Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
1. We have audited the accompanying standalone Ind AS financial statements of FIEM INDUSTRIES LIMITED (âthe Companyâ), which comprises the Balance Sheet as at 31st MarcRs.2018, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and Cash Flow Statement and of the Company for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
2. The Companyâs Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 (âthe Actâ) 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, Statement of Changes in Equity and cash flows 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.
3. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent and design, implementation and maintenance of 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.
Auditorsâ Responsibility
4. 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 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 Standalone Ind AS financial statements are free from material misstatement.
5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Standalone Ind AS financial statements. The procedures selected depend on the auditorâs 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 Companyâs 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 management, as well as evaluating the overall presentation of the Standalone Ind AS financial statements.
6. 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.
Opinion
7. 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 Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st MarcRs.2018 and its profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Other Matters
8. The comparative financial information of the Company for the year ended 31st MarcRs.2017 and the transition date opening balance sheet as at 1st April 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by previous auditor M/s Anil S. Gupta And Associates and those reports for the year ended 31st MarcRs.2017 and 31st MarcRs.2016 dated 30th May 2017 and 30th May 2016 respectively, expressed an unmodified opinion on those standalone financial statements and have been restated to comply with Ind AS adjustments made to the previously issued said statutory financial information for the differences in the accounting principles adopted by the Company on transition to the Ind AS which have been audited by us.
Our opinion on the standalone Ind AS financial statements and our report on other legal and regulatory requirements below is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
9. 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- Aâ, a statement on the matters specified in the paragrapRs.3 and 4 of the Order, to the extent applicable.
10. 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 appears from our examination of those books.
c. the Balance Sheet, the statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and Cash Flow Statement and 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.
e. On the basis of written representations received from the directors as on 31 March, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 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 âAnnexure Bâ and
g. With respect to the other matters included in the Auditorâs 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 35(A) to the standalone Ind AS financial statements,
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts,
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The disclosures regarding details of specified bank notes held and transacted during 8 November 2016 to 30 December 2016 has not been made since the requirement does not pertain to financial year ended 31 MarcRs.2018.
1. a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) As explained to us, the company has a planned programme for physically verifying all fixed assets once in three years which in our opinion, is reasonable having regard to the size and nature of assets. During the year, the fixed assets have been physically verified by the management in accordance with the programme and no material discrepancies were identified on such verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the company, the title deeds of immovable properties are held in the name of the company except for freehold land situated in Ahmedabad, Gujarat, acquired during the previous year for RS.18.23 Lacs, wherein final registration is pending as disclosed in Note 2 on âProperty Plant and equipmentâ to the standalone Ind AS financial statements.
2. The inventories have been physically verified by the management at regular intervals during the year. In our opinion, the frequency of verification is reasonable and there were no material discrepancies noticed on physical verification of the inventory as compared to the book of accounts.
3. In our opinion and according to information and explanations given to us, during the year 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 Act. Accordingly, paragrapRs.3(iii) of the order is not applicable to the Company. However the company had advanced unsecured loan to a wholly owned foreign subsidiary amount to JPY 40.00 lacs in earlier years before applicability of Companies Act 2013,. The outstanding balance as on 31.03.18 for the same is RS.24.62 Lacs.
4. In our Opinion and as per information and explanation given to us, the company has complied the provisions of section 185, section 186 of the companies act 2013.
5. The company has not accepted any deposits from the public. Accordingly, paragrapRs.3(v) of the order is not applicable to the Company.
6. 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. However, no detailed examination of the same has been carried out by us.
7. a) According to the records of the company and also the information and explanations given to us, the company is generally regular in depositing with appropriate authorities all undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, Goods and Service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues applicable to it.
According to the information and explanations given to us, there are no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues as at the year end for a period of more than six months from the date they became payable.
b) According to the records of the Company, the dues outstanding of income tax, sales-tax, wealth tax, service tax, Goods and Service tax, duty of customs, duty of excise and cess on account of any dispute are as follows
(Rs. in Lacs)
S.No. |
Name of Statue |
Nature of Due |
Period to which it Pertains |
Amount Involved |
Amount Deposited |
Net Amount |
Forum where dispute is Pending |
1 |
The Central Excise Act, 1944 |
Custom Duty demand on sale of Moulds |
FY 2007-08 |
5787 |
1447 |
43 40 |
CESTAT, Chennai |
2 |
Haryana Value Added Tax 2003 |
Sales tax Assessment Dues |
FY 2010-11 |
23 75 |
3 75 |
20 00 |
Sales tax Tribunal |
3 |
Tamil Nadu VAT act 2006 |
Sales tax demand on reversal of input tax credit pertaining to CST Sales |
FY 2014-15 |
150 07 |
150 07 |
High court, Chennai |
|
4 |
Income Tax Act 1961 |
Disallowance of Loss on account of foreign exchange derivative contracts |
Assessment Years 2009-10, 2010-11, 2011-12, 2012-13, 2013-14 |
82727 |
See Note * |
82727 |
ITAT, New Delhi |
Total |
1058.96 |
18.22 |
1040.74 |
Note - No demand is outstanding as on the reporting date as the matter has been decided in favour of the company by the CIT (Appeal). However the issue has been challenged in ITAT by the income tax department.
8. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution or banks.
9. In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which they were raised. Further the company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year.
10. According to the information and explanations given to us, no material fraud on or by the company by its officers or employees has been noticed or reported during the course of our audit.
11. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragrapRs.3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act wherever applicable and details of such transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting standards.
14. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. However, the Company had raised the funds from the private placement during FY 16-17 for RS.11999.99 lacs. As informed to us by the management of the Company, the company has partially utilized the funds for the purpose received and pending utilization, the balance of RS.1730.18 lacs have been temporarily invested in Mutual Funds and RS.4.62 lacs are lying in the current account of the company.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, paragrapRs.3(xv) of the Order is not applicable to the Company.
16. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. Accordingly, paragrapRs.3(xvi) of the Order is not applicable to the company.
1. We have audited the internal financial controls over financial reporting of FIEM INDUSTRIES LIMITED (âthe Companyâ) as of MarcRs.31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
2. 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 (ICAI). 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 companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, to the extent applicable to an audit of internal financial controls, 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.
