Mar 31, 2015
We have audited the accompanying standalone financial statements of
DECO-MICA LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
2. Management's Responsibility for the Standalone 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 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.
3. Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
4. 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:-
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
ii. In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. Report on Other Legal and Regulatory Requirements
i. 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.
ii. 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
purpose of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
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 25).
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 AUDITORS REPORT
Referred to in paragraph 5(i) of our report of even date to the Members
of DECO-MICA LIMITED for the year ended 31st March 2015.
1. In respect of Fixed Assets :
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets on the
basis of available information.
(b) As per the information and explanations given to us, Fixed assets
were physically verified during the year by the Management in
accordance with a programme of verification, which in our opinion
provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanations
given to us no material discrepancies were noticed on such
verification.
2. In respect of its Inventories :
(a) As explained to us, physical verification of the inventory was
carried out at reasonable intervals by the management.
(b) In our opinion, and according to the information and explanation
given to us, the procedure 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) In our opinion, and according to the information and explanation
given to us, the Company has maintained proper records of its
inventory, and the discrepancies noticed on physical verification of
inventory as compared to the book records were not material and have
been properly dealt with in the books of account.
3. In respect of Loans and Advances granted during the year.
As per information and explanation give to us , the Company has granted
loan to one related party covered under the register maintained under
section 189 of the Companies Act, 2013, the yearend balance is
amounting to Rs. Nil and the maximum amount involved during the year
was Rs. 7 Lacs.
a. In our opinion and according to the information and explanations
given to us, the Company is regular in receipt of principal and
recovery of interest there on.
b. In our opinion and according to the information and explanations
given to us, there were no overdue outstanding as at 31st March 2015 in
respect of Loans and Advances granted during the year.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, no major continuing failures to correct major weaknesses has
been observed
5. During the year, the company has not accepted any public deposits
and hence the directives issued by the Reserve Bank of India and the
provisions of sections 73 to 76 or any other relevant provisions of the
Companies Act and the rules framed there under are not applicable to
the company. We are informed that no order has been passed by company
Law Board (CLB) or National Company Law Tribunal (the NCLT) or Reserve
Bank of India or any court or any other tribunal.
6. We have broadly reviewed the books of accounts relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Central Government for the
maintenance of cost records as per the provisions of Companies (Cost
Records and Audit) Rules, 2014, and we are of the opinion that prima
facie the prescribed accounts and records have been made and
maintained. We have not, however made a detailed examination of the
records with a view to determine whether they are accurate or complete.
7. In respect of Statutory Dues :
(a) According to the records of the Company, the Company is by and
large regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, employees' state insurance,
income tax, sales tax, wealth tax, duty of customs, duty of excise,
value added tax, cess and any other statutory dues except there were
delay in payment of provident fund, employees' state insurance, income
tax, sales tax, value added tax, Service Tax.
(b) According to the information and explanations given to us,
undisputed amounts payable in respect statutory dues no amount were
outstanding as at 31st March, 2015 for a period of more than six months
from the date they became payable. However, there is an undisputed
amount of Rs. 21.30 lacs in respect of Advance Tax of current financial
year which has remained unpaid for a period exceeding six months from
the date it became payable.
(c) According to the records of the company, there are no dues of
income tax, sales tax, 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 disputes.
(d) According to the records of the company there are no amounts
required to be transferred to investor education and protection fund in
accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and rules made there under.
8. The company has no accumulated losses and has not incurred any cash
losses during the financial year under review or in the immediately
preceding financial year.
9. Based on our audit procedure and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to the Financial Institutions, Banks or
Debenture Holders.
10. In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
11. According to the information and explanations given to us, during
year under review the company has applied the term loan for the purpose
for which the loans were obtained.
12. To the best of our knowledge and according to the information and
explanations given to us, no material fraud by the Company and no
material fraud on the Company has been noticed or reported during the
year.
For, J T Shah & Company
Chartered Accountants
[Firm Regd. No. 109616w]
[J. T. Shah]
Place: Ahmedabad Partner
Date: 27.05.2015 [M. No. 3983]
Mar 31, 2014
1. Report on the Financial Statements
We have audited the accompanying financial statements of DECO-MICA
LIMITED, ("the Company"), which comprise the Balance Sheet as at March
31, 2014, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended (herein after referred to as financial
statements), and a summary of significant accounting policies and other
explanatory information.
2. Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section
21.1 of the Companies Act, 1956 ("the Act") ("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.
