Mar 31, 2015
We have audited the accompanying financial statements of Circuit System
(India) Limited ("the Company"), which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss, Cash Flow Statement
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 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 of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial 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. 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
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its loss and its cash flows for the year ended
on that date.
* Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, 2015, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
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.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 34 to the
financial statements;
(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 5 of our report of even date)
I. Fixed Assets: -
(a) The Company has maintained proper records to show full particulars,
including quantitative details and situation of fixed assets.
(b) The management has physically verified all the fixed assets at the
year-end. No material discrepancies have been noticed on such
verification.
II. Inventory :
(a) The stocks of finished goods, stores and spares have been
physically verified during the year by the management. In our opinion,
the frequency of verification is reasonable.
(b) The procedure of physical verification of stocks followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) No material discrepancies have been noticed on physical
verification of stocks as compared to book records.
II. Loan:
According the information and explanation given to us, the company has
not granted any loans, secured or unsecured to companies, firms or
their parties covered in the register maintained under section 189 of
the companies Act 2013.
II. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of stores, raw materials including
components, plant & machinery, equipment, other goods, assets and job
work and with regard to the sales of goods, assets and job work. To the
best of our knowledge, no major weaknesses in internal control were
either reported or noticed by us during the course of our audit.
III. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit during the
current financial year.
IV. The Central Government has not prescribed for the maintenance of
cost records under sub-section (1) of section 148 of the Companies Act,
2013.
V. (a) The Company is regular in depositing undisputed statutory dues
including provident fund, employees'
state insurance, income tax, sales tax, wealth tax, service tax, duty
of customs, duty of excise, value added tax, cess and any other
statutory dues with a appropriate authorities.
(b) According to the information and explanation given to us, there
were no undisputed amounts payable in respect of Income-Tax,
Wealth-Tax, Sales Tax, Customs Duty and Excise Duty which have remained
outstanding as at 31st March, 2015 for a period of more than six months
from the date they became payable.
(c) The company is not required to transfer any amount to investor
educational and protection fund in accordance with provisions of
Companies Act, 2013 or rules made thereunder.
VI. The Company has not incurred cash losses during the year. The
Company has no accumulated losses more than 50% of its net worth.
VII. On the basis of the verification of records and information and
explanations given to us, the Company has not defaulted in repayment of
dues to financial institutions or banks.
VIII. The Company has not given any guarantees for loans taken by
others from banks and financial institutions during the year.
IX. Based on verification of records of the company, the terms loan
were applied for the purpose for which loans were obtained.
X. Based on the Audit procedure performed and the representation
obtained from the management, we report that no case of fraud on or by
the Company has been noticed or reported during the year under Audit.
For Baheti Bhadada and Associates
Chartered Accountants
Firm Registration No. 100865W
(Krutesh Patel)
Place : Ahmedabad Partner
Date : 22 April 2015 Membership No. 140047
Mar 31, 2014
We have audited the accompanying financial statements of Circuit
Systems (India) Limited ("the Company"), which comprise the Balance
Sheet as at 31st March, 2014 and 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. 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 financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account ;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards 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 31st March, 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to Independent Auditors'' Report
[Referred to in Paragraph 1 under the heading of "report on other legal
and regulatory requirements" of our report of even date]
1. (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
nature of its assets. No material discrepancies were noticed on such
physical verification.
(c) The fixed assets disposed of during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected to the going
concern status of the Company.
2. (a) The inventories have been physically verified during the year
by management. In our opinion, the frequency of verification is
reasonable.
(b) According to the information and explanations given to us, in our
opinion 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) In our opinion and according to the information and explanations
given to us the Company is maintaining proper records of inventory.
According to the information and explanations given to us no material
discrepancies were noticed on physical verification of inventories as
compared to book records.
3. (a) The Company has granted unsecured loans to two parties covered
in the register maintained under Section 301 of the Companies Act,
1956. The maximum amount at any time during the year was Rs.
37,00,000/- (P.Y. Rs. 32,51,896/-) and the year-end balance is NIL
(P.Y. Nil).
(b) In our opinion and according to the information and explanations
given to us, the terms and conditions on which loans have been granted
to the above parties listed in the register maintained under section
301 of the Companies Act, 1956 are not, prima facie prejudicial to the
interest of the Company.
(c) We are informed that the loans granted to the above parties, do not
have any stipulation for the payment of principal and interest.
