Mar 31, 2015
We have audited the accompanying standalone financial statements of
DHANADA CORPORATION LIMITED (The Company), which comprises the Balance
Sheet as at 31st 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 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 fows 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 the material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specifed 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 accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
Without qualifying our report, we draw your attention to Note 26 B (1).
As per clause no. 4.4.6 of the Scheme of Arrangement and Amalgamation
sanctioned by Hon'ble Bombay High Court ("Court"), vide their judgment
dated 16th July 2009, the allotment of shares against purchase of land
shall be done after the conveyance deeds are executed and registered.
However the management has issued 17,96,254 equity shares having face
value of Re.1 along-with premium of Rs, 5.94 per share to Dr. Laxman V.
Kulkarni without executing and registering the conveyance deed. The
outcome of the said event is uncertain and we are unable to comment
upon it.
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 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.
i. in the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March 2015; and ii. in the case of Statement of
Profit and Loss, of the Loss for the year ended on that date;
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 issued
by the Central Government of India in terms of sub-section (11) of
Section 143 of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as 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 Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014.
e) There are no observations and comments on financial transactions or
other matter which have adverse effects on the functioning of the
Company.
f) 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.
g) There are no qualifications preservations or adverse remarks
relating to maintenance of accounts or other matters connected
therewith.
h) 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 26 B - 17
to the financial statement.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditor's Report
With reference to paragraph 1 of report on other legal and other
regulatory requirements of our report to the shareholders of Dhanada
Corporation Ltd. of even date.
i. Fixed Assets
a) The Company has generally maintained proper records showing full
particulars including quantitative details and situation of the fixed
assets.
b) Most of the fixed assets have been physically verified by the
management during the year and as examined by us, no material
discrepancies have been noticed on such verification.
ii. Inventories
a) As explained to us, the inventories were physically verified during
the year by the management at reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the Procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained adequate records of its
inventories and no material discrepancies were noticed on physical
verification.
iii. Loans granted by the Company
The Company has granted loans to parties covered in the register
maintained under Section 189 of the Companies Act, 2013. The details
are as below:
The interest has been provided on prorate basis and all the principal
together with the interest has been converted into fully paid equity
shares of respective companies.
iv. Internal Control Systems
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 purchases of
stores, raw materials including components, plant and machinery,
equipment and other assets and for sale of goods and services. During
the course of our audit we have not observed any weaknesses or continue
in the failure to correct major weaknesses in internal control system.
v. Deposits from the public
According to the information and explanations given to us the Company
has not accepted deposits from the public during the year and hence the
directives issued by the Reserve Bank India and the provisions of
section 73 to 76 or any other relevant provisions of the Companies Act,
2013 and the rules framed there under are not applicable to it.
vi. Cost Records
According to the information and explanations given to us the Central
Government has not prescribed maintenance of cost record under
sub-section 1 of section 148 under Companies Act, 2013 read with the
rule 3 of the Companies (Cost Record and Audit Rules 2014).
vii. Statutory Dues
a. The Company has been regular in depositing undisputed statutory dues
in respect of Provident Fund, Employee's State Insurance (ESI), Income
Tax, Value Added Tax, Service Tax, Luxury Tax and other material
statutory dues with appropriate authorities.
According to the information and explanation given to us no undisputed
amounts payable in respect of statutory due were in arrears as at 31st
March 2015, for a period of more than six month from the date they
became payable except in case of Sales Tax Deferral liability of Rs,
21,04,188/-, which is not paid. Appropriate interest is also due till
the actual date of payment.
b Sales Tax Cases
1. The Company has disputed Sales tax liability against Assessment
orders passed by Sales Tax Officer, Aurangabad and matter is pending as
detailed below:
Nature of
Name of the Statute Dues Amount Period Forum Where dispute
is pending
Dy. Commissioner of
Sales
Bombay Sales Tax
Act, 1959 Sales Tax 5,000 1998-1999 Tax,(Appeal)
Aurangabad
Dy. Commissioner of
Sales
Bombay Sales
Tax Act, 1959 Sales Tax 57,536 1999-2000 Tax,(Appeal)
Aurangabad
Dy. Commissioner of
Sales
Bombay Sales
Tax Act, 1959 Sales Tax 88,239 2000-2001 Tax,(Appeal)
Aurangabad
2. The Company has disputed Sales tax liability against Rectification
Orders passed by Sales Tax officer, Aurangabad and matter is pending as
detailed below:
Nature of Part Payment
Name of the Dues Amount MADE
Statute
Bombay Sales
Tax Act, 1959 Sales Tax 2,542,314 150,000
Bombay Sales
Tax Act, 1959 Sales Tax 1,779,156 125,000
Bombay Sales
Tax Act,1959 Sales Tax 919,859 100,000
Bombay Sales
Tax Act,1959 Sales Tax 14,049 2,000
Name of the Statute Period Forum Where dispute is pending
Bombay Sales Tax Act, 1959 1998-1999 Dy. Commis sioner of Sales Tax,
(Appeal) Aurangabad
Bombay Sales Tax Act, 1959 Dy. Commissioner of Sales Tax,
1999-2000 (Appeal) Aurangabad
Bombay Sales Tax Act, 1959 Dy. Commissioner of Sales Tax,
2000-2001 (Appeal) Aurangabad
Bombay Sales Tax Act, 1959 Dy. Commissioner of Sales
2001-2002 (Appeal) Aurangabad
3. Sales Tax Refund Cases:
Name of the Nature of Amount Payment Period Forum Where
Statute Dues Against dispute is
Demand pending
Maharashtra VAT Refund 1,60,494 2,02,023 2007-08
Value Dy. Commis-
sioner of Sales
Added
Tax, 2002 Tax,(Appeal)
Aurangabad
Maharashtra VAT Refund 19,22,195 nil 2008-09 Dy. Commis-
value sioner of Sales
Added Tax, Tax,(Appeal)
2002 Aurangabad
4. Income Tax Cases:
Name of the Nature of Amount Part
Payment F.Y. Forum
Statute made where dispute
is pending
Income Tax
Act, 1961 Commissioner
of Income Tax
Assessment
dues 1,96,01,345 Nil 2012-13 (Appeals) -
Aurangabad
c. According to the information and explanation given to us, there are
no amounts required to transfer 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.
viii. Accumulated Losses
The Company has accumulated losses at the end of the financial year
less than 50% of its net worth and has not incurred cash losses in the
current financial year and in the immediately preceding financial year.
ix. Dues to financial Institutions
In our opinion and according to the information and explanations given
to us, the Company has defaulted in repayment of dues to banks to the
extent of Rs, 1,01,26,914/- (Including interest) of Bank of Maharashtra
and Rs, 6,92,11,882/- of Phoenix ARC Pvt. Ltd.
x. Guarantees given by the Company
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 institutes. The question of terms and conditions does not
arise.
xi. Term Loan
In our opinion and according to the information and explanations given
to us, and on an overall examination, the term loans taken have been
applied for the purpose for which it was raised.
xii. Frauds
In our opinion and according to the information and explanation given
to us, having regards to the nature of the Company's business no fraud
on or by the Company was noticed or reported during the year.
For G. K. Chandavarkar & Co.
Chartered Accountants
(Firm Registration No.115924W)
Place : Pune G. K. Chandavarkar
Date : 30th May 2015 (Proprietor)
M. No. 044537
Mar 31, 2014
We have audited the accompanying financial statements of DHANADA
CORPORATION LIMITED, Pune, which comprise the Balance Sheet as at 31st
March 2014, 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.
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") 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 & presentation of the
financial statements that give a true & 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 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.
Report on the Other Legal and Regulatory Requirements
As required by The Companies (Auditor''s Report) Order, 2003 and amended
by the Companies (Auditors Report) (Amendment) Order, 2004 dated
25/11/2004 issued by the Department of Company Affairs, 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, on the basis of such
checks as we considered appropriate and according to the information
and explanations given to us.
Further to our comments in the Annexure referred to above, we report
that:
1) We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
2) In our opinion, proper books of accounts, as required by law, have
been kept by the Company, so far as appears from the examination of the
books.
3) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by the report are in agreement with the books of
account.
4) In our opinion, the Statement of Profit and Loss, the Balance Sheet
and Cash Flow Statement complies with the accounting standards referred
to in Sub Section 3(c) 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 to the extent applicable.
5) On the basis of the written representations received from the
directors on 31st March, 2014 and taken on record by the Board of
Directors, we report that none of the directors 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 Companies Act, 1956.
Opinion
Without qualifying our report, we draw your attention to Note 27 B (1).
As per clause no. 4.4.6 of the Scheme of Arrangement and Amalgamation
sanctioned by Hon''ble Bombay High Court ("Court"), vide their judgment
dated 16th July 2009, the allotment of shares against purchase of land
shall be done after the conveyance deeds are executed and registered.