3. Auditors'' 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.
4. 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:
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
ii. In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. Report on Other Legal and Regulatory Requirements
i. 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.
ii. 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 read with the
General Circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013.
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is. to be paid, no cess is
due and payable by the Company.
ANNEXURE
Referred to in paragraph 5(i) of our report of even date for the year
ended 31st March 2014.
1. In respect of Fixed Assets:
a. The present register of Fixed Assets requires completion in certain
respects & we have been informed that the work is in progress.
b. All the fixed assets of the Company have not been physically
verified by the management during the year but there is a regular
phased programme of physical verification which, in our opinion, is
reasonable having regard to the size of the Company and nature of its
fixed assets. No material discrepancies were noticed on such
verification.
c. During the year, the Company has not disposed off any
major/substantial part of the fixed assets.
2. In respect of its Inventories:
a. As explained to us, physical verification of the inventory was
carried out at reasonable intervals by the management.
b. In our opinion, and according to the information and explanation
given to us, the procedure 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. In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of its
inventory, and the discrepancies noticed on physical verification of
inventory as compared to the book records were not material and have
been properly dealt with in the books of account.
3. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
a. The Company has not granted any loans, secured or unsecured, to the
companies, firms or other parties covered in the register, maintained
under section 301 of the Companies Act, 1956, and therefore the
paragraphs 4{iii) (a), (b), (c) and (d) of The Companies (Auditor''s
Report) Order, 2003 are not applicable.
b. The Company has taken loan from Companies and parties covered in the
register maintained under section 301 of the Companies Act, 1956. There
are fourteen parties covered in the register maintained under section
301 of the Companies Act, 1956 from whom the company has taken loans.
The maximum amount involved during the year was Rs. 231.87 Lacs and the
year end balance of loans taken from such parties was Rs. 230.20 Lacs.
c. In our opinion and according to the information and explanation
given to us, in case of loans taken during the year, the rates of
interest, wherever applicable and other terms and conditions are prime
facie not prejudicial to the interest of the Company.
d. There are no stipulated terms of repayment of loans taken thereon by
the company from the companies/firms/parties listed in the register
maintained under section 301 of the Companies Act, 1956. Hence we are
not able to give comment on Para 4(iii) (g) of the Companies (Auditor''s
Report) Order, 2003.
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and sale
of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls.
5. In respect of contracts or arrangements covered under Section 301 of
the Companies Act, 1956:
a. Based on the audit procedures applied by us and according to the
information and explanations provided by management, we are of the
opinion that the contracts or arrangements that need to be entered into
the register maintained under section 301 have been so entered.
b. in our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under section 301 in
respect of any parties during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
6. In our opinion, and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
to which the directives issued by the Reserve Bank of India and the
provisions of Sections 58A and 58AA and any other relevant provisions
of the Companies Act, 1956 and the rules framed there under are
applicable.
7. In our opinion, the internal audit functions carried out during the
year by an entity of Chartered Accountants appointed by the management
have been commensurate with the size and nature of its business.
8. We have broadly reviewed the books of accounts relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have not,
however made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. In respect of Statutory Dues:
a. According to the information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employee''s State
Insurance, Income-Tax, VAT, CST, Wealth-Tax, Service Tax, Custom Duty,
Excise-Duty, Cess and other statutory dues applicable to it except
there were delay in few cases of TDS, VAT, CST, Professional Tax,
Service Tax, Provident Fund and there is short fall in payment of
Advance Tax.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Service Tax, Custom Duty And Excise Duty were outstanding, as at
31st March, 2014 for a period of more than six months from the date
they became payable except advance tax of Rs. 22.58 Lacs.
c. According to the records of the Company, there are no dues of sales
tax, income tax, Wealth-tax, Service tax, custom duty, excise duty,
cess which have not been deposited on account of disputes except
following:
Financial Nature of Transaction Amounts Forum where pending
Year (Rs.)
2009-10 Value Added Tax 6,409 Commissioner of
Commercial Tax
2009-10 Central Sales Tax 6,07,372 Commissioner of
Commercial Tax
10. In our opinion, the accumulated losses of the Company are not more
than fifty percent of its net worth. The Company has not incurred any
cash losses during the year under audit and in the immediately
preceding financial year.
11. Based on our audit procedure and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to Banks.
12. Based on our examination of documents and records and information
and explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. The provisions of any special statute applicable to Chit Fund,
Nidhi or Mutual benefit Fund/Societies are not applicable to the
Company.
