Act, 1956 from
whom the Company has taken loans, secured or unsecured. The amount
involed is Rs. 48.86 Lacs. The loan is repayble on demand. The loan is
interest free and not prejudicial to the interest of the company.
4. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, no major weakness has been noticed in the internal control
system in respect of these areas. During the course of our audit, we
have not observed any continuing failure to correct major weakness in
internal control system of the company.
5. In respect of the contracts or arrangements referred to in section
301 of the Companies Act; 1956:
a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under section 301 have
been so entered.
b) None of the transactions made in pursuance of any contracts or
arrangements exceed the value of Rupees five lakh in respect of any
such party in the financial year.
6. According to the information and explanations given to us, the
company has not accepted any deposits from the public within the
meaning of sections 58A and 58AA of the Act and the rules framed there
under. Therefore, the provisions of clause (vi) of paragraph 4 of the
order are not applicable to the company.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. The Company is required to maintain the cost records as prescribed
by the Central Government of India under clause (d) of sub-section (1)
of section 209 of the act for the activities carried on by the company.
We are of the opinion that primafacie the prescribed records have been
maintained. We have, however, not made a detailed examination of cost
records with a view to determine whether they are accurate or complete.
9. In respect of statutory dues:
a) Undisputed statutory dues including provident fund, investor
education and protection fund, Employees'' state insurance, income-tax,
sales-tax, wealth-tax, customs duty, excise duty, have not been
regularly deposited with the appropriate authorities and there have
been slight delays in few cases.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, wealth-tax,
sales-tax, customs duty, excise duty and other undisputed statutory
dues were outstanding, at the year end, for a period of more than six
months from the date they became payable except an amount of Rs.
20,79,000/- on account of Income Tax for the A.Y. 2012-13 for which
return is also not filed, Rs. 2,30,510/- on account of Dividend
Distribution Tax for the F.Y. 2012- 13 and interest thereon.
10. The Company''s accumulated losses at the end of the financial year
are less than fifty per Cent of its net worth and it has not incurred
cash losses in the current and immediately preceding financial year.
11. Based on our audit procedures and as per the information and
explanations given by the Management, we are of the opinion that the
Company has not defaulted in repayment of dues to banks.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) order, 2003 (as amended) are not
applicable to the Company.
14. 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 (Auditor''s Report) order,
2003 (as amended) are not applicable to the Company.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
16. The term loans have been applied for the purpose for which the
loans were obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
18. The company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company did not have any outstanding debentures during the
year.
20. The company has not raised any monies by way of public issues
during the year.
21. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
For S. K. Badjatya & Co.
Chartered Accountants
Firm Registration No. 004017C
CA. Sudhir K. Jain
Place: Mumbai Partner
Date: May 30, 2014 Membership No. 072282
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Chromatic
India Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2013, and the Statement of Profit and Loss for the year
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 Forming an Opinion and
Reporting on Financial Statements of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements, subject to note
nos. 27, 28, 29, 30 & 34 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 March 31, 2013;
(b) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date.
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As Required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet and Statement of Profit and Loss and cash flow
statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet and Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956.
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to Auditors'' Report
[Referred to in paragraph 3 of the Auditors'' Report of even date to the
members of Chromatic India Limited on the financial statements for the
year ended March 31, 2013]
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) All the fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As informed, no
material discrepancies were noticed on such verification.
c) There was no substantial disposal of fixed assets during the year.
ii) a) The inventory has been physically verified by the management
during the year. In our Opinion, the frequency of verification is
reasonable.
b) 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 and no
material discrepancies were noticed on physical verification carried
out at the end of the year.
iii) a) There are two subsidiary companies covere in register
maintained under section 301 of the Companies Act, 1956 to whom the
Company has granted loans, secured or unsecured. The total amount
involved is Rs. 19554.42 Lacs.
b) Loans given to subsidiaries are interest free loans and the same is
not considered as prejudicial in view of the fact the companies are
wholly owned subsidiaries.
c) The parties pay principal amounts as and when demanded and the
parties were regular in payment of interest wherever applicable.
d) There is no overdue amount of loan granted to said companies.
e) The company has taken short term ;loan from one company covered in
register maintained under section 301 of the Companies Act, 1956 from
whom the Company has taken loans, secured or unsecured. The amount
involed is Rs. 7.00 Lacs. The loan is repayble on demand. The loan is
interest free and not prejudicial to the interest of the company.
iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, no major weakness has been noticed in the internal control
system in respect of these areas. 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) a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under section 301 have
been so entered.
