Mar 31, 2015
We have audited the accompanying financial statements of Foundry Fuel
Products Limited ("the Company"), which comprise the Balance Sheet as
at 31stMarch, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information (together
referred to as financial statements).
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
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 the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments; the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted inIndia, of the state of affairs of the Company as
at 31stMarch, 2015, and itsloss and its cash flows for the year ended
on that date.
Emphasis of matter
We draw attention to the following matters in the notes to the
financial statement:
a) Note 25 to the financial statements in respect of the Company's
business which was dependent on the commencement of mining operation by
its holding company. In view of the Hon'ble Supreme Court's order
cancelling coal block allocations of various companies including the
holding company, the Company is planning to initiate the process of
searching another project. Further, in the opinion of the management,
fixed assets are sufficiently and substantially depreciated / amortized
and hence no adjustment would be required to its carrying value. For
the purpose of payment to the trade liabilities, Company will be able
get sufficient funds from holding company. Considering the same,
accounts are prepared on going concern basis.
b) Note 27 to the financial statementsregarding pending appointment of
Chief financial officer and Company secretary (key managerial
personnel) as required by Section 203 of the Companies Act, 2013.Also
the Company is in process of appointing woman director in accordance
with Section 149 of the Companies Act, 2013.
Our opinion is not modified in respect of above matters.
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 paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of ourknowledge 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 faras it appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts)Rules, 2014;
e) The going concern matter described in Emphasis of Matter paragraph
above, in our opinion, may have an adverse effect on the functioning of
the Company.
f) On the basis of the written representations received from the
directors as on 31stMarch, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31stMarch, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act;
g) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of ourinformation and
according to the explanations given to us:
i. The Company does not have any pending litigations which would
impact his financial position;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There were no amounts which were required to be transferred to
theInvestor Education and Protection Fund by the Company.
Annexure to Independent Auditor's Report for the year ended 31st March
2015
[Referred to in paragraph 1under the heading "Report on other legal and
regulatory requirements" of our report of even date]
(i) In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) Fixed assets have been physically verified during the year by the
management. In our opinion, the frequency of physical verification is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies were noticed on such
verification.
(ii) The Company does not hold any inventory. Therefore, clause (ii)
(a), (b) and (c) of paragraph 4 of the Order relating to inventory is
not applicable.
(iii) According to the information and explanations given to us, 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. Therefore, the requirement of clause (iii)(a) and
(iii)(b) of paragraph 3 of the Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business. During the
year, activities of the Company did not involve purchase of inventory,
purchase of fixed assets, the sale of goods and sale of services.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in aforesaid internal control system.
(v) In our opinion and according to the explanations given to us, the
Company has not accepted any deposits. Therefore, question of reporting
compliance with directives issued by the Reserve Bank of India and the
provisions of sections 73 to 76 or any other relevant provisions of the
Act and rules framed there under does not arise. We are informed that no
order relating to the Company has been passed by the Company law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other Tribunal.
(vi) As informed to us, the Central Government has prescribed the
maintenance of cost records under Section 148 (1) of the Companies Act,
2013 in respect of coke manufacturing. However, there was no production
of coke during the year and hence no cost records have been maintained
and hence question of our comment on maintenance of these records does
not arise.
(vii) In respect of statutory dues:
(a) According to the information and explanations given to us and on
the basis of our examination of records of the Company, in respect of
amounts deducted / accrued in the books of account, the Company has
been generally regular in depositing undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service tax, Duty of Customs, Duty of Excise, Value
Added Tax, Cess and any other statutory dues, as applicable to the
Company, during the year with the appropriate authoritiesexcept few
delays in payment of Tax Deducted at Source. There are no undisputed
statutory dues payable in respect to above statues, outstanding as at
31st March 2015 for a period of more than six months from the date they
became payable.
(b) According to information and explanations given to us, there is no
disputed dues of Income Tax, Sales-tax, Wealth Tax, Service Tax, Duty
of Customs, Duty of Excise, Value Added Tax, and Cess as on 31st March,
2015 which have not been deposited on account of any dispute.
(c) According to the information and explanations given to us, there
were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
(viii) The Company's accumulated losses as at the year-end is more than
50% of its net worth. The Company has incurred cash loss of Rs.
4,787,701during the current financial year. The Company had not
incurred cash loss in the immediately preceding financial year.