14. The Company is not dealing or trading in Shares, Securities,
debentures and other investments and hence clause 4(xiv) of Companies
(Auditors Report) Order, 2003 is not applicable to the Company.
15. In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. The Company has utilized the term loan for the purpose for which it
obtains.
17. On the basis of an overall examination of the Balance Sheet and
Cash Flow Statement of the Company, in our opinion and according to the
information and explanations given to us, no funds raised on a short
term basis have been used for long-term purposes.
18. In our opinion, and according to the 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.
19. The Company has not issued any Debentures and therefore the
question of creating the securities in respect thereof does not arise.
20. During the year, the Company has not raised any money by way of
Public issue.
21. Based upon the audit procedures performed and information and
explanations given by the management, there is no fraud on or by the
Company has been noticed or reported during the course of our audit.
For, J T Shah & Company
Chartered Accountants
[Firm Regd. No. 109616w]
[J. T. Shah]
Place: Ahmedabad Partner
Date: 23.05.2014 [M. No. 3983]
Mar 31, 2013
1. Report on the Financial Statements
We have audited the accompanying financial statements of DECO-MICA
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2013, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended (herein after referred to as financial
statements), and a summary of significant accounting policies and other
explanatory information,
2. Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the..Accounting Standards referred to in sub-section (3C) of section
211 of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and. fair view and are free from material
misstatement, whether due to fraud or error.
3. Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements 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:
i In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
ii In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. Report on Other Legal and Regulatory Requirements
i. 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.
ii. 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 March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE
Referred to in paragraph 3 of pur report of even date for the year
ended 31s( March 2013.
1 In respect of Fixed Assets:
a. The present register of Fixed Assets requires completion in certain
respects & we have been informed that the work is in progress.
b. All the fixed assets of the Company have not been physically
verified by the management during the year but there is a regular
phased programme of physical verification which, in our opinion, is
reasonable having regard to the size of the Company and nature of its
fixed assets. No material discrepancies were noticed on such
verification.
c. During the year, the Company has not disposed off any
major/substantial part of the fixed assets.
2 In respect of its Inventories:
a. As explained to us, physical verification of the inventory was
carried out at reasonable intervals .by the management.
b. ; In our opinion, and according to the information and explanation
given to us, the procedure 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. fn our opinion, and according to the information and explanation
given to us, the Company has maintained proper records of its
inventory, and the discrepancies noticed on physical verification of
inventory as compared to the book records were not material and have,
been properly dealt with in the books of account.
3 In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
a. The Company has not granted any loans, secured or unsecured, to the
companies, firms or other parties covered in the register, maintained
under section 301 of the Companies Act, 1956, and therefore the
paragraphs 4(iii)(a), (b), (c) and (d) of The Companies (Auditor''s
Report) Order, 2003 are not applicable.
b. The Company has taken loan from Companies and parties covered in
the register maintained under section 301 of the Companies Act, 1956.
There are fourteen parties covered in the register maintained under
section 301 of the Companies Act, 1956 from whom the company has taken
loans. The maximum amount involved during the year was Rs. 220.50 Lacs
and the year end balance of loans taken from such parties was Rs.
218.09 Lacs.
c. In our opinion and according to the information and explanation
given to us, in case of loans taken during the year, the rates of
interest, wherever applicable and other terms and conditions are prime
facie not prejudicial to the interest of the Company.
d. There are no stipulated terms of repayment of loans taken thereon
by the company from the companies/firms/parties listed in the register
maintained under section 301 of the Companies Act, 1956, hence we are
not able to give comment on Para 4(iii) (g) of the Companies (Auditor''s
Report) Order, 2003.
4 In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and sale
of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls.
5 In respect of contracts or arrangements covered under Section 30t of
the Companies Act, 1956:
a. Based on the audit procedures applied by us and according to the
information and explanations provided by management, we are of the
opinion that the contracts or arrangements that need to be entered into
the register maintained under section 301 have been so entered.
b. In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under section 301 in
respect of any parties during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
6 In our opinion, and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
to which the directives issued by the Reserve Bank of India and the
provisions of Sections 58A and 58AA and any other relevant provisions
of the Companies Act, 1956 and the rules framed there under are
applicable.
7 In our opinion, the interna! audit functions carried out during the
year by an entity of Chartered Accountants appointed by the management
have been commensurate with the size and nature of its business.
