Mar 31, 2016
INDEPENDENT AUDITORâS REPORT
TO THE MEMBERS OF ECOBOARD INDUSTRIES LIMITED Report on the Financial Statements
We have audited the accompanying financial statements of ECOBOARD INDUSTRIES LIMITED(âthe Companyâ), which comprise the Balance Sheet as at 31st March 2016, 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.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Companies Act 2013.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 auditorâs 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 Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2016, and its loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Companies Act 2013, we give in the Annexure A,a statement on the matters specified in paragraphs 3 and 4 of the said Order, to the extent
applicable.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) I n our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March 2016 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial control over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure B; and
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit & 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 30(b) to the financial statements;
(ii) The Company did not have any long-term contracts including derivative contracts that may result in material foreseeable loss.
(iii) There has been a delay in transferring amount of Rs. 9.69 lakh required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE A TO THE INDEPENDENT AUDITORSâ REPORT
The Annexure referred to in Paragraph 1 under the heading of âReport on Other Legal and Regulatory
Requirementsâ of our report of even date on the financial statements of ECOBOARD INDUSTRIES LIMITED for the year ended 31st March 2016.
1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of two years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of records of the Company, except one office property situated at Ahmadabad which is yet to be registered in the name of the Company, title deeds of other immovable properties are held in the name of the Company.
2. According to the information given to us, physical verification of inventory was conducted by the management during the year at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on physical verification of inventories.
3. The Company has not granted any loans, secured and unsecured, to companies, firms or other parties listed in the register maintained under Section 189 of the Companies Act, 2013. Accordingly, paragraphs 3(iii)(a),(b) and (c) of the Order are not applicable.
4. The Company has not given loans, investments, guarantees and security. Accordingly, Paragraph 3(iv) of the Order is not applicable.
5. I n our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public. The provisions of Sections73 to 76 of the Companies Act,2013 and the rules framed thereunder are not applicable.
6. We are informed that the Central Government has not prescribed maintenance of cost records under Section 148(1) of the Companies Act, 2013 for the Companyâs products.
7. (a) According to the information and explanations given to us and on the basis of our examination of records of the Company, the Company is not regular in depositing undisputed statutory dues including Provident Fund, Income-tax, Sales tax, Value Added Tax, Service-tax, and other material statutory dues applicable to it and in many cases, payments were made after due dates. According to the information and explanations given to us, Income-tax of Rs.5.84 lakh, Service tax of Rs.5.63 lakh, and Value Added Tax of Rs. 50.98 lakh were in arrears as at 31/03/2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, following amounts of duty were under dispute, hence not paid:
Nature of dues |
Period |
Amount Rs. in lakhs |
Forum where the dispute is pending |
Central Excise duty |
2003-04 |
28.45 |
Custom, Excise & Service Tax Appellate Tribunal |
Central Excise duty |
2003-04 |
13.50 |
Custom, Excise & Service Tax Appellate Tribunal |
Central Excise duty |
2004-05 |
2.98 |
Custom, Excise & Service Tax Appellate Tribunal |
Central Excise duty |
2004-05 |
1.52 |
Custom, Excise & Service Tax Appellate Tribunal |
Central Excise duty |
2006-09 |
2.30 |
Custom, Excise & Service Tax Appellate Tribunal |
Central Excise duty |
2006-09 |
402.14 |
Commissioner of Central Excise (Appeals) |
Nature of dues |
Period |
Amount Rs. in lakhs |
Forum where the dispute is pending |
Central Excise duty |
2009-10 |
13.19 |
Custom, Excise & Service Tax Appellate Tribunal |
Central Excise duty |
2008-10 |
343.99 |
Custom, Excise & Service Tax Appellate Tribunal |
Central Excise duty |
2010-11 |
0.77 |
Custom, Excise & Service Tax Appellate Tribunal |
Central Excise duty |
2010-13 |
201.67 |
Custom, Excise & Service Tax Appellate Tribunal |
Central Excise duty |
2012-14 |
77.00 |
Custom, Excise & Service Tax Appellate Tribunal |
Central Excise duty |
2012-14 |
28.97 |
Commissioner of Central Excise (Appeals) |
1116.48 |
8. According to the information and explanations given to us by the management, the Company has not defaulted in repayment of loans or borrowings to the financial institutions or banks or Government or dues to the debenture-holders during the year.
9. According to the information and explanation provided to us, Company has not raised money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
10. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11. According to the information and explanations given to us and based on our examination of records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of records of the Company, transactions with related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14. According to the information and explanations given to us and based on our examination of records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, Paragraph 3(xv) of the Order is not applicable.