b) None of the transactions made in pursuance of any contracts or
arrangements exceed the value of Rupees five lakh in respect of any
such party in the financial year.
vi) The company has not accepted any deposits from the public within
the meaning of sections 58A and 58AA of the Act and the rules framed
there under.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) The Company is required to maintain the cost records as
prescribed by the Central Government of India under clause (d) of
sub-section (1) of section 209 of the act for the activities carried on
by the company.
ix) a) Undisputed statutory dues including provident fund, investor
education and protection fund, Employees'' state insurance, income-tax,
sales-tax, wealth-tax, customs duty, excise duty, have not been
regularly deposited with the appropriate authorities and there have
been slight delays in few cases.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, wealth-tax,
sales-tax, customs duty, excise duty and other undisputed statutory
dues were outstanding, at the year end, for a period of more than six
months from the date they became payable except an amount of Rs.
20,79,000/- for the A.Y. 2012-13 for which return is also not filed.
x) The Company''s accumulated losses at the end of the financial year
are less than fifty per Cent of its net worth and it has not incurred
cash losses in the current and immediately preceding financial year.
xi) Based on our audit procedures and as per the information and
explanations given by the Management, we are of the opinion that the
Company has not defaulted in repayment of dues to banks.
xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor''s Report) order, 2003 (as amended)
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 (Auditor''s Report) order,
2003 (as amended) are not applicable to the Company.
(xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
(xvi) The term loans have been applied for the purpose for which the
loans were obtained.
(xvii) According to the information and explanations 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.
(xviii) The company has not made any preferential allotment of shares
to parties and Companies covered in the register maintained under
section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The management has disclosed on the end use of money raised by
public issue and the same has been verified.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For S. K. Badjatya & Co.
Chartered Accountants
Firm Registration No. 004017C
CA. Sudhir K. Jain
Partner
Membership No. 072282
Place: Mumbai
Date: May 29, 2013
Mar 31, 2012
1. We have audited the attached balance sheet of Chromatic India
Limited ('the Company') as at March 31, 2012 and also the profit and
loss account and the cash flow statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of 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 presentation of
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the companies (Auditor's Report) order, 2003, 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 companies act, 1956' and on the basis of such
checks of the books and records of the company as were considered
appropriate and according to the information and explanations given to
us, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said order.
4. Further to our comments in the paragraph 3 above and subject to
note nos. 27,29 & 33, we report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books;
iii) The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies act, 1956, except for non-compliance of accounting standard
15 (Revised) on "Employee Benefits" wherein the impact on the
financial statement cannot be ascertained.
v) On the basis of the information and explanations given to us and
written representations obtained by the company from the directors, as
on March 31, 2012 and taken on record by the board of directors, we
report that none of the directors is disqualified as on March 31, 2012
from being appointed as a director in terms of section 274 (1) (g) 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.
vii) As stated in note no. 29 of the notes on accounts, no provision
has been made with regard to the realisability of the investment, loan
and interest receivable, from Societa Eiducle L Con Sa (Arcoiris SA), a
subsidiary company, liquidated during the year, aggregating Rs 136.04
lacs as at March 31, 2012 (Rs 136.97 lacs as at March 31, 2011). This
has resulted in overstatement of profits by Rs 136.04 lacs (Rs 136.97
lacs for the year ended March 31, 2011) loans and advances by Rs 136.04
lacs (Rs 136.97 lacs as at March 31, 2011).
5. Based on our audit conducted as above, subject to the effects of
our observations given in paragraph 4 above, the said accounts 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 March 31, 2012;
b) In the case of the profit and loss account, of the profit for the
year ended on that date; and
c) In the case of cash flow statement, of the cash flows for the year
ended on that date.
Annexure to Auditors' Report
[Referred to in paragraph 3 of the Auditors' Report of even date to the
members of Chromatic India Limited on the financial statements for the
year ended March 31, 2012]
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) All the fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As informed, no
material discrepancies were noticed on such verification.
c) There was no substantial disposal of fixed assets during the year.
ii) a) The inventory has been physically verified by the management
during the year. In our Opinion, the frequency of verification is
reasonable.
b) 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 and no
material discrepancies were noticed on physical verification carried
out at the end of the year.
iii) a) As informed, the Company has not granted/ taken any loans,
secured or unsecured to/ from Companies, firms or other parties covered
in the register maintained under section 301 of the Companies Act,
1956. Accordingly, clauses
(iii) (b), (c), (d), (e), (f) and (g) of the Companies (Auditor's
Report) Order, 2003 (as amended) are not applicable to the Company and
hence, not reported upon.
iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, no major weakness has been noticed in the internal control
system in respect of these areas. 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) a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under section 301 have
been so entered.
b) None of the transactions made in pursuance of any contracts or
arrangements exceed the value of Rupees five lakh in respect of any
such party in the financial year.
vi) The company has not accepted any deposits from the public within
the meaning of sections 58A and 58AA of the Act and the rules framed
there under.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) The Company is required to maintain the cost records as
prescribed by the Central Government of India under clause
(d) of sub-section (1) of section 209 of the act for the activities
carried on by the company.
ix) a) Undisputed statutory dues including provident fund, investor
education and protection fund, Employees' state insurance, income-tax,
sales-tax, wealth-tax, customs duty, excise duty, have not been
regularly deposited with the appropriate authorities and there have
been slight delays in few cases.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income-tax,
wealth-tax, sales-tax, customs duty, excise duty and other undisputed
statutory dues were outstanding, at the year end, for a period of more
than six months from the date they became payable.
c) According to the records of the company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of the
Statute Nature of
dues Amount
(Rs) Period to
which Forum where
the amount
relates dispute is pending
Income Tax
Act Income Tax 6,75,100 A. Y. 2002-03 Asst. CIT, Mumbai
x) The Company's accumulated losses at the end of the financial year
are less than fifty per Cent of its net worth and it has not incurred
cash losses in the current and immediately preceding financial year.
xi) Based on our audit procedures and as per the information and
explanations given by the Management, we are of the opinion that the
Company has not defaulted in repayment of dues to banks.
xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor's Report) order, 2003 (as amended)
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 (Auditor's Report) order,
2003 (as amended) are not applicable to the Company.
(xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
(xvi)The term loans have been applied for the purpose for which the
loans were obtained.
(xvii) According to the information and explanations 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.
(xviii)The company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under section
301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The management has disclosed on the end use of money raised by
public issue and the same has been verified.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For S. K. Badjatya & Co.
Chartered Accountants
Firm Registration No. 004017C
CA. Sudhir K. Jain
Partner
Membership No. 072282
Place: Mumbai
Date: May 30, 2012
Mar 31, 2011
1. We have audited the attached balance sheet of Chromatic India
Limited ('the Company') as at March 31, 2011 and also the profit and
loss account and the cash flow statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of 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.
3. As required by the companies (Auditor's Report) order, 2003, 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 companies act, 1956' of India (the 'Act') and on
the basis of such checks of the books and records of the company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the paragraph 3 above and subject to
note nos. 6,7,8,9 & 15, we report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books;
iii) The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies act, 1956, except for non-compliance of accounting standard
15 (Revised) on "Employee Benefits" wherein the impact on the financial
statement cannot be ascertained.
v) On the basis of the written representations received from the
directors, as on March 31,2011, and taken on record by the board of
directors, we report that none of the directors is disqualified as on
March 31, 2011 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.
vii) As stated in note no. 9 of the notes on accounts, no provision has
been made with regard to the readability of the investment, interest
receivable and loan, from Societa Eiducle L Con Sa (Arcoiris SA), a
subsidiary company, aggregating Rs 136.97 lacs as at March 31, 2011 (Rs
122.09 lacs as at March 31, 2010), where the net worth has been
completely eroded and there is no significant activities being carried
out. This has resulted in overstatement of profits by Rs 136.97 lacs
(Rs 376.73 lacs for the year ended March 31, 2010), loans and advances
by Rs 110.74 lacs (Rs 350.50 lacs as at March 31, 2010) and investment
by Rs 26.23 lacs (Rs 26.23 lacs as at March 31, 2010).
5. Based on our audit conducted as above, subject to the effects of
our observations given in paragraph 4 above, the said accounts 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 March 31, 2011;
b) In the case of the profit and loss account, of the profit for the
year ended on that date; and
c) In the case of cash flow statement, of the cash flows for the year
ended on that date.
Annexure to Auditors' Report
[Referred to in paragraph 3 of the Auditors' Report of even date to the
members of Chromatic India Limited on the financial statements for the
year ended March 31, 2011]
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) All the fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As informed, no
material discrepancies were noticed on such verification.
c) There was no substantial disposal of fixed assets during the year.
ii) a) The inventory has been physically verified by the management
during the year. In our Opinion, the frequency of verification is
reasonable.
b) 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 and no
material discrepancies were noticed on physical verification carried
out at the end of the year.
iii) a) As informed, the Company has not granted/ taken any loans,
secured or unsecured to/ from Companies, firms or other parties covered
in the register maintained under section 301 of the Companies Act,
1956.