(ix) The Company has neither taken any loan from financial institution
/ bank nor issued any debentures. Accordingly clause (ix) of paragraph
3 the Order is not applicable to the Company.
(x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions. Accordingly clause (x) of
paragraph 3 of the Order is not applicable to the Company.
(xi) According to the information and explanations given to us, no term
loans were raised during the year by the Company and therefore the
question of utilization for stated purpose does not arise.
(xii) During the course of our examination of the books of account and
records of the Company, carried out in accordance with generally
accepted auditing practices in India and according to the information
and explanations given to us, we have neither come across any incidence
of fraud on or by the Company noticed or reported during the year, nor
have we been informed of any such case by the management.
For N.A. Shah Associates
Chartered Accountants
Firm's registration number : 116560W
Sd/-
Sandeep Shah
Partner
Membership number : 037381
Place : Mumbai
Date : 30th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Foundry Fuel
Products Limited (''the Company''), which comprise the Balance Sheet as
at 31st March 2014 and the Statement of Profit and Loss for the year
then ended and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with General Circular 15/2013 dated 13th September 2013 of
the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of 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 3 F March 2014; (ii) in the case of the Statement of
Profit and Loss, of the loss 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.
Emphasis of matter
Reference is invited to note 28 of financial statements. Company''s
business is dependent on the commencement of mining operation by its
holding company which currently is uncertain. We are informed that
Company will take up another project in case the holding company is not
able to start its operation. Further the fixed assets are sufficiently
and substantially depreciated / amortized and hence no adjustment would
be required to its carrying value. Company''s current assets are
sufficient to repay its current liabilities. Considering the same,
accounts are prepared on going concern basis. Our opinion is not
qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by sub-section 3 of Section 227 of the Act, we report
that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
Accounting Standards notified under the Act read with General Circular
15/2013 dated 13* September 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act, 2013; and
e. on the basis of the written representations received from the
directors as on 31st March 2014 and taken on record by the Board of
Directors, none of the directors are disqualified as on 31st March
2014, from being appointed as a director in terms of clause (g) of sub-
section (1) of Section 274 of the Act.
ANNEXURE TO THE AUDITOR''S REPORT
The Annexure referred to in our Report to the members of Foundry Fuel
Products Limited (''the Company'') for the year ended 31st March 2014. We
report that:
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets of the Company are to be physically verified by
the management every year, which in our opinion is reasonable having
regard to the size of the Company and the nature of its assets.
Pursuant to the programme, fixed assets have been physically verified
by the management during the year and no discrepancies were noticed on
such verification.
(c) During the year, the Company has not disposed off any fixed assets.
Therefore clause (i) (c) of paragraph 4 of the Order relating to fixed
asset is not applicable.
ii. The Company does not hold any inventory. Therefore, clause (ii)
(a), (b) and (c) of paragraph 4 of the Order relating to inventory is
not applicable.
iii. a. According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms, or parties covered in the register maintained under Section 301
of the Companies Act, 1956. Accordingly, clause (iii) (b), (iii) (c)
and (iii)
(d) of paragraph 4 of the said Order are not applicable.
b. According to the information and explanations given to us, the
Company has taken unsecured loans from companies covered in the
register maintained under section 301 of the Companies Act, 1956. The
details of which are as follows:
(Amount in Rs.)
Nature of No. of Opening Amount
relationship parties balance taken
Company having 2 350,000 2,440,000
common directors
Nature of Amount Closing Maximum
relation ship repaid balance Outstanding Balance
Company having 2,550,000 240,000 2,440,000
Common directors
Other than above, the Company has not taken loan from other parties as
listed in the register maintained under section 301 of the Companies
Act, 1956.
c. As per the information and explanations given, loans taken are
interest free and terms for repayment have not been specified in
writing. Considering the same, loans taken are not prima facie
prejudicial to the interest of the Company.
d. According to the information and explanations given to us, the
loans are interest free and do not have any terms and conditions
regarding repayment of principal. In absence of repayment terms,
principal amount is considered as repayable on demand. As informed to
us, principal amounts have been repaid as and when demanded.