However the management has issued 17,96,254 equity shares having face
value of Rs. 1/- along-with premium of Rs. 5.94 per share to Dr. Laxman
V. Kulkarni without executing and registering the conveyance deed. The
outcome of the said event is uncertain and we are unable to comment
upon it.
In our opinion and to the best of our information and according to the
explanation given to us, the said accounts subject to and read with
notes appearing thereon, give the information required by The Companies
Act, 1956, in the manner so required and a true and fair view,
(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 Statement of Profit and Loss, of the profit for the
year ended on that date.
(C) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS'' REPORT
With reference to paragraph 1 of report on the other legal and
regulatory requirements of our report to the shareholders of Dhanada
Corporation Ltd. of even date.
i. Fixed Assets
a. The Company has generally maintained proper records showing full
particulars including quantitative details and situation of the fixed
assets.
b. Most of the fixed assets have been physically verified by the
management during the year and as examined by us, no material
discrepancies have been noticed on such verification.
c. In our opinion, and according to the information and explanations
given to us, none of the fixed assets have been revalued during the
year under report.
d. The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of that fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
ii. Inventories
a. As explained to us, the inventories were physically verified during
the year by the management at reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the Procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained adequate records of its
inventories and no material discrepancies were noticed on physical
verification.
iii. Loans given/taken by the Company
a. The Company has granted loans to parties covered in the register
maintained under Section 301 of the Companies Act, 1956. The details
are as below:
Particulars Maximum amount due Balance due as at the end of
at any time year Financial year Amount
the during the
Amount (Rs.)
Dhanada 1,58,86,166 1,46,13,600
Engineering
Pvt. Ltd.
Dhanada 81,69,311 81,69,311
Education
Pvt. Ltd.
Dhanada Clean 8,29,444 8,29,444
Energy
(India)
Pvt. Ltd.
b. The Company has taken interest free unsecured loans from the parties
covered in the register maintained u/s 301 of the Companies Act, 1956.
The details of which are as below:
Particulars Maximum amount due at any time Balance due as at the
during the year Amount (Rs.) end of the Financial
year Amount (Rs.)
Dhanada
Holdings
Pvt. Ltd. 1,68,78,039 1,26,90,769
c. The terms and conditions for such loans are not prima facie
prejudicial to the interest of the Company.
iv. Internal Control Systems
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 purchases of
stores, raw materials including components, plant and machinery,
equipment and other assets and for sale of goods.
v. Transactions with related parties as per Register of Contract u/s
301
a. According to the information and explanations given to us, we are of
the opinion that the particulars of transactions that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956 have been so entered.
b. According to information and explanation given to us there are no
transactions of purchases of goods and material and sale of goods,
materials and services made in pursuance of contracts or arrangements
entered in the register maintained under section 301of the Companies
Act, 1956 and aggregating during the year to Rs. 5,00,000/- or more in
respect of each party.
vi. Deposits from the public
The Company has not accepted deposits from the public during the year
and hence the question of complying with the provision of section 58A &
58AA of the Companies Act, 1956 and the rules framed there under does
not arise.
vii. Internal Audit System
The Company has appointed M/s. Khandelwal Jain & Co., Chartered
Accountants, Aurangabad as the internal auditors'' and their scope and
duties ensure reasonable internal checking of its financial and other
records.
viii. Cost Records
According to the Circular No. 67/2011 dated 30th November 2011 issued
by the Government of India, Ministry of Corporate Affairs, the
Companies (Cost Accounting Records) Rules 2011 are not applicable to
the Company.
ix. Statutory Dues
a. The Company has been regular in depositing undisputed statutory dues
in respect of Provident Fund, Employee''s State Insurance (ESI), Income
Tax, Value Added Tax, Service Tax, Luxury Tax and other material
statutory dues except as detailed below:-
Particulars where arrears are above Six Months at Balance Sheet Date or
anytime during the period under audit:
Name of the Statue Nature of Amount Period
Dues '' RS which
the Due
Related
MVAT Act, 2002 VAT 164440 2009-10
MVAT Act, 2002 VAT 660403 2009-10
MVAT Act, 2002 VAT 805182 2009-10
MVAT Act, 2002 VAT 8462 2012-13
MVAT Act, 2002 VAT 286275 2012-13
MVAT Act, 2002 VAT 80662 2012-13
MVAT Act, 2002 VAT 284381 2012-13
MVAT Act, 2002 VAT 329042 2012-13
MVAT Act, 2002 VAT 342261 2012-13
MVAT Act, 2002 VAT 307122 2012-13
MVAT Act, 2002 VAT 338097 2012-13
MVAT Act, 2002 VAT 262533 2012-13
MVAT Act, 2002 VAT 209397 2013-14
MVAT Act, 2002 VAT 233196 2013-14
MVAT Act, 2002 VAT 195184 2013-14
The Maharashtra Tax on Luxury Tax 421576 2011-12
Luxuries Act, 1987
The Maharashtra Luxury Tax 156405 2012-13
Tax on Luxuries Act, 1987
The Maharashtra Tax Luxury Tax 427495 2012-13
on Luxuries Act, 1987
The Maharashtra Tax on Luxury Tax 408270 2013-14
Luxuries Act, 1987
Service Tax Act, 1994 Service Tax 440624 2012-13
Service Tax Act, 1994 Service Tax 450568 2012-13
Service Tax Act, 1994 Service Tax 388551 2012-13
Service Tax Act, 1994 Service Tax 136556 2012-13
Service Tax Act, 1994 Service Tax 391524 2012-13
Service Tax Act, 1994 Service Tax 617567 2012-13
Service Tax Act, 1994 Service Tax 392128 2012-13
Service Tax Act, 1994 Service Tax 515726 2012-13
Service Tax Act, 1994 Service Tax 154841 2012-13
Service Tax Act, 1994 Service Tax 454648 2013-14
Service Tax Act, 1994 Service Tax 395232 2013-14
Service Tax Act, 1994 Service Tax 245444 2013-14
Name of the Statue
Due Date Payments Date
Made Payment
MVAT Act, 2002 21/10/2009 164440 26/09/2013
MVAT Act, 2002 21/01/2010 660440 26/09/2013
MVAT Act, 2002 21/04/2010 805182 Multiple
MVAT Act, 2002 21/06/2012 8462 21/06/2013
MVAT Act, 2002 21/07/2012 286275 21/06/2013
MVAT Act, 2002 21/09/2012 80662 21/06/2013
MVAT Act, 2002 21/10/2012 284381 21/06/2013
MVAT Act, 2002 21/11/2012 329042 21/06/2013
MVAT Act, 2002 21/12/2012 342261 21/06/2013
MVAT Act, 2002 21/02/2013 307122 Multiple
MVAT Act, 2002 21/03/2013 338097 08/01/2014
MVAT Act, 2002 21/04/2013 262533 Multiple
MVAT Act, 2002 21/05/2013 194874 08/01/2014
MVAT Act, 2002 21/06/2013 217615 11/01/2014
MVAT Act, 2002 21/07/2013 195184 Multiple
The Maharashtra Tax on 21/04/2012 421576 10/01/2014
Luxuries Act, 1987
The Maharashtra 21/03/2013 156405 10/01/2014
Tax on Luxuries Act, 1987
The Maharashtra Tax 21/04/2013 427495 17/01/2014
on Luxuries Act, 1987
The Maharashtra Tax on 21/05/2013 405270 17/12/2013
Luxuries Act, 1987
Service Tax Act, 1994 05/08/2012 440624 05/09/2013
Service Tax Act, 1994 05/09/2012 450568 10/09/2013
Service Tax Act, 1994 05/10/2012 388551 07/10/2013
Service Tax Act, 1994 05/11/2012 136556 09/11/2013
Service Tax Act, 1994 05/12/2012 391524 09/11/2013
Service Tax Act, 1994 05/01/201 391567 16/12/2013
Service Tax Act, 1994 05/02/2013 617567 04/12/2013
Service Tax Act, 1994 05/03/2013 392128 16/12/2013
Service Tax Act, 1994 31/03/2013 515726 04/12/2013
Service Tax Act, 1994 05/05/2013 454648 30&31/12/2013
Service Tax Act, 1994 05/06/2013 395232 Multiple
Service Tax Act, 1994 05/07/2013 245444 20/01/2013
b. The Undisputed Sales Tax Deferral liability is Rs. 21,04,188/-,
which is not paid. Appropriate interest is also due till the actual
date of payment.
