Mar 31, 2016
INDEPENDENT AUDITORS'' REPORT To The Members of Cosmo Ferrites Limited Report on the Financial Statements
We have audited the accompanying financial statements of Cosmo Ferrites Limited ("the Company") which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and Cash Flow Statement for the period from 1st April, 2015 to 31st March, 2016 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 of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 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 financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, and its Profit and its cash flows for the period 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, 2013, we give in the Annexure ''A'' 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 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, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, 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 19 to the financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 35 to the financial statements;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE - A TO THE AUDITORS'' REPORT
ANNEXURE REFERRED TO IN PARAGRAPH (1) UNDER THE
HEADING OF "REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE
(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 been physically verified by the management according to a regular program, which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies with respect to book records were noticed on such verification. Discrepancies noticed have been properly dealt with in the books of account.
(c) The title deeds of immovable properties are held in the name of the company.
(ii) Physical verification of inventory (except material in transit) has been conducted by the management at reasonable intervals. In our opinion, the frequency of verification is reasonable. No material discrepancies with respect to book records were noticed on such verification. Discrepancies noticed have been properly dealt with in the books of account.
(iii) The company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 and as such clauses (iii) (a), (b) and (c) of the order are not applicable to the company.
(iv) In our opinion and according to the information and explanations given to us no loans, investments, guarantees and security covered under section 185 and 186 of the Companies Act, 2013 has been given by the company.
(v) According to the information and explanation given to us, the company has not accepted any deposit from the public. Therefore, the provisions of clause (v) of the order are not applicable to the company.
(vi) We have broadly reviewed the books of account maintained by the company pursuant to the order made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such accounts and records.
(vii) (a) The company is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, value added tax, cess and any other statutory dues applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect thereof were outstanding as at 31st March, 2016 for a period of more than six months from the date they became payable.
(b) According to the records of the company, dues of income-tax or Sales tax or service tax or duty of custom or duty of excise or value added tax which have not been deposited on account of any dispute are as under:-
S. |
Name of |
Nature of the |
Amount |
Forum where |
No. |
the statue |
dues |
(Rs. In lacs) |
dispute is pending |
1. |
Excise Duty |
Differential Duty |
15.29 |
CESTAT |
(viii) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of loans or borrowings to a financial institution, bank, government or dues to debenture holders.
(ix) In our opinion, moneys raised by way of initial public offer or further public offer (including debt instruments) and term loans have been applied for the purposes for which they were obtained.
(x) According to the information and explanations given to us, no fraud by the company or on the company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion, and according to the information and explanation given to us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V of the Companies Act, 2013.
(xii) The company is not a nidhi company and hence provisions of clause (xii) of the order are not applicable to the company.
(xiii) In our opinion all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) During the year under review the company has not made any preferential allotment on private placement of shares or fully or partly convertible debentures.
(xv) The company has not entered into any non cash transactions with directors or persons connected with him.
(xvi) The Company is not required to be registered under section 45-1A of the Reserve Bank of India Act, 1934
ANNEXURE - B TO THE AUDITORS'' REPORT
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 ("THE ACT")
We have audited the internal financial controls over financial reporting of Cosmo Ferrites Limited ("the Company") as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on "the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India (ICAI)". These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor ''judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for my /our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that:
a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on "the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI".
For B.K.Shroff & Co.
Chartered Accountants
Firm Reg. No. : 302166E
Sanjiv Aggarwal
Partner
Membership Number 85128
Place: New Delhi
Date : 04-05-2016
Mar 31, 2015
We have audited the accompanying financial statements of Cosmo Ferrites
Limited ("the Company") which comprise the Balance Sheet as at 31 March
2015, 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 of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding 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 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 financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its 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, 2013, 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 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) In our opinion, the internal financial controls over financial
reporting of the Company and the operating effectiveness of such
controls are adequate.
g) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, 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 19 to the
financial statements;
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long- term contracts including derivative contracts - Refer Note 36
to the financial statements;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE REFERRED TO IN PARAGRAPH (1) UNDER THE HEADING OF REPORT ON
OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE
(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 been physically verified by the
management according to a regular program, which, in our opinion, is
reasonable having regard to the size of the company and the nature of
its assets. No material discrepancies with respect to book records were
noticed on such verification.