(d) The Company has taken unsecured loans from three parties covered in
the Register maintained under Section 301 of the Companies Act, 1956.
The maximum amount at any time during the year was Rs. 3,66,81,084/-
(P.Y. Rs. 5,31,96,325/-) and the year-end balance is NIL (P.Y. Nil).
(e) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions of
such loan are not prima facie prejudicial to the interest of the
company.
(f) In respect of the aforesaid loans, the company is regular in
repaying the principal amount which is repayable on demand.
4. 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 the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books of
account and records of the Company and according to the information and
explanation given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
internal control system.
5. According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in section 301 of
the Companies Act, 1956 that needs to be entered in the register
maintained under that section have been so entered. Transactions done
in pursuance of such contracts or arrangements have made at prices
which appear reasonable as per information available with the company.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public and
therefore, the provisions contained in Sections 58A, 58AA or any other
relevant provisions of the Act and Rules framed there under are not
applicable to the Company.
7. In our opinion, the internal audit functions carried out during the
year by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business.
8. According to the information and explanations given to us, the
Central Government has prescribed for maintenance of cost records under
Section 209(1)(d) of the Companies Act, 1956 in respect of
manufacturing activity of the Company and we are of the opinion that
prima facie the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determining whether they are accurate or
complete.
9. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Sales Tax/Value Added Tax, Gratuity,
Professional Tax, Income-tax, Wealth-tax, Custom Duty, Excise duty,
Service Tax, Cess and any other applicable dues, during the year with
the appropriate authorities. However, minor delay has been noticed in
respect of Tax Deducted at Source (TDS) during the year. According to
the information and explanation given to us no undisputed amounts
payable in respect of statutory dues outstanding as at 31st March 2014
for a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, there are
no dues of Provident Fund, Sales tax/ Value Added Tax, Professional
tax, Income tax, Wealth-tax, Custom duty, Excise duty, Service tax,
Cess and any other dues to the extent applicable, which have not been
deposited on account of dispute. The following are the particulars of
statutory dues not deposited by the Company on account of disputes as
at 31st March 2014:
Nature of Nature of Amount* Period to
the Statute the Dues (Rs. In Lakhs) which amount
relates
pending
GST/CST of Time limit of Matter is related to F.Y. 1998-99
GST Act. deferment time limit, amount to
is not quantified F.Y. 2001-02
VAT Act Demand of 1,72,284 F.Y. 2004-05
excess interest
paid on refund
Income Tax Act Demand for 29,84,020 F.Y. 2009-10
income tax & A. Y. 2010-11
Interest thereon
Nature of Forum where
the Statute dispute is
GST/CST of Gujarat Value Added Tax,
GST Act. Tribunal, Ahmedabad
VAT Act Deputy Commissioner of
Commercial Tax (Appeal)
Income Tax Act CIT (Appeals)
10. The Company does not have any accumulated losses at the end of the
year and has not incurred cash losses in the current financial year.
Company has incurred cash losses in the immediately preceding financial
year.
11. In our opinion and according to the information and explanation
given to us, the Company has been generally regular in repayment of
dues to Banks and Financial Institutions.
12. According to the information and explanations given 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 / nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments. The investment in shares
and other securities have been held by the Company in its own name.
15. According to the information and explanations given to us, Company
has not given any guarantee for loan taken by others from banks and
Financial Institutions during the year.
16. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
17. On the basis of the information and explanations given to us and
on an overall examination of the Financial Statements of the Company,
in our opinion, there are no funds raised on a short-term basis which
have been used for long-term investments.
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 during the year.
19. The Company has not issued any debentures during the year.
20. During the year, the Company has not raised money by public issue.
21. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India, we have not come across any
instance of material fraud on or by the Company, noticed or reported
during the year, nor have been informed of such case by the management.
For. C.R. SHAREDALAL & CO.
CHARTERED ACCOUNTANTS,
(Registration No.109943W)
(C. R. SHAREDALAL)
PLACE : AHMEDABAD PARTNER
DATE : 15th May, 2014 Membership No.002571
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Circuit
Systems (India) Limited ("the Company"), which comprise the Balance
Sheet as at 31 March, 2013 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
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 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 March 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account ;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on 31 March, 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March, 2013 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
[Referred to in Paragraph 1 under the heading of "report on other legal
and regulatory requirements" of our report of even date]
1. (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
nature of its assets. No material discrepancies were noticed on such
physical verification.
