Mar 31, 2019
Report on the Audit of the Standalone Ind AS Financial Statements Opinion
We have audited the accompanying standalone Ind AS financial statements of Everest Industries Limited (âthe Companyâ), which comprise the Balance sheet as at March 31 2019, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Companies Act, 2013 (âthe Actâ) 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 March 31, 2019, its profit including other comprehensive income its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the âAuditorâs Responsibilities for the Audit of the Standalone Ind AS Financial Statementsâ section of our report. We are independent of the Company in accordance with the âCode of Ethicsâ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone Ind AS financial statements for the financial year ended March 31, 2019. These matters were addressed in the context of our audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditorâs responsibilities for the audit of the standalone Ind AS financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone Ind AS financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone Ind AS financial statements.
Key audit matters |
How our audit addressed the key audit matter |
Revenue recognition for long term projects and recoverability of receivables (as described in note 1.4(a) of the standalone Ind AS financial statements) |
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The Companyâs significant portion of business is undertaken through long term engineering, procurement and construction contracts. Revenue from these contracts is recognized over a period of time in accordance with the requirements of Ind AS 115, Revenue from Contracts with Customers. Due to the nature of the contracts, revenue recognition involves usage of input method which is determined based on proportion of contract costs incurred to date compared to estimated total contract costs, which involves significant judgments, identification of contractual obligations and the Companyâs rights to receive payments for performance completed till date, risk on collectability due to liquidation damages and other penalties imposed by the customers, changes in scope and consequential revised contract price and recognition of the liability for loss making contracts/ onerous obligations. Accuracy of revenues, onerous obligations, profits and net receivables may deviate significantly on account of change in judgements and estimates, therefore, this has been considered as key audit matter in our audit of the standalone Ind AS financial statements. |
- Our audit procedures included testing of Companyâs revenue recognition accounting policies in compliance with Ind AS 115. - We performed test of controls over management process of assessing its contractual obligation, determining the percentage completion and periodical changes in estimates of project cost and project revenue recognition with specific focus on determination of progress of completion, recording of project costs incurred and estimation of project costs to complete the remaining contract obligations and collection of overdue receivables through inspection of evidence of performance of these controls. - We examined the underlying customer contracts, costs incurred with estimated costs to identify significant variations and assess whether those variations if any, have been considered in estimating the remaining costs to complete and consequential determination of stage of completion. |
- We performed tests of details to examine the management assessment of estimated project revenue, possible liquidation damages, estimated project cost and cost incurred till the year end. We also tested the invoices raised and computation for revenue recognized, over a period of time under the input method in Ind AS 115. - We examined the management assessment of onerous contracts due to change in estimated project cost, liquidation damages and other penalties charged by the customer. - We examined contracts and correspondences where there were significant overdue receivable with marginal or no movement to determine the level of provisioning required in the receivable. - We evaluated managementâs assumption and judgment by comparing to the historical collection trends. - We tested the adequacy of disclosure relating to contractual positions and revenue for the year in the standalone Ind AS financial statements. |
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Uncertain tax positions impacting valuation of tax provision (as described in note 1.4(b) of the standalone Ind AS financial statements) |
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The Company has ongoing disputes with the Income Tax department on income tax computation for certain assessment years. These disputes are pending with different Appellate authorities and at the Courts. The management has assessed the future outcome of these ongoing proceedings and exposures which directly affects the valuation of tax provision in the financial statements As the future outcome of these matters, and the accounting effects thereof, are based on assessment of complex matters which may take time to finally resolve, the valuation of tax provision related to uncertain tax positions has been considered as key audit matter in our audit of the standalone Ind AS financial statements. |
- We obtained details of completed tax assessments and demands for the assessment years under dispute as of March 31, 2019. - We performed test of control over management process of assessment and estimates with regard to the existing tax disputes and uncertain tax positions. - We inspected written communication between the company and the tax authorities and involved tax specialist to assess the managementâs underlying assumptions in estimating the tax provision and the possible outcome of the disputes. - We also considered the effect of any new information in the current financial year 2018-19 in respect of carried forward uncertain tax positions to evaluate if there is any change in the managementâs position on these uncertainties. - We tested the adequacy of provisioning and disclosure relating to uncertain tax positions in accordance with âProbable, Possible and Remoteâ (PPR) analysis and compliance with Ind AS 12. |
We have determined that there are no other key audit matters to communicate in our report.
Information Other than the Financial Statements and Auditorâs Report Thereon
The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report 2018-19 of the Company but does not include the financial statements and our auditorâs report thereon. The Annual Report is expected to be made available to us after the date of this auditorâs report.
Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the standalone Ind AS financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 the 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone Ind AS financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the standalone Ind AS financial statements, including the disclosures, and whether the standalone Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone Ind AS financial statements for the financial year ended March 31, 2019 and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
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 Act, we give in the âAnnexure 1â a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
e. On the basis of the written representations received from the directors as on March 31, 2019 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2019 from being appointed as a director in terms of Section 164 (2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company with reference to these standalone Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;
g. In our opinion, the managerial remuneration for the year ended March 31, 2019 has been paid/ provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;
h. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended 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 standalone Ind AS financial statements - Refer Note 2.31 to the standalone Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
ANNEXURE 1 REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSâ OF OUR REPORT OF EVEN DATE
Re: EVEREST INDUSTRIES LIMITED (âthe Companyâ) (i) In respect of Fixed Assets
a. The Company has maintained proper records showing full particulars, including quantitative details and situation of the Property, plant and equipment.
b. All fixed assets were physically verified by the management in the previous 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. No material discrepancies were noticed on such verification.
c. According to the information and explanations given by the management, the title deeds of immovable properties included in property, plant and equipment are held in the name of the Company.
(ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification. Inventories lying with third parties have been confirmed by them as at year end and no material discrepancies were noticed in respect of such confirmations.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii) (a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given to us, the Company has not advanced loans to directors / to a company in which the Director is interested to which provisions of section 185 of the Companies Act, 2013 apply and hence not commented upon. Further, in our opinion and according to the information and explanations given to us, provisions of section 186 of the Companies Act 2013 in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the Company.
(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
(vii) (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, goods and services tax, sales-tax, service tax, customs duty, excise duty, value added tax, cess, goods and services tax and other statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income-tax, goods and services tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, cess and other statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues of income tax, sales tax, service tax, duty of custom, duty of excise, value added tax and cess on account of any dispute, are as follows:
(Rs. In Lakhs)
Name of the applicable Act |
Nature of dues |
Forum where the dispute is pending |
Period to which the amount relates |
Amount involved |
Amount Paid |
Amount unpaid |
Income Tax Act, 1961 |
Demand on account of disallowance of certain claims |
High Court |
2007-08, 2009-10 |
79.39 |
79.39 |
- |
CIT(Appeals) |
AY 2004-05 to 2016-17 |
3,284.88 |
3,026.38 |
258.50 |
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Total |
3,364.27 |
3,105.77 |
258.50 |
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The Central Excise Act, 1944 |
Demand on account of wrong availament of cenvat credit |
Assistant Commissioner |
2005 to 2007, 2008-12 |
5.75 |
0.08 |
5.67 |
Deputy Commissioner |
2009-10 |
0.56 |
- |
0.56 |
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Joint Commissioner |
2009-10 |
14.29 |
- |
14.29 |
||
Commissioner (Appeals) |
2006-07 to 2011-12 |
12.65 |
4.90 |
7.75 |
||
Commissioner |
2007-08 to 2013-14 |
424.32 |
- |
424.32 |
||
Appelate Tribunal |
2009-10, 2014-15, 2015-16 |
322.52 |
29.34 |
293.18 |
||
Demand on duty under section 11D of Central Excise Act,1944 |
Appelate Tribunal |
1991 to 1996 |
2,462.40 |
2,462.40 |
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Total |
3,242.49 |
34.32 |
3,208.17 |
Sales Tax |
Demand on account of |
Assistant Commissioner |
1994-95 |
0.47 |
- |
0.47 |
Laws |
non-collection of statutory forms etc. |
Joint Commissioner |
1999-2000, 2000-01, 2007-08, 2008-09, 2010-11 to 2014-15 |
493.29 |
92.97 |
400.32 |
Additional Commissioner |
2012-13 to 2015-16 |
91.10 |
78.79 |
12.31 |
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Commissioner (Appeal) |
1997-98, 2000-01 to 2002-03 & 2006-07 |
26.07 |
1.59 |
24.48 |
||
Joint Commissioner (Appeals) |
2009-10 to 2011-12 & 2013-14 |
126.73 |
117.16 |
9.57 |
||
Deputy Commissioner (Assessment) |
2012-13 & 2014-15 |
207.97 |
20.56 |
187.41 |
||
Appellate Tribunal |
1997-98 to 1998-99 and 2009-10 to 2013-14 |
61.38 |
40.49 |
20.89 |
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Demand on account of purchase tax on fly ash |
Madras High Court |
1990-91, 1992-93 & 1995-1996 |
13.18 |
12.89 |
0.29 |
|
Assessing Officer |
1996-97 |
5.83 |
5.83 |
- |
||
Demand on account of |
Assessing Officer |
2013-14 |
10.76 |
3.79 |
6.97 |
|
reversal of input tax credit |
Additional Joint Commissioner |
2009-10 |
2.33 |
2.33 |
- |
|
Demand on account of understatement of sales/ purchase |
Appellate Tribunal |
2011-12 |
7.59 |
7.59 |
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Demand on account of stock transfers considered as Interstate sales |
Central Sales Tax Appellate Authority |
1994-1995 & 1995-1996 |
676.34 |
0.26 |
676.08 |
|
Demand on account of differential rate |
Joint Commissioner |
2013-14 |
427.17 |
33.00 |
394.17 |
|
Penalty for late payment of Entry tax |
High Court, Orissa |
2012-13 |
4.39 |
4.39 |
- |
|
Total |
2,154.61 |
421.64 |
1,732.97 |
(viii) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of loans/ borrowings to banks. The Company has not taken any loans/ borrowings from financial institution or government and has not issued any debentures during the year.
(ix) In our opinion and according to information and explanations given by the management, the term loans have been applied for the purpose for which they were raised. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments).
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the company or no material fraud on the company by the officers and employees of the Company has been noticed or reported during the year.
(xi) According to the information and explanations given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon.
(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the company and, not commented upon.
(xv) According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of Companies Act, 2013.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
ANNEXURE 2 REFERRED IN PARAGRAPH 2(f) UNDER THE HEADING âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSâ OF OUR REPORT ON THE STANDALONE FINANCIAL STATEMENTS OF EVEREST INDUSTRIES LIMTED
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 Everest Industries Limited (âthe Companyâ) as of March 31, 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. 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.
Auditorâs Responsibility
Our responsibilitOur 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 as specified under section 143(10) of the Companies Act, 2013, to the extent 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 judgement, 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 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised 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, 2019, 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.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number : 301003E/E300005
Per Sanjay Vij
Partner
Membership Number : 95169
Place : Mumbai
Date : 1st May, 2019
Mar 31, 2018
We have audited the accompanying standalone Ind AS financial statements of Everest Industries Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies.