16. The Company is not required to register under Section 45-IA of the Reserve Bank of India Act 1934.
ANNEXURE B TO THE AUDITORSâ REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial Controls over financial reporting of Ecoboard Industries Limited (âthe Companyâ) as of 31st March, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for the establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ) These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2)provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on âthe internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For CHATURVEDI SK & FELLOWS
Chartered Accountants
(Subhash Salvi)
Partner
Place: Pune (Firm Regn. No. 112627W; Partner''s
Date: 27th May, 2°16 Membership No. 127661)
Mar 31, 2015
We have audited the accompanying financial statements of
ECOBOARD INDUSTRIES LIMITED ("the Company"),
which comprise the Balance Sheet as at 31st March 2015,
the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory
information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and
detecting of frauds and other irregularities; selection and application
of appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting and
auditing standards and matters which are required to be included in the
audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and the disclosures in the financial
statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal financial control
relevant to the Company's preparation of the financial statements that
give a true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March 2015, and its loss and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Companies Act, 2013, we give in
the Annexure a statement on the matters specified in paragraphs 3 and
4 of the said Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
directors as on 31st March, 2015 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit & 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 30(b) to the
financial statements;
(ii) The Company did not have any long-term contracts including
derivative contracts that may result in material foreseeable loss.
(iii) No amounts were required to be transferred to the Investor
Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
Referred to in Paragraph 1 under the heading of 'Report on Other Legal
and Regulatory Requirements' of our report of even date on the financial
statements of ECOBOARD INDUSTRIES LIMITED for the year ended 31st March,
2015.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets were physically verified by the management
according to a phased programme designed to cover all the items over a
period of two years which, in our opinion, is reasonable having regard
to the size of the Company and the nature of its assets. Pursuant to the
programme, the management has verified a portion of fixed assets during
the year. According to information and explanations given to us, no
material discrepancies were noticed on such verification.
2. (a) According to the information given to us, physical verification
of inventory was conducted by the management during the year at
reasonable intervals.
(b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. According to
the information and explanations given to us, no material discrepancies
were noticed on physical verification of inventories.
3. The Company has not granted any loans, secured and unsecured, to
companies, firms or other parties listed in the register maintained
under Section 189 of the Companies Act, 2013. Accordingly, paragraphs
3(iii)(a) and (b) of the Order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate with
the size of the company and the nature of its business with regard to
the purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company and according to the information and the
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
The provisions of Sections 73 to 76 of the Companies Act, 2013 and the
rules framed there under are not applicable.
6. We are informed that the Central Government has not prescribed
maintenance of cost records under Section 148(1) of the Companies Act,
2013 for the Company's Products.
7. (a) According to the records of the Company, the
Company is not regular in depositing undisputed statutory dues including
Income-tax, Sales-tax, Excise duty, Provident Fund, Employees State
Insurance and other statutory dues applicable to it and in many cases,
payments were made after due dates. According to information and
explanation given to us Sales tax of Rs. 38.67 lakh and Income
tax of Rs. 0.24 lakh were in arrears as at 31st March, 2015 for a period
of more than six months from the date they became payable.
(b) According to the information and explanations given to us, following
amount of tax, duty or cess was under dispute hence not paid:
Nature of Period Amount Forum where the
dues Rs. In lakhs dispute is pending
Central 2003-04 28.45 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2003-04 13.50 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2004-05 2.98 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2004-05 1.52 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2006-09 2.30 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2006-09 402.14 Commissioner of
Excise duty Central Excise
(Appeals)
Central 2009-10 13.19 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2008-10 343.99 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2010-11 0.77 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2010-13 242.99 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2012-14 154.02 Commissioner of
Excise duty Central Excise
(Appeals)
(c) No amount was due for transfer to Investor Education and Protection
Fund during this year.
8. The Company is registered for a period of more than five years. Its
accumulated losses at the end of the financial year were more than
fifty per cent of its net worth. The Company incurred cash losses
during the current financial year and during the immediately
preceding financial year.
9. According to the information and explanations given to us by the
management, the Company had defaulted in repayment of dues to the banks
aggregating Rs. 371.29 lakh for the period ranging from 8 days to 395
days. These defaults were made good by the company before the balance
sheet date. According to information and explanation given to us, there
were no continuing defaults in repayment of dues to financial
institutions, banks or debenture holders as at the balance sheet date.
10. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others.
11. In our opinion and according to the information and explanations
given to us, the Company has not availed any term loan during the year.