(c) In our opinion, the Company has disposed of a substantial part of
fixed assets as set out in Note 29 being the work-in-progress at SEZ
Unit during the period. On the basis of our examination of the books
and records of the Company, and according to the information and
explanations given to us, in our opinion, the disposal of the said
assets work-in-progress has not affected the going concern status of
the Company.
2. (a) The inventories have been physically verified during the year
by management. In our opinion, the frequency of verification is
reasonable.
(b) According to the information and explanations given to us, in our
opinion 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) In our opinion and according to the information and explanations
given to us the Company is maintaining proper records of inventory.
According to the information and explanations given to us no material
discrepancies were noticed on physical verification of inventories as
compared to book records.
3. (a) The Company has granted unsecured loans to two parties covered
in the register maintained under
Section 301 of the Companies Act, 1956. The maximum amount at any time
during the year was Rs. 32,51,896/- and the year-end balance is NIL.
(b) In our opinion and according to the information and explanations
given to us, the terms and conditions on which loans have been granted
to the above parties listed in the register maintained under section
301 of the Companies Act, 1956 are not, prima facie prejudicial to the
interest of the Company.
(c) We are informed that the loans granted to the above parties, do not
have any stipulation for the payment of principal and interest.
(d) The Company has taken unsecured loans from three parties covered in
the Register maintained under Section 301 of the Companies Act, 1956.
The maximum amount at any time during the year was Rs.5,31,96,325/- and
the year-end balance is NIL
(e) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions of
such loan are not prima facie prejudicial to the interest of the
company.
(f) In respect of the aforesaid loans, the company is regular in
repaying the principal amount which is repayable on demand.
4. 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 the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books of
account and records of the Company and according to the information and
explanation given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
internal control system.
5. According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in section 301 of
the Companies Act,1956 that needs to be entered in the register
maintained under that section have been so entered. Transactions done
in pursuance of such contracts or arrangements have made at prices
which appear reasonable as per information available with the company.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public and
therefore, the provisions contained in Sections 58A, 58AA or any other
relevant provisions of the Act and Rules framed there under are not
applicable to the Company.
7. In our opinion, the internal audit functions carried out during the
year by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business.
8. According to the information and explanations given to us, the
Central Government has prescribed for maintenance of cost records under
Section 209(1)(d) of the Companies Act, 1956 in respect of
manufacturing activity of the Company and we are of the opinion that
prima facie the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determining whether they are accurate or
complete.
9. (a) According to the information and explanations given to us and
on the basis of our examination of the
books of account, the Company has been generally regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees'' State Insurance, Sales Tax/Value Added
Tax, Gratuity, Professional Tax, Income-tax, Wealth-tax, Custom Duty,
Excise duty, Service Tax, Cess and any other applicable dues, during
the year with the appropriate authorities. However, minor delay has
been noticed in respect of Tax Deducted at Source (TDS) during the
year. According to the information and explanation given to us no
undisputed amounts payable in respect of statutory dues outstanding as
at 31 March 2013 for a period of more than six months from the date
they became payable other than a sum of Rs. 69,489/- of Tax Deducted at
Source. (b) According to the information and explanation given to us,
there are no dues of Provident Fund, Sales tax/ Value Added Tax,
Professional tax, Income tax, Wealth-tax, Custom duty, Excise duty,
Service tax, Cess and any other dues to the extent applicable, which
have not been deposited on account of dispute. The following are the
particulars of statutory dues not deposited by the Company on account
of disputes as at 31 March 2013:
10. The Company does not have any accumulated losses at the end of the
year. During the year the Company has incurred cash loss. Further
during the previous year the Company has not incurred any cash losses.
11. In our opinion and according to the information and explanation
given to us, the Company has been generally regular in repayment of
dues to Banks and Financial Institutions.
12. According to the information and explanations given 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 / nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments. The investment in shares
and other securities have been held by the Company in its own name.
15. According to the information and explanations given to us, Company
has not given any guarantee for loan taken by others from banks and
Financial Institutions during the year.
16. During the period under audit, the company has not obtained any
fresh term loans; hence the provisions of clause (xvi) are not
applicable to the company.
17. On the basis of the information and explanations given to us and
on an overall examination of the Financial Statements of the Company,
in our opinion, there are no funds raised on a short-term basis which
have been used for long-term investments.