(ii) (a) Physical verification of inventory (except material in
transit) has been conducted by the management at reasonable intervals.
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 nature of its business.
(c) The company is maintaining proper records of inventory.
Discrepancies noticed on verification of inventory as compared to book
records were not material.
(iii) The company has not granted any loans, secured or unsecured to
companies firms or other parties covered in the register maintained
under section 189 of the Act and as such clauses (iii) (a) and (b) of
the order are not applicable to the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal control system.
(v) According to the information and explanation given to us, the
Company has not accepted any deposit from the public. Accordingly, the
provisions of clause (v) of the order are not applicable to the
Company.
(vi) We have broadly reviewed the books of account maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under section 148(1) of the Act, and we are
of the opinion that prima facie the prescribed accounts and records
have been made and maintained. However, we have not made a detailed
examination of such accounts and records.
(vii) (a) The company is generally regular in depositing with the
appropriate authorities 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 applicable to it. According to the information
and explanations given to us, no undisputed amounts payable in respect
thereof were outstanding as at 31st March,2015 for a period of more than
six months from the date they became payable.
(b) According to the records of the company, there are no dues of
income-tax or sales tax or wealth-tax or service tax or duty of customs
or duty of excise or value added tax or cess which have not been
deposited on account of any dispute.
(c) No amount was required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 and rules made there under.
(viii) There are no accumulated losses of the company as at 31st March.
The company has not incurred any cash loss during the financial year
and in the immediately proceeding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or bank or debenture holders.
(x) In our opinion, the company has not given guarantee for loans taken
by others from banks or financial institutions.
(xi) In our opinion, the term loans have been applied for the purposes
for which they were obtained.
(xii) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For B.K.Shroff & Co.
Chartered Accountants
Firm Reg. No. : 302166E
Place : New Delhi Sanjiv Agarwal
Date :26th May, 2015 Partner
Membership No. 85128
Mar 31, 2014
We have audited the accompanying financial statements of Cosmo Ferrites
Limited ("the Company") which comprise the Balance Sheet as at 31st
March, 2014, the Statement of Profit and Loss and Cash Flow Statement
for the year then ended and a summary of 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 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 the 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 paragraph 4 and 5 of the Order.
(2) As required by section 227(3) of the Act, we report that:
(i) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Act; and
(v) On the basis of written representation received from the directors
as at 31st March 2014 and taken on record by the Board of Directors,
none of the director is disqualified as at 31st March 2014, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Act.
ANNEXURE REFERRED TO IN PARAGRAPH (1) UNDER THE HEADING OF REPORT ON
OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE
(i) (a) The ained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) All the fixed assets have been physically verified by the
management according to a regular program which in our opinion is
reasonable having regard to the size of the company and the nature of
its assets. No material discrepancies were noticed on such
verification.
(c) During the year the company has not disposed off any substantial
part of its fixed assets. Therefore, it has not affected the going
concern concept of the company.
(ii) (a) Physical verification of inventory (except material in
transit and lying with third parties) has been conducted by the
management at reasonable intervals. 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 nature of its business.
(c) The company is maintaining proper records of inventory.
Discrepancies noticed on verification of inventory as compared to book
records were not material.
(iii) In our opinion and according to the explanations given to us, the
company has neither granted nor taken loans, secured or unsecured
to/from companies firms or other parties covered in the register
maintained under section 301 of the Act. and as such clauses (iii) (a)
to (g) of the order are not applicable to the company.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory
and fixed assets and for sale of goods and services. During the course
of our audit, no major weakness has been noticed in internal control
system.
(v) According to the information and explanations given to us, during
the year there were no contracts or arrangements referred to in Section
301 of the Act that needed to be entered into the register required to
be maintained under that section and as such clause v (b) of the order
is not applicable to the company.
(vi) In our opinion and according to the information given to us, the
company has not accepted any deposits from the public within the
meaning of sections 58A and 58AA or any other relevant provisions of
the Act.
(vii) In our opinion, the e internal audit system commensurate with
the size and the nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by
the company pursuant to the order made by the Central Government for
the maintenance of cost records under section 209(1) of the
Companies Act, 1956 and are opinion that accounts and records have
been maintained.