4. 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 Ind AS financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
6. 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 Ind AS 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 Ind AS 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 Ind AS financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
7. 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
8. 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 MarcRs.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.
For V. Sachdeva and Associates
Chartered Accountants
Firm Registration Number -004417N
Sd/-
V. Sachdev
Place: Rai, Sonepat (HR.) Proprietor
Dated May 30, 2018 Membership No - 083435
Mar 31, 2017
To The Members of FIEM INDUSTRIES LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of FIEM INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March 2017, the Statement of Profit and Loss, Cash Flow Statement of the Company for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and 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 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 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 31st March 2017 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, 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- A", a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.
c. the Balance Sheet, the 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.
e. On the basis of written representations received from the directors as on 31 March, 2017, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 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 âAnnexure B" and
g. With respect to the other matters 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 31(A) to the financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. 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 the financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. Based on audit procedures and relying on the management representation we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management.-Refer Note 54 to the financial Statements
Annexure-A to the Independent Auditors'' Report
The Annexure referred to in our Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended on 31.03.17, we report that:
1. a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) As explained to us, the company has a planned programme for physically verifying all fixed assets once in three years which in our opinion, is reasonable having regard to the size and nature of assets. During the year, the fixed assets have been physically verified by the management in accordance with the programme and no material discrepancies were identified on such verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the company, the title deeds of immovable properties are held in the name of the company except for freehold land situated in Ahmedabad, Gujarat, acquired during the previous year for H18,23,276, wherein final registration is pending as disclosed in Note11 on fixed assets to the financial statements.
2. The inventories have been physically verified by the management at regular intervals during the year. In our opinion, the frequency of verification is reasonable and there were no material discrepancies noticed on physical verification of the inventory as compared to the book of accounts.
3. In our opinion and according to information and explanations given to us, during the year 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 Act. However the company had advanced unsecured loan to a wholly owned foreign subsidiary amount to JPY 40,00,000 in earlier years before applicability of Companies Act 2013, Accordingly, paragraph 3(iii) of the order is not applicable to the Company. The outstanding balance as on 31.03.17 for the same is Rs. 23,18,400.
4. In our Opinion and as per information and explanation given to us , the company has complied the provisions of section 185, section 186 of the companies act 2013.
5. The company has not accepted any deposits from the public. Accordingly, paragraph 3(v) of the order is not applicable to the Company.
6. 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. However, no detailed examination of the same has been carried out by us.
7. a) According to the records of the company and also the information and explanations given to us, the company is generally regular in depositing with appropriate authorities all undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues applicable to it.
According to the information and explanations given to us, there are no undisputed amounts payable in respect of provident fund, employees'' state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues as at the yearend for a period of more than six months from the date they became payable.
b) According to the records of the Company, the dues outstanding of income tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise and cess on account of any dispute are as follows
S. No. |
Name of Statue |
Nature of Due |
Period to which it Pertains |
Amount Involved |
Amount deposited |
Net Amount |
Forum where dispute is Pending |
1 |
The Central Excise Act, 1944 |
Custom Duty demand on sale of Moulds |
Financial Year 2007-08 |
57,87,370 |
14,46,843 |
43,40,527 |
CESTAT, Chennai |
2 |
The Central Excise Act, 1944 |
Excise duty demand on sales tax subsidy received from Rajasthan Sales Tax, Department. |
November 2012 to September 2015 |
36,37,210 |
1,93,330 |
34,43,880 |
Commissioner Appeal, Jaipur |
3 |
The Central Excise Act, 1944 |
Disallowance of CENVAT Credit of Service Tax prior to registration under Excise and Service tax law in respect of Service Tax Period on Building construction related services and penalty thereon |
March 11 to August 2012 |
87,67,488 |
3,28,781 |
84,38,707 |
Commissioner Appeal, Jaipur |
4 |
Haryana Value Added Tax 2003 |
Sales tax Assessment Dues |
FY 2010-11 |
23,75,072 |
3,75,072 |
20,00,000 |
Sales tax Tribunal |
5 |
Tamil Nadu VAT Act 2006 |
Sales tax demand on reversal of input tax credit pertaining to CST Sales |
F.Y. 2014-15 |
1,50,07,022 |
1,50,07,022 |
High court, Chennai |
|
6 |
Income Tax Act 1961 |
Disallowance of Loss on account of foreign exchange derivative contracts |
Assessment Years 2011-12, 201213, 2013-14 |
7,27,53,359 |
See Note * |
7,27,53,359 |
ITAT, New Delhi |
Total |
10,83,27,521 |
23,44,026 |
10,59,83,495 |
Note:- No demand is outstanding as on the reporting date as the matter has been decided in favour of the company by the CIT( Appeal). However the issue has been challenged in ITAT by the income tax department.
8. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution or banks.
9. In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which they were raised. Further the company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year.
10. According to the information and explanations given to us, no material fraud on or by the company by its officers or employees has been noticed or reported during the course of our audit.
11. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act wherever applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14. According to the information and explanations given to us and as per our verification of records of the Company, the Company has issued shares to the Qualified Institutional Buyers on a private placement basis on September 20, 2016 and requirement of the section 42 of the Act have been complied with. The Company had raised the funds from the private placement for the purpose of future growth requirements, investments in joint ventures, expanding capacities in the existing plants, for setting-up new facilities and general corporate purposes. As informed to us by the management of the Company, the company has partially utilized the funds for the purpose received and pending utilization, the balance of Rs. 83,86,59,712 have been temporarily invested in Mutual Funds and Fixed deposits with Banks.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any noncash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company.
16. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the company.
Annexure-B to the Independent Auditors'' Report of even date on the Standalone Financial Statements of Fiem Industries Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of FIEM INDUSTRIES LIMITED ("the Company") as of March 31, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
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 (ICAI). 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 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.