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act., read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these standalone Ind AS 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 of the standalone Ind AS financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as 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 standalone Ind AS 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 standalone Ind AS 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 standalone Ind AS financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
In our opinion and to the best of our information and according to the explanations given to us, the standalone Ind AS 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 March 31, 2018, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
1. As required by the Companies (Auditor''s report) Order, 2016 ("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 1 a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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, Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
e. On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of section 164 (2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure 2" to this report;
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements -Refer Note 2.30 to the standalone Ind AS financial statements;
ii. The Company did not any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
a. The Company has maintained proper records showing full particulars, including quantitative details and situation of the Property, plant and equipment
b. All fixed assets were physically verified by the management in the previous 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. No material discrepancies were noticed on such verification.
c. According to the information and explanations given by the management, the title deeds of immovable properties included in property, plant and equipment are held in the name of the Company.
ii. The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification.
iii. According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii) (a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 186 of the Companies Act, 2013 in respect of making investments. However, the Company has not granted any loans or provided any guarantees and securities.
v. According to the information and explanations given to us, the Company has not accepted any deposits from the public.
vi. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
vii.
a. The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees'' state insurance, income-tax, goods and services tax, sales-tax, service tax, customs duty, excise duty, value added tax, cess, goods and services tax and other statutory dues applicable to it.
b. According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income-tax, goods and services tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, cess and other statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
c. The dues of income tax, sales tax, service tax, duty of custom, duty of excise, value added tax and cess on account of any dispute, are as follows:
(Rs. In Lakhs)
Name of the applicable Act |
Nature of dues |
Forum where the dispute is pending |
Period to which the amount relates |
Amount involved |
Amount Paid |
Amount unpaid |
Income Tax Act, 1961 |
Demand on account of disallowance of certain claims |
ITAT |
2004-05 |
223.23 |
223.23 |
- |
CIT(Appeals) |
2009-10 to 2010-11 |
419.01 |
419.01 |
- |
||
Total |
642.24 |
642.24 |
- |
|||
The Central Excise Act, 1944 |
Demand on account of wrong availament of cenvat credit |
Assistant Commissioner |
2005 to 2007, 2008-12 |
5.75 |
0.08 |
5.67 |
Deputy Commissioner |
2009-10 to 2012-13 |
0.56 |
- |
0.56 |
||
Joint Commissioner |
2009-10 |
14.29 |
- |
14.29 |
||
Commissioner (Appeals) |
2006-07 to 2011-12 |
243.79 |
0.35 |
243.44 |
||
Commissioner |
2007-08 to 2014-15 |
498.09 |
- |
498.09 |
||
Additional Commissioner |
2015-16 |
17.61 |
- |
17.61 |
||
Demand on duty under section 11D of Central Excise Act,1944 |
Appelate Tribunal |
1992 to 1996 |
2,462.40 |
2,462.40 |
||
Total |
3,242.49 |
0.43 |
3,242.06 |
|||
Sales Tax Laws |
Demand on account of non-collection of statutory forms etc. |
Assistant Commissioner |
1994-95 |
0.47 |
- |
0.47 |
Joint Commissioner |
1999-2000, 2000-01, 2007-09, 2010-2012 and 2014-15 |
599.73 |
47.23 |
552.50 |
||
Additional Commissioner |
2012-15 |
139.00 |
16.50 |
122.50 |
||
Commissioner (Appeal) |
1997-98, 2000-01 to 2002-03 & 2006-07 |
26.07 |
1.59 |
24.48 |
Name of the applicable Act |
Nature of dues |
Forum where the dispute is pending |
Period to which the amount relates |
Amount involved |
Amount Paid |
Amount unpaid |
Sales Tax Laws |
Demand on account of non-collection of statutory forms etc. |
Joint Commissioner (Appeals) |
2009-12 & 2013-14 |
158.75 |
63.44 |
95.31 |
Appellate Tribunal |
1997-1999 and 2009-14 |
60.34 |
34.75 |
25.59 |
||
Demand on account of purchase tax on fly ash |
Madras High Court |
1990-91, 1992-93 & 1995-1996 |
13.18 |
12.89 |
0.29 |
|
Assessing Officer |
1996-97 |
5.83 |
5.83 |
- |
||
Demand on account of reversal of input tax credit |
Assessing Officer |
2013-14 |
10.76 |
3.79 |
6.97 |
|
Additional Joint Commissioner |
2009-10 |
2.33 |
2.33 |
- |
||
Demand on account of understatement of sales/ purchase |
Appellate Tribunal |
2011-12 |
7.59 |
7.59 |
||
Demand on account of stock transfers considered as Interstate sales |
Central Sales Tax Appellate Authority |
1994-1995 & 1995-1996 |
676.34 |
0.26 |
676.08 |
|
Demand on account of differential rate |
Joint Commissioner |
2013-14 |
427.17 |
33.00 |
394.17 |
|
Penalty for late payment of Entry tax |
High Court, Orissa |
2012-13 |
4.39 |
4.39 |
- |
|
Total |
2,131.96 |
226.00 |
1,905.96 |
viii. In our opinion and according to the information given by the management, the Company has not defaulted in repayment of loans/ borrowings to banks. The Company has not taken any loans/ borrowings from financial institution or government and has not issued any debentures during the year.
ix. In our opinion and according to information and explanations given by the management, the term loans have been applied for the purpose for which they were raised. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments).
x. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the company or no material fraud on the company by the officers and employees of the Company has been noticed or reported during the year.
xi. According to the information and explanations given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
xii. In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon.
xiii. According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the company and, not commented upon.
xv. According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of Companies Act, 2013.
xvi. According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
We have audited the internal financial controls over financial reporting of Everest Industries Limited ("the Company") as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
The Company''s Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. 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 Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent 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 auditor''s judgement, 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 internal financial controls system over financial reporting.
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
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.
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, 2018, 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.