(ix) (a) The company is regular in depositing with the appropriate
authorities undisputed statutory dues including provident fund,
employees state insurance, investor education and protection fund,
income tax, sales tax, service tax, wealth tax, custom duty, excise
duty and cess and other statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of income tax, sales tax, service
tax, wealth tax, customs duty, excise duty and cess were outstanding as
at 31.03.2014 for a period of more than six months from the date they
became payable.
(c) According to the information and explanations given to us, dues in
respect of income tax, sales tax, wealth tax, service tax, customs tax,
excise duty and cess, which have not been deposited with the
appropriate authorities on account of any dispute are given below:
Name of Statute Nature of Amount Period
Dispute (in Rs.)
Central Excise Excise Duty 27,62,007 Jan 2000 to Nov. 2004
Act, 1944
Excise Duty 2,65,869 Dec. 2004 to April 2007
Service tax 3,54,009 Jan. 2009 to Mar. 2011
Service tax 18,263 Jan. 2011 to Jun. 2011
Name of Statute Nature of Dispute Forum where dispute is pending
Central Excise Excise Duty CESTAT
Act 1944
Excise Duty CESTAT
Service Tax CESTAT
Service Tax Commissioner (Appeal)
x) There are no accumulated losses of the company as at 31st March,
2014. The company has not incurred any cash loss during the financial
year covered by our audit and in the immediately preceding financial
year.
xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or bank or debenture holders.
xii) According to the information and explanations given to us, the
company has not granted any loan and advance on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion the company is neither a chit fund nor
nidhi/mutual benefit fund/ society and hence clause (xiii) of the order
is not applicable to the company.
xiv) In our opinion the company is not dealing or trading in shares,
securities, debentures and other investments and accordingly clause
(xiv) of the order is not applicable to the company.
xv) In our opinion the company has not given guarantee for loans taken
by others from banks or financial institutions.
xvi) In our opinion, the term loans have been applied for the purposes
for which they 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 investments.
xviii) According to information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register
maintained under section 301of the Companies Act, 1956.
xix) According to the information and explanations given to us, during
the year company had not issued any debentures.
xx) According to the information and explanations given to us, during
the year the company has not raised any money by public issue.
xxi) According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
For B.K. SHROFF & CO.
Chartered Accountants
Firm Registration No. 302166E
Place: New Delhi Sanjiv Aggarwal
Partner
Date: 06th May, 2014 MEMBERSHIP NO :85128
Mar 31, 2012
1. We have audited the attached Balance Sheet of Cosmo Ferrites
Limited, as at 31 st March, 2012 and also the Profit & Loss Account for
the year ended on that date annexed thereto and the cash flow statement
for the year ended on that date. 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the accounts
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 (Auditors' Report) order 2003 issued by
the central Government of India in terms of sub- section (4A) of
section 227 of the Companies Act 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii) In our opinion, proper books of accounts 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 & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;.
iv) In our opinion, the Balance Sheet, Profit & Loss Account and the
Cash Flow Statement comply with the accounting standards referred to in
sub - sections (3C) of section 21 1 of the Companies Act, 1 956;
v) On the basis of written representation received from the directors
and taken on records by the board of directors, we report that none of
the directors is disqualified, as on 31.03.2012, from being appointed
as a director in terms of clause (g) of sub section (1) of section 274
of the Companies Act, 1956.
vi) In our opinion and to the best of our information and according to
the explanations given to us, they said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the cases of the Balance Sheet, of the state of affairs of the
company as at 3 Is1 March, 2012.
b) In the cases of the Profit & Loss Account, of the Profit for the
year ended on that date; and
c) In the cases of Cash Flow Statement of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
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 been physically verified by the
management according to a regular program which in our opinion is
reasonable having regard to the size of the company and the nature of
its assets. No material discrepancies were noticed on such
verification.
c) During the year the company has not disposed off any substantial part
of its fixed assets. Therefore, it has not affected the going concern
concept of the company.
ii a) Physical verification of inventory (except material in transit
and lying with third parties) has been conducted by the management at
reasonable intervals. 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 nature of its business.
c) The company is maintaining proper records of inventory.