Accordingly, clauses (iii) (b), (c), (d), (e), (f) and (g) of the
Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the Company and hence, not reported upon.
iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, no major weakness has been noticed in the internal control
system in respect of these areas. 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) a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under section 301 have
been so entered.
b) None of the transactions made in pursuance of any contracts or
arrangements exceed the value of Rupees five lakh in respect of any
such party in the financial year.
vi) The company has not accepted any deposits from the public within
the meaning of sections 58A and 58AA of the Act and the rules framed
there under.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) The Company is required to maintain the cost records as
prescribed by the Central Government of India under clause (d) of
sub-section (1) of section 209 of the act for the activities carried on
by the company.
ix) a) Undisputed statutory dues including provident fund, investor
education and protection fund, Employees' state insurance, income-tax,
sales-tax, wealth-tax, customs duty, excise duty, have not been
regularly deposited with the appropriate authorities and there have
been slight delays in few cases.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income-tax,
wealth-tax, sales-tax, customs duty, excise duty and other undisputed
statutory dues were outstanding, at the year end, for a period of more
than six months from the date they became payable.
c) According to the records of the company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of the
Statute Nature of dues Amount (Rs) Period to which Forum
where
the amount
relates dispute
is
pending
Income
Tax Act Income Tax 6,75,100 A.Y.2002-03 Asst.
CIT,
Mumbai.
x) The Company's accumulated losses at the end of the financial year
are less than fifty per Cent of its net worth and it has not incurred
cash losses in the current and immediately preceding financial year.
xi) Based on our audit procedures and as per the information and
explanations given by the Management, we are of the opinion that the
Company has not defaulted in repayment of dues to banks.
xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor's Report) order, 2003 (as amended)
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 (Auditor's Report) order,
2003 (as amended) are not applicable to the Company.
(xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
(xvi)The term loans have been applied for the purpose for which the
loans were obtained.
(xvii) According to the information and explanations 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.
(xviii)The company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under section
301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The management has disclosed on the end use of money raised by
public issue and the same has been verified.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For S. K. Badjatya & Co.
Chartered Accountants
Firm Registration No. 004017C
Sd/-
C A.Sudhir K.Jain
Partner
Membership No. 072282
Place: Mumbai
Date: May 30, 2010
Mar 31, 2010
1. We have audited the attached balance sheet of Chromatic India
Limited (the Company) as at March 31, 2010 and also the profit and
loss account and the cash fl ow statement for the year ended on that
date annexed thereto. These fi nancial statements are the
responsibility of the companys management. Our responsibility is to
express an opinion on these fi nancial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the fi
nancial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the fi nancial statements. An audit also includes
assessing the accounting principles used and signifi cant estimates
made by management, as well as evaluating the overall fi nancial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the companies (Auditors Report) order, 2003, as
amended by the companies (Auditors Report) (Amendment) order, 2004,
issued by the central government of India in terms of sub-section(4A)
of section 227 of The Companies Act, 1956 of India (the Act) and on
the basis of such checks of the books and records of the company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specifi ed in paragraphs 4 and 5 of the said order.
4. Further to our comments in the paragraph 3 above, we report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The balance sheet, profi t and loss account and cash fl ow
statement dealt with by this report are in agreement with the books of
account;
iv) In our opinion, the balance sheet, profi t and loss account and
cash fl ow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies act, 1956, except for non-compliance of accounting
standard 15 (Revised) on "Employee Benefi ts" wherein the impact on the
fi nancial statement cannot be ascertained.
v) On the basis of the written representations received from the
directors, as on March 31, 2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualifi ed as on
March 31, 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.
vii) Note no. 4 regarding non confi rmation of balances in respect of
amounts due from/to sundry debtors / sundry creditors and other
receivables wherein the impact on the fi nancial statement cannot be
ascertained.
viii) As stated in note no. 5, 6 & 7 of the fi nancial statement as on
March 31, 2010, no provision has been made with regard to:
a) The realisability of the bill discounting from Western India
Financial Services Limited (WIFSL), aggregating Rs 101.69 lacs as at
March 31, 2010 (Rs 101.69 lacs as at March 31, 2009), due to signifi
cant uncertainties in recovering the same for which a legal case in
pending since 1996-97;
b) the realisabitity of the deposit with Pillage Finance ã Investment
Private Limited (PFIPL), aggregating Rs. 152.95 lacs as at March 31,
2010 (Rs. 152.95 lacs as at March 31, 2009), due to signifi cant
uncertainties in recovery;
c) The realisability of the investment, interest receivable and loan
from Societa Eiducle L Con Sa (Arcoiris SA), a subsidiary company,
aggregating Rs 122.09 lacs as at March 31, 2010 (Rs 121.86 lacs as at
March 31, 2009), where the networth has been completely eroded and
there is no signifi cant activities being carried out.