12. During the course of our examination of the books and records of
the Company, carried out in accordance with the Generally Accepted
Auditing Practices in India, and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For Chaturvedi SK & Fellows
Chartered Accountants
(Firm's Registration No.112627W)
Subhash Salvi
Place : Pune Partner
Dated : May 25, 2015 (Membership No. 127661)
Mar 31, 2014
We have audited the accompanying financial statements of ECOBOARD
INDUSTRIES LIMITED("the Company "), which comprise the Balance Sheet as
at 31st March 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance, and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September 2013
of the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including assessment of the
risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
b) In the case of Statement of Profit & Loss, of the loss for the year
ended on that date;
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraph 4 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of the
books.
c) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement comply with the Accounting Standards notified under
the Companies Act, 1956 read with the General Circular 15/2013 dated
13th September 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013.
e) On the basis of written representations received from the directors
as on 31st March 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2014 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date on the
financial statements of ECOBOARD INDUSTRIES LIMITED for the year ended
31st March 2014.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations given to us, the
fixed assets were physically verified by the management during the
year. No material discrepancies were noticed on such verification.
(c) The Company has received shareholders'' approval for sale of fixed
assets of its particle board unit at Jambhulwadi which form substantial
part of its fixed assets. However, the Company has not disposed off
those assets during the year.
2. (a) According to the information given to us, physical verification
of inventory was conducted by the management during the year at
reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. According
to the information and explanations given to us, no material
discrepancies were noticed on physical verification of inventories.
3. (a) The Company has not granted any loans, secured and unsecured,
to companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, paragraphs
4(iii) (b), (c) and (d) of the Order are not applicable.
(b) The company has taken unsecured loans of Rs. 371.43 lakh from 4
parties listed in the register maintained under section 301 of the
Companies Act, 1956.
(c) In our opinion, the rate of interest and other terms and conditions
of above loans taken by the company are not prima facie prejudicial to
the interest of the Company.
(d) According to information and explanations given to us, the Company
is regular in payment of principal and interest on these loans.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business with
regards to the purchase of inventory and fixed assets and for the sale
of goods and services. Further, on the basis of our examination of the
books and records of the Company, and according to the information and
the explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered in the register maintained under section 301 of
the Companies Act 1956 have been entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act 1956 and exceeding the value of rupees five lakh in
respect of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public.
The provisions of section 58A and 58AA of the Companies Act. 1956 and
the rules framed there under are not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We are informed that the Central Government has not prescribed
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956 for the Company''s products.
9. (a) According to the records of the company, the Company is not
regular in depositing undisputed statutory dues including Income-tax,
Sales-tax, Custom duty, Excise duty, Provident Fund and other statutory
dues applicable to it and in many cases, payments were made after due
dates. According to information and explanation given to us service tax
of Rs. 29.98 lakh and income-tax of Rs. 0.34 lakh were in arrears as at
31/03/2014 for a period of more than six months from the date they
became payable, (b) According to the information and explanations given
to us, following amount of tax, duty or cess was under dispute hence
not paid:
Nature of Period Amount Forum where the
dues Rs. In lakhs dispute is pending
Central 2003-04 28.45 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2003-04 13.50 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2004-05 2.98 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2004-05/ 2.89 Custom, Excise &
Excise duty 2005-06 Service Tax
Appellate Tribunal
Central 2006-07 2.25 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2006-09 435.89 Commissioner of
Excise duty Central Excise
(Appeals)
Central 2006-09 2.30 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2009-10 13.19 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2008-10 78.20 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2009-10 0.77 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
Central 2010-12 81.09 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal
10. The company is registered for a period of more than five years.
Its accumulated losses at the end of the financial year were more than
fifty per cent of its net worth. The company incurred cash losses
during the current financial year and the immediately preceding
financial year.
11. In our opinion and according to the information and explanation
given to us by the management, the company has not defaulted in
repayment of dues to the financial institutions or banks or the
debenture-holders during the year.
12. The company has not granted loans and advances on the basis of
security of shares, debentures and other securities.
13. The company is not engaged in the business of chit funds, nidhi,
mutual benefit fund or mutual benefit society.
14. The company is not dealing or trading in shares, securities,
debentures or other investments.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans availed by the company
during the year were applied for the purpose for which they were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the Company, we report that no funds raised on short term basis have
been used for long term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under Section
301 of the Companies Act, 1956 during the ye
19. Company did not h ny outstanding secured debentures as on the c
the balance sheet.
20. The Company has not money by way of public issue during the year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the Generally Accepted
Auditing Practices in India, and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the company, noticed or reported during the
year, nor have we been informed of such case by the management.
