Mar 31, 2015
We have audited the accompanying financial statements of ENNORE COKE
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31,2015, the Statement of Profit and Loss and the Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements
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 and presentation of financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made 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 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 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 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
b) in the case of the Statement of Profit and Loss, of the Loss forthe
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows forthe
year ended on that date.
Emphasis of Matter
We draw attention of the shareholders for the followings:
a) Note No 14 of Notes to Financial Statements relating to transferof
the leasehold land.
b) Note No 16c of Notes to Financial Statements regarding non reversal
of deferred tax asset.
c) Note No 31 of Notes to Financial Statements regarding
non-availability of confirmation of balances relating to certain Loans
and Advances, Trade Payables, and Deposits.
d) Note No 47 of Notes to Financial Statements regarding VAT payment.
e) Note No 48 (ii) of Notes to Financial Statements regarding change in
accounting policy on inventory of stores and consumables.
f) Note No 48 (ill) of Notes to Financial Statements regarding change
in accounting policy on finance charges on letters of credit.
g) Note No 48 (iv) of Notes to Financial Statements regarding
non-recognition of interest income.
Our opinion is not qualified in respect of matters mentioned above.
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 Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
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 appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the 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 written representations received from the directors
as on March 31,2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2015, from being
appointed as a director in terms of Section 164 (2) of the Act of the
Companies Act, 2013.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements (Refer Note 8 and Note
49 to the Notes to financial statements);
ii. The Company has made provision, as required under the applicable law
or accounting standards, for material foreseeable losses, if any, on
long-term contracts including derivative contracts
iii. The Company is not required to transfer any amount to the Investor
Education and Protection Fund.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE TO THE
MEMBERS OF ENNORE COKE LIMITED, ON THE FINANCIAL STATEMENTS FOR THE
YEAR ENDED MARCH 31,2015
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (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 three 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.
(ii) (a) The verification of inventory has been conducted at reasonable
intervals by the management by an independent technical agency.
(b) The procedures of physical verification of inventory lying at multi
locations followed by the management are reasonable considering the
size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) In respect of Loan qiven:-
(a) The Company has granted unsecured loan to ONE party covered in the
register maintained under section 189 of the Companies Act, 2013 ("the
Act"). The maximum amount involved during the year is Rs. 11,72,390/-
and the year-end balance of such loans Rs. Nil.
(b) In respect of the regularity on the repayment of principal and
interest of the above unsecured loans, we are unable to comment as to
whether the repayment of principal amount and the payment of interest
is as stipulated, as no terms of repayment have been stipulated.
(c) Reporting on whether the above unsecured loans are overdue does not
arise, as no terms of repayment have been stipulated.
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services.
(v) The Company has not accepted any deposits from the public within
the meaning of the directives issued by the Reserve Bankof India and
the provisions of sections 73 to 76 or any other relevant provisions of
the Companies Act, 2013 and the rules framed there under. Accordingly,
the provisions of clause 4(v) of the Order are not applicable.
(vi) The Central Governmenthas prescribed maintenance ofcost records
under sub-section (1) ofSection 148 of the Companies Act, 2013 in
respect of Company's products effective June 2014. However the Company
has not maintained the cost records prescribed.
(vii) (a) Undisputed statutory dues towards Income tax, Sales Tax
(VAT),Service Tax, Customs Duty, Excise Duty, Cess and other material
statutory dues have been regularly deposited with the appropriate
authorities and there have been delays in remittance in few cases.
Undisputed amounts payable in respect thereof, which were outstanding,
at the year- end for a period of more than six months from the date
they became payable are as follows:
Name of the Statute Nature of Amount Period to
dues (Rs.) which it
relates
CST 78,90,069 uptoJune,2013
Odisha VAT Act
VAT 1,14,86,178 uptoJune,2014
Gujarat VAT Act VAT 83,82,425 uptoSeptember,
2014
Name of the Statute Due Date of
date payment
Various -
Odisha VAT Act
Various -
Gujarat VAT Act Various On 2nd, 6th &
30th April 2015
(b) There are dues in respect of income tax, and service tax, that have
not been deposited with the appropriate authorities on account of
dispute as mentioned below:-
Nature of Amount Period to
Name of the Statute dues (Rs.) which it
relates
23,84,17,370 AY 2011-12
Income Tax Act Income tax
4,27,78,240 AY2012-13
ServiceTaxAct ServiceTax 99,61,269 AY2009-10to
AY 2012-13
Name of the Statute Forum where
dispute is pending
CIT (A)
Income Tax Act
CIT (A)
ServiceTaxAct CESTAT
(c) According to the information and explanations given to us the
company is not required to transfer any amounts which were required to
be transferred to the investor education and protection fund in
accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and rules there under.