The above has resulted in understatement of losses by Rs 376.73 lacs
(Rs 376.50 lacs for the year ended March 31, 2009), loans and advances
by Rs 350.50 lacs (Rs 350.27 as at March 31, 2009) and investment by Rs
26.23 lacs (Rs 26.23 lacs as at March 31, 2009).
5. Our audit report on the fi nancial statements for the year ended
March 31, 2009 was also qualifi ed in respect on the matters stated in
paragraph 4(iv), (vii) and (viii) above.
6. Based on our audit conducted as above, subject to the effects of
our observations given in paragraph 4(iv), (vii) and (viii) above, the
said accounts 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 March 31, 2010;
b) in the case of the profit and loss account, of the profit for the
year ended on that date; and
c) in the case of cash flow statement, of the cash fl ows for the year
ended on that date.
Annexure to Auditors Report
[Referred to in paragraph 3 of the Auditors Report of even date to the
members of Chromatic India Limited on the fi nancial statements for the
year ended March 31, 2010]
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fi xed
assets.
b) All the fi xed assets have not been physically verifi ed by the
management during the year but there is a regular programme of verifi
cation which, in our opinion, is reasonable having regard to the size
of the Company and the nature of its assets. As informed, no material
discrepancies were noticed on such verifi cation.
c) There was no substantial disposal of fi xed assets during the year.
ii) a) The inventory has been physically verifi ed by the management
during the year. In our opinion, the frequency of verifi cation is
reasonable.
b) The procedures of physical verifi cation 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 and no
material discrepancies were noticed on physical verifi cation carried
out at the end of the year.
iii) a) As informed, the Company has not granted/ taken any loans,
secured or unsecured to/ from Companies, fi rms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
Accordingly, clauses (iii) (b), (c), (d), (e), (f) and (g) of the
Companies (Auditors Report) Order, 2003 (as amended) are not
applicable to the Company and hence, not reported upon.
iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fi xed assets and with
regard to the sale of goods and services. During the course of our
audit, no major weakness has been noticed in the internal control
system in respect of these areas. 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) a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under section 301 have
been so entered.
b) None of the transactions made in pursuance of any contracts or
arrangements exceed the value of Rupees fi ve lakh in respect of any
such party in the fi nancial year.
vi) The company has not accepted any deposits from the public within
the meaning of sections 58A and 58AA of the Act and the rules framed
there under.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) The Company is required to maintain the cost records as
prescribed by the Central Government of India under clause (d) of sub-
section (1) of section 209 of the act for the activities carried on by
the company. However, the records have not been updated for the year
ended March 31, 2010.
ix) a) Undisputed statutory dues including provident fund, investor
education and protection fund, Employees state insurance, income-tax,
sales-tax, wealth-tax, customs duty, excise duty, have not been
regularly deposited with the appropriate authorities and there have
been slight delays in few cases.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the company in depositing the same.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees state insurance, income-tax,
wealth-tax, sales-tax, customs duty, excise duty and other undisputed
statutory dues were outstanding, at the year end, for a period of more
than six months from the date they became payable.
c) According to the records of the company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of the
Statute Nature of dues Amount (Rs) Period to
which the
Forum where
dispute
amount
relates is pending
Income Tax Act Income Tax 6,75,100 A. Y.
2002-03 Asst. CIT,
Mumbai
x) The Companys accumulated losses at the end of the fi nancial year
are less than fi fty per cent of its net worth and it has not incurred
cash losses in the current and immediately preceding fi nancial year.
xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to banks.
xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefi t fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditors Report) order, 2003 (as amended)
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.
(xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or fi nancial institutions.
(xvi) The Company did not have any term loans outstanding during the
year.
(xvii) According to the information and explanations 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.
(xviii) The company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money by public issue during the
year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the fi nancial statements and as
per the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For Haribhakti & Co.
Chartered Accountants
Firm Registration No. 103523W
Sarah George
Partner
Membership No. 45255
Place: Mumbai
Date: May 29, 2010