8 We have broadly reviewed the books of accounts relating to materials,
labour and other items of cost maintained by the company pursuant to
the Rules made by the Central Government for the maintenance of cost
records under Section 209 (1) (d) of the Companies Act, 1956 and we are
of the opinion that prima facie the prescribed accounts and records
have been made and maintained. We have not, however made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
9 In respect of Statutory Dues:
a. According to the information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employee''s State
Insurance, Income-Tax, VAT, CST, Wealth-Tax, Service Tax, Custom Duty,
Excise-Duty, Cess and other statutory dues applicable to it except
there were delay in few cases of TDS, VAT, CST , Professional Tax,
Service Tax and there is short fall in payment of Advance Tax.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Service Tax, Custom Duty And Excise Duty were outstanding, as at
31st March, 2013 for a period of more than six months from the date
they became payable except advance tax of Rs. 5.99 Lacs.
c. According to the records of the Company, there are no dues of sales
tax, income tax, Wealth-tax, Service tax, custom duty, excise duty,
cess which have not been deposited on account of disputes.
10 The company does not have the accumulated losses at the end of the
financial year. The Company has not incurred any cash losses in the
financial year covered by audit and in the immediately preceding
financial year.
11 Based on our audit procedure and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to Banks.
12 Based on our examination of documents and records and information
and explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13 The provisions of any special statute applicable to Chit Fund, Nidhi
or Mutual benefit Fund / Societies are not applicable to the Company.
14 The Company is not dealing or trading in Shares, Securities,
debentures and other investments and hence clause 4(xiv) of Companies
(Auditors Report) Order, 2003 is not applicable to the Company.
15 In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
16 The Company has utilized the term loan for the purpose for which it
obtains.
17 On the basis of an overall examination of the Balance Sheet and Cash
Flow Statement of the Company, in our opinion and according to the
information and explanations given to us, no funds raised on a short
term basis have been used for long-term purposes.
18 in our opinion, and according to the 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.
19 The Company has not issued any Debentures and therefore the question
of creating the securities in respect thereof does not arise.
20 During the year, the Company has not raised any money by way of
Public issue.
21 Based upon the audit procedures performed and information and
explanations given by the management, there is no fraud on or by the
Company has been noticed or reported during the course of our audit.
For, J T Shah & Company
Chartered Accountants
[Firm Regd. No. 109616w]
[J. T. Shah]
Place: Ahmedabad Partner
Date: 29.05.2013 [M. No. 3983]
Mar 31, 2012
1 We have audited the attached Balance Sheet of DECO-MICA LIMITED as at
31st March 2012, Statement of Profit & Loss and Cash Flow Statement of
the company for the year ended on that date (together referred to as
financial statement'). These financial statements are the
responsibility of the Company's Management. Our responsibility is-to
express an opinion on these financial statements based on our audit.
2 We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement, An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the'accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3 As required by the Companies (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, and on the basis of such checks of the
books and records as we considered necessary and appropriate and
according to the information and explanation given to us during the
course of the audit, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 & 5 of the said Order.
4 Further to our comments in the Annexure referred in Para 3 above, we
report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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 dealt with by this report comply with the
accounting standards referred to in sub-section <3C) of section 211 of
the Companies Act, 1956.except the following:
a. Non Provision for Liability in respect of Leave Encashment as stated
at Para T of Significant Accounting Policy, which is not in accordance
with Accounting Standards 15 "Employees Benefit", the amount of which
is not ascertainable in the absence of actuarial vaiuation, and to that
extent profit overstated & Current Liabilities are understated.
(v) On the basis of written representations received from the
directors, as on 31** March 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2012 from being appointed as directors in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act 1956.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read 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, 2012;
(b) in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
(c) in the case of Cash Flow Statement, of the Cash Flows tor the year
ended on that date.
ANNEXURE
Referred to In paragraph 3 of our report of even date for the year
ended 31st March 2012.
1 In respect of Fixed Assets:
a. The present register of Fixed Assets requires completion in certain
respects & we have been informed that the work is in progress.
b. All the fixed assets of the Company have not been physically
verified by the management during the year but there is a regular
phased programme of physical verification which, in our opinion, is
reasonable having regard to the size of the Company and nature of its
fixed assets. No material discrepancies were noticed on such
verification.
c. During the year, the Company has not disposed off any
major/substantial part of the fixed assets.
2 In respect of its Inventories:
a. As explained to us, physical verification of the inventory was
carried out at reasonable intervals by the management.
b. In our opinion, and according to the information and explanation
given to us, the procedure 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. In our opinion, and according to the information and explanation
given to us, the Company has maintained proper records of its
inventory, and the discrepancies noticed on physical verification of
inventory as compared to the book records were not material and have
been properly dealt with in the books of account.