(viii) In our opinion, the Company's accumulated losses are not less
than 50% of its net worth as at the end of the financial year. Further
the Company has incurred cash losses amounting to Rs.41,38,70,257/- in
the current year and Rs. 20,44,85,389/- in the immediately preceding
financial year
(ix) In our opinion and according to the information and explanations
given to us, in the following instances, the Company have defaulted in
repayment of dues to banks during the year
Name of the Bank Due Amount
on due
30-Jun-14 50,00,000
UnionBankoflndia 30-Sep-14 50,00,000
31-Dec-14 50,00,000
StateBankof 30-Jun-14 50,00,000
Hyderabad
30-Sep-14 50,00,000
30-Jun-14 45,25,000
Indian 30-Sep-14 45,25,000
OverseasBank
31-Dec-14 45,50,000
30-Jun-14 1,00,00,000
State Bank of lndia 30-Sep-14 1,00,00,000
31-Dec-14 1,00,00,000
Name of the Bank Paid Amount Delay in
on days
05-Aug-14 50,00,000 36
UnionBankoflndia
27-Nov-14 50,00,000 58
16-Feb-15 50,00,000 47
StateBankof
Hyderabad 23-Jul-14 50,00,000 23
10-Nov-14 50,00,000 41
11-M-14 45,25,000 11
14-Aug-14 16,00,000 -
Indian
OverseasBank
28-Oct-14 29,25,000 28
28-Oct-14 16,00,000 -
21-Jan-15 29,50,000 21
25-Aug-14 1,00,00,000 56
05-Dec-14 50,00,000 66
State Bank of lndia
16-Dec-14 50,00,000 77
08-Jan-15 50,00,000 8
29-Jan-15 50,00,000 29
Further the company does not have any dues to financial institution or
debenture holders during the year.
(x) In our opinion and according to the information given to us , the
terms and conditions on which the Company has given guarantees for
loans taken by related parties for a sum of Rs.2,14,18,08,000/-from
banks, are not prima facie prejudicial to the interest of the Company.
(xi) In our opinion, the Company has not availed new term loans
outstanding during the year. Accordingly the provisions of clause 4(xi)
of the Order are not applicable.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of ouraudit.
For Sreedhar, Suresh & Rajagopalan
Chartered Accountants
Firm Registration No.003957S
S. Subramaniam
Place : Chennai Partner
Date : 22.05.2015 Membership No. 025433
Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of ENNORE COKE
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31,2014, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing opinion on the effectiveness of the company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b) in the case of the Statement of Profit and Loss, of the Loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
We draw attention of the shareholders for the followings:
a) Note 14 of Notes to Financial Statements relating to the cost of
leasehold land amounting to Rs.2,46,37,289/- as part of its fixed
assets. This leasehold land registered in the name of Ennore Power and
Coke Private Limited, was included in the Company''s books pursuant to
the business transfer agreement in May 2006, 100% investment in the
shares by the company in January 2009 and subsequent approval of merger
of Ennore Power and Coke Private Limited with the company, by the High
Court of Madras effective April 01,2008. The Company has filed an
application for transfer of leasehold land to the Company''s name upon
merger with the relevant authority which is pending approval.
b) Note No 31 of Notes to Financial Statements regarding
non-availability of confirmation of balances relating to certain Trade
Receivables, Loans and Advances,Trade Payables, Advances received from
Customers and Stocks lying in ports. Our opinion is not qualified in
respect of matters mentioned above.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT OF EVEN DATE TO THE
MEMBERS OF ENNORE COKE LIMITED, ON THE FINANCIAL STATEMENTS FOR THE
YEAR ENDED MARCH 31,2014
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (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 three years. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noticed on
such verification.
(c) In our opinion, a substantial part of fixed assets has not been
disposed-off during the year.
(ii) (a) The verification of inventory, except stock of coal at various
ports, has been conducted at reasonable intervals by the management by
an independent technical agency.
(b) The procedures of physical verification of inventory lying at multi
locations followed by the management are reasonable but require to be
strengthened, considering the size of the Company and the nature of its
business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) In respect of Loan given:-
(a) The Company has granted unsecured loans to ONE party covered in the
register maintained under section 301 of the Act. The maximum amount
involved during the year is Rs. 24,18,108/- and the year-end balance of
such loans Rs. 11,72,390/-.
(b) In respect of the above loans given, the rate of interest in our
opinion, is not prima facie prejudicial to the interest of the
Company.The above unsecured loan was granted without any stipulations
with regard to other terms and conditions and hence we are unable to
comment as to whether the other terms and conditions are prima facie
prejudicial to the interest of the Company.
(c ) In respect of the regularity on the repayment of principal and
interest of the above unsecured loans, we are unable to comment as to
whether the repayment of principal amount and the payment of interest
is as stipulated, as no terms of repayment have been stipulated.
(d) Reporting on whether the above unsecured loans are overdue does not
arise as no terms of repayment have been stipulated.
In respect of Loan taken:-
(e) The Company has taken unsecured loans from FOUR parties which are
covered in the register maintained under section 301 of the Act. The
maximum amount outstanding during the year was Rs.4,42,26,94,327/- and
year-end balance is Rs. 2,14,43,60,354 /-.
(f) In respect of the above loans taken, the rate of interest in our
opinion,is not prima facie prejudicial to the interest of the company.