Auditors'' Responsibility
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, to the extent applicable to an audit of internal financial controls, 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 judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls 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 authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s 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, 2017, 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 Anil S. Gupta & Associates
Chartered Accountants
Firm Registration Number 004061N
Sd/-
Anil Kumar Gupta
Place: Rai, Sonepat (HR.) Proprietor
Dated:May 30, 2017 Membership No.:- 083159
Mar 31, 2016
TO THE MEMBERS OF FIEM INDUSTRIES LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of FIEM INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March 2016, the Statement of Profit and Loss, Cash Flow Statement of the Company for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation 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 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 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 31st March 2016 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, 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- A", a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.
c. the Balance Sheet, the 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.
e. On the basis of written representations received from the directors as on 31 March, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2016, from being appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B" and
g. With respect to the other matters 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 29(A) to the financial statements
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in our Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended on 31.03.16, we report that:
1. a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) As explained to us, the company has a planned programme for physically verifying all fixed assets once in three years which in our opinion, is reasonable having regard to the size and nature of assets. During the year, the fixed assets have been physically verified by the management in accordance with the programme and no material discrepancies were identified on such verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the company, the title deeds of immovable properties are held in the name of the company except for freehold land situated in Ahmedabad, Gujarat, acquired during the year for '' 18,23,276, wherein final registration is pending as disclosed in Note11 on fixed assets to the financial statements.
2. The inventories have been physically verified by the management at regular intervals during the year. In our opinion, the frequency of verification is reasonable and there were no material discrepancies noticed on physical verification of the inventory as compared to the book of accounts.
3. In our opinion and according to information and explanations given to us, during the year 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 Act. However the company had advanced unsecured loan to a wholly owned foreign subsidiary amount to JPY 40,00,000 in earlier years before applicability of Companies Act 2013, Accordingly, paragraph 3(iii) of the order is not applicable to the Company. The outstanding balance as on 31.03.16 for the same is '' 23,62,400.
4. In our Opinion and as per information and explanation given to us , the company has complied the provision of section 185, section 186 of the companies act 2013.
5. The company has not accepted any deposits from the public. Accordingly, paragraph 3(v) of the order is not applicable to the Company.
6. 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. However, no detailed examination of the same has been carried out by us.
7. a) According to the records of the company and also the information and explanations given to us, the company is generally regular in depositing with appropriate authorities all undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cases and other material statutory dues applicable to it.
According to the information and explanations given to us, there are no undisputed amounts payable in respect of provident fund, employees'' state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cases and other material statutory dues as at the yearend for a period of more than six months from the date they became payable.
b) According to the records of the Company, the dues outstanding of income tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise and cases on account of any dispute are as follows
(Amount in Rs. )
S. No. |
Name of Statue |
Nature of Due |
Period to which it Pertains |
Amount Involved |
Amount Deposited |
Net Amount |
Forum where dispute is Pending |
1 |
The Central Excise Act, 1944 |
Modvat Credit of Excise Duty |
December 1996 to October 1997 |
25,07,076 |
50,000 |
24,57,076 |
CESTAT, New Delhi |
2 |
The Central Excise Act, 1944 |
Custom Duty on sale of Moulds |
Financial Year 2007-08 |
57,87,370 |
14,46,843 |
43,40,527 |
CESTAT, Chennai |
3 |
The Central Excise Act, 1944 |
Show cause notice (SCN) for excise duty on sales tax subsidy received from Rajasthan Sales Tax, Department. |
01/09/13 to 31/01/15 |
20,04,257 |
20,04,257 |
Additional Commissioner, Alwar |
|
4 |
The Central Excise Act, 1944 |
Disallowance of CENVAT Credit of Service Tax prior to registration under Excise and Service tax law in respect of Service Tax on Building construction related services and penalty thereon |
March 11 to August 2012 |
87,67,488 |
87,67,488 |
Company is in the process of filling appeal with Commissioner (Appeal) |
|
5 |
Haryana Value Added Tax 2003 |
Sales tax Assessment Dues |
F.Y. 2010-11 |
23,75,072 |
3,75,072 |
20,00,000 |
Sales tax Tribunal |
6 |
Tamil Nadu VAT act 2006 |
Sales tax demand on reversal of input tax credit pertaining to CST Sales |
FY 2013-14 & FY 2014-15 |
1,88,33,290 |
188,33,290 |
High court, Chennai |
(Amount in Rs.) |
|||||||
S. No. |
Name of Statue |
Nature of Due |
Period to which it Pertains |
Amount Involved |
Amount Deposited |
Net Amount |
Forum where dispute is Pending |
7 |
Rajasthan Vat Act |
Entry Tax |
FY 2010-11 to FY 2014-15 |
5,95,315 |
- |
5,95,315 |
Supreme Court of India |
8 |
Income Tax Act 1961 |
Disallowance of Loss on account of foreign exchange derivative contracts |
Assessment year 2011-12 and 2012-13 |
6,80,11,337 |
See Note |
6,80,11,337 |
ITAT, New Delhi |
9 |
Income Tax Act 1961 |
Disallowance of Loss on account of foreign exchange derivative contracts |
Assessment Year 2009-10, 2010-11, 2013-14 |
1,47,15,784 |
1,47,15,784 |
CIT (Appeal), New Delhi |
|
Total |
12,35,96,989 |
18,71,915 |
12,17,25,074 |
Note:- No demand is outstanding as on the reporting date as the matter has been decided in favour of the company by the CIT( Appeal). However the issue has been challenged in ITAT by the income tax department.
8. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution or banks.
9. In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which they were raised. Further the company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year.
10. According to the information and explanations given to us, no material fraud on or by the company by its officers or employees has been noticed or reported during the course of our audit.
11. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act wherever applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company.
16. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of FIEM INDUSTRIES LIMITED ("the Company") as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
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 (ICAI). 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 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.
Auditors'' Responsibility
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, to the extent applicable to an audit of internal financial controls, 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 judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls 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.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on 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 ANIL S. GUPTA & ASSOCIATES
Firm Registration Number 004061N
Chartered Accountants
Sd/-
(ANIL KUMAR GUPTA)
Place: Rai, Sonepat (HR.) Proprietor
Dated: May 30, 2016 Membership No.:- 83159
Mar 31, 2015
We have audited the accompanying standalone financial statements of
FIEM INDUSTRIES LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March 2015, the Statement of Profit and Loss, Cash
Flow Statement of the Company for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014 This responsibility also includes the
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding of the assets of the Company and
for preventing and detecting the 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 internal financial controls, that
were operating effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and presentation
of the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by 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 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 31st 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 of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a. we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. the Balance Sheet, the 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.
e. On the basis of 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 Section 164(2) of the Act and
f. With respect to the other matters 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 28(A) to
the financial statements.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses and
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended on 31.03.15, we report that:
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, the company has a planned programme for
physically verifying all fixed assets once in three years which in our
opinion, is reasonable having regard to the size and nature of assets.