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 during the year.
19. The Company has not issued any debentures during the year.
20. During the year, the Company has not raised money by public issue.
21. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India, we have not come across any
instance of material fraud on or by the Company, noticed or reported
during the year, nor have been informed of such case by the management.
For. C.R. SHAREDALAL & CO.
CHARTERED ACCOUNTANTS,
(Registration No.109943W)
(C. R. SHAREDALAL)
PLACE : AHMEDABAD PARTNER
DATE : 25-05-2013 Membership No.002571
Mar 31, 2012
We have audited the attached Balance Sheet of CIRCUIT SYSTEMS (INDIA)
LTD. as at 31st March, 2012 and statement of Profit and Loss and Cash
Flows Statement for the year ended on that date annexed thereto of the
company, which we have signed under reference to this report. These
financial statements are the responsibility of the company's
management. Our responsibility is to express an opinion on these finan
cial statements based on our Audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material 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 si gnificant 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.
1. As required by Companies (Auditor's Report) Order, 2003, issued by
the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, and on the basis of such checks as considered appropriate
and according to the information and explanations given to us during
the course of the aud it, we enclose in the Annexure hereto a statement
on the matters specified in Paragraphs 4 and 5 of the Order.
2. Further to our comments in the Annexure referred to in above, 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the Books of
Account of company;
(d) In our opinion, the Balance sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting standards referred to
Section 211 (3C) of the companies Act, 1956;
(e) Directors of the company do not, prima facie, have any
disqualification as referred to clause (g) of sub- section (1) of
section 274 of the Companies A ct, 1956 which is based on written
representation received from them and taken on record by the Board of
Directors;
(f) Due to change in method of accounting for treatment of profit/loss
on sale of SEZ project having no commercial production resulted in
overstatement of profit assets of SEZ project by Rs. 16.14 lacs (
Please see note 31 to the financial statement).
(g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon and note at para (f) above give the information required
by the Companies Act, 1956 in the manner so required and give a true
and fair view in conformity with the accounting principles generally
accepted in India;
a) In the case of the Balance sheet, of the state of affairs of the
company as at 31st March, 2012; and
b) In the case of the Statement of Profit and Loss 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.
Annexure to the Auditors' Report referred to in paragraph 3 our report
of even date:
The comments given herein below are based on the data complied by the
company in order to comply with the requirements of the new order from
the effective date. On the basis of such checks as considered
appropriate and examination of the books of accounts and records
carried out in accordance with the generally accepted during auditing
practices in India and in terms of the information and explanations
given by the management, in our opinion :
(i) (a) the company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets ;
(b) physical verification of fixed assets has been carried out by the
company and no material discrepancies were noticed on such
verification; the frequency of verification is reasonable, having
regard to the size of the company and nature of its business;
(c) during the year the company has not disposed off any substantial /
major part of fixed assets ;
(ii) (a) the inventories have been physically verified at reasonable
intervals during the year by the management & the frequency of
verification is reasonable, having regard to the size of the company
and nature of its business ;
(b) 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;
discrepancies noticed on physical verification of stock were not
material in relation to the operations of the company and the same have
been properly dealt with in the books of account;
(iii) (a) the Company has granted unsecured loans to persons listed in
the register maintained under Section 301 of the Act ;
The yearend balance of such loan amounts to Rs. Nil (PY Rs. 104.74
lacs) respectively; the rate of interest and other terms and conditions
of such loans are in our opinion, prima facie not prejudicial to the
interests of the company; the said loans were given to nil (P.Y two)
party; the loan being repayable on demand, the question of overdue
amount does not arise ;
(b) the company has taken unsecured loans from individual firms and
other persons listed in the register maintained U/s 301 of the Act;
rate of interest and other terms and conditions are not prejudicial to
the interest of the company; above loans are taken from three
(P.Y.four) parties, the year end balance of loans taken from such
parties was Rs.336.61 lacs (PY Rs. 267.45 lacs) ; (iv) In our opinion
and according to the information and explanations given to us, there is
an adequate internal control system commensurate with the size of the
Company and the nature of its business, for the purchases of inventory
and fixed assets.
Further, on the basis of our examination of the books and r ecords of
the company and according to the information and explanations given to
us, we have not observed any continuing failure to correct major
weakness in internal control system.