The above unsecured loans were granted without any stipulations with
regard to other terms and conditions and hence we are unable to comment
as to whether the other terms and conditions are prima facie
prejudicial to the interest of the Company.
(g) In respect of the above loans taken, the terms of repayment have
not been stipulated and hence we are unable to comment as to whether
repayment of principal amount and payment of interest is as stipulated.
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services except stated s.no (ii).
(v) (a) In our opinion, the particulars of all contracts or
arrangements that need to be entered into the register maintained under
Section 301 of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of rupees five lakhs
in respect of any party during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the Order are not applicable.
(vii) The Company did not carry out any internal audit during the year.
(viii) To the best of our knowledge and belief, the Central Government
has not prescribed maintenance of cost records under clause (d) of
sub-section (1) of section 209 of the Act, in respect of Company''s
products. Accordingly, the provisions of clause 4(viii) of the Order
are not applicable.
(ix) (a) Undisputed statutory dues towards income-tax, sales-tax,
service-tax, custom duty, excise duty, cess and other material
statutory dues have not been regularly deposited with the appropriate
authorities and there have been delays in large number of cases.
(b) Undisputed amounts payable in respect thereof, which were
outstanding, at the year- end for a period of more than six months from
the date they became payable are as follows:
Name of the Nature of dues Amount in Rs Period to which
Statute it relates
West Bengal CST 1,69,06,924
VAT Act
vAT 1,50,30,506 Upto
September,
Orissa VAT VAT 1,38,48,194 2013
Act
Income Tax Income tax 54,40,751 AY2010-11
Act payment dues
1,11,80,654 AY 2012-13
Service Tax Service Tax 11,66,755 Upto
September, 2013
Name of the Due Date Date of
Statute payment
West Bengal Various -
VAT Act
Various -
Orissa VAT Various -
Act
Income Tax 30-Sep-2011 Rs.15 Lacs on
Act 30-Apr-14
30-Sep-2012 -
Service Tax Various -
(c) There are no dues in respect of income tax, sales tax, wealth tax,
service tax, customs duty, excise duty and cess that have not been
deposited with the appropriate authorities on account of any dispute
except mentioned below:-
Name of the Statute Nature of dues Amount in Rs Period to which
it relates
6,63,47,152 AY 2010-11
Income Tax Act Income Tax
23,84,17,370 AY 2011-12
Name of the Statute Forum wheredispute
is pending
CIT (A)
Income Tax Act
CIT (A)
(x) In our opinion, the Company''s accumulated losses are less than 50%
of its net worth as at the end of the financial year. Further the
Company has incurred cash losses amounting to Rs. 20,44,85,389/- in the
current year and Rs. 37,51,94,950/- in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, in the following instances the Company have defaulted in
repayment of dues to banks during the year:
Name of the Bank Due on Amount due Paid on
Indian Overseas Bank 30-Jun-13 45,25,000 29-Sep-13
30-Sep-13 45,25,000 03-Dec-13
31-Dec-13 45,25,000 31-Mar-14
31-Mar-14 45,25,000 Not paid
State Bank of Hyderabad 30-Jun-13 50,00,000 17-Sep-13
18-Sep-13
30-Sep-13 50,00,000 30-Oct-13
31-Dec-13 50,00,000 06-Mar-14
10-Mar-14
11-Mar-14
12-Mar-14
14-Mar-14
15-Mar-14
17-Mar-14
18-Mar-14
31-Mar-14 50,00,000 Not paid
State Bank of India 30-Jun-13 1,00,00,000 29-Aug-13
30-Sep-13 1,00,00,000 26-Nov-13
05-Dec-13
31-Dec-13 1,00,00,000 07-Feb-14
31-Mar-14 1,00,00,000 Not paid
Union Bank of India 30-Jun-13 50,00,000 14-Sep-13
30-Sep-13 50,00,000 30-Nov-13
31-Dec-13
31-Dec-13 50,00,000 10-Mar-14
19-Mar-14
31-Mar-14 50,00,000 21-Mar-14
Balance of
Rs. 45,21,417/-
has not yet
been paid
Name of the Bank Amount Delay in days
Indian Overseas Bank 45,25,000 91
45,25,000 64
45,25,000 90
Not paid Not paid
State Bank of Hyderabad 5,00,000 79
45,00,000 80
50,00,000 30
8,00,000 65
5,00,000 69
5,00,000 70
10,00,000 71
5,00,000 73
5,00,000 74
5,00,000 76
700,000 77
Not paid Not paid
State Bank of India 1,00,00,000 60
20,00,000 57
80,00,000 66
1,00,00,000 38
Not paid
Union Bank of India 50,00,000 76
26,00,000 61
24,00,000 92
48,00,000 69
2,00,000 78
4,78,583 0
Balance of Rs. 45,21,417/-
has not yet been paid
Further the company does not have any due to financial institution or
debenture holders during the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly, the provisions of clause 4(xii) of the Order
are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/ society. Accordingly, the provisions of clause 4(xiii) of
the Order are not applicable.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
(xv) In our opinion and according to the information given to us, the
terms and conditions on which the Company has given guarantees for
loans taken by related parties for a sum of Rs.2,11,68,98,000/- from
banks, are not prima facie prejudicial to the interest of the Company.