During the year, the fixed assets have been physically verified by the
management in accordance with the programme and no material
discrepancies were identified on such verification.
2. a) The inventories have been physically verified by the management
at regular intervals during the year. In our opinion, the frequency of
verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company is maintaining proper records of inventory and there
were no material discrepancies noticed on physical verification of the
inventory as compared to the book records.
3. As informed, during the year, 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 Act.
However in respect of interest free loan given to a wholly owned
foreign subsidiary Fiem Industries japan Co. Ltd., in earlier years ,
the maximum amount outstanding at any time during the year is Rs
23,53,200 and the year-end balance is Rs 20,84,400.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
5. The company has not accepted any deposits from the public.
6. In our opinion and according to the information and explanations
given to us, the requirement for maintenance of cost records pursuant
to the Companies (Cost Records and Audit) Rules, 2014 specified by the
Central Government of India under Section 148 of the Companies Act,
2013 are not applicable to the Company for the year under audit.
7. a) According to the records of the company and also the information
and explanations given to us, the company is generally regular in
depositing with appropriate authorities all undisputed statutory dues
including provident fund, employees' state insurance, income tax, sales
tax, wealth tax, service tax, custom duty, excise duty, value added
tax, cess and other material statutory dues applicable to it.
According to the information and explanations given to us, there are no
undisputed amounts payable in respect of provident fund, employees'
state insurance, income tax, sales tax, wealth tax, service tax, custom
duty, excise duty, value added tax, cess and other material statutory
dues as at the year end for a period of more than six months from the
date they became payable.
b) According to the records of the Company, the dues outstanding of
income tax, sales-tax, wealth tax, service tax, customs duty, excise
duty and cess on account of any dispute are as follows:
(Amount in Rs.)
S. Name of Statue Nature of Due Period to which Amount
No. it Pertains Involved
1 The Central
Excise Modvat Credit December 1996 to 25,07,076
Act, 1944 Excise Duty to October 1997
2 The Central
Excise Custom Duty on Financial Year
2007-08 57,87,370
Act, 1944 sale of Moulds
3 The Central
Excise Act 1944 Modvat Credit April 2006 to
March 2008 21,69,700
Excise Duty
4 The Central
Excise Input service January 2011 to 1,22,423
Act, 1944 tax credit on
catering March 2011
services
5 The Central
Excise Input service September 2010 to 1,00,968
Act, 1944 tax credit on
employees March 2012
insurance
6 Haryana Value Sales tax
demand Financial year
2010-11 23,75,072
Added Tax 2003
7 Income Tax
Act 1961 Disallowance
of Loss Financial year
2010-11 6,17,45,248
on account of
foreign ex-
change deriva-
tive contracts
Total 7,48,07,857
Name of Statue Amount Net Amount Forum where
Deposited dispute is Pending
The Central Excise 50,000 24,57,076 CESTAT, New Delhi
Act,1944
The Central Excise 14,46,843 43,40,527 CESTAT, Chennai
Act,1944
The Central Excise 2,16,970 19,52,730 CESTAT, Chennai
Act, 1944
The Central Excise 12,242 1,10,181 CESTAT, Chennai
Act,1944
The Central Excise 10,097 90,871 CESTAT, Chennai
Act,1944
Haryana Value 3,75,072 20,00,000 Sales tax Tribunal
Added Tax 2003
Income Tax Act 1961 See Note 6,17,45,248 ITAT, New Delhi
Total 21,11,224 7,26,96,633
Note:- No demand is outstanding as on the reporting date as the matter
has been decided in favour of the company by the CIT( Appeal). However
the issue has been challenged in ITAT by the income tax department.
c) The amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act 1956 and rules made thereunder has been transferred to
such fund within time.
8. The company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
9. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or banks.
10. In our opinion and according to the information and explanations
given to us, no guarantees for loans taken by others from banks or
financial institutions have been given by the company.
11. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
12. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
for ANIL S. GUPTA & ASSOCIATES
Firm Registration Number 004061N
Chartered Accountants
Sd/-
(ANIL KUMAR GUPTA)
Place: Rai, Sonepat (HR.) Proprietor
Dated: 29/05/2015 Membership No.:- 83159
Mar 31, 2014
We have audited the accompanying financial statements of FIEM
INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March 2014, the Statement of Profit and Loss and Cash Flow
Statement of the Company 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 Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 ("the Act") read with
the General Circular 15/2013 dated 13th September 2013 of the Ministry
of Corporate Affairs in respect of section 133 of the Companies Act
2013 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
(ii) in the case of the Statement of Profit and Loss, of the profit for
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the balance sheet, statement of profit and loss and cash flow
statement dealt with by this Report are in agreement with the books of
account; and
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 read with
General circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act 2013.
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
The Annexure referred to in paragraph 1 of the Our Report of even date
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, the company has a planned programme for
physically verifying all fixed assets once in three years which in our
opinion, is reasonable having regard to the size and nature of assets.
During the year, the fixed assets have been physically verified by the
management in accordance with the programme and no material
discrepancies were identified on such verification.
c) During the year, the company has not disposed off any substantial
part of the fixed assets and the going concern status of the company is
not affected.
2. a) The inventories have been physically verified by the management
at regular intervals during the year. In our opinion, the frequency of
verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company is maintaining proper records of inventory and there
were no material discrepancies noticed on physical verification of the
inventory as compared to the book records.