Chartered Accountants
ICAI Firm Registration Number : 301003E/E300005
Sanjay Vij
Partner
Membership Number : 095169
Place : Mumbai
Date : 1st May, 2018
Mar 31, 2017
Report on the Financial Statements
We have audited the accompanying standalone financial statements of EVEREST INDUSTRIES LIMITED ("the Companyâ), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with 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 and the Companies (Accounting Standards) Amendment Rules, 2016. 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 the design, implementation and maintenance of adequate internal financial control 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 standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as 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 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 are sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31, 2017, its profit, 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, 2016 ("the Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure 1 a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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, 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 standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Accounting Standards) Amendment Rules, 2016;
e. On the basis of written representations received from the directors as on March 31, 2017, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017, from being appointed as a director in terms of section 164 (2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure Aâ to this report;
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 2.24 to the standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in Note 2.48 to these standalone financial statements as to the holding of Specified Bank Notes on November 8, 2016 and December 30, 2016 as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30, 2016. Based on our audit procedures and relying on the management representation regarding the holding and nature of cash transactions, including Specified Bank Notes, we report that these disclosures are in accordance with the books of accounts maintained by the Company and as produced to us by the Management.
Re: EVEREST INDUSTRIES LIMITED (The Company) i. In respect of Fixed Assets
a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b. The company has a programme of verifying fixed assets once in three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
c. According to the information and explanations given by the management, the title deeds of immovable properties included in property, plant and equipment/ fixed assets are held in the name of the company.
ii. The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification.
iii. According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of the Order are not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 186 of Companies Act, 2013 in respect of making investments. However, the Company has not granted any loans or provided any guarantees and securities.
v. According to the information and explanations given to us, the Company has not accepted any deposits from the public.
vi. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
vii. According to the information and explanations given to us :
a. The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess and other statutory dues applicable to it.
b. There are no undisputed amounts payable in respect of provident fund, employees'' state insurance, income-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, cess and other statutory dues were outstanding, at March 31, 2017, for a period of more than six months from the date they became payable.
c. The dues of income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax and cess on account of any dispute, are as follows:
(Rs. In Lakhs)
Name of the applicable Act |
Nature of dues |
Forum where the dispute is pending |
Period to which the amount relates |
Amount involved |
Amount Paid |
Amount unpaid |
Income Tax Act, 1961 |
Demand on account of disallowance of certain claims |
Appellate Tribunal |
2003-2004, 2004-2005 and 2006-2007 |
342.36 |
256.20 |
86.16 |
Commissioner of Income Tax Appeals |
2005-2006, 2006-2007, 2009-2010, 2010-2011, 2011-2012, 2012-2013 and 2013-2014 |
1658.88 |
1658.88 |
|
||
Total |
|
|
2001.24 |
1915.08 |
86.16 |
|
The Central Excise Act, 1944 |
Demand on account of wrong availment of cenvat credit |
Assistant Commissioner |
2005 to 2014, 2015-2016 |
6.30 |
- |
6.30 |
Commissioner |
2007-08 to 2014-15 |
464.93 |
- |
464.93 |
||
Commissioner (Appeals) |
2006-07 to 2011-12 |
242.64 |
0.35 |
242.29 |
||
Deputy Commissioner |
2009-10 and 2012-13 |
0.56 |
- |
0.56 |
||
Joint Commissioner |
2009-10 |
14.29 |
- |
14.29 |
||
Additional Commissioner |
2010-11, 2011-12 and 2015-16 |
52.16 |
- |
52.16 |
||
Appellate Tribunal |
2008-09 and 2009-10 |
33.26 |
4.38 |
28.88 |
||
Demand of duty under Section 11D of the Central Excise Act,1944 |
Appellate Tribunal |
1992 to 1996 |
2,462.40 |
|
2,462.40 |
|
|
Total |
|
|
3,276.54 |
4.73 |
3,271.81 |
Name of the applicable Act |
Nature of dues |
Forum where the dispute is pending |
Period to which the amount relates |
Amount involved |
Amount Paid |
Amount unpaid |
Sales Tax Laws |
Demand on account of non-collection of statutory forms etc. |
Appellate Tribunal |
1997 to 1999, 20002001, 2007-08, 2010-12 |
21.05 |
- |
21.05 |
|
Assistant Commissioner |
1994-95 |
0.47 |
- |
0.47 |
|
|
|
Joint Commissioner |
1999-2001, 2007-08 to 2014-15 |
119.68 |
36.36 |
83.32 |
|
|
Commissioner (Appeal) |
1997-1998, 2000-2003 and 2006-07 |
26.07 |
1.59 |
24.48 |
|
|
Joint Commissioner (Appeals) |
2009-10, 2010-11 and 2011-12 |
158.62 |
63.42 |
95.20 |
|
|
Additional Commissioner |
2012-13, 2013-14 and 2014-15 |
390.15 |
40.57 |
349.58 |
|
Demand on account of purchase tax on fly ash |
Assessing Officer |
1996-1997 and 1999-2000 |
14.77 |
14.77 |
- |
|
|
Madras High Court |
1990-1991, 1992-1993 and 1995-1996 |
13.18 |
12.89 |
0.29 |
|
Demand on account of reversal of input tax credit |
Addl. Joint Commissioner |
2009-10 |
2.33 |
2.33 |
- |
|
Demand on account of reversal of input tax credit |
Joint Commissioner |
2013-14 |
10.76 |
3.79 |
6.97 |
|
Demand on account of stock transfers considered |
Central Sales Tax Appellate Authority |
1994-1995 and 1995-1996 |
676.34 |
0.95 |
675.39 |
|
as inter-state sales |
Madras High Court |
1998-1999 |
420.75 |
- |
420.75 |
|
Demand on account of understatement of sales/ purchase |
Appellate Tribunal |
2011-12 and 2012-13 |
154.99 |
- |
154.99 |
|
Joint Commissioner (Appeals) |
2013-14 |
0.13 |
0.02 |
0.11 |
|
|
Penalty for late payment of Entry Tax |
High Court, Orissa |
2012-13 |
4.39 |
4.39 |
- |
|
Total |
|
|
2,013.69 |
181.08 |
1,832.61 |
viii. In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of loans or borrowing to banks. The company has not taken any loans or borrowings from a financial institution and government nor has it issued any debenture.