(xvi) In our opinion, the Company has not availed new term loans.
Accordingly the provisions of clause 4(xvi) of the Order are not
applicable.
(xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investment.
(xviii) During the year, the Company has made preferential allotment of
Cumulative redeemable preference shares to ONE party covered in the
register maintained under section 301 of the Act. In our opinion, price
at which the Cumulative redeemable preference shares have been issued
is not prejudicial to the interest of the company.
(xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) No fraud on or by the Company has been noticed or reported during
the year covered by our audit.
For Sreedhar, Suresh & Rajagopalan
Chartered Accountants
Firm Registration No: 003957S
S. Subramaniam
Place : Chennai Partner
Date : May 19, 2014 Membership No. 025433
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of ENNORE COKE
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2013, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Statement of Profit and Loss, of the Loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
We draw attention of the shareholders for the followings:
a) Note 14 of Notes to Financial Statements relating to the cost of
leasehold land amounting to Rs.2,46,37,289/- as part of its fixed
assets. This leasehold land registered in the name of Ennore Power and
Coke Private Limited, was included in the Company''s books pursuant to
the business transfer agreement in May 2006, 100% investment in the
shares by the company in January 2009 and subsequent approval of merger
of Ennore Power and Coke Private Limited with the company, by the High
Court of Madras effective April 01, 2008. The Company has filed an
application for transfer of leasehold land to the Company''s name upon
merger with the relevant authority which is pending approval.
b) Note No 31 of Notes to Financial Statements regarding
non-availability of confirmation of balances relating to certain Trade
Receivables, Loans and Advances,Trade Payables, Advances received from
Customers and Stocks lying inports.
Our opinion is not qualified in respect of matters mentioned above.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointedas a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payableby the Company.
ANNEXURE TO THE AUDITORS'' REPORT OF EVEN DATE TO THE MEMBERS OF ENNORE
COKE LIMITED, ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31,
2013
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (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 three years. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noticed on
such verification.
(c) In our opinion, a substantial part of fixed assets has not been
disposed-off during the year.
(ii) (a) The verification of inventory, except stock of coal at various
ports, have been conducted at reasonable intervals by the management by
an independent technical agency.
(b) The procedures of physical verification of inventory lying at multi
locations followed by the management are reasonable but require to be
strengthened, considering the size of the Company and the nature of its
business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification. However
the Company has identified certain slow moving/obsolete stocks and has
written off the same during the year amounting to Rs. 2,08,91,984/-.
(iii) (a) The Company has not granted any unsecured loans to parties
covered in the register maintained under section 301 of the companies
Act, 1956. Hence provisions of the clauses (iii)(b), (c), (d) of
paragraph 4 are not applicable to the company.
(b) The Company has taken unsecured loans from three companies which
are covered in the register maintained under section 301 of the Act.
The maximum amount outstanding during the year was Rs. 249,91,68,505/-
and year- end balance is Rs. 230,54,80,723/-.
(c ) In respect of the above loans taken the rate of interest, in our
opinion,is not prima facie prejudicial to the interest of the company.
The above unsecured loans were granted without any stipulations with
regard to other terms and conditions and hence we are unable to comment
as to whether the other terms and conditions are prima facie
prejudicial to the interest of the Company.
(d) In respect of the above loans taken, the terms of repayment have
not been stipulated and hence we are unable to comment as to whether
repayment of principal amount and payment of interest is as stipulated.
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services except stated earlier.
(v) (a) In our opinion, the particulars of all contracts or
arrangements that need to be entered into the register maintained under
Section 301 of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of rupees five lakhs
in respect of any party during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the Order are not applicable.
(vii) The Company did not carry out any internal audit during the year.
(viii) To the best of our knowledge and belief, the Central Government
has not prescribed maintenance of cost records under clause (d) of
sub-section (1) of section 209 of the Act, in respect of Company''s
products. Accordingly, the provisions of clause 4(viii) of the Order
are not applicable.
(ix) (a) Undisputed statutory dues towards income-tax, sales-tax,
service-tax, custom duty, excise duty, cess and other material
statutory dues have not been regularly deposited with the appropriate
authorities and there have been delays in large number of cases.
(c) There are no dues in respect of income tax, sales tax, wealth tax,
service tax, customs duty, excise duty and cess that have not been
deposited with the appropriate authorities on account of any dispute.
(x) In our opinion, the Company has accumulated losses is more than 50%
of its net worth as at the end of the financial year. Further the
Company has incurred cash losses in the current year amounting to
Rs.37,51,94,950/ -but no cash losses were incurred in the immediately
preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, in the following instances the Company have defaulted in
repayment of dues to banks during the year.
Further the company does not have any due to financial institution or
debenture holders during the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly, the provisions of clause 4(xii) of the Order
are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/ society. Accordingly, the provisions of clause 4(xiii) of
the Order are not applicable.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
(xv) In our opinion and according to the information given to us , the
terms and conditions on which the Company has given guarantees for
loans taken by related parties for a sum of Rs 205,97,93,000/- from
banks, are not prima facie prejudicial to the interest of the Company.