3 In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
a. The Company has not granted any loans, secured or unsecured, to the
companies, firms or other parties covered in the register, maintained
under section 301 of the Companies Act, 1956, and therefore the
paragraphs 4(iii)(a), (b), (c) and (d) of The Companies (Auditor's
Report) Order, 2003 are not applicable.
b. The Company has taken loan from Companies and parties covered in
the register maintained under section 301 of the Companies Act, 1956.
There are fourteen parties covered in the register maintained under
section 301 of the Companies Act, 1956 from whom the company has taken
loans. The maximum amount involved during the year was Rs. 252.29 Lacs
and the year end balance of loans taken from such parties was Rs.
198.57 lacs.
c. In our opinion and according to the information and explanation
given to us, in case of loans taken during the year, the rates of
interest, wherever applicable and other terms and conditions are prime
facie not prejudicial to the interest of the Company.
d. There are no stipulated terms of repayment of loans taken thereon
by the company from the companies/firms/parties listed in the register
maintained under section 301 of the Companies Act, 1956. Hence we are
not able to give comment on Para 4(iii) (g) of the Companies (Auditor's
Report) Order, 2003.
4 In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and safe
of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls.
5 In respect of contracts or arrangements covered under Section 301 of
the Companies Act, 1956:
a. Based on the audit procedures applied by us and according to the
information and explanations provided by management, we are of the
opinion that the contracts or arrangements that need to be entered into
the register maintained under section 301 have been so entered.
b. In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under section 301 in
respect of any parties during the year have been made at prices which
are reasonable having regard to prevailing market prices at tine
relevant time.
6 In our opinion, and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
to which the directives issued by the Reserve Bank of India and the
provisions of Sections 58A and 58AA and any other relevant provisions
of the Companies Act, 1956 and the rules framed there under are
applicable.
In our opinion, the internal audit functions carried out during the
year by an entity of Chartered Accountants appointed by the management
have been commensurate with the size and nature of its business.
8 We have broadly' reviewed the books of accounts relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have not,
however made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9 In respect of Statutory Dues:
a. According to the information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employee's State
Insurance, Income-Tax, Sales-Tax, Wealth-Tax, Service Tax, Custom Duty,
Excise-Duty, Cess and other statutory dues applicable to it except
there were delay in few cases of TDS, VAT, CST , Professional Tax,
Service Tax and there is short fall in payment of Advance Tax.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Service Tax, Custom Duty And Excise Duty were outstanding, as at
31st March, 2012 for a period of more than six months from the date they
became payable except advance tax of Rs. 13.46 Lacs.
c. According to the records of the Company, there are no dues of sales
tax, income tax, Wealth-tax, Service tax, custom duty, excise duty,
cess which have not been deposited on account of disputes.
10 In our opinion,-the accumulated losses of the Company are not more
than fifty percent of its net worth. The Company has not incurred any
cash losses in the immediately preceding financial year and also not
intuited cash losses during the year.
11 The company has not taken Term loan from Banks during the year. The
company has not repaid loan & interest of Rs. 3.00 Lacs payable during
the year.
12 Based on our examination of documents and records and information
and explanations given to us, the Company has not granted any loans and
advances on, the basis of security by way of pledge of snares,
debentures and other securities.
13 The provisions of any special statute applicable to Chit Fund, Nidhi
or Mutual benefit Fund / Societies are not applicable to the Company.
14 The Company is not dealing or trading in Shares, Securities,
debentures and other investments and hence clause 4{xiv) of Companies
(Auditors Report) Order, 2003 is not applicable to the Company.
15 In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
16 The Company has utilized the term loan for the purpose for which it
obtains.
17 On the basis of an overall examination of the Balance Sheet and Cash
Flow Statement of the Company, in our opinion and according to the
information and explanations given to us, no funds raised on a short
term basis have been used for long-term purposes.
18 In our opinion, and according to the 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.
19 The Company has not issued any Debentures and therefore the question
of creating the securities in respect thereof does not arise.
20 During the year, the Company has not raised any money by way of
Public issue.
21 Based upon the audit procedures performed and information and
explanations given by the management, there is no fraud on or by the
Company has been noticed or reported during the course of our audit.