ix. In our opinion and according to information and explanations given by the management, the term loans have been applied for the purpose for which they were raised. The company has not raised moneys by way of initial public offer or further public offer (including debt instruments).
x. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the company or no fraud / material fraud on the company by the officers and employees of the Company has been noticed or reported during the year.
xi. According to the information and explanations given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
xii. The Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company.
xiii. According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
xiv. During the year, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence, reporting requirements under clause 3(xiv) are not applicable to the company.
xv. In our opinion and according to the information and explanations given by the management, the Company has not entered into any noncash transactions with directors or persons connected with him as referred to in section 192 of Companies Act, 2013.
xvi. The Company is not required to be registered under section 45-IA of The Reserve Bank of India Act, 1934
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number : 301003E/E300005
Sanjay Vij
Partner
Membership Number : 095169
Place : Mumbai
Date : 3rd May, 2017
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Everest Industries Limited ("the Company"), which comprise the Balance
sheet as at 31 March, 2015, the statement of profit and Loss, 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 standalone Financial statements
The company's Board of Directors is responsible for the matters stated
in section 134(5) of the companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting standards
specified under section133 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 standalone
financialstatements 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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31 March, 2015, and its profit 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 in terms of section 143(11) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 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 fort he
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance sheet, the statement of profit and Loss, and the cash
Flow statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting standards specified under section 133 of the
act, read with Ruie 7 of the companies(Accounts) rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31 March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 march, 2015
from being appointed as a director in terms of section164 (2)of the
act.
(f) with respect tot he 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 2.25 to the
financial statements.
ii. the company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. there has been node lay in transferring amounts, 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 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
i. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. the company has a program of verification of fixed assets to cover
all the items in a phased manner over a period of three years which, in
our opinion, is reasonable having regard to the size of the company and
the nature of its assets. pursuant to the program, certain fixed assets
were physically verified by the Management during the year. According
to the information and explanations given to us no material
discrepancies were noticed on such verification.
ii. In respect of its inventories:
a. As explained to us, the inventories were physically verified during
the year by the management at reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iii. the company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
under section 189 of the companies act, 2013.
iv. In our opinion and according to the information and explanations
given to us, 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. During the course of our audit we have not observed any major
weakness in such internal control system.
v. according to the information and explanations given to us, the
company has not accepted any deposit during the year.
vi. we have broadly reviewed the cost records maintained by the
company pursuant to the companies (cost records and audit) rules, 2014,
as amended and prescribed by the central Government under section 148
(1) of the companies act, 2013, and are of the opinion that, prima
facie, the prescribed cost records have been made and maintained. we
have, however, not made a detailed examination of the cost records with
a view to determine whether they are accurate or complete.
vii. according to the information and explanations given to us in
respect of statutory dues:
a. the company has generally been regular in depositing undisputed
statutory dues, including provident Fund, Employees' state Insurance,
Income-tax, sales tax, wealth tax, service tax, customs duty, Excise
duty, value added tax, cess and any other material statutory dues
applicable to it with the appropriate authorities.
b. there were no undisputed amounts payable in respect of provident
Fund, Employees' state Insurance, Income-tax, sales tax, wealth tax,
service tax, customs duty, Excise duty, value added tax, cess and any
other material statutory dues in arrears as at 31 march, 2015 for a
period of more than six months from the date they became payable.
c. Details of dues of Income-tax, Sales Tax, Service Tax and Excise
Duty which have not been deposited as on 31 March, 2015 on account of
disputes are given below:
Name of Nature of Forum where Period to Amount
statute dues dispute is which the involved
pending amount (Rs./Lakhs)
relates
Income tax
Act, 1961 demand on commissioner of 2006 506.24
account of to 2008
disallowances
of certain
claims Income tax
appeals
appellate
tribunal 2003-04 99.16
and
2006-07
deputy
commissioner 2007 to
2009 and 1,123.22
2011-12
Income tax 2012 to
Officer 2014 103.79
1,832.41
sales tax Demand on commissioner 1997-98, 305.74
Laws account of appeals 2000-2003,
non-
collection
of statutory
forms etc. 2006-07and
2010-11
appellate
Tribunal 1997 to 1999, 49.58
2000-01,
2004-05,
2007-08,
2009 to 2012
Joint 1999 to 2001 15.08
commissioner and
2009 to 2011
Assistant 1994-95 0.47
commissioner
Joint 2009 to 2012 103.72
commissioner
(appeal)
additional 2011 to 2013 62.08
commissioner
demand on
account of
stock madras High
transfers court 1990-91,
being 1998-99 and 422.68
considered as 2013-14
local sales
demand on
account of
stock appellate
tribunal 1997-98 241.82
transfers
being
considered as central
inter-state sales 1994 to1996 676.08
sales tax
appellate
authority
demand on
account of Appellate
Tribunal 2011-12 159.83
understatement
of sales/
purchase
2,037.08
the
central
Excise demand on
act, 1944 account of
wrong deputy
availment of commissioner 2009 to2010
cenvat credit and 2011 8.12
to 2014
Joint
commissioner 2006 to2010 14.29
assistant 2006 to2012 11.54
commissioner
additional 2007 to2012 34.55
commissioner
commissioner 2004 to 2006
and 513.79
2007-2015
commissioner
appeals 2006 to2013 37.69
demand of duty
under section appellate
tribunal 1992 to 1996 2,462.40
11D of the
central Excise
act, 1944
demand on
account
of wrong appellate
tribunal 2008-09 24.83
availment of
cenvat credit
3,107.21
there are no dues in respect of wealth tax, customs duty, value added
tax and cess which have not been deposited as on 31 march, 2015 on
account of disputes.