For Chaturvedi SK & Fellows
Chartered Accountants
(Firm''s Registration No.112627W)
Srikant Chaturvedi
Partner
Place :Pune
Dated:May 30, 2014 (Membership No. 070019)
Mar 31, 2012
We have audited the attached Balance Sheet of ECOBOARD INDUSTRIES LTD.
as at 31st March 2012 and also the Statement of Profit and Loss and the
Cash Flow Statement of the Company 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.
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 from 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditors' Report) Order 2003, issued by
the Central Government of India in terms of section 227 (4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraph 4 of the said Order.
Further to our comments in the Annexure referred to 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 accounts as required by law have
been kept by the Company so far as appears from our examination of the
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account
and in our opinion, comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
d) On the basis of written representations received from the directors
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.
e) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes to
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:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012;
ii) in the case of Statement of Profit and Loss, of the loss for the
year ended on that date.
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in our report of even date on the accounts of ECOBOARD
INDUSTRIES LIMITED for the year ended 31st March 2012.
1. (a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us, the
fixed assets were physically verified during the period by the
management. No material discrepancies were noticed on such
verification.
(c) The company has not disposed off substantial part of its fixed
assets during the year.
2. (a) According to the information given to us, physical verification
of inventory was conducted by the management during the year at
reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) The company is maintaining proper records of inventory. According
to the information and explanations given to us, no material
discrepancies were noticed on physical verification of inventories.
3. (a) The company has not granted any loans, secured and unsecured,
to companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, paragraphs
4(iii)(b),(c) and (d) of the Order are not applicable.
(b) The company has taken unsecured loans of Rs.264.61lacs from 3
parties listed in the register maintained under section 301 of the
Companies Act, 1956.
(c) In our opinion, the rate of interest and other terms and conditions
of above loans taken by the company are not prima facie prejudicial to
the interest of the company.
(d) According to information and explanations given to us, the company
is regular in payment of principal amount and interest on these loans.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business with
regards to the purchase of inventory and fixed assets and for the sale
of goods and services. Further, on the basis of our examination of the
books and records of the Company, and according to the information and
the explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered in the register maintained under section 301 of
the Companies Act 1956 have been entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act 1956 and exceeding the value of rupees five lacs in
respect of any party during the year, have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public.
The provisions of section 58A and 58AA of the Companies Act. 1956 and
the rules framed there under are not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8. We are informed that the Central Government has not prescribed
maintenance of cost records under section 209(1)(d) of the Companies
Act 1956 for the Company's products.
9. (a) According to the records of the company, the company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Income-tax, Sales-tax, Custom duty, Excise duty and
other statutory dues applicable to it, although in some cases, payments
were made after the due dates. According to information and
explanations given to us, except service tax of Rs. 28.85lacs,no
outstanding statutory dues were in arrears as at 31/03/2012 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us,
following amount of tax, duty or cess was under dispute hence not paid:
Nature of Period Amount Forum where the
dues Rs. In lacs dispute is pending
Central 2003-04 28.45 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal.
Central 2003-04 13.50 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal.
Central 2004-05 2.98 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal.
Central 2004-05/ 3.14 Custom, Excise &
Excise duty 2005-06 Service Tax
Appellate Tribunal.
Central 2006-07 2.25 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal.
Central 2009-10 13.14 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal.
Central 2008-10 78.15 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal.
10. The company is registered for a period of more than five years.
Its accumulated losses at the end of the financial year were less than
fifty per cent of its net worth. The company has not incurred cash
losses in this or immediately preceding financial year.
11. In our opinion and according to the information and explanation
given to us by the management, the company has not defaulted in
repayment of dues to the financial institutions or banks or the
debenture-holders during the year.
12. The company has not granted loans and advances on the basis of
security of shares, debentures and other securities.
13. The company is not engaged in the business of chit funds, nidhi,
mutual benefit fund or mutual benefit society.
14. The company is not dealing or trading in shares, securities,
debentures or other investments.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others.
16. According to the information and explanations given to us, the
company has not availed any term loans during the year.
17. According to the information and explanations given to us and on
an overview of the balance sheet and the cash flow statement of the
company, we report that no funds raised on short term basis have been
used for long term investment.
18. The Company has not made any preferential allotment of shares
during the year.
19. The company did not have any outstanding secured debentures as on
the date of the balance sheet.
20. The company has not raised any money by public issue of securities
during the year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the company, noticed or reported during the
year, nor have we been informed of such case by the management.
For Chaturvedi SK & Fellows
Chartered Accountants
Srikant Chaturvedi
Partner
Place : Pune (Firm Regn No. 112627W.