c. Sales Tax Cases:
1. The Company has disputed Sales tax liability against Assessment
orders passed by Sales Tax officer, Aurangabad and matter is pending as
detailed below:
Name of the Nature of Amount Period Forum Where dispute
Statute Dues is pending
Bombay Sales Sales Tax 5,000 1998-1999 Dy. Commissioner of
Tax Act, 1959 Sales Tax,(Appeal)
Aurangabad
Bombay Sales Tax Sales Tax 57,536 1999-2000 Dy. Commissioner of
Act, 1959 Sales Tax,(Appeal)
Aurangabad
Bombay Sales Tax Sales Tax 88,239 2000-2001 Dy. Commissioner of
Act, 1959 Sales Tax,(Appeal)
Aurangabad
Maharashtra Value MVAT 2,02,023 2007-08 Dy. Commissioner of
Added Tax, 2002 Sales Tax,(Appeal)
Aurangabad
2. The Company has disputed Sales tax liability against Rectification
Orders passed by Sales Tax officer, Aurangabad and matter is pending as
detailed below:
Name of the Nature of Amount Part Pay- Period
Statute Dues ment made
Bombay Sales Sales Tax 2,542,314 150,000 1998-1999
Tax Act, 1959
Bombay Sales Sales Tax 1,779,156 125,000 1999-2000
Tax Act, 1959
Bombay Sales Sales Tax 919,859 100,000 2000-2001
Tax Act, 1959
Bombay Sales Sales Tax 14,049 2,000 2001-2002
Tax Act, 1959
Name of the Forum Where dispute is pending
Statute
Bombay Sales Dy.Commissioner of Sales Tax, (Appeal) Aurangabad
Tax Act, 1959
Bombay Sales Dy.Commissioner of Sales Tax, (Appeal) Aurangabad
Tax Act, 1959
Bombay Sales Dy.Commissioner of Sales Tax, (Appeal) Aurangabad
Tax Act, 1959
Bombay Sales Dy.Commissioner of Sales Tax,(Appeal) Aurangabad
Tax Act, 1959
x. Sick Industry
The accumulated losses of the Company are not more than fifty per cent
of its net worth at the end of the financial year.
xi. Accumulated Losses
The Company has accumulated losses as on 31st March 2014 as well as on
31st March 2013. Further the Company has not incurred cash losses
during the financial year covered by our audit and also in the
immediately preceding financial year.
xii. Dues to financial Institutions
In our opinion and according to the information and explanations given
to us, the Company has defaulted in repayment of dues to banks to the
extent of Rs. 1,31,829/- (Including interest) of Bank of Maharahstra
and Rs. 5,94,72,218/-/- of The Saraswat Co. Op. Bank Ltd. as on 31st
March 2014. The Saraswat Co-Op. Bank has assigned and transferred this
term loan to Phoenix ARC Pvt. Ltd. together with all underlying
securities as per the agreement dated 9th April 2014 and such
confirmation letter dated 30th April 2014 received by the Company.
xiii. Secured Loans and advances granted
The Company has not granted any loans or advances on the basis of
security by way pledge of shares, debentures or other securities.
xiv. Chit Fund, Nidhi or Mutual Benefit Company
In our opinion, the Company is not a chit fund or nidhi or mutual
benefit fund or society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order 2003, (as amended), are not
applicable to the Company.
xv. Investments
In our opinion and according to the information and explanation given
to us the company has not done any transaction during the year of
trading in Shares, Securities, debentures and other investments.
xvi. Guarantees given by the Company
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 institutes. The question of terms and conditions does not
arise.
xvii. Term Loan
In our opinion and according to the information and explanations given
to us, and on an overall examination, the term loans taken have been
applied for the purpose for which it was raised.
xviii. Sources of funds and its application
According to the cash flow statement and other records examined by us
and the information and explanations given to us, on an overall basis,
funds raised on short term basis have, prima facie, not been used
during the year for long term investment (fixed assets etc.) and vice
versa, other than temporary deployment pending application.
xix. Preferential Issue
The Company has not made any preferential allotment of equity shares
during the year 2013-14.
xx. Securities and Debentures
In our opinion and according to the information and explanations given
to us, the Company has not issued any secured debentures during the
period covered by our audit. Accordingly the provisions of clause
4(xix) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
xxi. End use of Public Issue Fund
The Company has not raised any money by way of public issue during the
year.
xxii. Frauds
In our opinion and according to the information and explanation given
to us, having regards to the nature of the Company''s business no fraud
on or by the Company was noticed or reported during the year.
For G. K. Chandavarkar & Co.
Chartered Accountants
(Firm Registration No.115924W)
Place: Pune G. K. Chandavarkar
Date : 30th May 2014 (Proprietor)
M. No. 044537
Mar 31, 2013
We have audited the accompanying fnancial statements of DHANADA
CORPORATION LIMITED, Pune, which comprise the Balance Sheet as at 31st
March 2013, the Statement of Proft and Loss and the Cash Flow Statement
for the year then ended, and a summary of the signifcant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
fnancial statements that give a true and fair view of the fnancial
position, fnancial performance and cash fows 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
fnancial 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 fnancial
statements based on our audit. We conducted our audit in accordance
with auditing standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the fnancial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the fnancial statements. An
audit also includes assessing the accounting principles used and
signifcant estimates made by management, as well as evaluating the
overall fnancial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
Report on the Other Legal and Regulatory Requirements
As required by The Companies (Auditor''s Report) Order, 2003 and amended
by the Companies (Auditors Report) (Amendment) Order, 2004 dated
25/11/2004 issued by the Department of Company Affairs, 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
specifed in paragraphs 4 and 5 of the said Order, on the basis of such
checks as we considered appropriate and according to the information
and explanations given to us.
Further to our comments in the Annexure referred to above, we report
that:
(1) We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(2) In our opinion, proper books of accounts, as required by law, have
been kept by the Company, so far as appears from the examination of the
books.
(3) The Balance Sheet, the Statement of Proft and Loss, and Cash Flow
Statement dealt with by the report are in agreement with the books of
account.
(4) In our opinion, the Statement of Proft and Loss, the Balance Sheet
and Cash Flow Statement complies with the accounting standards referred
to in Sub Section 3(c) of Section 211 of The Companies Act, 1956 to the
extent applicable.
(5) On the basis of the written representations received from the
directors on 31st March, 2013 and taken on record by the Board of
Directors, we report that none of the directors is disqualifed as at
31st March, 2013 from being appointed as a director in terms of clause
(g) of sub section (1) of section 274 of The Companies Act, 1956.
Opinion
Without qualifying our report, we draw your attention to Note 27 B (1).
As per clause no. 4.4.6 of the Scheme of Arrangement and Amalgamation
sanctioned by Hon''ble Bombay High Court ("Court"), vide their judgment
dated 16th July 2009, the allotment of shares against purchase of land
shall be done after the conveyance deeds are executed and registered.
However the management has issued 17,96,254 equity shares having face
value of Re.1 along-with premium of Rs. 5.94 per share to Dr. Laxman V.
Kulkarni without executing and registering the conveyance deed. The
outcome of the said event is uncertain and we are unable to comment
upon it.
In our opinion and to the best of our information and according to the
explanation given to us, the said accounts subject to and read with
notes appearing thereon, give the information required by The Companies
Act,1956, in the manner so required and a true and fair view,
(A) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2013.
(B) In the case of Statement of Proft and Loss, of the proft for the
year ended on that date.
(C) In the case of the Cash Flow Statement, of the cash fows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS'' REPORT
With reference to paragraph 1 of report on other legal and other
regulatory requirements of our report to the shareholders of Dhanada
Corporation Ltd. of even date.
i. Fixed Assets
a. The Company has generally maintained proper records showing full
particulars including quantitative details and situation of the fxed
assets.
b. Most of the fxed assets have been physically verifed by the
management during the year and as examined by us, no material
discrepancies have been noticed on such verifcation.
c. In our opinion, and according to the information and explanations
given to us, none of the fxed assets have been revalued during the year
under report.
d. The fxed assets disposed off during the year, in our opinion, do
not constitute substantial part of that fxed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
ii. Inventories
a. As explained to us, the inventories were physically verifed during
the year by the management at reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the Procedures of physical verifcation of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained adequate records of its
inventories and no material discrepancies were noticed on physical
verifcation.
iii. Loans given/taken by the Company
a. The Company has granted loans to parties covered in the register
maintained under Section 301 of the Companies Act, 1956. The details
are as below:
Maximum amount due at any time Balance due as at the end of the
Particulars during the year Amount (Rs.) Financial year Amount (Rs.)
Dhanada Engineering Pvt. Ltd. 1,57,30,166 1,57,30,166
Dhanada Education Pvt. Ltd. 61,18,868 61,18,868
b. The Company has taken interest free unsecured loans from the
parties covered in the register maintained u/s 301 of the Companies
Act, 1956. The details of which are as below:
Particulars Maximum amount due at any time Balance due as at the end of
the during the year Amount (Rs.) Financial year Amount (Rs.)