Discrepancies noticed on verification of inventory as compared to book
records were not material.
iii In our opinion and according to the explanations given to us, the
company has neither granted nor taken loans, secured or unsecured
to/from companies firms or other parties covered in the register
maintained under section 301 of the Act. and as such clauses (iii) (b),
(iii) (c) and (iii) (d) of the order are not applicable to the company.
iv In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for sale of
goods and services. During the course of our audit, no major weakness
has been noticed in internal control system.
V According to the information and explanations given to us, during the
year there were no contracts or arrangements referred to in Section 301
of the Act that needed to be entered into the register required to be
maintained under that section and as such clause v(b) of the order is
not applicable to the company.
vi In our opinion and according to the information given to us, the
company has not accepted any deposits from the public within the
meaning of sections 58A and 58AA or any other relevant provisions of
the Act.
vi In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business.
vi ii We have broadly reviewed the books of accounts maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209(1) of the Companies Act,
1956 and are of the opinion that prima fade the prescribed accounts and
records have been maintained.
ix a) The company is regular in depositing with the appropriate
authorities undisputed statutory dues including provident fund,
employees state insurance, investor education and protection fund,
income tax, sales tax, service tax, wealth tax, custom duty, excise
duty and cess and other statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of income tax, sales tax, service
tax, wealth tax, customs duty, excise duty and cess were outstanding as
at 31.03.2012 for a period of more than six months from the date they
became payable.
c) According to the information and explanations given to us, dues in
respect of income tax, sales tax, wealth tax, service tax, customs tax,
excise duty and cess, which have not been deposited with the
appropriate authorities on account of any dispute are given below:
Name of Statute Nature of Dispute Amount Period Forum where
(in Rs.) dispute is
pending
Central accuse
Act Differential Duty 27,62,007 Jan 2000
to CESTAT
1944 Nov. 2004
Differential Duty 2,65,869 Dec. 2004
to CESTAT
April 2007
x There is no accumulated loss of the company as at 31** March, 2012.
The company has not incurred any cash loss during the financial year
covered by our audit and in the immediately preceding financial year.
xi In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or bank or debenture holders.
xii According to the information and explanations given to us, the
company has not granted any loan and advance on the basis of security
by way of pledge of shares, debentures and other securities.
xiii In our opinion the company is neither a chit fund nor nidhi/mutual
benefit fund/ society and hence clause (xiii) of the order is not
applicable to the company.
my In our opinion the company is not dealing or trading in shares,
securities, debentures and other investments and accordingly clause
(xiv) of the order is not applicable to the company.
xv In our opinion the company has not given guarantee for loans taken
by others from banks or financial institutions.
xyi In our opinion, the term loans have been applied for the purposes
for which they 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
investments.
xviii according to information and explanations given to us, 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 According to the information and explanations given to us, during
the year company had not issued any debentures.
xx According to the information and explanations given to us, during
the year the company has not raised any money by public issue.
xxi According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
For B.K. SHROFF & CO.
Dated 18th May 2012 Chartered Accountants
Pla ce : New Delhi
Sanjiv Aggarwal Partner
Membership No. 85128
Mar 31, 2010
1. We have audited the attached Balance Sheet of Cosmo Ferrites
Limited, as at 31st March, 2010 and also the Profit & Loss Account for
the year ended on that date annexed thereto and the cash flow statement
for the year ended on that date. These financial statements are the
responsibility of the companyÃs management. Our responsibility is to
express an opinion on these financial statements based on our audit.
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 misstatements. An audit
includes examining, on a test basis, evidence supporting the accounts
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 (Auditorsà Report) order 2003 issued
by the central Government of India in terms of sub- section (4A) of
section 227 of the Companies Act 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii) In our opinion, proper books of accounts 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 & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;.
iv) In our opinion, the Balance Sheet, Profit & Loss Account and the
Cash Flow Statement Comply with the accounting standards referred to in
sub - sections (3C) of section 211 of the Companies Act, 1956;
v) On the basis of written representation received from the directors
and taken on records by the board of directors,
we report that none of the directors is disqualified as on 31.03.2010
from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956.
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the cases of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2010;
b) In the cases of the Profit & Loss Account, of the Profit for the
year ended on that date; and
c) In the cases of Cash Flow Statement of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE 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 been physically verified by the management
according to a regular program which in our opinion is reasonable
having regard to the size of the company and the nature of its assets.