(xvi) In our opinion, the Company has not availed new term loans.
Accordingly the provisions of clause 4(xvi) of the Order are not
applicable.
(xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Act. Accordingly, the provisions of clause 4(xviii)
of the Order are not applicable.
(xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) No fraud on or by the Company has been noticed or reported during
the year covered by our audit.
For Sreedhar, Suresh & Rajagopalan
Chartered Accountants
Firm Registration No: 003957S
S. Subramaniam
Place :Chennai Partner
Date :May 29, 2013 Membership No. 25433
Mar 31, 2012
1. We have audited the attached Balance Sheet of Ennore Coke Limited,
(the 'Company') as at March 31, 2012, and also the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto (collectively referred as the 'financial
statements'). 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 the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 (the
'Order') (as amended), issued by the Central Government of India in
terms of sub- section (4A) of section 227 of the Companies Act, 1956
(the 'Act'), we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
4. Attention is drawn to:
(a) Note 11of Notes to Financial Statements relating to the cost of
leasehold land amounting to Rs.24,637,289 as part of its fixed assets.
This leasehold land registered in the name of Ennore Power and Coke
Private Limited, was included in the Company's books pursuant to the
business transfer agreement in May 2006, 100% investment in the shares
by the company in January 2009 and subsequent approval of merger of
Ennore Power and Coke Private Limited with the company, by the High
Court of Madras effective April 01, 2008. The Company has filed an
application for transfer of leasehold land to the Company's name upon
merger with the relevant authority which is pending approval.
(b) Note No 26 of Notes to Financial Statements regarding non
availability of confirmation of balances relating to certain Trade
Receivables, Trade Payables, Loans and Advances, Unsecured Loans
payable, Fixed deposit with Banks and Stocks lying with third parties.
5. 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;
(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 financial statements dealt with by this report are in agreement
with the books of account;
(d) On the basis of written representations received from the
directors, as on March 31,2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31,2012 from being appointed as a director in terms of clause (g)
of sub-section (1) of section 274 of the Act;
(e) In our opinion and to the best of our information and according to
the explanations given to us, the financial statements dealt with by
this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Act and the Rules framed there
under and give the information required by the Act, in the manner so
required and subject to:
Other income for the year ended 31 March 2012 includes net revenue
aggregating to Rs.68,23,734/- arising on account of sales and purchases
of goods with certain parties where certain information including
confirmations were not made available.
Had such confirmations and information were made available, these sales
and purchases would have been included under the respective heads.
However this treatment does not have any impact on the profits of the
company.
give a true and fair view in conformity with the accounting principles
generally accepted in India, in the case of:
i) The Balance Sheet, of the state of affairs of the Company as at
March 31, 2012;
ii) The Profit and Loss Account, of the profit for the year ended on
that date; and
iii) The Cash Flow Statement, of the cash flows for the year ended on
that date.
ANNEXURE TO THE AUDITORS' REPORT OF EVEN DATE TO THE MEMBERS OF ENNORE
COKE LIMITED, ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31,
2012.
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (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 three years. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noticed on
such verification.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
(ii) (a) Verification of inventory (except stock of coke lying with a
third party for a sum of Rs.3,16,28,838/- and Stock of Coal at Kandla
Port for a sum of Rs 2,21,65,909/-) have been conducted at reasonable
intervals by the management.
(b) The procedures of physical verification of inventory lying at multi
locations followed by the management are reasonable but require to be
strengthened, considering the size of the Company and the nature of its
business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has granted unsecured loans to two companies
covered in the register maintained under section 301 of the Act. The
maximum amount involved during the year is Rs.6,76,34,521/- and the
year-end balance of such loans Rs 69,22,059/-
(b) In our opinion the unsecured loans were granted without any
stipulations with regard to the repayment of principal and interest ,
we are unable to comment on whether the rate of interest, repayment
terms with regard to the principal and the interest are prima facie
prejudicial to the interest of the Company.
(c ) In respect of the regularity on the repayment of principal and
interest of the above unsecured loans, we are unable to comment as to
whether the repayment of principal amount and the payment of interest
is as stipulated , as no terms of repayment have been stipulated.
(d) Reporting on whether the above unsecured loans are overdue does not
arise as no terms of repayment have been stipulated.
(e) The Company has taken a unsecured loan from a company which is
covered in the register maintained under section 301 of the Act. The
maximum amount outstanding during the year was Rs.1,46,44,06,472/-and
year-end balance is Rs 1,31,57,00,059/-.
(f) In respect of the above loans taken the rate of interest is not
prejudicial to the company.
(g) In respect of the above loans taken, the terms of repayment have
not been stipulated and hence we are unable to comment as to whether
repayment of principal amount and payment of interest is as stipulated.
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services except stated earlier.
(v) (a) In our opinion, the particulars of all contracts or
arrangements that need to be entered into the register maintained under
Section 301 of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of rupees five lakhs
in respect of any party during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time
(vi) The Company has not accepted any deposits from the public within
the meaning of sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the Order are not applicable.