Dhanada Holdings Pvt. Ltd. 8,35,46,760 1,30,14,823
c. The terms and conditions for such loans are not prima facie
prejudicial to the interest of the Company.
iv. Internal Control Systems
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 purchases of
stores, raw materials including components, plant and machinery,
equipment and other assets and for sale of goods.
v. Transactions with related parties as per Register of Contract u/s
301
a. According to the information and explanations given to us, we are
of the opinion that the particulars of transactions that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956 have been so entered.
b. According to information and explanation given to us there are no
transactions of purchases of goods and material and sale of goods,
materials and services made in pursuance of contracts or arrangements
entered in the register maintained under section 301of the Companies
Act, 1956 and aggregating during the year to Rs. 5,00,000/- or more in
respect of each party.
vi. Deposits from the public
The Company has not accepted deposits from the public during the year
and hence the question of complying with the provision of section 58A &
58AA of the Companies Act, 1956 and the rules framed there under does
not arise.
vii. Internal Audit System
The Company has appointed M/s. Khandelwal Jain & Co., Chartered
Accountants, Aurangabad as the internal auditors'' and their scope and
duties ensure reasonable internal checking of its fnancial and other
records.
viii. Cost Records
According to the Circular No. 67/2011 dated 30th November 2011 issued
by the Government of India, Ministry of Corporate Affairs, the
Companies (Cost Accounting Records) Rules 2011 are not applicable to
the Company.
ix. Statutory Dues
a. The Company has been regular in depositing undisputed statutory dues
in respect of Provident Fund, Employee''s State Insurance (ESI), Income
Tax, Value Added Tax, Service Tax, Luxury Tax and other material
statutory dues except as detailed below:-
b The Undisputed Sales Tax Deferral liability is Rs. 21,04,188/-, which
is not paid. Appropriate interest is also due till the actual date of
payment.
x. Sick Industry
The accumulated losses of the Company are not more than ffty per cent
of its net worth at the end of the fnancial year.
xi. Accumulated Losses
The Company does not have any accumulated losses at the end of the
fnancial year and has not incurred cash losses in the current fnancial
year and in the immediately preceding fnancial year.
xii. Dues to fnancial Institutions
In our opinion and according to the information and explanations given
to us, the Company has defaulted in repayment of dues to banks to the
extent of Rs. 3,493,290/- of The Saraswat Co. Op. Bank Ltd. as on 31st
March 2013.
xiii. Secured Loans and advances granted
The Company has not granted any loans or advances on the basis of
security by way pledge of shares, debentures or other securities.
xiv. Chit Fund, Nidhi or Mutual Beneft Company
In our opinion, the Company is not a chit fund or nidhi or mutual
beneft fund or society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order 2003, (as amended), are not
applicable to the Company.
xv. Investments
The Company has maintained proper records of transactions and contracts
in respect of dealing or trading in Shares, Securities, debentures and
other investments and timely entries have been made therein.
xvi. Guarantees given by the Company
According to the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from bank or
fnancial institutes. The question of terms and conditions does not
arise.
xvii. Term Loan
In our opinion and according to the information and explanations given
to us, and on an overall examination, the term loans taken have been
applied for the purpose for which it was raised.
xviii. Sources of funds and its application
According to the cash fow statement and other records examined by us
and the information and explanations given to us, on an overall basis,
funds raised on short term basis have, prima facie, not been used
during the year for long term investment (fxed assets etc.) and vice
versa, other than temporary deployment pending application.
xix. Preferential Issue
The Company has made preferential allotment of equity shares to Dhanada
Holdings Private Limited, on conversion of loan amount taken from it at
the price determined as per guidelines issued by SEBI.
xx. Securities and Debentures
In our opinion and according to the information and explanations given
to us, the Company has not issued any secured debentures during the
period covered by our audit. Accordingly the provisions of clause
4(xix) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
xxi. End use of Public Issue Fund
The Company has not raised any money by way of public issue during the
year.
xxii. Frauds
In our opinion and according to the information and explanation given
to us, having regards to the nature of the Company''s business no fraud
on or by the Company was noticed or reported during the year.
For G. K. Chandavarkar & Co.
Chartered Accountants
(Firm Registration No.115924W)
Place: Pune G. K. Chandavarkar
Date : 30th May 2013 (Proprietor)
M. No. 044537
Mar 31, 2012
1. We have audited the attached Balance Sheet of DHANADA CORPORATION
LTD. ("the Company") as at 31st March 2012 and also the Cash Flow
Statement Profit and Loss Account for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. Without qualifying our report, we draw your attention to Note 27 B
(1). As per clause no. 4.4.6 of the Scheme of Arrangement and
Amalgamation sanctioned by Hon'ble Bombay High Court ("Court"),
vide their judgment dated 16th July 2009, the allotment of shares
against purchase of land shall be done after the conveyance deeds are
executed and registered. However the management has issued 17,96,254
equity shares having face value of Rs 1 along-with premium of Rs 5.94 per
share to Dr. Laxman V. Kulkarni without executing and registering the
conveyance deed. The outcome of the said event is uncertain and we are
unable to comment upon it.
4. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together, Ãthe order') issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we
enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
5. Further to our comments in paragraph 3 and in the Annexure referred
to in paragraph 4 above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.
d) In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
6. On the basis of written representations received from the
directors, as on 31st 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 a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
7. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India.
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012 and
b) In the case of the Profit and Loss Account, of the Loss for the year
ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
With reference to paragraph 4 of our report to the shareholders of
Dhanada Corporation Ltd. of even date, we report that, in our opinion
and to the best of our knowledge and belief and as per information and
explanations furnished to us and the books and records examined by us
in the normal course of audit:
i. Fixed Assets
a. The Company has generally maintained proper records showing full
particulars including quantitative details and situation of the fixed
assets.
b. Most of the fixed assets have been physically verified by the
management during the year and as examined by us, no material
discrepancies have been noticed on such verification.
c. In our opinion, and according to the information and explanations
given to us, none of the fixed assets have been revalued during the
year under report.
d. The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of that fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
ii. Inventories
a. As explained to us, the inventories were physically verified during
the year by the management at reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the Procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained adequate records of its
inventories and no material discrepancies were noticed on physical
verification.
iii. Loans given/taken by the Company
a. The Company has granted loans to parties covered in the register
maintained under Section 301 of the Companies Act, 1956. The details
are as below:
Maximum amount due Balance due as at
at any time the end of the
Particulars during the year Financial year
Amount (Rs) Amount (Rs)
Dhanada Engineering Pvt. Ltd. 1,94,72,301.00 Nil
b. The Company has taken interest free unsecured loans from the
parties covered in the register maintained u/s 301 of the Companies
Act, 1956 Act. The details of which are as below:
Maximum amount due Balance due as at
at any time the end of the
Particulars during the year Financial year
Amount (Rs) Amount (Rs)
Dhanada Holdings Pvt. Ltd. 8,11,46,660.00 8,11,46,660.00
c. The terms and conditions for such loans are not prima facie
prejudicial to the interest of the Company.
iv. Internal Control Systems
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 purchases of
stores, raw materials including components, plant and machinery,
equipment and other assets and for sale of goods.
v. Transactions with related parties as per Register of Contract u/s
301
a. According to the information and explanations given to us, we are
of the opinion that the particulars of transactions that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956 have been so entered.
b. According to information and explanation given to us there are no
transactions of purchases of goods and material and sale of goods,
materials and services made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 and aggregating during the year to Rs 5,00,000/- or more in
respect of each party.
vi. Deposits from the public
The Company has not accepted deposits from the public during the year
and hence the question of complying with the provision of section 58A &
58AA of the Companies Act, 1956 and the rules framed there under does
not arise.
vii. Internal Audit System
The Company has appointed M/s. Khandelwal Jain & Co., Chartered
Accounts, Aurangabad as the internal auditors' and their scope and
duties ensure reasonable internal checking of its financial and other
records.
viii. Cost records
According to the Circular No. 67/2011 dated 30th November 2011 issued
by the Government of India, Ministry of Corporate Affairs, the
Companies (Cost Accounting Records) Rules 2011 are not applicable to
the Company.