d. the company has been generally regular in transferring amounts to
the Investor Education and protection Fund in accordance with the
relevant provisions of the companies act, 1956 (1 of 1956) and Rules
made thereunder within time.
viii. The Company does not have accumulated losses at the end of the
financial year and the Company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
ix. In our opinion and according to the information and explanations
given to us, the company has not defaulted in the repayment of dues to
banks. the company has not taken any loans from financial institutions
nor has it issued any debentures.
x. According to the information and explanations given to us, the
company has not given guarantees for loans taken by others from banks
and financial institutions. accordingly, the provisions of clause 3(x)
of the Order are not applicable to the company.
xi. In our opinion and according to the information and explanations
given to us, the term loans have been applied by the company during the
year for the purposes for which they were obtained, other than
temporary deployment pending application.
xii. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the company and no material fraud
on the company has been noticed or reported during the year.
For Deloitte Haskins & Sells
chartered accountants
(Firm's Registration No. 015125N)
Alka Chadha
partner
(Membership No. 93474)
Mumbai, 22 april, 2015
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Everest
Industries Limited ("the Company"), which comprise the Balance Sheet as
at 31 March, 2013, 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 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 Section 211(3C)
of the Companies Act, 1956 ("the Act") and in accordance with the
accounting principles generally accepted in India. 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 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 Company''s internal control. An audit also includes
evaluating the appropriateness of the 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 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) 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 purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
(e) On the basis of the written representations received from the
directors as on 31 March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March, 2013
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 1 under ÂReport on Other Legal and Regulatory
Requirements'' section of our report of even date)
i. Having regard to the nature of the Company''s business/ activities/
results during the year, clauses (x) and (xiii) of paragraph 4 of the
Order are not applicable to the Company.
ii. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. The Company has a programme of verification of fixed assets to
cover all the items in a phased manner over a period of three 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,
certain fixed assets were physically verified by the Management during
the year. According to the information and explanations given to us no
material discrepancies were noticed on such verification.
c. The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
iii. In respect of its inventory:
a. As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals, other than for
certain raw materials at one plant, where these raw materials have been
physically verified by the Management subsequent to the year end.
b. In our opinion and according to the information and explanations
given to us, other than in respect of certain raw materials at one
plant, the procedures of physical verification of inventories followed
by the Management, were reasonable and adequate in relation to the size
of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification, other than shortages of approximately Rs. 90 lacs
pertaining to raw materials at one plant, which have been properly
dealt with in the books of account (See Note 2.45 of the financial
statements).
iv. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956.
v. In our opinion and according to the information and explanations
given to us, 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 the sale of goods and
services and during the course of our audit we have not observed any
continuing failure to correct major weaknesses in such internal control
system.
vi. Based on the examination of the books of account and related
records and according to the information and explanations provided to
us, there are no contracts or arrangements with companies, firms or
other parties which need to be listed in the register maintained under
Section 301 of the Companies Act, 1956.
vii. According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year.
viii. In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
ix. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that, prima facie, the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
x. According to the information and explanations given to us in
respect of statutory dues:
a. The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income-tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues applicable to it with the appropriate
authorities.
b. There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues in arrears as
at 31 March, 2013 for a period of more than six months from the date
they became payable.
c. Details of dues of Income-tax, Sales Tax, Excise Duty and Service
Tax which have not been deposited as on 31 March, 2013 on account of
disputes are given below:
Name of
statute Nature of dues Forum where dispute is
pending
Sales Tax
Laws Demand on account of
non-collection Commissioner Appeals
of statutory forms etc. Appellate Tribunal
Demand on account of stock
transfers Madras High Court
being considered local sales
Demand on account of stock
transfers Appellate Tribunal
being considered as
inter-state sales
The Central Demand on account of
wrong Commissioner
Excise Act, availment of Cenvat credit
1944
Commissioner
Superintendent (Audit)
Commissioner Appeals
Demand of duty under
Section 11D Appellate Tribunal
of the Central
Excise Act, 1944
Income
Tax Act, Demand on account of
disallowances Commissioner 1961
of certain claims of Income Tax
Appeals
Appellate Tribunal
Name Period to which Amount involved
the amount relates (Rs. / lacs)
Sales Tax
Laws 1994 to 2011 763.89
1997 to 2003 325.78
1998-1999 421.04
1979 to 1980 2,827.78
1994 to 1998
4,338.49
The Central April 2005 to 183.80
August 2012
2006 to 2012 140.75
2008 to 2009 18.04
2008-09 11.28
1992 to 1996 2,462.40
2,816.27
Income
Tax Act 2008 to 2010 3,199.63
2003 to 2004 86.13
3,285.76
We are informed that there are no dues in respect of Wealth Tax,
Customs Duty and Cess which have not been deposited on account of any
dispute.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks. The Company has not taken any loans from financial institutions
nor has it issued any debentures.
xii. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
the way of pledge of shares, debentures and other securities.
Accordingly, the provisions of clause 4(xii) of the Order are not
applicable to the Company.
xiii. In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities and debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
xiv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xv. In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained, other than
temporary deployment pending application.
xvi. In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that funds raised on short-term basis have, prima
facie, not been used during the year for long-term investment.
xvii. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
xviii. According to the information and explanations given to us, the
Company has not issued any debentures during the period covered by our
report. Accordingly, the provisions of clause (xix) of the Order are
not applicable to the Company.
xix. The Company has not raised any money by way of public issues
during the year.
xx. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
(ICAI Registration No. 015125N)
Alka Chadha
(Partner)
MUMBAI, 9 May, 2013 (Membership No. 93474)
Mar 31, 2012
1. We have audited the attached Balance Sheet of Everest Industries
Limited ("the Company") as at 31 March, 2012, the Statement of Profit
and Loss and the Cash Flow Statement of the Company for the year ended
on that date, both annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the 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.