(v) (a) The transactions that are required to be entered in the
Register in pursuance of Section of the Act has been so entered ;
(b) i) there are transactions made in pursuance of contract or
arrangements which has to be entered in register maintained under
Section 301 of Act aggregating to rupees five lacs or more in value
during the year in respect of each party, have been made in prices
which are reasonable having regards to prevailing market prices as
available with the company for such goods, materials or services or the
prices at which transactions for similar goods, materials or services
have been made with other parties ;
(vi) the company has not accepted any deposits during the year from the
public within the meaning of the provisions of section 58A and 58AA of
the companies Act, 1956 and rules made there under;
(vii) in our opinion, the company has an internal audit system
commensurate with its size & the nature of its business :
(Viii) The Central Government has prescribed maintenance of the cost
records under section 209(l)(d) of the companies Act, 1956 in respect
of the company's products the company has obtained compliance
certificate from the qualified cost accountant:
(ix) a) the company is generally regular in depositing undisputed
statutory dues including provident Fund, investor education and
protection fund, employees' state insurance, income tax, sales tax,
custom duty, excise duty, cess and any other material statutory dues,
as may be applicable, with the appropriate authorities as observed by
us during the course of our examination of the books of accounts
carried out in accordance with generally accepted auditing practices in
India;
b) the statutory dues which have been deposited on account of disputes
and the forum where the dispute is pending are as under;
Sr. Nature of Nature of Amount Relevant
No the Statute the Dues (Rs. Assessment
Year
1 GST/CSTof Section 67 N.A. * 2003-04
GST Act to 2005-06
2 Service Tax Cenvat 20.87 2006-07
Rules 2004 Credit Lacs & 2007-08
3 Anti Dumping Under 13 Lacs 2003-04
Duty Refund Notification No.
141/2003 &
supported by Sec.
9A of Custom
Tariff Act, 1975
4 VAT Act Section 54 1.72 Lacs 2004-05
Name of statue Forum Status
where
dispute is
pending
GST/CST of GST Act Gujarat Pending
Value Added for
Tax Tribunal, adjudication
Ahmedabad
Srivice Tax
Rules 204 The Commissioner Final order
of Central awaited.
Excise(Appeals),
Ahmedabad
Anti Dumping
Duty Refund Custom Pending
Appeal in
Mumbai
VAT Act Recovery of Pending
interest on
refund (Appeal)
* Since Matter relates to time limit, Amount is not quantifable.
(x) there are no accumulated losses as on 31st March, 2012; the company
has not incurred any cash losses during the financial year covered by
our audit and the immediately preceding financial year; (xi) as per the
declaration given by the company, the company has not defaulted in
repayment of dues to a financial institution, bank or debenture
holders, as may be applicable;
(xii) the company has not granted any loans and/or advances on the
basis of security by way of pledge of shares, debentures and other
securities; (xiii) the company has not given any guarantee for loans
taken by others from bank or financial institution; (xiv) in absence of
specification of purpose of the the term loan by the financing
institution, the term loan taken has been utilized by the management as
per decision of board of directors;
(xv) no fund raised on short-term basis has been used for long term
investment or vice versa; however, there has been deployment of fund
out of profit of the company, which is technically regarded as
long-term source of fund for meeting need based working capital
requirement;
(xvi) no fraud on or by the company has been noticed or reported during
the year; (xvii) Other clauses such as (xi ii) with respect to Chit
fund company or Nidhi / mutual fund / society, (xiv) trading in shares
and securities etc., (xix) creation of securities for debenture of the
order are not applicable to the company.
For Virendra Chinubhai & Co.
Chartered Accountants,
(F.R.No. 111567 W)
(V.C. SHAH)
Place: Visnagar Proprietor
Date : 31-08-2012 M.No. 34167
Mar 31, 2011
We have audited the attached Balance Sheet of CIRCUIT SYSTEMS (INDIA)
LTD. as at 31st March, 2011 and Profit and Loss Account and Cash Flows
Statement for the year ended on that date annexed thereto of the
company, which we have signed under reference to this report. These
financial statements are the responsibility of the company's
management. Our responsibility is to express an opinion on these
financial statements based on our Audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material 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.
1. As required by Companies (Auditor's Report) Order, 2003, issued by
the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956 and on the basis of such checks as considered appropriate and
according to the information and explanations given to us during the
course of the audit, we enclose in the Annexure hereto a statement on
the matters specified in Paragraphs 4 and 5 of the Order.