ix. Statutory Dues
a. The Company has been regular in depositing undisputed statutory
dues in respect of Provident Fund, Employee's State Insurance (ESI),
Income Tax, Luxury Tax and other material statutory dues except as
detailed below:-
- Particulars where arrears are above Six Months at Balance Sheet
Date or anytime during the period under audit:-
Name of Statue Nature Amount Period
of Dues Rs to which
the dues
relate
MVAT Act, 2002 VAT 545887 2009-10
MVAT Act, 2002 VAT 1284137 2009-10
MVAT Act, 2002 VAT 685655 2010-11
MVAT Act, 2002 VAT 871340 2010-11
MVAT Act, 2002 VAT 977972 2010-11
MVAT Act, 2002 VAT 175052 2011-12
MVAT Act, 2002 VAT 200012 2011-12
MVAT Act, 2002 VAT 236740 2011-12
MVAT Act, 2002 VAT 254975 2011-12
MVAT Act, 2002 VAT 226117 2011-12
MVAT Act, 2002 VAT 244432 2011-12
MVAT Act, 2002 VAT 372005 2011-12
MVAT Act, 2002 VAT 316570 2011-12
Name of Statue Nature Amount Period
of Dues Rs to which
the dues
relate
Income Tax Act 1961 TDS 12953 2011-12
Income Tax Act 1961 TDS 12953 2011-12
Income Tax Act 1961 TDS 8328 2011-12
Income Tax Act 1961 TDS 7720 2011-12
Income Tax Act 1961 TDS 7720 2011-12
Income Tax Act 1961 TDS 7720 2011-12
The Maharashtra Tax on Luxuries Act, Luxury Tax 204713 2009-10
1987
The Maharashtra Tax on Luxuries Act, Luxury Tax 164464 2010-11
1987
The Maharashtra Tax on Luxuries Act, Luxury Tax 169011 2010-11
1987
The Maharashtra Tax on Luxuries Act, Luxury Tax 208721 2010-11
1987
The Maharashtra Tax on Luxuries Act, Luxury Tax 213322 2010-11
1987
The Maharashtra Tax on Luxuries Act, Luxury Tax 246612 2010-11
1987
The Maharashtra Tax on Luxuries Act, Luxury Tax 238780 2010-11
1987
The Maharashtra Tax on Luxuries Act, Luxury Tax 319364 2010-11
1987
The Maharashtra Tax on Luxuries Act, Luxury Tax 330670 2010-11
1987
The Maharashtra Tax on Luxuries Act, Luxury Tax 401397 2010-11
1987
The Maharashtra Tax on Luxuries Act, Luxury Tax 367979 2010-11
1987
The Maharashtra Tax on Luxuries Act, Luxury Tax 372885 2010-11
1987
Name of Statue Nature Amount Period
of Dues Rs to which
the dues
relate
The Maharashtra Tax on Luxuries Act, Luxury Tax 355356 2010-11
1987
The Maharashtra Tax on Luxuries Act, Luxury Tax 229420 2010-11
1987
Name of Statue Due Date Payment Date
Made Rs of Payment
MVAT Act, 2002 21/10/2009 _ -
MVAT Act, 2002 21/04/2010 _ -
MVAT Act, 2002 21/07/2010 685655 02/01/2012
MVAT Act, 2002 21/10/2010 871340 21/01/2012
MVAT Act, 2002 21/01/2011 206000 Multiple
dates
MVAT Act, 2002 21/05/2011 - -
MVAT Act, 2002 21/06/2011 - -
MVAT Act, 2002 21/07/2011 - -
MVAT Act, 2002 21/08/2011 - -
MVAT Act, 2002 21/09/2011 - -
MVAT Act, 2002 21/10/2011 - -
MVAT Act, 2002 21/03/2012 - -
MVAT Act, 2002 21/04/2012 - -
Income Tax Act 1961 07/05/2011 12,953 31/05/2012
Income Tax Act 1961 07/06/2011 12,953 31/05/2012
Income Tax Act 1961 07/07/2011 8,328 31/05/2012
Income Tax Act 1961 07/08/2011 7,720 31/05/2012
Income Tax Act 1961 07/09/2011 7,720 31/05/2012
Income Tax Act 1961 07/10/2011 7,720 31/05/2012
Name of Statue Due Date Payment Date
Made Rs of Payment
The Maharashtra Tax on Luxuries Act, 30/04/2010 204713 20/10/2011
1987
The Maharashtra Tax on Luxuries Act, 31/05/2010 164464 20/10/2011
1987
The Maharashtra Tax on Luxuries Act, 30/06/2010 169011 20/10/2011
1987
The Maharashtra Tax on Luxuries Act, 31/07/2010 208721 20/10/2011
1987
The Maharashtra Tax on Luxuries Act, 31/08/2010 213322 30/12/2011
1987
The Maharashtra Tax on Luxuries Act, 30/09/2010 246612 30/12/2011
1987
The Maharashtra Tax on Luxuries Act, 31/10/2010 238780 10/01/2012
1987
The Maharashtra Tax on Luxuries Act, 30/11/2010 319364 17/01/2012
1987
The Maharashtra Tax on Luxuries Act, 31/12/2010 330670 23/01/2012
1987
The Maharashtra Tax on Luxuries Act, 31/01/2011 401397 23/01/2012
1987
The Maharashtra Tax on Luxuries Act, 28/02/2011 367979 23/01/2012
1987
The Maharashtra Tax on Luxuries Act, 31/03/2011 372885 23/01/2012
1987
The Maharashtra Tax on Luxuries Act, 30/04/2011 355356 30/01/2012
1987
The Maharashtra Tax on Luxuries Act, 30/04/2011 229420 30/01/2012
1987
b. The Undisputed Sales Tax Deferral liability is Rs 21,04,188/-, which
not paid. Appropriate interest is also due till the actual date of
payment.
c. Sales Tax Cases:
1. The Company has disputed Sales tax liability against Assessment
orders passed by Sales Tax officer, Aurangabad and matter is pending as
detailed below.
Nature of Amount Forum Where dispute
Name of Statute Dues Rs Period is pending
Bombay Sales Tax Sales Tax 5,000 1998-99 Dy. Commissioner of
Act, 1959 Sales Tax, (Appeal)
Aurangabad
Bombay Sales Tax Sales Tax 57,536 1999-20 Dy. Commissioner of
Act, 1959 Sales Tax, (Appeal)
Aurangabad
Bombay Sales Tax Sales Tax 88,239 2000-01 Dy. Commissioner of
Act, 1959 Sales Tax, (Appeal)
Aurangabad
Name of Nature of Amount Part Forum Where
Statute Dues Rs Payment Period dispute is
Made Rs pending
Bombay Sales Sales Tax 2,542,314 150,000 1998-99 Dy. Commissioner
Tax Act, 1959 Sales Tax,
(Appeal)
Aurangabad
Bombay Sales Sales Tax 1,779,156 125,000 1999-00 Dy. Commissioner
Tax Act, 1959 Sales Tax,
(Appeal)
Aurangabad
Bombay Sales Sales Tax 919,859 100,000 2000-01 Dy. Commissioner
Tax Act, 1959 Sales Tax,
(Appeal)
Aurangabad
Bombay Sales Sales Tax 14,049 2,000 2001-02 Dy. Commissioner
Tax Act, 1959 Sales Tax,
(Appeal)
Aurangabad
2. The Company has disputed Sales tax liability against Rectification
Orders passed by Sales Tax officer, Aurangabad and matter is pending as
detailed below.
x. Sick Industry
The accumulated losses of the Company are not more than fifty per cent
of its net worth at the end of the financial year.
xi. Dues to financial Institutions
In our opinion and according to the information and explanations given
to us, the Company has not defaulted in repayment of dues to banks.
xii. Secured Loans and advances granted
The Company has not granted any loans or advances on the basis of
security by way pledge of shares, debentures or other securities.
xiii. Chit Fund, Nidhi or Mutual Benefit Company
In our opinion, the Company is not a chit fund or nidhi or mutual
benefit fund or society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order 2003, (as amended), are not
applicable to the Company.
xiv. Investments
The Company has maintained proper records of transactions and contracts
in respect of dealing or trading in Shares, Securities, debentures and
other investments and timely entries have been made therein.
xv. Guarantees given by the Company
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 institutes. The question of terms and conditions does not
arise.
xvi. Term Loan
In our opinion and according to the information and explanations given
to us, and on an overall examination, the term loans taken have been
applied for the purpose for which it was raised.
xvii. Sources of funds and its application
According to the cash flow statement and other records examined by us
and the information and explanations given to us, on an overall basis,
funds raised on short term basis have, prima facie, not been used
during the year for long term investment (fixed assets etc.) and vice
versa, other than temporary deployment pending application.
xviii. Preferential Issue
The Company has not made any preferential allotment of shares during
the year to companies/firms/parties covered in the register maintained
under Section 301 of the Act.
xix. Securities and Debentures
In our opinion and according to the information and explanations given
to us, the Company has not issued any secured debentures during the
period covered by our audit. Accordingly the provisions of clause
4(xix) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
xx. End use of Public Issue Fund
The Company has not raised any money by way of public issue during the
year.
xxi. Frauds
In our opinion and according to the information and explanation given
to us, having regards to the nature of the Company's business no fraud
on or by the Company was noticed or reported during the year.
For G. K. Chandavarkar & Co.