3. In respect of loans, secured or unsecured granted or taken by the
company to / from companies, firms or other parties covered in the
register maintained under Sec. 301 the Companies Act 1956.
a) As informed, during the year the company has not given any secured
or unsecured loan to companies, firms or other parties covered in
register maintained under section 301 of companies act 1956. However in
respect of interest free loan given to a wholly owned foreign
subsidiary Fiem Industries japan Co. Ltd., in earlier years, the
maximum amount outstanding at any time during the year is Rs. 23,53,200
and the year-end balance is Rs. 23,53,200.
b) In our opinion and according to the information and explanation
given to us, the rate of interest wherever applicable and other terms
and conditions of the loans given by the company are not prima facie
prejudicial to the interest of the company.
c) The Company is regular in receipt of the principal amounts or
interest wherever stipulated.
d) As informed, during the year the company has taken unsecured Loan
from one party covered in register maintained under section 301 of the
Companies act 1956, the maximum amount of loan taken from such parties
outstanding during the year is Rs. 12,50,000 and year-end balance is
nil.
e) In our opinion, and according to the information and explanation
given to us, the rate of interest wherever applicable and other terms
and conditions of the loans taken by the company are not, prima facie,
prejudicial to the interest of the company.
f) The Company is regular in repaying the principal amounts or interest
wherever stipulated.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods & services. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal control system.
5. a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered
into the register maintained under section 301 of the Companies Act.
1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6. The company has not accepted any deposits from the public,
therefore, the provisions of Clause (vi) of paragraph 4 of the Order
are not applicable to the Company.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. 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 209(1) (d) of the companies
Act 1956 and are of opinion that prima facie, the prescribed accounts
and records have been maintained.
9. a) According to the records of the company & also the information &
explanations given to us, the company is generally regular in
depositing with
appropriate authorities all undisputed statutory dues including
provident fund, investor education and protection fund, employees''
state insurance, income tax, sales tax, wealth tax, service tax, custom
duty, excise duty, cess and other material statutory dues applicable to
it though there has been a slight delay in a few cases.
b) According to the information and explanations given to us, there are
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 as 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 outstanding of
income tax, sales-tax, wealth tax, service tax, customs duty, excise
duty and cess on account of any dispute are as follows:
S.Name of Statue Nature of Due Period to which Amount No.
it Pertains Involved
1 The Central Excise Modvat Credit of December 1996 to 25,07,076
Act,1944 Excise Duty October 1997
2 Income Tax Act 1961 Disallowance of Financial Year 6,28,66,893
Loss on account 2010-2011
of foreign exchange
derivative contracts
3 The Central Excise Custom Duty on Financial Year 57,87,370
Act, 1944 sale of Moulds 2007-08
Total 7,11,61,339
(Amount in Rs.)
S. Name of Statue Amount Net Amount Forum where dispute
No. Deposited is Pending
1 The Central Excise 50,000 24,57,076 CESTAT, New Delhi
Act, 1944
2 Income Tax Act 1961 Â 6,28,66,893 CIT (Appeal) New Delhi
3 The Central Excise Act, Â 6,28,66,893 CIT (Appeal) New Delhi
1944
Total 14,96,843 6,96,64,496
10. The company has no accumulated losses and has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or banks.
12. In our opinion and according to the information & explanations
given to us, no loans or advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order 2003 (as amended) are not
applicable to the company.
14. In our Opinion, the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order
2003 (as amended) are not applicable to the company.
15. In our opinion & according to the information & explanations given
to us, no guarantees for loans taken by others from banks or financial
institutions have been given by the company.
16. In our opinion & according to the information & explanations given
to us, the term loans have been applied for the purpose for which they
were raised.
17. According to the information and explanations given to us by the
Management and on an overall examination of the balance sheet of the
company, we are of opinion that there are no funds raised on short term
basis that have been used for long term investments.
18. The company has not made preferential allotment of shares to
parties and company covered in the register maintained under section
301 of the Act during the year. Therefore, the provisions of clause
4(xviii) of the Companies (Auditor''s Report) Order 2003 (as amended)
are not applicable to the company.
19. The company has not issued any debentures.
20. The company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
for ANIL S. GUPTA & ASSOCIATES
Firm Registration Number 004061N
Chartered Accountants
Sd/-
(ANIL KUMAR GUPTA)
Place: Rai, Sonepat (HR.) Proprietor
Dated: 28/05/2014 Membership No.:- 83159
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of FIEM
INDUSTRIES LIMITED Limited ("the Company"), which comprise the Balance
Sheet as at 31st March 2013, the Statement of Profit and Loss and Cash
Flow Statement of the Company for the year then ended and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2013;
(ii) in the case of the Statement of Profit and Loss, of the profit for
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the balance sheet, statement of profit and loss and cash flow
statement dealt with by this Report are in agreement with the books of
account; and
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956.
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITORS'' REPORT
The Annexure referred to in paragraph 1 of the Our Report of even date
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, the company has a planned programme for
physically verifying all fixed assets once in three years which in our
opinion, is reasonable having regard to the size and nature of assets.
During the year, the fixed assets have been physically verified by the
management in accordance with the programme and no material
discrepancies were identified on such verification.
c) During the year, the company has not disposed off any substantial
part of the fixed assets and the going concern status of the company is
not affected.
2. a) The inventories have been physically verified by the management
at regular intervals during the year. In our opinion, the frequency of
verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company is maintaining proper records of inventory and there
were no material discrepancies noticed on physical verification of the
inventory as compared to the book records.
3. In respect of loans, secured or unsecured granted or taken by the
company to / from companies, firms or other parties covered in the
register maintained under Sec. 301 the Companies Act 1956.
a) As informed, during the year the company has given unsecured
interest free loan of Rs 588,000 to a wholly owned foreign subsidiary
of the company. In respect said loans, the maximum amount outstanding
at any time during the year is Rs 2,460,900 and the year end balance is
Rs 2,310,400.
b) In our opinion and according to the information and explanation
given to us, the rate of interest wherever applicable and other terms
and conditions of the loans given by the company are not prima facie
prejudicial to the interest of the company
c) The Company is regular in receipt of the principal amounts or
interest wherever stipulated.
d) As informed, during the year the company has not taken any loans
secured or unsecured from companies, firms or other parties covered in
register maintained under section 301 of Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods & services. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal control system.
5. a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered
into the register maintained under section 301 of the Companies Act.
1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6. The company has not accepted any deposits from the public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. 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 209(1) (d) of the companies
Act 1956 and are of opinion that prima facie, the prescribed accounts
and records have been maintained.