For, J T Shah & Company
Chartered Accountants
(Firm Regd. No. 109616w)
Place: Ahmedabad
Date: 14.08.2012
(J, T. Shah)
Mar 31, 2011
1 We have audited the attached Balance Sheet of DECO-MICA LIMITED as at
31st March 2011 Profit &loss rcc0Unt and ca h Flow statement of the
company for the year ended on that date (together referred to as
financial statement) 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 conduct our audit in accordance with auditing standards generally
accepted ion India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. we believe that our audit provides a reasonable basis for
our opinion
3. As required by the Companies (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, and on the basis of such cheeks
of the books and records as we considered necessary and appropriate and
according to the information and explanation given to us during the
course of the audit, we enclose in the Annexure a statement on the
matters specified in paragraph 4 & 5 of the said Order.
4 Further to our comments in the Annexure referred in para 3 above, we
report that.
(i) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) ,n our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(iii)The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by the report are in agreement with the books of account;
(iv) In our opinion the balance sheet, profit and loss Account and cash
Flow Statement deal with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 except the following:
a Non Provision for Liability in respect of Gratuity and Leave
Encashment as to 5(1) of Schedule "18"/Which is not in accordance
with Accounting Standards 15 Benefit the amount of which is not
ascertainable in the absence of autumnal valuation, and to 'that extent
profit & Current Liabilities are overstated.
(v) On the basis of written representations received from the directors
as on 31th March 2011 and taken on record by the Board of Directors, we
report that none of the Directors in terms of clause (g) of sub-section
(1) of section 274 of the Companies Act 1956.
(vi) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
notes thereon, give the information required by the Companies Act,
1956, in the manners 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 31 March, 2011
(b) in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date; and
(c) in the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO THE REPORT OF AUDITORS TO THE MEMEBRS OF
DECO-MICA LIMITED
REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF
EVEN DATE FOR THE YEAR ENDED 31 ST MARCH, 2011
1, In respect of Fixed Assets:
a. The present register of Fixed Assets requires completion in certain
respects & we have been informed that the work is in progress.
b. All the fixed assets of the Company have not been physically verified by
the management during the year but there is a regular phased programme
of physical verification which, in our opinion is reasonable having
regard to the size of the Company and nature of its fixed assets. No
material discrepancies were noticed on such verification.
c. During the year, the Company has not disposed off any
major/substantial part of the fixed assets.
2. In respect of its Inventories:
a. As explained to us, physical verification of the inventory was
carried out at reasonable intervals by the management.
b in our opinion, and according to the information and explanation given to us
the procedure 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 In our opinion, and according to the information and explanation given
to us, the Company has maintained proper records of its inventory, and the
discrepancies noticed on physical verification of Inventory as compared to
the book records werenot material and have been properly dealt with in
the books,of account.
3. in respect of Loans, secured or unsecured, granted or taken
by the company to/from companies firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
a The Company has not granted any loans, secured or unsecured, to the
companies, other parties covered in the register, maintained
under section 301 of the Companies A t, 956, and therefore the
paragraphs 4{iii)(a), (b), (c) and (d) of The Companies (Auditors
Report) Order, 2003 are not applicable.
b The Company has taken loan from Companies and parties covered in the
register maintained under lection 3o of the Companies Act, 1956. There
are sixteen parties covered in the register maintained under section 301
of the Companies Act, 1956 from whom the company has taken loans. The
maximum amount involved during the year was Rs.299.21 Lacs and the
year end balance of loans taken from such parties was Rs.207.91 lacs.
c In our opinion and according to the information and explanation given
to us, in case of loans taken during the year, the rates of interest,
wherever applicable and other terms and conditions are prime facie not
prejudicial to the interest of the Company.
d There are no stipulated terms of repayment of loans taken thereon by
the company from the companies/firms/parties listed in the register
maintained under section 301 of the Compares A 1956 Hence we are not
able to give comment on para 4(iii) (g) of the Companies (Auditors
Report) Order, 2003.
4.in our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of ë with
regard to purchases of inventory, fixed assets and sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal controls.
5. in respect of contracts or arrangements covered under Section 301
of the Companies Act, 1956:
a. Based on the audit producer applied by us and according to the
information and explanations provided by management, we are of the
opinion that the contracts or arrangements that need to be entered in
to the register maintained under section 301 have been so entered
b. In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under section 301 in
respect of any parties during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
6. In our opinion, and according to the information and explanations
given to us, the company has not accepted any deposits from the public
to which the directors issued by the Reserve Bank of India and the
provisions of sections 58a and 58aa and any other revel ant provisions
of the companies Act, 1956 and the rules framed there under are
applicable.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.1
8. As informed to us, the Maintained of cost records have not been
prescribed by the central Government under section 209(1) of the
companies Act, 1956, for the year under review.