Chartered Accountants
(Firm Registration No.115924W)
Place: Pune G. K. Chandavarkar
Date : 31st May 2012 (Proprietor)
M. No. 044537
Mar 31, 2011
1. We have audited the attached Balance Sheet of VEDANT HOTELS LTD.
("the Company") as at 31st March 2011 and also the Cash Flow Statement
and Profit and Loss Account for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and signifcant 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. Without qualifying our report, we draw your attention to Note 2 of
Schedule No. 10. As per Clause No. 4.4.5 of the Scheme of Amalgamation
sanctioned by Hon'able High Court, Bombay on 16th July 2009, the
Company has acquired land from Mr. R. R. Havele, Chairman and Managing
Director of the Company and Dr. Laxman V. Kulkarni. The Company has
allotted equity shares as a consideration for land so acquired on 30th
April 2010. The Scheme provides for allotment of shares against the
aforesaid purchase after the conveyance deeds are executed and
registered. However, the management has issued 1796254 Equity Shares to
Dr. Laxman V. Kulkarni without executing and registering the conveyance
deed. The outcome of the said event is uncertain and we are unable
comment upon it.
4. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together, 'the order') issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we
enclose in the Annexure a statement on the matters specifed in
paragraphs 4 and 5 of the said Order.
5. Further to our comments in paragraph 3 and in the Annexure referred
to in paragraph 4 above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
d) In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
6. On the basis of written representations received from the
directors, as on 31st March 2011 and taken on record by the Board of
Directors, we report that none of the directors is disqualifed as on
31st March 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
7. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India.
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011 and
b) In the case of the Profit and Loss Account, of the Loss for the year
ended on that date; and
c) In the case of the Cash Flow Statement, of the cash fows of the
Company for the year ended on that date.
Annexure to the Auditor's Report
With reference to paragraph 4 of our report to the members of Vedant
Hotels Ltd. of even date, we report that, in our opinion and to the
best of our knowledge and belief and as per information and
explanations furnished to us and the books and records examined by us
in the normal course of audit:
i. Fixed Assets
a. The Company has generally maintained proper records showing full
particulars including quantitative details and situation of the fixed
assets.
b. Most of the fixed assets have been physically verifed by the
management during the year and as examined by us, no material
discrepancies have been noticed on such verifcation.
c. In our opinion, and according to the information and explanations
given to us, none of the fixed assets have been revalued during the year
under report.
d. The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of that fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
ii. Inventories
a. As explained to us, the inventories were physically verifed during
the year by the management at reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the Procedures of physical verifcation of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained adequate records of its
inventories and no material discrepancies were noticed on physical
verifcation.
iii. Loans given/taken by the Company
a. The Company has granted loans to parties covered in the register
maintained under Section 301 of the Companies Act, 1956. The details
are as below:
Maximum amount due
at any time Balance due as at
the end of the
Particulars during the year
Amount (Rs.) Financial year
Amount (Rs.)
Malkan Engineering Pvt. Ltd. 12,121,100 -
b. The Company has taken interest free unsecured loans from the
parties covered in the register maintained u/s 301 of the Companies
Act, 1956 Act. The details of which are as below:
Maximum amount due
at any time Balance due as at
the end of the
Particulars during the year
Amount (Rs.) Financial year
Amount (Rs.)
Dhanada Holdings Pvt. Ltd. 4,23,58,410.00 3,57,08,716.00
c. The terms and conditions for such loans are not prima facie
prejudicial to the interest of the Company.
iv. Internal Control Systems
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 purchases of
stores, raw materials including components, plant and machinery,
equipment and other assets and for sale of goods.
v. Transactions with related parties as per Register of Contract u/s
301
a. According to the information and explanations given to us, we are
of the opinion that the particulars of transactions that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956 have been so entered.
b. According to information and explanation given to us the
transactions of purchases of goods and material and sale of goods,
materials and services made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of Companies Act,
1956 and aggregating during the year to Rs. 5,00,000/- or more in
respect of each party have been made at prices which in our opinion are
reasonable having regard to prevailing market prices of goods materials
and services or the prices at which similar transactions have been made
with other parties and the Company's business needs exigencies.
vi. Deposits from public
The Company has not accepted deposits from public during the year and
hence the question of complying with the provisions of section 58A &
58AA of the Companies Act, 1956 and the rules framed there under does
not arise.
vii. Internal Audit System
The Company has no formal internal audit department as such but its
control procedures ensure reasonable internal checking of its financial
and other records.
viii. Cost records
We are informed that the Central Govt. has not prescribed maintenance
of cost records by the Company under section 209 (1) (d) of the
Companies Act, 1956, for any of the product of the Company for
Financial Year 2010Ã11.
ix. Statutory Dues
a. The Company has been regular in depositing undisputed statutory
dues in respect of Provident Fund, Employee's State Insurance (ESI),
Income Tax, Luxury Tax and other material statutory dues except as
detailed below:- Particulars where arrears are above Six Months at
Balance Sheet Date or anytime during the period under audit:-
Period to
Nature of Amount Date of
Name of the
Statute which the Due Date
Dues (Rs.) Payment
dues relate
MVAT Act, 2002 VAT 5,45,887 2009-10 21/10/2009 -
MVAT Act, 2002 VAT 12,70,560 2009-10 21/04/2010 -
MVAT Act, 2002 VAT 6,53,070 2010-11 21/07/2010 -
MVAT Act, 2002 VAT 8,68,857 2010-11 21/10/2010 -
MVAT Act, 2002 VAT 9,79,011 2010-11 21/01/2011 -
Income Tax Act,
1961 TDS 32,765 2010-11 07/05/2010 28/02/2011
Income Tax Act,
1961 TDS 90,578 2010-11 07/06/2010 28/02/2011
Income Tax Act,
1961 TDS 47,532 2010-11 07/07/2010 28/02/2011
Income Tax Act,
1961 TDS 24,565 2010-11 07/08/2010 28/02/2011
Income Tax Act,
1961 TDS 29,939 2010-11 07/09/2010 28/02/2011
Income Tax Act,
1961 TDS 21,665 2010-11 07/10/2010 28/02/2011
Income Ta x Act,
1961 TDS 77,478 2010-11 07/11/2010 28/02/2011
The Maharashtra
Tax on Luxuries
Act, 1987 Luxury Tax 204,713 2009-10 30/04/2010 -
The Maharashtra
Tax on Luxuries
Act, 1987 Luxury Tax 164,464 2010-11 31/05/2010 -
The Maharashtra
Tax on Luxuries
Act, 1987 Luxury Tax 169,011 2010-11 30/06/2010 -
The Maharashtra
Tax on Luxuries
Act, 1987 Luxury Tax 208,721 2010-11 31/07/2010 -
The Maharashtra
Tax on Luxuries
Act, 1987 Luxury Tax 213,322 2010-11 31/08/2010 -
The Maharashtra
Tax on Luxuries
Act, 1987 Luxury Tax 246,612 2010-11 30/09/2010 -
The Maharashtra
Tax on Luxuries
Act, 1987 Luxury Tax 82,088 2009-10 31/05/2009 29/04/2010
The Maharashtra
Tax on Luxuries
Act, 1987 Luxury Tax 110,514 2009-10 30/06/2009 29/04/2010
The Maharashtra
Tax on Luxuries
Act, 1987 Luxury Tax 129,093 2009-10 31/07/2009 29/04/2010
The Maharashtra
Tax on Luxuries
Act, 1987 Luxury Tax 119,388 2009-10 31/08/2009 03/05/2010
The Maharashtra
Tax on Luxuries
Act, 1987 Luxury Tax 140,816 2009-10 30/09/2009 03/05/2010
The Maharashtra
Tax on Luxuries
Act, 1987 Luxury Tax 121,540 2009-10 31/10/2009 03/05/2010
The Maharashtra
Tax on Luxuries
Act, 1987 Luxury Tax 140,120 2009-10 30/11/2009 25/05/2010
The Maharashtra
Tax on Luxuries
Act, 1987 Luxury Tax 200,012 2009-10 31/12/2009 25/05/2010
b. The Undisputed Sales Tax Deferral liability is Rs. 21,04,188/-,
which is not paid. Appropriate interest is also due till the actual
date of payment.
c. Sales Tax Cases:
1. The Company has disputed Sales tax liability against Assessment
orders passed by Sales Tax offcer, Aurangabad and matter is pending as
detailed below:
Name of Statute Nature of Due Amount Period Forum Where
dispute is pending
Bombay Sales Tax
Act, 1959 Sales Tax 5,000 1998-1999 Dy. Commissioner
of Sales Tax,
(Appeal) Aurangabad
Bombay Sales Tax
Act, 1959 Sales Tax 57,536 1999-2000 Dy. Commissioner
of Sales Tax,
(Appeal) Aurangabad
Bombay Sales Tax
Act, 1959 Sales Tax 88,239 2000-2001 Dy. Commissioner
of Sales Tax,
(Appeal) Aurangabad
2. The Company has disputed Sales tax liability against Rectifcation
Orders passed by Sales Tax offcer, Aurangabad and matter is pending as
detailed below.