Dated :August 14, 2012 Partner's Membership No. 70019)
Mar 31, 2010
We have audited the attached Balance Sheet of ECOBOARD INDUSTRIES LTD.
as at31st March, 2010 and also the Profit and Loss Account and the Cash
Flow Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We 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 from 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditors Report) Order 2003, issued by
the Central Government of India in terms of section 227 (4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraph 4 of the said Order.
Further to our comments in the Annexure referred to 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 accounts as required by law have
been kept by the Company so far as appears from our examination of the
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account
and in our opinion, comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
d) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31s 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. *
e) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with notes to
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:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
ii) in the case of Profit and Loss Account, of the loss for the year
ended on that date.
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in our report of even date on the accounts of ECOBOARD
INDUSTRIES LIMITED for the year ended 31s March 2010.
1. (a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us, the
fixed assets were physically verified during the period by the
management. No material discrepancies were noticed on such
verification.
(c) The company has not disposed off any substantial part of the fixed
assets during the year.
2. (a) According to the information given to us, physical
verification of inventory was conducted by the management during the
year at reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) The company is maintaining proper records of inventory. According
to the information and explanations given to us, no material
discrepancies were noticed on physical verification of inventories.
3. (a) The company has not granted any loans, secured and
unsecured, to companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956. Accordingly,
paragraphs 4(iii)(b),(c) and (d) of the Order are not applicable.
(b) The company has taken unsecured loans of Rs.528.31 lacs from 4
parties listed in the register maintained under section 301 of the
Companies Act, 1956.
(c) In our opinion, the rate of interest and other terms and conditions
of above loans taken by the company are not prima facie prejudicial to
the interest of the company.
(d) According to information and explanations given to us, the company
is regular in payment of principal amount and interest on these loans.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business with
regards to the purchase of inventory and fixed assets and for the sale
of goods and services. Further, on the basis of our examination of the
books and records of the Company, and according to the information and
the explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. According to the information and explanations given to us, the
company did not do any transactions that needed entry into the register
maintained under section 301 of the Companies Act,1956.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public.
The provisions of section 58A and 58AA of the Companies Act. 1956 and
the rules framed there under are not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8. We are informed that the Central Government has not prescribed
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956 for the Companys products.
9. (a) According to the records of the company, the
company is generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income-tax, Sales-tax, Custom duty, Excise
duty and other statutory dues applicable to it, although in some cases,
payments were made after the due dates. According to information and
explanations given to us, except sen/ice tax of Rs.3.64 lacs, no
outstanding statutory dues were in arrears as at 31 /03/2010 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us,
following amount of tax, duty or cess was under dispute hence not paid:
Nature of Period Amount Forum where the
dues Rs. In lacs dispute is pending
Central 2003-04 28.45 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal.
Central 2003-04 13.50 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal.
Central 2004-05 2.98 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal.
Central 2004-05/ 3.14 Custom, Excise &
Excise duty 2005-06 Service Tax
Appellate Tribunal.
Central 2006-07 2.25 Custom, Excise &
Excise duty Service Tax
Appellate Tribunal.
Central Oct.2006 to 427.67 Central Excise
Excise duty Dec. 2008 Commissioner (Appeals)
10. The company is registered for a period of more than five years.
Its accumulated losses at the end of the financial year were less than
fifty per cent of its net worth. The company has incurred cash losses
in this financial year. The company has not incurred cash losses in
the immediately preceding financial year.
11. In our opinion and according to the information and explanation
given to us by the management, the company has not defaulted in
repayment of dues to the financial institutions or banks or the
debenture-holders during the year.
12. The company has not granted loans and advances on the basis of
security of shares, debentures and other securities.
13. The company is not engaged in the business of chit funds, nidhi,
mutual benefit fund or mutual benefit society.
14. The company is not dealing or trading in shares, securities,
debentures or other investments.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans availed by the company
during the year were applied for the purpose for which they were
obtained.
17. According to the information and explanations given to us and on
an overview of the balance sheet and the cash flow statement of the
company, we report that no funds raised on short term basis have been
used for long term investment.
18. The Company has not made any preferential allotment of shares
during the year.
19. The company did not have any outstanding secured debentures as on
the date of the balance sheet.
20. The company has not raised any money by public issue of securities
during the year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations giv^n to us, we have neither come across any instances of
material fraud on or by the company, noticed or reported during the
year, nor have we been informed of such case by the management.
For Chaturvedi SK & Fellows
Chartered Accountants
Srikant Chaturvedi
Partner
(Firm Regn No. 112627W.
Partners Membership No. 70019)
Place : Pune
Dated : 29,h May, 2010