9 In respect of statutory Dues:
a. According to the information and explanations given to us, the
company is regular in depositing with appropriate authorities undisputed
statutory dues including provident Fund, Employee's State statutory
dues applicable to it except there were delay in few cases of TDS, VAT,
CST, Professional Tax Service Tax and there is short fall in payment of
Advance Tax for the A.Y. 2011-12 of Rs.41.10 Lacs
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of income Tax, sales, Wealth Tax,
Sales Tax Service Tax, Custom Duty and Excise Duty were payable expect
advance tax of Rs.15.82 Lacs According to the records of the company,
there are non dues of sales tax, income tax, Wealth-tax Services tax,
custom duty, excise duty, cess which have not been deposited on account
of deputies except following
Natute of Demand Assessment Year Ammount (Rs) Forum Where pending
Income tax 2009-2010 14527/- Commissioner of
Income Tax (Appeal)
10.IN our opinion the accumulated losses of the company are not more
than fifty percent of its net worth. The company has not incurred any
cash losses in the immediately preceding financial year and also not
incurred cash losses during the year.
11. The company has not taken term loan farm Banks during the year. The
Company has not repaid loan & interest of Rs 3.00 Lacs payable during
the year.
12. Based on our examination of documents and records and information
and explanations give to us, the company has not granted any loans and
advances on the basis of security by way of pledge of shares debentures
and other securities.
13. The Provisions of any special statute applicable to chit Fund,
Nidhi or mutual benefit fund societies are not applicable to the
company.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments and hence clause 4(xiv) of companies
(auditors Report) Order, 2003 is not applicable to the company
15. In our opinion, and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. The Company has utilized the term loan for the purpose for which it
obtains
17. On the basis of an overall examination of the Balance Sheet and
Cash Flow Statement of the Company, in our opinion and according to the
information and explanations given to us, no funds raised on a short
term basis have been used for long-term purposes.
18. In our opinion, and according to the 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.
19. The Company has not issued any Debentures and therefore the
question of creating the securities in respect thereof does not arise.
20. During the year, the Company has not raised any money by way of
Public issue.
21 Based upon the audit procedures performed and information and
explanations given by the management, we report that fraud on the
company of Rs.11.26 lacs through theft of cheque by unknown person was
noticed and reported, out of Rs.11.26 Lacs, we have been informed that
an amount of Rs.10.86 Lacs has been recovered except this there is no
fraud on or by the Company has been noticed or reported during the
course of our audit.
FOR, J T SHAH & COMPANY
CHARTERED ACCOUNTANTS
(FIRM RE6D. NO. 109616W)
PLACE: AHMEDABAD
DATE: 14.06.2011 (j.T.shah)
PARTNER
(M.NO.3983)
Mar 31, 2010
1. We have audited the attached Balance Sheet of DECO-MICA LIMITED as
at 31st March 2010, Profit & Loss Account and Cash Flow Statement of
the company for the year ended on that date (together referred to as
financial statement). 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (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, and on the basis of such checks
of the books and records as we considered necessary and appropriate and
according to the information and explanation given to us during the
course of the audit, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 & 5 of the said Order.
4. Further to our comments in the Annexure referred in para 3 above,
we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and
belief were necessary for the 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, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 except the following:
a. Non Provision for Liability in respect of Gratuity and Leave
Encashment as stated at para 5(1) of Schedule "17",which is not in
accordance with Accounting Standards 15 Employees Benefit", the amount
of which is not ascertainable in the absence of actuarial valuation,
and to that extent profit is overstated.
(v) On the basis of written representations received from the
directors, as on 31st March 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2010 from being appointed as directors in terms of clause
(g) of sub-section
(1) of section 274 of the Companies Act 1956. (vi) In our opinion and
to the best of our information and according to the explanations given
to us, the said accounts, read 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;
(b) in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date; and
(c) in the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO THE REPORT OF AUDITORS TO THE MEMEBRS OF DECO-MICA LIMITED
REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE FOR THE YEAR
ENDED 31 ST MARCH, 2010
1. In respect of Fixed Assets:
a. The present register of Fixed Assets requires completion in certain
respects & we have been informed that the work is in progress.
b. All the fixed assets of the Company have not been physically
verified by the management during the year but there is a regular
phased programme of physical verification which, in our opinion, is
reasonable having regard to the size of the Company and nature of its
fixed assets. No material discrepancies were noticed on such
verification.
c. During the year, the Company has not disposed off any
major/substantial part of the fixed assets.