Part
Nature of
Name of Statute Amount Payment Period Forum Where
dispute is pending
Due made
Bombay Sales Tax
Act, 1959 Sales Tax 2,542,314 150,000 1998-1999 Dy Commissioner
of Sales Tax,
(Appeal)
Aurangabad
Bombay Sales Tax
Act, 1959 Sales Tax 1,779,156 125,000 1999-2000 Dy Commissioner
of Sales Tax,
(Appeal)
Aurangabad
Bombay Sales Tax
Act, 1959 Sales Tax 919,859 100,000 2000-2001 Dy Commissioner
of Sales Tax,
(Appeal)
Aurangabad
Bombay Sales Tax
Act, 1959 Sales Tax 14,049 2,000 2001-2002 Dy Commissioner
of Sales Tax,
(Appeal)
Aurangabad
d. Income Tax Cases:
The income Tax Assessing Authority has passed assessment order on
14/12/2007 for the assessment year 2005Ã2006 and reduced the carry
forward loss to be tune of Rs. 71,62,399/-; on account of disallowance
of depreciation. The Company has prepared First appeal before
Commissioner of Income Tax (Appeal), Aurangabad and the matter is
pending there over.
x. Sick Industry
The accumulated losses of the Company are not more than ffty per cent
of its net worth at the end of the financial ye a r.
xi. Dues to financial Institutions
In our opinion and according to the information and explanations given
to us, the Company has not defaulted in repayment of dues to banks.
xii. Secured Loans and advances granted
The Company has not granted any loans or advances on the basis of
security by way pledge of shares, debentures or other securities.
xiii. Chit Fund, Nidhi or Mutual Benefit Company
In our opinion, the Company is not a chit fund or nidhi or mutual
benefit fund or society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order 2003, (as amended), are not
applicable to the Company.
xiv. Investments
The Company has maintained proper records of transactions and contracts
in respect of dealing or trading in Shares, Securities, debentures and
other investments and timely entries have been made therein.
xv. Guarantees given by the Company
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 institutes. The question of terms and conditions does not
arise.
xvi. Term Loan
In our opinion and according to the information and explanations given
to us, and on an overall examination, the term loans taken have been
applied for the purpose for which it was raised.
xvii. Sources of funds and its application
According to the cash fow statement and other records examined by us
and the information and explanations given to us, on an overall basis,
funds raised on short term basis have, prima facie, not been used
during the year for long term investment (fixed assets etc.) and vice
versa, other than temporary deployment pending application, during the
year.
xviii. Preferential Issue
The Company has not made any preferential allotment of shares during
the year to companies/frms/parties covered in the register maintained
under Section 301 of the Act other than allotment made pursuant to the
Scheme of Amalgamation sanctioned by Hon'able High Court, Bombay.
xix. Securities and Debentures
In our opinion and according to the information and explanations given
to us, the Company has not issued any secured debentures during the
period covered by our audit. Accordingly the provisions of clause
4(xix) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
xx. End use of Public Issue Fund
The Company has not raised any money by way of public issue during the
year.
xxi. Frauds
In our opinion and according to the information and explanation given
to us, having regards to the nature of the Company's business no fraud
on or by the Company was noticed or reported during the year.
For T. R. Jalnawala & Associates
Chartered Accountants
(Registration No. 104025W)
T. R. Jalnawala
Proprietor
Pune, 25th August 2011 M. No. 037084
Mar 31, 2010
We have audited the attached Balance Sheet of VEDANT HOTELS LTD. as at
31st March 2010 and also the Cash Flow Statement and Proft and Loss
Account for the year ended on that date annexed thereto. These fnancial
statements are the responsibility of the Companys management. Our
responsibility is to express an opinion on these fnancial statements
based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the fnancial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the fnancial statements. An audit also includes
assessing the accounting principles used and signifcant estimates made
by management, as well as evaluating the overall fnancial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 as amended
by the Companies (Auditors Report) (Amendment) Order, 2004 (together,
Ãthe order) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specifed in paragraphs 4 and
5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
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.
The Balance Sheet and Proft & Loss Account dealt with by this report
are in agreement with the books of account.
In our opinion, the Balance Sheet and Proft and Loss Account dealt with
by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
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 disqualifed as on 31st March 2010
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India.
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010 and
b) In the case of the Proft and Loss Account, of the Proft/ Loss for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash fows of the
Company for the year ended on that date.
Annexure to the Auditors Report
With reference to paragraph 1 of our report to the shareholders of
Vedant Hotels Ltd. of even date, we report that, in our opinion and to
the best of our knowledge and belief and as per information and
explanations furnished to us and the books and records examined by us
in the normal course of audit:
i Fixed Assets
a. The Company has generally maintained proper records showing full
particulars including quantitative details & situation of the fxed
assets.
b. Most of the fxed assets have been physically verifed by the
management during the year and as examined by us, no material
discrepancies have been noticed on such verifcation.
c. In our opinion, and according to the information and explanations
given to us, none of the fxed assets have been revalued during the year
under report.
d. The fxed assets disposed off during the year, in our opinion, do
not constitute substantial part of that fxed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
ii. Inventories
a. As explained to us, the inventories were physically verifed during
the year by the management at reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the Procedures of physical verifcation of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained adequate records of its
inventories and no material discrepancies were noticed on physical
verifcation.
iii. Loans given/taken by the Company
a. As per the information and explanations given to us, during the
year, the Company has not granted loans to Companies, frms and other
parties covered in the register maintained under Section 301 of the
Companies Act, 1956. The details are as below:
b. The Company has taken interest free unsecured loans from the
parties covered in the register maintained u/s 301 of the Companies,
1956 Act. The details of which are as below:
Particulars Maximum amount Balance due as
due at any as at the end of
time during the year the Financial year
Amount (Rs.) Amount (Rs.)
Dhanada Portfolio
Management Ltd 2,53,10,710.00 2,53,10,710.00
c. The terms and conditions for such loans are not prima facie
prejudicial to the interest of the Company.
iv. Internal Control Systems
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 purchases of
stores, raw materials including components, plant and machinery,
equipment and other assets and for sale of goods.
v. Transactions with related parties as per Register of Contract u/s
301
a. According to the information and explanations given to us, we are
of the opinion that the particulars of transactions that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956 have been so entered.
b. According to information and explanation given to us the
transactions of purchases of goods and material and sale of goods,
materials and services made in pursuance of contracts or arrangements
entered in the register maintained under section 301of Companies Act,
1956 and aggregating during the year to ` 5,00,000/- or more in respect
of each party have been made at prices which in our opinion are
reasonable having regard to prevailing market prices of goods materials
and services or the prices at which similar transactions have been made
with other parties and the Companys business needs and exigencies.
vi. Deposits from the public
The Company has not accepted deposits from the public and hence the
question of complying with the provision of section 58A & 58AA of the
Company Act, 1956 and the rules framed there under does not arise.
vii. Internal Audit System
The Company has no formal internal audit department as such but its
control procedures ensure reasonable internal checking of its fnancial
and other records.
viii. Cost records
We are informed that the Central Govt. has not prescribed maintenance
of cost records by the Company under section 209 (1) (d) of the
Companies Act, 1956, for any of the product of the Company.
ix. Statutory Dues
a. The Company has been regular in depositing undisputed statutory
dues in respect of Provident Fund, EmployeeÃs State Insurance (ESI),
Income Tax, Sales Tax, Luxury Tax and other material statutory dues.
b. The Undisputed Sales Ta x Deferral liability is ` 21,04,188/-,
which is not paid. Appropriate interest is also due till the actual
date of payment.
c. Sales Tax Cases:
1. The Company has disputed Sales tax liability against Assessment
orders passed by Sales Tax offcer, Aurangabad and matter is pending as
detailed below.
Name of Statute Nature of Amount Period Forum Where
Due dispute is pending
Dy. Commissioner
of Sales Tax,
Bombay Sales
Tax Act, 1959 Sales Tax 5,000 1998-1999 (Appeal) Aurangabad
Dy. Commissioner of
Sales Tax,
Bombay Sales
Tax Act, 1959 Sales Tax 57,536 1999-2000 (Appeal) Aurangabad
Dy. Commissioner of
Sales Tax,
Bombay Sales
Tax Act, 1959 Sales Tax 88,239 2000-2001 (Appeal) Aurangabad
2. During the year, the Company has disputed Sales tax liability
against Rectifcation Orders passed by Sales Tax offcer, Aurangabad and
matter is pending as detailed below.