3. As required by the Companies (Auditor's Report) Order, 2003 (CARO)
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
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 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 Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) 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 give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March, 2012;
b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of the written representations received from the
directors, as on 31 March, 2012 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March, 2012
from being appointed as a director in terms of Section 274 (1)(g) of
the Companies Act, 1956.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 of our report of even date)
i. Having regard to the nature of the Company's business / activities
/ result, clause 4(xiii) of the Order is not applicable.
ii. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
b. The fixed assets were physically verified during the year by the
Management at some locations in accordance with a regular programmer of
verification which, in our opinion, provides for physical verification
of all the fixed assets at reasonable intervals. According to the
information and explanation given to us, no material discrepancies were
noticed on such verification.
c. The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
iii. In respect of its inventory:
a. As explained to us, the inventories except goods-in-transit were
physically verified during the year by the Management at reasonable
intervals.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iv. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
v. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
vi. Based on the examination of the books of account and related
records and according to the information and explanations provided to
us, there are no contracts or arrangements with companies, firms or
other parties which need to be listed in the register maintained under
Section 301 of the Companies Act, 1956.
vii. According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year.
viii. In our opinion, the Company has an adequate internal audit
system commensurate with the size and the nature of its business.
ix. We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
x. According to the information and explanations given to us in
respect of statutory dues:
a. The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities.
b. There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues in arrears as
at 31 March, 2012 for a period of more than six months from the date
they became payable.
c. Details of dues of Income-tax, Sales Tax, Excise Duty and Service
Tax which have not been deposited as on 31 March, 2012 on account of
disputes are given below:
Statute Nature of dues Forum where
the Period to which Amount
dispute is
pending the amount
relates (Rs. / Lakhs)
Sales Tax
Laws Demand on
account of
non-collection Commissioner
Appeals
1994 to 2009 548.87
of statutory
forms etc.
Appellate
Tribunal 1997 to 2003 325.78
Demand on account
of stock transfers Madras High
Court 1998- 1999
421.04
being considered
as local sales
Demand on account
of stock transfers Appellate
Tribunal 1979 to 1980
2,827.78
being considered
as inter-state
sales 1994 to 1998
4,123.47
The
Central
Excise Demand on account
of wrong a ailment Commissioner
April, 2005 to 176.88
Act,
1944 of Cenvat credit. September, 2011
Superintendent
(Audit) 2008 to 2009 18.04
Commissioner
Appeals 2008-09 11.28
206.20
Income
Tax Act,
1961 Demand on account
of disallowances Commissioner
of 2006 to 2009 3,454.73
of certain claims. Income Tax
Appeals
Appellate
Tribunal 2003 to 2004 86.13
3,540.86
We are informed that there are no dues in respect of Wealth Tax,
Customs Duty and Cess which have not been deposited on account of any
dispute.
xi. The Company does not have any accumulated losses as at the year
end and the Company has not incurred any cash losses during the current
and immediately preceding financial year.
xii. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks. The Company has not taken any loans from financial institutions
nor has it issued any debentures.
xiii. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
the way of pledge of shares, debentures and other securities.
Accordingly, the provisions of clause 4(xii) of the Order are not
applicable to the Company.
xiv. In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities and debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
xvii. In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short term basis have not been used during
the year for long- term investment.
xviii. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
xix. According to the information and explanations given to us, the
Company has not issued any debentures during the period covered by our
report. Accordingly, the provisions of clause (xix) of the Order are
not applicable to the Company.
xx. The Company has not raised any money by way of public issues
during the year.
xxi. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm Registration No. 015125N)
ALKA CHADHA
Mumbai Partner
26 April, 2012 (Membership No. 93474)
Mar 31, 2011
1. We have audited the attached Balance Sheet of Everest Industries
Limited ("the Company") as at 31 March, 2011, the Profit and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date, both 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.
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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the 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.
3. As required by the Companies (Auditors Report) Order, 2003 (CARO)
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
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 it appears from our examination of
those books;
c. the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) 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 give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March, 2011;
b) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of the written representations received from the
directors, as on 31 March, 2011 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March, 2011
from being appointed as a director in terms of Section 274 (1)(g) of
the Companies Act, 1956.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 3 of our report of even date)
i. Having regard to the nature of the Companys
business/activities/result, clause 4(xiii) of the Order is not
applicable.
ii. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
b. The fixed assets were physically verified during the previous year
by the Management in accordance with a regular programme of
verification which, in our opinion, provides for physical verification
of all the fixed assets at reasonable intervals. According to the
information and explanation given to us, no material discrepancies were
noticed on such verification.
c. The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
iii. In respect of its inventory:
a. As explained to us, the inventories except goods-in-transit were
physically verified during the year by the Management at reasonable
intervals.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iv. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
v. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
vi. Based on the examination of the books of account and related
records and according to the information and explanations provided to
us, there are no contracts or arrangements with companies, firms or
other parties which need to be listed in the register maintained under
Section 301 of the Companies Act, 1956.
vii. According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year.
viii. In our opinion, the Company has an adequate internal audit
system commensurate with the size and the nature of its business.
ix. According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records
Section 209 (1) (d) of the Companies Act, 1956 for the Company.
x. According to the information and explanations given to us in
respect of statutory dues:
a. The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income-tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities.
b. There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues in arrears as
at 31 March, 2011 for a period of more than six months from the date
they became payable.
c. Details of dues of Income-tax, Sales Tax, Excise Duty and Service
Tax which have not been deposited as on 31 March, 2011 on account of
disputes are given below:
Statute Nature of dues Forum where the
dispute is pending
Sales Tax Laws Demand on account
of non-collection Commissioner Appeals
of statutory forms
etc.