No material discrepancies were noticed on such verification.
c) During the year the company has not disposed off any substantial
part of its fixed assets. Therefore, it has not affected the going
concern concept of the company.
ii. a) Physical verification of inventory (except material in transit
and lying with third parties) has been conducted by the management at
reasonable intervals. 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 nature of its business.
c) The company is maintaining proper records of inventory.
Discrepancies noticed on verification of inventory as compared to book
records were not material.
iii. In our opinion and according to the explanations given to us, the
company
has neither granted nor taken loans, secured or unsecured to/from
companies firms or other parties covered in the register maintained
under section 301 of the Act. and as such clauses (iii) (b), (iii) (c)
and (iii) (d) of the Order are not applicable to the company.
iv In our opinion and according to the information and explanation
given
to us, there are adequate internal control procedures commensurate with
the size of the company and the nature of its business for the purchase
of inventory and fixed assets and for sale of goods and services.
During the course of our audit, no major weakness has been noticed in
internal control system.
v a) According to the information and explanations given to us, during
the year there were no contracts of arrangements referred to in Section
301 of the Act that needed to be entered into the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, no transactions were made during the year in pursuance of
such contracts or arrangements which exceeded the value of five lakh
rupees in respect of any party at prices which were unreasonable having
regard to prevailing market prices at the relevant time.
vi. In our opinion and according to the information given to us, the
company
has not accepted any deposits from the public within the meaning of
sections 58A and 58AA or any other relevant provisions of the Act.
vii In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business.
viii We have broadly reviewed the books of accounts maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209(1) of the Companies Act,
1956 and are of the opinion that prima facie the prescribed accounts
and records have been maintained.
ix a) The company is regular in depositing with the appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, income tax, sales tax, service
tax, wealth tax, custom duty, excise duty and cess and other statutory
dues applicable to it. As explained to us employees state insurance was
not applicable to the company during the year under review.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of income tax, sales tax, service
tax, wealth tax, customs duty, excise duty and cess were outstanding as
at 31.03.2010 for a period of more than six months from the date they
became payable.
c) According to the information and explanations given to us, dues in
respect of income tax, sale tax, wealth tax, service tax, customs tax,
excise duty and
cess, which have not been deposited with the appropriate authorities on
account of any dispute are given below:
Name of Statute Nature of Dispute Amount Period Forum where
(in Rs.) dispute is
pending
Income Tax Act, Disallowance of 6,21,317 AY2003-04 High Court,
1961 80HHC claim for Delhi
the purpose of
calculating book
profit for MAT
Disallowance of 21,09,639 AY2004-05 Hight Court,
80 HHC claim Delhi
for the purpose
of calculating
book profit for
MAT
Central Excise Act, Differential Duty 27,62,007 Jan 2000 to CESTAT
1944
Nov. 2004
Differential Duty 2,65,869 Dec. 2004 to CESTAT
April 2007
X. The accumulated losses of the company as at 31st March, 2010 are
not more than 50% of its net worth. The company has not incurred any
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
XI. In our opinion and according to the information and explanations
given to us the company has not defaulted in repayment of dues to a
financial institute or bank or debanture holders.z
XII. According to the information and explanations given to us the
company not granted any loan and advance on the basis of security by
way of pledge of shares, debentures and other securities.
XIII. In our opinion the company is neither a chit fund nor
nidhi/mutual benefit fund/ society and hence clause (xii) of the order
is not applicable to the company.
XIV. In our opinion the company is not dealing or trading in shares,
securities, debentures and other investments and accordingly clause
(xiv) of the order is not applicable to the company.
XV. In our opinion the company has not given guarantee for loans taken
by others from banks or financial institutions.
XVI. In our opinion, the term loans have been applied for the purposes
for which they 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. No long-term funds have been used to finance short-term
assets except permanent working capital.
XVIII. According to information and explanations given to us the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301of
the companies Act, 1956.
XIX. According to the information and explanations given to us during
the year company had not issued any debentures.
XX. According to the information and explanations given to us, during
the year the company has not raised any money by public issue.
XXI According to the information and explanation given to us no fraud
on or by the company has been noticed or reported during the course of
our audit.
12th May, 2010 For B.K. Shroff & Co.
New Delhi Chartered Accountants
Anil Gupta
Partner