2. Further to our comments in the Annexure referred to in above, 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 Profit and Loss Account dealt with by this
report are in agreement with the Books of Account of company;
(d) In our opinion, the Balance sheet and Profit and Loss Account
comply with the Accounting standards referred to Section 211 (3C) of
the companies Act, 1956;
(e) Directors of the company do not, prima facie, have any
disqualification as referred to clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956 which is based on written
representation received from them and taken on record by the Board of
Directors;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India;
a) In the case of the Balance sheet, of the state of affairs of the
company as at 31st March, 2011; and
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.
Annexure to the Auditors' Report referred to in paragraph 3 our report
of even date:
The comments given herein below are based on the data complied by the
company in order to comply with the requirements of the new order from
the effective date. On the basis of such checks as considered
appropriate and examination of the books of accounts and records
carried out in accordance with the generally accepted during auditing
practices in India and in terms of the information and explanations
given by the management, in our opinion :
(i) (a) the company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets;
(b) physical verification of fixed assets has been carried out by the
company and no material discrepancies were noticed on such
verification; the frequency of verification is reasonable, having
regard to the size of the company and nature of its business;
(c) during the year the company has not disposed off any substantial /
major part of fixed assets;
(ii) (a) the inventories have been physically verified at reasonable
intervals during the year by the management & the frequency of
verification is reasonable, having regard to the size of the company
and nature of its business;
(b) 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;
discrepancies noticed on physical verification of stock were not
material in relation to the operations of the company and the same have
been properly dealt with in the books of account;
(iii) (a) the Company has granted unsecured loans to persons listed in
the register maintained under Section 301 of the Act;
maximum amount outstanding during the year and the year end balance of
such loan amounts to Rs. 104.74lacs(PY Rs. 94.61 lacs) and Rs. 104.74
lacs (PY Rs. 94.61 lacs) respectively;the rate of interest and other
terms and conditions of such loans are in our opinion, prima facie not
prejudicial to the interests of the company;the said loans were given
to one party; the loan being repayable on demand, the question of
overdue amount does not arise;
(b) the company has taken unsecured loans from individual firms and
other persons listed in the register maintained U/s 301 of the Act;
rate of interest and other terms and conditions are not prejudicial to
the interest of the company;above loans are taken from four parties,
the maximum amount involved during the year was Rs. 311.44 (PY Rs.
456.88lacs) and the year end balance of loans taken from such parties
was Rs. 267.45 lacs (PY Rs. 106.32 lacs);
(iv) in our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchanses of inventory and fixed assets. During the course of our
audit, we have not observed any major weaknesses in the internal
control system;
(v) (a) the transactions that are required to be entered in the
Register in pursuance of Section 301 of the Act has been so entered;
(b) i) there are transactions made in pursuance of contract or
arrangements which has to be entered in register maintained under
Section 301 of Act aggregating to rupees five lacs or more in value
during the year in respect of each party, have been made in prices
which are reasonable having regards to prevailing market prices as
available with the company for such goods, materials or services or the
prices at which transactions for similar goods, materials or services
have been made with other parties;
(vi) the company has not accepted any deposits during the year from the
public within the meaning of the provisions of section 58A and 58AA of
the companies Act, 1956 and rules made there under;
(vii) the company has internal audit system during the year under
review;
(viii) the Central Government has not prescribed maintenance of the
cost records under section 209 (1) (d) of the companies Act, 1956 in
respect of the company's products;
(ix) (a) the company is generally regular in depositing undisputed
statutory dues including provident Fund, investor education and
protection fund, employees' state insurance, income tax, sales tax,
custom duty, excise duty, cess and any other material statutory dues,
as may be applicable, with the appropriate authorities as observed by
us during the course of our examination of the books of accounts
carried out in accordance with generally accepted auditing practices in
India;
(b) the statutory dues which have been deposited on account of disputes
and the forum where the dispute is pending are as under;
Nature of Nature of Amount Relevant
the Statute the Dues (Rs.) Assement
year
GST/CST of GST Ac Section 67 N.A. 2003-04
to 2005-06
Service Tax Cenvat Credit 20.87 2006-07
Rules, 2004 Lac & 2007-08