2. In respect of its Inventories:
a. As explained to us, physical verification of the inventory was
carried out at reasonable intervals by the management.
b. In our opinion, and according to the information and explanation
given to us, the procedure 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. In our opinion, and according to the information and explanation
given to us, the Company has maintained proper records of its
inventory, and the discrepancies noticed on physical verification of
inventory as compared to the book records were not material and have
been properly dealt with in the books of account.
3. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
a. The Company has taken loan from Companies and parties covered in
the register maintained under section 301 of the Companies Act, 1956.
There are fourteen parties covered in the register maintained under
section 301 of the Companies Act, 1956 from whom the company has taken
loans. The maximum amount involved during the year was Rs. 342.16 Lacs
and the year end balance of loans taken from such parties was Rs.
222.62 lacs.
b. In our opinion and according to the information and explanation
given to us, in case of loans taken during the year, the rates of
interest, wherever applicable and other terms and conditions are prime
facie not prejudicial to the interest of the Company.
c. There are no stipulated terms of repayment of loans taken by the
company from the companies/firms/ parties listed in the register
maintained under section 301 of the Companies Act, 1956. Hence we are
not able to give comment on para 4{iii) (g) of the Companies (Auditors
Report) Order, 2003.
d. The Company has not granted any loans, secured or unsecured, to the
companies, firms or other parties covered in the register, maintained
under section 301 of the Companies Act, 1956, and therefore the
paragraphs 4(iii)(e), (f) and (g) of The Companies (Auditors Report)
Order, 2003 are not applicable.
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and sale
of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls.
5. In respect of contracts or arrangements covered under Section 301
of the Companies Act, 1956:
a. Based on the audit procedures applied by us and according to the
information and explanations provided by management, we are of the
opinion that the contracts or arrangements that need to be entered into
the register maintained under section 301 have been so entered.
b. In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under section 301 in
respect of any parties during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
6. In our opinion, and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
to which the directives issued by the Reserve Bank of India and the
provisions of Sections 58A and 58AA and any other relevant provisions
of the Companies Act, 1956 and the rules framed there under are
applicable.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. As informed to us, the maintenance of cost records have not been
prescribed by the Central Government under section 209(l)(d) of the
Companies Act, 1956, for the year under review.
9. In respect of Statutory Dues:
a. According to the information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employees State
Insurance, Income-Tax, Sales-Tax, Wealth-Tax, Service Tax, Custom Duty,
Excise-Duty, Cess and other statutory dues applicable to it except
there were delay in few cases of TDS, VAT, CST , Professional Tax and
there is short fall in payment of Advance Tax.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Service Tax, Custom Duty And Excise Duty were outstanding, as at
31st March, 2010 for a period of more than six months from the date
they became payable except Advance Income Tax of Rs. 11 Lacs.
c. According to the records of the Company, there are no dues of sales
tax, income tax, Wealth-tax, Service tax, custom duty, excise duty,
cess which have not been deposited on account of disputes.
10. In our opinion, the accumulated losses of the Company are not more
than fifty percent of its net worth. The Company has not incurred any
cash losses during the year under audit and in the immediately
preceding financial year.
11. The company has taken Term loan from Banks during the year. There
were delay up to 18 days amounting to Rs. 5.33 Lacs in repayment of
loan & interest thereon.
12. Based on our examination of documents and records and information
and explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. The provisions of any special statute applicable to Chit Fund,
Nidhi or Mutual benefit Fund / Societies are not applicable to the
Company.
14. The Company is not dealing or trading in Shares, Securities,
debentures and other investments and hence clause 4(xiv) of Companies
(Auditors Report) Order, 2003 is not applicable to the Company.
15. In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. The Company has utilized the term loan for the purpose for which
it obtains.
17. On the basis of an overall examination of the Balance Sheet and
Cash Flow Statement of the Company, in our opinion and according to the
information and explanations given to us, no funds raised on a short
term basis have been used for long-term purposes.
18. In our opinion, and according to the 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.
19. The Company has not issued any Debentures and therefore the
question of creating the securities in respect thereof does not arise.
20. During the year, the Company has not raised any money by way of
Public issue.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
FOR, J T SHAH & COMPANY
CHARTERED ACCOUNTANTS
(FIRM REGD. NO. 109616W)
PLACE: AHMEDABAD ( J. T. SHAH )
DATE: 31.08.2010 PARTNER
(M. No. 3983)
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