Appellate Tribunal
Demand on account
of stock transfers Madras High Court
being considered
as local sales
Demand on account
of stock transfers Appellate Tribunal
being considered as
inter-state sales
The Central
Excise Demand on account
of wrong Commissioner Appeals
Act, 1944 availment of Cenvat
credit
Income Tax
Act, 1961 Demand on accounts Commissioner Appeals
of disallowance
of certain claims
Appellate Tribunal
Statute Period to which Amount
the amount relates (Rs. / Lakhs)
Sales Tax Laws 1979 to 2004 578.77
1997 to 2003 283.18
1990 to 1991 486.59
1998 to 1999
1979 to 1980 2,827.78
1994 to 1998
4,176.32
The Central April, 2005 to 155.95
Excise September, 2006
Act, 1944
2006 to 2008 18.04
173.99
Income Tax
Act, 1961 2003 to 2004 86.13
174.76
We are informed that there are no dues in respect of Wealth Tax,
Customs Duty and Cess which have not been deposited on account of any
dispute.
xi. The Company does not have any accumulated losses as at the year end
and the Company has not incurred any cash losses during the current and
immediately preceding financial year.
xii. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks. The Company has not taken any loans from financial institutions
nor has it issued any debentures.
xiii. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
the way of pledge of shares, debentures and other securities.
Accordingly, the provisions of clause 4(xii) of the Order are not
applicable to the Company.
xiv. In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities and debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
xvii. In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short term basis have not been used during
the year for long- term investment.
xviii. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
xix. According to the information and explanations given to us, the
Company has not issued any debentures during the period covered by our
report. Accordingly, the provisions of clause (xix) of the Order are
not applicable to the Company.
xx. The Company has not raised any money by way of public issues
during the year.
xxi. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 015125N)
ALKA CHADHA
Partner
(Membership No. 93474)
MUMBAI, 29 April, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Everest Industries
Limited ("the Company") as at 31 March, 2010, the Profit and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date, both 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.
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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the 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.
3. As required by the Companies (Auditors Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 4
above, we report that:
(a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) in our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those;
(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) 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 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 31 March, 2010;
(ii) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of the written representations received from the
Directors as on 31 March, 2010 taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31 March, 2010 from being appointed as a director in terms of Section
274(1)(g) of the Companies Act, 1956.
ANNEXURE TO THE AUDITORSÃ REPORT
(Referred to in Paragraph 3 of our report of even date) (i) Having
regard to the nature of the Companys business/ activities/ result,
clauses 4(x), 4(xiii), 4(xiv), 4(xv) and 4(xix) of CARO are not
applicable. (ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) In respect of its inventory:
(a) As explained to us, the inventories except goods-in-transit, were
physically verified during the year by the Management at reasonable
intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iv) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
(v) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
(vi) Based on the examination of the books of account and related
records and according to the information and explanations provided to
us, there are no contracts or arrangements with companies, firms or
other parties which need to be listed in the register maintained under
Section 301 of the Companies Act, 1956.
(vii) According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year.
(viii) In our opinion, the Company has an adequate internal audit
system commensurate with the size and the nature of its business.
(ix) According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records under
clause
(d) of sub-section (1) of Section 209 of the Companies Act, 1956 for
the Company.
(x) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
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
applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of 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 in arrears as at 31
March, 2010 for a period of more than six months from the date they
became payable.
(c) Details of dues of Income-tax, Sales Tax, Excise Duty and Service
Tax as on 31 March, 2010 which have not been deposited on account of
various disputes are given below:
Statute Nature of dues Forum where the
dispute is pending
Central Sales Demand on account of non Commissioner Appeals
Tax Act and collection of statutory forms etc.
Local Sales Tax Appellate Tribunal
Acts
Demand on account of stock
transfers High Court
being considered as local sales
Demand on account of stock
transfers Appellate Tribunal
being considered as
inter-state sales
Income-Tax
Act, Demand on account of
disallowances Commissioner Appeals
1961 of certain claims
Appellate Tribunal
The Central Demand of duty under
Section 11D Commissioner Appeals
Excise Act,
1944 of the Central Excise
Act, 1944
Appellate Tribunal
Demand on account of wrong Commissioner Appeals
availment of Cenvat credit
Statue Period to which Amount
the amount relates (Rs./Lakhs)
Central Sales
Tax Act and
Local Sales Tax
Acts 1979-2003 398.63
1997-2003 325.78
1988-1999 526.77
1994 -1998 2,827.78
1979-1980
4,078.96
Income-Tax Act,
1961 2006-2007 316.89
2007-2008
2004-2005 337.47
654.36
The Central
Excise Act, 1944 1995-1997 1.94
1992-1996 2,462.40
April, 2005 to 134.02
September, 2006
2,598.36
We are informed that there are no dues in respect of Customs Duty,
Wealth Tax and Cess which have not been deposited on account of any
dispute.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks. The Company has not taken any loans from financial institutions
nor has it issued any debentures.
(xii) According to the information and explanations given to us, the
Company has not granted 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 to the
Company.
(xiii) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
(xiv) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the year for long- term investment.
(xv) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
(xvi) The Company has not raised any money by way of public issues
during the year.
(xvii) To the best of our knowledge and according to the information
and explanations given to us, no fraud by the Company and no fraud on
the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 015125N)
ALKA CHADHA
Mumbai Partner
24 April, 2010 (Membership No. 93474)
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