9. a) According to the records of the company & also the information &
explanations given to us, the company is generally regular in
depositing with appropriate authorities all undisputed statutory dues
including provident fund, investor education and protection fund,
employees'' state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues
applicable to it though there has been a slight delay in a few cases.
b) According to the information and explanations given to us, there are
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 as 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 outstanding of
income tax, sales-tax, wealth tax, service tax, customs duty, excise
duty and cess on account of any dispute are as follows
Name of Statue Nature of Due Period to
which it
Pertains Amount in Rs Forum where
dispute is
Pending
The Central
Excise Act, 1944 Modvat Credit
of December
1996 to 2,507,076 CESTAT, New
Delhi
Excise Duty October
1997
Total 2,507,076
10. The company has no accumulated losses and has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or banks.
12. In our opinion and according to the information & explanations
given to us, no loans or advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order 2003 (as amended) are not
applicable to the company.
14. In our Opinion, the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order
2003 (as amended) are not applicable to the company.
15. In our opinion & according to the information & explanations given
to us, no guarantees for loans taken by others from banks or financial
institutions have been given by the company.
16. In our opinion & according to the information & explanations given
to us, the term loans have been applied for the purpose for which they
were raised.
17. According to the information and explanations given to us by the
Management and on an overall examination of the balance sheet of the
company, we are of opinion that there are no funds raised on short term
basis that have been used for long term investments.
18. The company has not made preferential allotment of shares to
parties and company covered in the register maintained under section
301 of the Act during the year. Therefore, the provisions of clause
4(xviii) of the Companies (Auditor''s Report) Order 2003 (as amended)
are not applicable to the company.
19. The company has not issued any debentures.
20. The company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
for ANIL S. GUPTA & ASSOCIATES
Firm Registration Number 004061N
Chartered Accountants
Sd/-
(ANIL KUMAR GUPTA)
Place: Rai, Sonepat (HR.) Proprietor
Dated: 30/05/2013 Membership No.:- 83159
Mar 31, 2012
1. We have audited the attached Balance Sheet of FIEM INDUSTRIES
LIMITED ("the Company") as at 31st March 2012, the Statement of Profit
and Loss and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of sub
section (4A) of section 227 of the Companies Act, 1956, we enclose in
Annexure here to a statement on the matters specified in paragraph 4
and 5 of the said order.
4. Further to our Comments in the Annexure referred to in Paragraph 3
above we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(b) In our opinion, proper books of accounts as required by law have
been kept by the company so far, as appears from our examination of the
books.
(c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts.
(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and Cash flow statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Sec. 211 of the
Companies Act, 1956,
(e) On the basis of written representations received from directors, as
on 31st March 2012 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31st,
2012 from being appointed as director in items of clause (g) of Sub
section (I) of Section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the
Significant Accounting Policies and Notes thereon give the information
required by the Companies Act, I956 in the manner so required and give
true and fair view in conformity with the accounting principles
generally accepted in India: -
i) In case of the Balance Sheet, of the state of affairs of the Company
as at 31st March 2012.
ii) In case of the Statement of Profit and Loss, of the Profit for the
year ended on that date; and
iii) In the case of Cash Flow Statement, of the Cash flows of the
company for the year ended on that date.
ANNEXURE TO AUDITORS' REPORT
(Referred to in Paragraph 3 of our Report of even date)
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, the company has a planned programme for
physically verifying all fixed assets once in three years which in our
opinion, is reasonable having regard to the size and nature of assets.
During the year, the fixed assets have been physically verified by the
management in accordance with the programme and no material
discrepancies were identified on such verification.
c) During the year, the company has not disposed off any substantial
part of the fixed assets and the going concern status of the company is
not affected.
2. a) The inventories have been physically verified by the management
at regular intervals during the year. In our opinion, the frequency of
verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company is maintaining proper records of inventory and there
were no material discrepancies noticed on physical verification of the
inventory as compared to the book records.
3. In respect of loans, secured or unsecured granted or taken by the
company to / from companies, firms or other parties covered in the
register maintained under Sec. 301 the Companies Act 1956.
a) As informed, during the year the company has not granted any loans
secured or unsecured to companies, firms or other parties covered in
the register maintained under section 301 of the Companies Act 1956.
However in respect of interest free loan given to 100% foreign
subsidiary - Fiem industries Japan Co., Ltd. The maximum amount
outstanding at any time during the year is Rs 18,72,900 and year end
balance is Rs 18,72,900.
b) In our opinion and according to the information and explanation
given to us, the rate of interest wherever applicable and other terms
and conditions of the loans given by the company are not prima facie
prejudicial to the interest of the company
c) The Company is regular in receipt of the principal amounts or
interest wherever stipulated.
d) As informed, the company has taken unsecured loan during the year
from one party covered in register maintained under section 301 of
Companies Act, 1956. The maximum amount of loan taken from such party
outstanding at any time during the year was Rs 1,83,64,500 and the year
end balance was Nil.
e) In our opinion, and according to the information and explanation
given to us, the rate of interest wherever applicable and other terms
and conditions of the loans taken by the company are not, prima facie,
prejudicial to the interest of the company.
f) The Company is regular in repaying the principal amounts or interest
wherever stipulated.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods & services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
5. a) According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements that
need to be entered into the register maintained under section 301 of
the Companies Act. 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6. The company has not accepted any deposits from the public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. 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 209(1) (d) of the companies
Act 1956 and are of opinion that prima facie, the prescribed accounts
and records have been maintained.
9. a) According to the records of the company & also the information &
explanations given to us, the company is generally regular in
depositing with appropriate authorities all undisputed statutory dues
including provident fund, investor education and protection fund,
employees' state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues
applicable to it though there has been a slight delay in a few cases.
b) According to the information and explanations given to us, there are
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 as 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 outstanding of
income tax, sales-tax, wealth tax, service tax, customs duty, excise
duty and cess on account of any dispute are as follows
Name of Statue Nature of Due Period to which it Pertains Amount in Rs
Forum where dispute is Pending
The Central Modvat Credit December 1996 to 25,07,076 CESTAT,
Excise Act, of Excise Duty October l997 New Delhi
1944
The Central Input Credit of 2006-07 to 2010-11 13,13,248 CESTAT,
Excise Act, Service tax on Chennai
1944 Outdoor
Catering
Total 38,20,324
10. The company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or banks.
12. In our opinion and according to the information & explanations
given to us, no loans or advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order 2003 (as amended) are not
applicable to the company.