Anti Dumping Under 13 2003-04
Notification Lac
Duty Refund
No. 141/2003 &
supported by
Sec.9A of
Custom Tarrif
Act, 1975
VAT Act Section 54 1.72 2004-05
Lac
Nature of Forum where dispute is pending Status
the Statute
GST/CST of GST Gujarat Value Added Tax Pending for
Act tribunal, Ahmedabad. adjudication
Service Tax The commissioner of Central Final order
Rules, 2004 Excise (Appeals), Ahmedabad awaited
Anti Dumping Custom Appeal in Mumbai Pending
VAT Act Recovery of interest on refund Pending
Appeal)
* Since matter relates to Time limit, Amount is not quantifiable;
(x) there are no accumulated losses as on 31st March, 2011; the company
has not incurred any cash losses during the financial year covered by
our audit and the immediately preceding financial year;
(xi) as per the declaration given by the company, the company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders, as may be applicable;
(xii) the company has not granted any loans and/or advances on the
basis of security by way of pledge of shares, debentures and other
securities;
(xv) the company has not given any guarantee for loans taken by others
from bank or financial institution;
(xvi) no fresh term loan was taken by the company during the year under
review;
(xvii) no fund raised on short-term basis has been used for long term
investment or vice versa; however, there has been deployment of fund
out of profit of the company, which is technically regarded as
long-term source of fund for meeting need based working capital
requirement;
(xviii) no fraud on or by the company has been noticed or reported
during the year;
(xx) other clauses such as (xiii) with respect to Chit fund company or
Nidhi / mutual fund / society, (xiv) trading in shares and securities
etc. , (xix) creation of securities for debenture of the order are not
applicable to the company;
For Virendra Chinubhai & Co.
Chartered Accountants,
(F.R.No. 111567 W)
(V.C. SHAH)
Proprietor
M.No. 34167
Place : Visnagar
Date : 31.08.2011
Mar 31, 2010
We have audited the attached Balance Sheet of CIRCUIT SYSTEMS (INDIA)
LTD. as at 31st March, 2010 and Profit and Loss Account and Cash Flows
Statement for the year ended on that date annexed thereto of the
company, which we have signed under reference to this report. 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 have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material 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.
1. As required by Companies (Auditors Report) Order, 2003, issued by
the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, and on the basis of such checks as considered appropriate
and according to the information and explanations given to us during
the course of the audit, we enclose in the Annexure hereto a statement
on the matters specified in Paragraphs 4 and 5 of the Order.
2. Further to our comments in the Annexure referred to in above, 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 Profit and Loss Account dealt with by this
report are in agreement with the Books of Account of company;
(d) In our opinion, the Balance sheet and Profit and Loss Account
comply with the Accounting standards referred to Section 211 (3C) of
the companies Act, 1956;
(e) Directors of the company do not, prima facie, have any
disqualification as referred to clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956 which is based on written
representation received from them and taken on record by the Board of
Directors;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India;
a) In the case of the Balance sheet, of the state of affairs of the
company as at 31st March, 2010; and
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.
Annexure to the Auditors Report referred to in paragraph 3 our report
of even date:
The comments given herein below are based on the data complied by the
company in order to comply with the requirements of the new order from
the effective date. On the basis of such checks as considered
appropriate and examination of the books of accounts and records
carried out in accordance with the generally accepted during auditing
practices in India and in terms of the information and explanations
given by the management, in our opinion :
(i) (a) the company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets,
(b) physical verification of fixed assets has been carried out by the
company and no material discrepancies were noticed on such
verification; the frequency of verification is reasonable, having
regard to the size of the company and nature of its business;
(c) during the year the company has not disposed off any substantial /
major part of fixed assets;
(ii) (a) the inventories have been physically verified at reasonable
intervals during the year by the management & the frequency of
verification is reasonable, having regard to the size of the company
and nature of its business;
(b) 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;
discrepancies noticed on physical verification of stock were not
material in relation to the operations of the company and the same have
been properly dealt with in the books of account;
(iii) (a) the Company has granted unsecured loans to persons listed in
the register maintained under Section 301 of the Act; maximum amount
outstanding during the year and the year end balance of such loan
amounts to Rs. 94.61 lacs(PY Rs. 86.33 lacs) and Rs. 94.61 lacs (PY Rs.