(vii) The Company did not carry out any internal audit during the year.
(viii) To the best of our knowledge and belief, the Central Government
has not prescribed maintenance of cost records under clause (d) of
sub-section (1) of section 209 of the Act, in respect of Company's
products. Accordingly, the provisions of clause 4(viii) of the Order
are not applicable.
(ix) (a) Undisputed statutory dues towards income- tax, sales-tax,
service-tax, custom duty, excise duty, cess and other material
statutory dues have not been regularly deposited with the appropriate
authorities and there have been delays in large number of cases.
(b) Undisputed amounts payable in respect thereof, which were
outstanding, at the year- end for a period of more than six months from
the date they became payable are as follows:
(xv) In our opinion and according to the information given to us , the
terms and conditions on which the Company has given guarantees for
loans taken by related parties for a sum of Rs 202,74,65,000/- from
banks, are not prima facie prejudicial to the interest of the Company.
(xvi) In our opinion, the Company has not availed new term loans.
Accordingly the provisions of clause 4(xvi) of the Order are not
applicable.
Name of the Nature of dues Amount in Rs Period to
which Due
Date Date of
Statute it
relates payment
23,08,866/- 2009-10
West Bengal Works Contract
tax 343,221/- 2010-11 Various -
VAT Act 1,08,252/- 2011-12
Income Tax
Act Tax Deducted at 1,86,159/- A.Y
2012-13 Various -
source
Income Tax
Act Tax on regular 1,44,849/- A.Y
2009-10 19.12.
2011 -
Assessment
Self Asst Tax 3,87,59,363/- A.Y
2011-12 30.09.
2011 -
Advance tax 13,46,250/- A.Y
2012-13 15.06.
2011 -
Advance Tax 26,92,500/- A.Y
2012-13 15.09.
2011 -
(c) There are no dues in respect of income tax, sales tax, wealth tax,
service tax, customs duty, excise duty and cess that have not been
deposited with the appropriate authorities on account of any dispute.
(x) In our opinion, the Company has no accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and the immediately preceding financial year.
(xi) In our opinion, the Company has not defaulted in repayment of dues
to a financial institution, bank or to debenture holders during the
year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly, the provisions of clause 4(xii) of the Order
are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Accordingly, the provisions of clause
4(xiii) of the Order are not applicable.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
(xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investment.
(xviii)The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Act. Accordingly, the provisions of clause 4(xviii) of the
Order are not applicable.
(xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) No fraud on or by the Company has been noticed or reported during
the year covered by our audit.
For Sreedhar, Suresh & Rajagopalan
Chartered Accountants
Firm Registration No: 003957S
S. Subramaniam
Place : Chennai Partner
Date : May 22, 2012 Membership No. 25433
Mar 31, 2011
1. We have audited the attached Balance Sheet of Ennore Coke Limited,
(the 'Company') as at March 31, 2011, and also the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto (collectively referred as the 'financial statements').
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. Except as explained in the paragraph 5, we conducted our audit in
accordance with the auditing standards generally accepted in India.
Those Standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 (the
'Order') (as amended), issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Companies Act, 1956
(the 'Act'), we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
4. Without qualifying our opinion, we draw your attention to note 5 in
Schedule 19, relating to the Company's inclusion of the cost of
leasehold land amounting to Rs.24,637,289 as part of its fixed assets.
This leasehold land, registered in the name of Ennore Power and Coke
Private Limited, was included in the Company's books pursuant to the
Business transfer agreement in May 2006, 100% investment in the shares
in January 2009 and subsequent approval of merger with Ennore Power and
Coke Private Limited by the High Court of Madras effective April 01,
2008. The Company has filed an application for transfer of leasehold
land to the Company's name upon merger with the relevant authority
which is pending approval.
5. (a) We report that other income for the year ended
31 March 2011 include net revenue aggregating to Rs. 129,345,310,
arising on account of sales / purchases of goods with certain parties.
However, as certain information including confirmations was not made
available for our audit, we could not perform adequate audit procedures
in respect of the above and other associated items of costs and related
assets and liabilities. Had we been able to perform necessary audit
procedures on the above transactions, matters might have come to our
attention indicating that adjustments, if any, might be necessary to
the financial statements.
(b) We report that the Company is in the process of obtaining
confirmations and performing reconciliation in respect of receivables
from / payables, including unsecured loans to certain parties
aggregating to Rs. 17,153,377 and Rs. 524,429,150 respectively as of
31 March 2011. Pending outcome of this process, no adjustments were
made to the carrying values of these amounts for the year ended 31
March 2011.
6. Further to our comments in the annexure referred to above, we
report that:
(a) Except as explained in the paragraph 5, 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 financial statements dealt with by this report are in agreement
with the books of account;
(d) On the basis of written representations received from the
directors, as on March 31, 2011 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Act;
(e) In our opinion and to the best of our information and according to
the explanations given to us, the financial statements dealt with by
this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Act and the Rules framed there
under and give the information required by the Act, in the manner so
required and subject to paragraph 5, give a true and fair view in
conformity with the accounting principles generally accepted in India,
in the case of:
i) the Balance Sheet, of the state of affairs of the Company as at
March 31, 2011;
ii) the Profit and Loss Account, of the profit for the year ended on
that date; and
iii) the Cash Flow Statement, of the cash flows for the year ended on
that date.