14. In our Opinion, the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order
2003 (as amended) are not applicable to the company.
15. In our opinion & according to the information & explanations given
to us, no guarantees for loans taken by others from banks or financial
institutions have been given by the company.
16. In our opinion & according to the information & explanations given
to us, the term loans have been applied for the purpose for which they
were raised, though the term loan pending utilization have been
invested in Fixed deposit with banks. The maximum amount of funds
invested during the year was Rs 4,25,00,000 of which Rs 3,75,07,640 was
outstanding at the end of the year.
17. According to the information and explanations given to us by the
Management and on an overall examination of the balance sheet of the
company, we are of opinion that there are no funds raised on short term
basis that have been used for long term investments.
18. The company has not made preferential allotment of shares to
parties and company covered in the register maintained under section
301 of the Act during the year. Therefore, the provisions of clause
4(xviii) of the Companies (Auditor's Report) Order 2003 (as amended)
are not applicable to the company.
19. The company has not issued any debentures.
20. The company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
for ANIL S. GUPTA & ASSOCIATES
Firm Registration Number 00406IN
Chartered Accountants
Sd/-
Place : Rai, Sonepat, (HR.) (ANIL KUMAR GUPTA)
Dated : 18.08.2012 Proprietor
Membership No.:- 83159
Mar 31, 2011
1. We have audited the attached Balance Sheet of FIEM INDUSTRIES
LIMITED ("the Company") as at 31st March 2011, and the Profit & Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of sub
section (4A) of section 227 of the Companies Act, 1956, we enclose in
Annexure here to a statement on the matters specified in paragraph 4
and 5 of the said order.
4. Further to our Comments in the Annexure referred to in Paragraph 3
above we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(b) In our opinion, proper books of accounts as required by law have
been kept by the company so far, as appears from our examination of the
books.
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
(d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
flow statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Sec. 211 of the Companies
Act, 1956,
(e) On the basis of written representations received from directors, as
on 31st March 2011 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31st,
2011 from being appointed as director in items of clause (g) of Sub
section (1) of Section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the
Significant Accounting Policies and Other notes thereon give the
information required by the Companies Act, 1956 in the manner so
required and give true and fair view in conformity with the accounting
principles generally accepted in India: -
i) In case of the Balance Sheet, of the state of affairs of the Company
as at 31st March 2011.
ii) In case of the Profit and Loss Account, of the Profit for the year
ended on that date; and
iii) In the case of Cash Flow Statement, of the Cash flows of the
company for the year ended on that date.
ANNEXURE TO AUDITORS' REPORT
(Referred to in Paragraph 3 of our Report of even date)
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, the company has a planned programme for
physically verifying all fixed assets once in three years which in our
opinion, is reasonable having regard to the size and nature of assets.
During the year, the fixed assets have been physically verified by the
management in accordance with the programme and no material
discrepancies were identified on such verification.
c) During the year, the company has not disposed off any substantial
part of the fixed assets and the going concern status of the company is
not affected.
2. a) The inventories have been physically verified by the management
at regular intervals during the year. In our opinion, the frequency of
verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company is maintaining proper records of inventory and there
were no material discrepancies noticed on physical verification of the
inventory as compared to the book records.
3. In respect of loans, secured or unsecured granted or taken by the
company to / from companies, firms or other parties covered in the
register maintained under Sec. 301 the Companies Act 1956.
a) As informed, during the year the company has given unsecured
interest free loan of Rs 13,74,000/- to a wholly owned foreign
subsidiary of the company. In respect of said loans, the maximum amount
outstanding at any time during the year is Rs 16,20,600/- and the year
end balance is Rs 16,20,600/-.
b) In our opinion and according to the information and explanation
given to us, the rate of interest wherever applicable and other terms
and conditions of the loans given by the company are not prima facie
prejudicial to the interest of the company
c) The principal amount is repayable on demand and there is no
repayment schedule.
d) In respect of said loans, the same are repayable on demand and
therefore the question of overdue amount does not arise. In respect of
interest, there are no overdue amounts.
e) As informed, the company has taken unsecured loan during the year
from one party covered in register maintained under section 301 of
Companies Act, 1956. The maximum amount of loan taken from such party
outstanding at any time during the year was Rs 166.08 lacs and the year
end balance was Nil.
f) In our opinion, and according to the information and explanation
given to us, the rate of interest wherever applicable and other terms
and conditions of the loans taken by the company are not, prima facie,
prejudicial to the interest of the company.
g) The Company is regular in repaying the principal amounts or interest
wherever stipulated.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods & services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
5. a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act. 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6. The company has not accepted any deposits from the public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. 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 209(1) (d) of the companies
Act 1956 and are of opinion that prima facie, the prescribed accounts
and records have been maintained.
9. a) According to the records of the company & also the information &
explanations given to us, the company is generally regular in
depositing with appropriate authorities all undisputed statutory dues
including provident fund, investor education and protection fund,
employees' state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues
applicable to it though there has been a slight delay in a few cases.
b) According to the information and explanations given to us, there are
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 as 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 outstanding of
income tax, sales-tax, wealth tax, service tax, customs duty, excise
duty and cess on account of any dispute are as follows
Name of Statue Nature of Due Period to
which it
Pertains Amount in Rs Forum where
dispute is
Pending
The Central
Excise Modvat
Credit of December
1996 to 25,07,076 CESTAT,
New Delhi
Act, 1944 Excise Duty October 1997
Total 25,07,076
10. The company has no accumulated losses and has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or banks.
12. In our opinion and according to the information & explanations
given to us, no loans or advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order 2003 (as amended) are not
applicable to the company.
14. In our Opinion, the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order
2003 (as amended) are not applicable to the company.
15. In our opinion & according to the information & explanations given
to us, no guarantees for loans taken by others from banks or financial
institutions have been given by the company.
16. In our opinion & according to the information & explanations given
to us, the term loans have been applied for the purpose for which they
were raised.
17. According to the information and explanations given to us by the
Management and on an overall examination of the balance sheet of the
company, we are of opinion that there are no funds raised on short term
basis that have been used for long term investments.