86.33 lacs) respectively;the rate of interest and other terms and
conditions of such loans are in our opinion, prima facie not
prejudicial to the interests of the company;the said loans were given
to one party; the loan being repayable on demand, the question of
overdue amount does not arise;
(b) the company has taken unsecured loans from individual firms and
other persons listed in the register maintained U/s 301 of the Act;
rate of interest and other terms and conditions are not prejudicial to
the interest of the company;above loans are taken from four parties,
the maximum amount involved during the year was Rs. 456.88 lacs (PY Rs.
456.17lacs) and the year end balance of loans taken from such parties
was Rs. 103.91 lacs (PY Rs. 364.30 lacs);
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its busirrss, for the
purchanses of inventory and fixed assets. During the course of our
audit, we have not observed any major weaknesses in the internal
control system.Further, on the basis of our examination of the books
and records of the company and according to the information and
explanations given to us,
(v) (a) The transactions that are required to be entered in the
Register in pursuance of Section 301 of the Act has been so entered.
(b) there are transactions made in pursuance of contract or
arrangements which has to be entered in register maintained under
Section 301 of Act aggregating to rupees five lacs or more in value
during the year in respect of each party, have been made in prices
which are reasonable having regards to prevailing market prices as
available with the company for such goods, materials or services or the
prices at which transactions for similar goods, materials or services
have been made with other parties subject to following :
i) Sales to one related party, during April, 2009 to December, 2009 has
been considered underassessed by Rs. 55.98 lacs by the excise
authorities for calculation of assessable value of goods for levying
excise duties and the management has paid necessary duties on agreed
basis to avoid litigation.
(vi) the company has not accepted any deposits during the year from the
public within the meaning of the provisions of section 58A and 58AA of
the companies Act, 1956 and rules made there under;
(vii) the company has internal audit system during the year under
review.
(viii) the Central Government has not prescribed maintenance of the
cost records under section 209 (1) (d) of the companies Act, 1956 in
respect of the companys products;
(ix) (a) the company is generally regular in depositing undisputed
statutory dues including provident Fund, investor education and
protection fund, employees state insurance, income tax, sales tax,
custom duty, excise duty, cess and any other material statutory dues,
as may be applicable, with the appropriate authorities as observed by
us during the course of our examination of the books of accounts
carried out in accordance with generally accepted auditing practices in
India.
(b) the statutory dues which have been deposited on account of disputes
and the forum where the dispute is pending are as under;
Nature of Nature of Amount Relevant Forum where dispute
is pending
the
Statute the Dues (Rs.) Assement
year
GST/CST Section 67 N.A.* 2003-04 Gujarat Value Added
TaxTribunal,
of GST
Act to
2005-06 Ahmedabad.
Service
Tax Cenvat
Credit 20.87
Lacs 2006-07 The commissioner of
Central
Rules,
2004 & 2007-08 Excise (Appeals),
Ahmedabad
Anti
Dumping Under
Notifi
cation 13 Lacs 2003-04 Custom Appeal in Mumbai
Duty
Refund No. 141
/2003 &
supported
by Sec.
9A of
Custom
Tarrif
Act,
1975
* Since matter relates to Time limit, Amount is not quantifiable. (x)
There are no accumulated losses as on 31st March, 2010; the company has
not incurred any cash losses during the financial year covered by our
audit and the immediately preceding financial year;
(xi) As per the declaration given by the company, the company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders, as may be applicable;
(xii) the company has not granted any loans and/or advances on the
basis of security by way of pledge of shares, debentures and other
securities;
(xv) the company has not given any guarantee for loans taken by others
from bank or financial institution;
(xvi) the term loans taken by the company have been applied for the
purpose for which they were raised;
(xvii) No fund raised on short-term basis has been used for long term
investment or vice versa; however, there has been deployment of fund
out of profit of the company, which is technically regarded as
long-term source of fund for meeting need based working capital
requirement.
(xviii) the company has made preferential allotment of shares ;the
price at which such preferential shares have been allotted is at the
price prevailing in the market on the basis of requirement mentioned in
Companies (Issue of Capital & Disclosure) Regulations, 2009.
(xix) no fraud on or by the company has been noticed or reported during
the year;
(xx) other clauses such as (xiii) with respect to Chit fund company or
Nidhi / mutual fund / society, (xiv) trading in shares and securities
etc., (xix) creation of securities for debenture of the order are not
applicable to the company;
For Virendra Chinubhai & Co.
Chartered Accountants,
(F.R.No. 111567 W)
(V.C. SHAH)
Place : Visnagar Proprietor
Date : 28th July, 2010 M.No. 34167