Nature of Part Pay-
Name of Statute Amount
Due ment made
Bombay Sales Tax Act, 1959 Sales Tax 2,542,314 150,000
Bombay Sales Tax Act, 1959 Sales Tax 1,779,156 125,000
Bombay Sales Tax Act, 1959 Sales Tax 919,859 100,000
Bombay Sales Tax Act, 1959 Sales Tax 14,049 2,000
Name of Statute Period Forum Where dispute is pending
Dy Commissioner of Sales Tax,
Bombay Sales Tax Act, 1959 1998-1999 (Appeal) Aurangabad
Dy Commissioner of Sales Tax,
Bombay Sales Tax Act, 1959 1999-2000 (Appeal)Aurangabad
Dy Commissioner of Sales Tax,
Bombay Sales Tax Act, 1959 2000-2001 (Appeal) Aurangabad
Dy Commissioner of Sales
Bombay Sales Tax Act, 1959 2001-2002 Tax,(Appeal) Aurangabad
d. Income Tax Cases:
The Income Tax Assessing Authority has passed assessment order on
14/12/2007 for the assessment year 2005 - 2006 & reduced the carry
forward loss to be tune of ` 71,62,399/-; on account of disallowance of
depreciation. The Company has prepared First appeal before
Commissioner of Income Tax (Appeal), Aurangabad & the matter is pending
there over.
x. Sick Industry
The accumulated losses of the Company are not more than ffty per cent
of its net worth at the end of the fnancial year. The Company has
incurred cash loss during the year.
xi. Dues to fnancial Institutions
In our opinion and according to the information and explanations given
to us, the Company has not defaulted in repayment of dues to banks.
xii. Secured Loans and advances granted
The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
xiii. Chit Fund, Nidhi or Mutual Beneft Company
In our opinion, the Company is not a chit fund or nidhi or mutual
beneft fund or society. Therefore, the provisions of clause 4(xiii) of
the Companies (AuditorÃs Report) Order 2003, (as amended), are not
applicable to the Company.
xiv. Investments
The Company has maintained proper records of transactions and contracts
in respect of dealing or trading in Shares, Securities, debentures and
other investments and timely entries have been made therein.
xv. Guarantees given by the Company
According to the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from bank or
fnancial institutes. The question of terms and conditions does not
arise.
xvi. Term Loan
In our opinion and according to the information and explanations given
to us, and on an overall examination, the term loans taken have been
applied for the purpose for which it was raised.
xvii. Sources of funds and its application
According to the cash fow statement and other records examined by us
and the information and explanations given to us, on an overall basis,
funds raised on short term basis have, prima facie, not been used
during the year for long term investment (fxed assets etc.) and vice
versa, other than temporary deployment pending application.
xviii. Preferential Issue
The Company has not made any preferential allotment of shares during
the year to companies/frms/parties covered in the register maintained
under Section 301 of the Act other than allotment made pursuant to the
Scheme of Amalgamation sanctioned by HonÃable High Court, Bombay.
xvx. Securities and Debentures
In our opinion and according to the information and explanations given
to us, the Company has not issued any secured debentures during the
period covered by our audit. Accordingly the provisions of clause
4(xix) of the Companies (AuditorÃs Report) Order, 2003 are not
applicable to the Company.
xx. End use of Public Issue Fund
The Company has not raised any money by way of public issue during the
year.
xxi. Frauds
In our opinion and according to the information & explanation given to
us, having regards to the nature of the CompanyÃs business no fraud on
or by the Company was noticed or reported during the year.
For T. R. Jalnawala & Asso.
Chartered Accountants
(Registration No. 104025W)
T. R. Jalnawala
Proprietor
M. No. 037084
Pune , 12th August 2010
Mar 31, 2000
We have audited the attached balance sheet of Vedant Hotels Ltd. at
31st March 2000 and the relative profit & loss account for the year
ended on that date annexed thereto and report that:
1. As required by the manufacturing and other companies (Auditors
report order, 1988 issued by the company law Board in terms of section
227 (4A)of the Companies Act, 1956, we enclose in the annexture.a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
2. Further to our comments in the annexture referred in paragraph 1
above.we state that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) in our opinion, proper books of accounts as required by law have
been kept by the com- pany, so far as apperars from our examination of
the books.
c) In our opinion, the profit and loss account and the balance sheet
comply with the accounting standards referred to in sub section 3(C) of
Section 211 of the Companies Act 1956.
d) The Balance Sheet and Profit & Loss account, referred to in this
report are in aggrement with the books of accounts.
i) The quantitative data and closing stock have been adopted as
furnished and certified by the management of the company.
ii) Depreciation is not provided on additions to various asstets and
which are not put to use as on 31st March 2000.
iii) Public issue expenses of Rs. 10,79,014/- and miscellaneous
Expenditure 13,759/- are grouped under the head deferred revenue
expenditure.
iv) Interest on loan account of Janata Sahakari Bank Ltd. is disputed
and also not debited by the bank hence, not ascretained and provided in
accounts,and loss is shown less to that extent.
v) Confirmation letters from sundry creditors and loans & advances are
called for but not received in many cases and figures are subject to
adjustments if any.
e) Subject to the foregoing, in our opinion and to the best of the our
information and according to the explanations given to us, the said
accounts read with the notes there on give the information required by
the Companies Act, 1956 in the manner so required and give a true and
fair view :
i) In so far as they relate to the Balance Sheet or the statement of
affairs of the Company as at 31st March, 2000.
ii) In so far as they relate to the Profit and Loss Accounts, of the
company for the year ended on that date.
1. ANNEXTURE TO THE AUDITORS REPORT
A] The company has maintained proper record to show full particulars
including quantitavie details and situation of its fixed assets.
B] Fixed assets of the company are physically verified by the
management according to a phased programme which we consider
reasonable. Persuant to the programme, a physical verification was
carried
2. out during the period and this revealed no material discrepancies.
3. The fixed assets of the company have not been revalued during the
year.
The stock of finished goods, spare parts and raw material have been
physically verified during the year by
4. the management. In our opinion the frqquency of verification is
resonable.
The procedure of physical verification of stocks followed by the
management are reasonable and ad-
5. equate in relation to the size of company and the nature of its
business.
It is explained that no material discrepancies were noticed on
verification between the physical stocks and
6. books records.
In Our opinion the valuation of stocks, is fair & proper in the
accordance with the normally accepted
7. accounting principles & is on the same basis as in preceding year.
The company has not taken loans from a Company under the same
management listed in register main- tained under Setion 301 of the
Companies act, 1956 and the terms and conditions for such loans are not
8. prima facie prejudicial to the interest of the company.
The Company has not granted interest free loans to the Companies, firms
or other parties listed in the register
9. maintained under Section 301 of the companies Act, 1956.
In our opinion, there is an adequte internal control procedure for
components, plant & machinery equip-
10. ments and other assets.
In our opinion and according to the information and explanation given
to us, the transactions for purchase of goods and sale of goods,
materials and services made in pursuance of contracts or aggrements
entered in the register maintained under Section 301, of Companies Act,
1956 and aggregating during the period to Rs. 50,000 or more in respect
of each party have been made at price which are reasonable having
regard of prevaling market price at which transactions for similar
goods, materials or services have been
11. made with other parties.
12. The Company has the system of damaged store.
The Company has not accepted any deposits from the public during the
year & hence, the question of complying with the provisions of section
58-A of the Companies Act. 1956 & the rules farmed there under
13. does notarise.
14. The Company did not gererate any realisable scrap during the
period and has no by - product.
In our opinion the companys present internal audit system is
commersurate with its size and nature of
15. business.
The Central Govt, has not prescribed maintenance of cost records by the
Company under Section 209 (I) (d)
16. of the Companies Act, 1956 for any of the companys products.
The Company has paid the contribution of P. F. and ESIC. However there
had been delay in payment on
17. these accounts in certain cases.
According to the information and explanations given to us and subject
to notes on accounts no undisputed accounts payble in respect of income
Tax, Wealth Tax, Sales Tax, Luxry Tax, Custom Duty and Excise Duty were
out standing as at 31 st March 2000 for a period of more than Six
months from the date they become
18. payble.
According to the information & explanations given to us & the records
of the company examined by us, no personal expenses have been charged
to revenue account other than those payble under contractual
19. obligations & / or special sanction & /or in accordance with
generally accepted business practices.
The Company is not a sick industrial company within the meaning of
clause (O) of Section 3 (1) of the sick
20. industrial companies (special provisions) Act, 1985.
The Company has a reasonable system of recording receipts, issues and
consumption of materials and stores and such system provides for a
reasonable allocation of the materials consumed and man - hours
21. utilised to departments commersurate with the size of the units
and the nature of their business.
The Company has a reasonable system of allocating man - hours utilised
to the relative jobs, commensurate
22. with its size and nature of its business.
There is a reasonable system of authorisation at proper levels, and an
adequqte system of internal control commensurate with the size of the
units and the nature of their business, on issue of stores and
allocation of stores and labour to departments.
for T. R. JALNAWALA & ASSOCITAES,
Chartered Accountants,
PLACE : AURANGABAD T. R. JALNAWALA
DATE : 2nd SEPT. 2000 PROPRIETOR
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