18. The company has not made preferential allotment of shares to
parties and company covered in the register maintained under section
301 of the Act during the year. Therefore, the provisions of clause
4(xviii) of the Companies (Auditor's Report) Order 2003 (as amended)
are not applicable to the company.
19. The company has not issued any debentures.
20. The company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
for ANIL S. GUPTA & ASSOCIATES
Firm Registration Number 004061N
Chartered Accountants
Sd/-
Place : Rai, Sonepat (HR.) (ANIL KUMAR GUPTA)
Dated : 19.08.2011 Proprietor
Membership No.:- 83159
Mar 31, 2010
1. We have audited the attached Balance Sheet of FIEM INDUSTRIES
LIMITED ("the Company") as at 31st March 2010, and the Profit & Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of sub
section (4A) of section 227 of the Companies Act, 1956, we enclose in
Annexure here to a statement on the matters specified in paragraph 4
and 5 of the said order.
4. Further to our Comments in the Annexure referred to in Paragraph 3
above we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(b) In our opinion, proper books of accounts as required by law have
been kept by the company so far, as appears from our examination of the
books.
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
(d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
flow statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Sec. 211 of the Companies
Act, 1956,
(e) On the basis of written representations received from directors, as
on 31st March 2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31st,
2010 from being appointed as director in items of clause (g) of Sub
section (1) of Section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the
Significant Accounting Policies and Other notes thereon give the
information required by the Companies Act, 1956 in the manner so
required and give true and fair view in conformity with the accounting
principles generally accepted in India: -
i) In case of the Balance Sheet, of the state of affairs of the Company
as at 31st March 2010.
ii) In case of the Profit and Loss Account, of the Profit for the year
ended on that date; and
iii) In the case of Cash Flow Statement, of the Cash flows of the
company for the year ended on that date.
ANNEXURE TO AUDITORS REPORT
(Referred to in Paragraph 3 of our Report of even date)
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, the company has a planned programme for
physically verifying all fixed assets once in three years which in our
opinion, is reasonable having regard to the size and nature of assets.
During the year, the fixed assets have been physically verified by the
management in accordance with the programme and no material
discrepancies were identified on such verification.
c) During the year, the company has not disposed off any substantial
part of the fixed assets and the going concern status of the company is
not affected.
2. a) The inventories have been physically verified by the management
at regular intervals during the year. In our opinion, the frequency of
verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company is maintaining proper records of inventory and there
were no material discrepancies noticed on physical verification of the
inventory as compared to the book records.
3. In respect of loans, secured or unsecured granted or taken by the
company to / from companies, firms or other parties covered in the
register maintained under Sec. 301 the Companies Act 1956.
a) As informed, the company has given unsecured interest free loan of
Rs 2.62 lacs to a wholly owned foreign subsidiary of the company. In
respect of said loans, the maximum amount outstanding at any time
during the year is Rs 2.62 lacs and the year end balance is Rs 2.42
lacs.
b) In our opinion and according to the information and explanation
given to us, the rate of interest wherever applicable and other terms
and conditions of the loans given by the company are not prima facie
prejudicial to the interest of the company.
c) The principal amount is repayable on demand and there is no
repayment schedule.
d) In respect of said loans, the same are repayable on demand and
therefore the question of overdue amount does not arise. In respect of
interest, there are no overdue amounts.
e) As informed, the company has taken unsecured loan during the year
from Tw o Parties covered in register maintained under section 301 of
Companies Act, 1956. The maximum amount of loan taken from such parties
outstanding at any time during the year was Rs 163.04 lacs and the year
end balance was Nil.
f) In our opinion, and according to the information and explanation
given to us, the rate of interest wherever applicable and other terms
and conditions of the loans taken by the company are not, prima facie,
prejudicial to the interest of the company.
g) The Company is regular in repaying the principal amounts or interest
wherever stipulated.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods & services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
5. a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to
be entered into the register maintained under section 301 of the
Companies Act. 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6. The company has not accepted any deposits from the public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. 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 209(1) (d) of the companies
Act 1956 and are of opinion that prima facie, the prescribed accounts
and records have been maintained.
9. a) According to the records of the company & also the information &
explanations given to us, the company is generally regular in
depositing with
appropriate authorities all undisputed statutory dues including
provident fund, investor education and protection fund, employees
state insurance, income tax, sales tax, wealth tax, service tax, custom
duty, excise duty, cess and other material statutory dues applicable to
it though there has been a slight delay in a few cases.
b) According to the information and explanations given to us, there are
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 as 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 outstanding of
income tax, sales-tax, wealth tax, service tax, customs duty, excise
duty and
cess on account of any dispute are as follows:
Name of Statue Nature of Due Period to which
it Pertains Amount
in Rs
Forum where
dispute is
Pending
The Central
Excise Modvat Credit
of December 1996
to 25,07,076 CESTAT,
New
Act, 1944 Excise Duty October 1997 Delhi
Income tax Act Income Tax
demand on
various AY 2006-07 4,77,395 CIT
(Appeals),
New Delhi
1961 Disallowances
Total 29,84,471
10. The company has no accumulated losses and has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or banks.
12. In our opinion and according to the information & explanations
given to us, no loans or advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order 2003 (as amended) are not
applicable to the company.
14. In our Opinion, the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order
2003 (as amended) are not applicable to the company.
15. In our opinion & according to the information & explanations given
to us, no guarantees for loans taken by others from banks or financial
institutions have been given by the company.
16. In our opinion & according to the information & explanations given
to us, the term loans have been applied for the purpose for which they
were raised.
17. According to the information and explanations given to us by the
Management and on an overall examination of the balance sheet of the
company, we are of opinion that there are no funds raised on short term
basis that have been used for long term investments.
18. The company has not made preferential allotment of shares to
parties and company covered in the register maintained under section
301 of the Act during the year. Therefore, the provisions of clause
4(xviii) of the Companies (Auditors Report) Order 2003 (as amended)
are not applicable to the company.
19. The company has not issued any debentures.
20. The company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
for ANIL S. GUPTA & ASSOCIATES
Firm Registration Number 004061N
Chartered Accountants
Sd/-
Place: New Delhi (ANIL KUMAR GUPTA)
Dated: 16.08.2010 Proprietor
Membership No.:- 83159
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