ANNEXURE TO THE AUDITORS' REPORT OF EVEN DATE TO THE MEMBERS OF ENNORE
COKE LIMITED, ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31,
2011.
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (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 three years. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noticed on
such verification.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
(ii) (a) Physical verification of inventory (except stocks lying with
third parties, confirmations for which have been obtained and stocks in
transit) have been conducted at reasonable intervals by the management.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii)(a) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Accordingly, the provisions of clauses
4(iii)(b) to (d) of the Order are not applicable
(e) The Company has taken loan from two companies covered in the
register maintained under section 301 of the Act. The maximum amount
outstanding during the year was Rs. 1,291,825,494 and the year-end
balance was Rs 1,019,143,423
(f) In respect of loans taken, the rate of interest and other terms and
conditions have not been stipulated and hence we are unable to comment
upon the rate of interest and other terms and conditions is as
stipulated.
(g) In respect of the above loan taken, the terms of repayment have not
been stipulated and hence we are unable to comment as to whether
repayment of principal amount and payment of interest is as stipulated.
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services except for cer tain transactions that
referred to in paragraph 5(a) of Auditors' report.
(v) (a) In our opinion, the particulars of all contracts or
arrangements that need to be entered into the register maintained under
Section 301 of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of rupees five lakhs
in respect of any party during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the Order are not applicable.
(vii) The Company has an internal audit system, the scope and coverage
of which, in our opinion, requires to be further enhanced to be
commensurate with its size and the nature of its business.
(viii) To the best of our knowledge and belief, the Central Government
has not prescribed maintenance of cost records under clause (d) of
sub-section (1) of section 209 of the Act, in respect of Company's
products. Accordingly, the provisions of clause 4(viii) of the Order
are not applicable.
(ix)(a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees' state insurance, income-tax,
sales- tax, wealth-tax, service-tax, custom duty, excise duty, cess and
other material statutory dues, as applicable, have not been regularly
deposited with the appropriate authorities and there have been
significant delays in large number of cases. Undisputed amounts
payable in respect thereof, which were outstanding, at the year end for
a period of more than six months from the date they became payable are
as follows
Name of the Nature of Amount Period to Due Date
statute the dues (Rs) which the date of Pay-
amount ment
relates
West Bengal Works 2,308,871 2009-2010 Various -
VAT Act contract Tax 121,066 2010-2011 dates -
Income tax act Tax 239,269 2010-2011 Various -
Deducted dates
at source
(b) There are no dues in respect of income tax, sales tax, wealth tax,
service tax, customs duty, excise duty and cess that have not been
deposited with the appropriate authorities on account of any dispute.
(x) In our opinion, the Company has no accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and the immediately preceding financial year.
(xi) In our opinion, the Company has not defaulted in repayment of dues
to a financial institution, bank or to debenture holders during the
year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly, the provisions of clause 4(xii) of the Order
are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Accordingly, the provisions of clause
4(xiii) of the Order are not applicable.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
(xv) In our opinion, the terms and conditions on which the Company has
given guarantee for loans taken by others from banks are not, prima
facie, prejudicial to the interest of the Company.
(xvi) In our opinion, the Company has applied the term loans for the
purpose for which the loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Act. Accordingly, the provisions of clause 4(xviii)
of the Order are not applicable.
(xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) No fraud on or by the Company has been noticed or reported during
the year covered by our audit.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No. 001076N
per Sumesh E S
Place :Chennai Partner
Date : 24th May 2011 Membership No. 206931
Mar 31, 2010
1 We have audited the attached Balance Sheet of Ennore Coke Limited,
(the Company) as at March 31, 2010, and also the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto (collectively referred as the financial statements).
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2 We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3 As required by the Companies (Auditors Report) Order, 2003 (the
Order) (as amended), issued by the Central Government of India in
terms of sub- section (4A) of section 227 of the Companies Act, 1956
(the Act), we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
4 Without qualifying our opinion, we draw your attention to note 4 and
note 5 in Schedule 19, relating to the Companys inclusion of the cost
of leasehold land amounting to Rs.24,637,289 as part of its fixed
assets. This leasehold land, registered in the name of Ennore Power and
Coke Private Limited, was included in the Companys books pursuant to
the Business transfer agreement in May 2006, 100% investment in the
shares in January 2009 and subsequent approval of merger with Ennore
Power and Coke Private Limited by the High Court of Madras effective
April 01, 2008. The Company has filed an application for transfer of
leasehold land to the Companys name upon merger with the relevant
authority which is pending approval.
5 Further to our comments in paragraph 4 above and our comments in the
Annexure referred in paragraph 3 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 financial statements dealt with by this report are in agreement
with the books of account;
d On the basis of written representations received from the directors,
as on March 31,2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2010
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act;
e In our opinion and to the best of our information and according to
the explanations given to us, the financial statements dealt with by
this report comply with the accounting standards referred to in sub-
section (3C) of section 211 of the Act and the Rules framed there under
and 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, in the case of:
i) the Balance Sheet, of the state of affairs of the Company as at
March 31, 2010;
ii) the Profit and Loss Account, of the profit for the year ended on
that date; and
iii) the Cash Flow Statement, of the cash flows for the year ended on
that date.
ANNEXURE TO THE AUDITORS REPORT OF EVEN DATE TO THE MEMBERS OF ENNORE
COKE LIMITED, ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31,
2010.
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets. In respect of assets at Haldia manufacturing plant that
commenced the operation during the year the asset-wise break up are
being complied.
(b) Fixed assets were physically verified by the management during the
year in accordance with a planned programme of verifying them once in
three years which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As informed, no
material discrepancies were noticed on such verification. Also refer
note no. 4 in Schedule 19 regarding transfer of leasehold land to the
Companys name upon merger.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
(ii) (a) Physical verification of inventory (except stocks lying with
third parties, confirmations for which have been obtained and stocks in
transit) have been conducted at reasonable intervals by the management.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Accordingly, the provisions of clauses
4(iii)(b) to (d) of the Order are not applicable
(e) The Company has taken a loan from a company covered in the register
maintained under section 301 of the Act. The maximum amount outstanding
during the year was Rs. 305,074,342 and the yearend balance was Rs
305,074,342
(f) We are not in a position to comment upon the interest and other
terms and conditions of the above loan taken by the Company, as these
have not been stipulated.
(g) In respect of the above loan taken, the terms of interest and
repayment have not been stipulated and hence we are unable to comment
as to whether repayment of principal amount and payment of interest is
as stipulated.
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. No services have been rendered by the Company during
the year. Though major weakness had been noticed in the internal
control system for the purchase of inventory and for the sale of goods
in the previous yearbut during the year under audit no major weakness
has been noticed.
(v) (a) In our opinion, the particulars of all contracts or
arrangements that need to be entered into the register maintained under
Section 301 of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of rupees five lakhs
in respect of any party during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the Order are not applicable.
(vii) The Company has an internal audit system, the scope and coverage
of which, in our opinion, requires to be further enhanced to be
commensurate with its size and the nature of its business.
(viii) To the best of our knowledge and belief, the Central Government
has not prescribed maintenance of cost records under clause (d) of
sub-section (1) of section 209 of the Act, in respect of Companys
products. Accordingly, the provisions of clause 4(viii) of the Order
are not applicable.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees state insurance, income-tax,
sales-tax, wealth-tax, service-tax, custom duty, excise duty, cess and
other material statutory dues, as applicable, have not been regularly
deposited with the appropriate authorities. No undisputed amounts
payable in respect thereof were outstanding at the year end for a
period of more than six months from the date they became payable.
(b) There are no dues in respect of income tax, sales tax, wealth tax,
service tax, customs duty, excise duty and cess that have not been
deposited with the appropriate authorities on account of any dispute.
(x) In our opinion, the Company has no accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and the immediately preceding financial year.
(xi) The Company has defaulted in repayment of dues to banks. The term
loan amounting to Rs 24,525,000 became due for repayment on March
31,2010 has not been repaid. The Company has no dues payable to a
financial institution or debenture holders during the year.
(xii) In our opinion, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities. Accordingly, the provisions of clause
4(xii) of the Order are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Accordingly, the provisions of clause
4(xiii) of the Order are not applicable.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
(xv) In our opinion, the terms and conditions on which the Company has
given guarantee for loans taken by a Company, which is a related party
from banks are not, prima facie, prejudicial to the interest of the
Company.
(xvi) In our opinion, the Company has applied the term loans for the
purpose for which the loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investment.
(xviii)The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Act. Accordingly, the provisions of clause 4(xviii) of the
Order are not applicable.
(xix)The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) No fraud on or by the Company has been noticed or reported during
the year covered by our audit.
14.Disclosures under Listing Agreement
As required by the amendment to Clause 32 of the listing agreement vide
SEBI circular no. 2 / 2003 of 10th January, 2003, the following
disclosure has been made:
- Loans and advances in the nature of loans to subsidiaries: Nil.
- Loans and advances in the nature of loans to associates: Nil.
- Loans and advances in the nature of loans to firms/companies in which
directors are interested: Nil.
- Investments by Loan in the shares of the Company as on 31st March
2010: Nil.
15.Previous years figures have been reclassified/ regrouped wherever
necessary to conform to the classification for the current year.
Further the Company has commercial operation in the current year and
therefore the numbers for the current year are not directly comparable
with those of the previous year.
16.The Company is engaged in the business of manufacturing and trading
of coke/coal, which as per Accounting Standard 17 on "Segment
Reporting" is considered to be the only reportable business segment.
The Company is operating in India which is considered as a single
geographical segment.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No. 001076N
Per Mohan Ramakrishna
Place : Chennai Partner
Date : 21 May 2010 Membership No. 027628
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article