Considering the same, Company is regular in repayment of principal.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business for the
purchase of fixed assets. There are no transactions entered during the
year for purchase of inventory and for the sale of goods and services.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in aforesaid internal control system.
v. In our opinion and according to the information and explanations
given to us, there are no transactions pertaining to contracts or
arrangements that need to be entered into a register in pursuance of
Section 301 of the Act. Therefore, clause (v) (b) of paragraph 4 of
the Order is not applicable regarding our comment on whether prices are
reasonable having regard to the prevailing market prices at the
relevant time.
vi. In our opinion and according to the information and explanation
given to us the Company has not accepted any deposits from the public
within the meaning of Sections 58A and 58AA of the Act and the rules
framed there under. We are informed that no order relating to Company
has been passed by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal.
vii. The Company has an internal audit system commensurate with its
size and nature of its business.
viii. As informed to us, the Central Government has prescribed the
maintenance of cost records under Section 209(l)(d) of the Companies
Act, 1956 in respect of coke manufacturing. However, there was no
production of coke during the year and hence no cost records have been
maintained and hence question of our comment on maintenance of these
records does not arise.
ix. (a) According to the information and explanations given to us and
on the basis of our examination of records of the Company, in respect
of amounts deducted / accrued in the books of accounts, the Company has
been generally regular in depositing undisputed statutory dues
including provident fund, investor education and protection fund,
employees'' state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and any other material statutory
dues as applicable to the Company, during the year with the appropriate
authorities. There are no undisputed statutory dues payable in respect
to above statutes, outstanding as at 31st March 2014 for a period of
more than six months from the date they became payable.
(b) According to the records of the Company and information and
explanations given to us, there are no dues of income tax, sales tax,
service tax, customs duty, wealth tax, excise duty and cess which have
not been deposited with appropriate authorities on account of any
dispute.
x. The Company s accumulated losses as at the year-end is more than
50% of its net worth.
The Company has not incurred cash loss during the current financial
year. The Company had incurred cash loss ofRs. 3,281,093 in the
immediately preceding financial year.
xi. The Company has neither taken any loan from financial institution
/ bank nor issued any debentures. Therefore clause (xi) of paragraph 4
of the Order is not applicable.
xii. According to information and explanation given to us, the Company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities. Therefore, clause
(xii) of the paragraph 4 of the Order relating to maintenance of
documents and records is not applicable.
xiii. In our opinion, the company is not a chit fund or a Nidhi /
mutual benefit fund/society. Therefore, clause (xiii) of paragraph 4
the Order is not applicable.
xiv. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Therefore, the clause (xiv) of paragraph 4 of the
Order is not applicable to the Company. All the investments are held in
Company''s name except as per the exemption given under section 49 of
the Act.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions. Accordingly, the
provisions of clause (xv) of Paragraph 4 of the Companies (Auditor''s
Report) Order, 2003 are not applicable to the Company
xvi. The company has not raised any term loans. Therefore, provisions
of Clause 4(xvi) of the Order are not applicable to the Company.
xvii. In our opinion and according to the information and explanations
given to us and on an overall examination of the balance sheet of the
Company, we report that funds raised on short-term basis have not been
used for long-term investment by the Company.
xviii. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
xix. The Company has neither issued nor has outstanding debentures and
therefore, clause (xix) of para 4 of the order regarding creation of
securities or charge is not applicable.
xx. The Company has not raised any money by way of public issues.
xxi. During the course of our examination of the books of account and
records of the Company, carried out in accordance with generally
accepted auditing practices in India and according to the information
and explanations given to us, we have neither come across any incidence
of fraud on or by the Company noticed or reported during the year, nor
have we been informed of any such case by the management.
For N. A. Shah Associates
Chartered Accountants
Firm Registration No. 116560W
sd/-
Sandeep Shah
Place: Mumbai Partner
Date : 30th May, 2014 Membership No. 37381
Mar 31, 2013
Report on Financial Statements
We have audited the accompanying financial statements of Foundry Fuel
Products Limited (the ''Company''), which comprise the Balance Sheet as
at 31 March 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of 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 main- tenance 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 require- ments and plan and perform the audit to obtain
reasonable assurance about whether the finan- cial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclo- sures in the financial statements. The
procedures selected depend on the auditor''s judgment, includ- ing 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 31 March 2013; (ii) in the case of the Statement of
Profit and Loss, of the loss 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.
Other matters
st The financial statements of the Company as on 31 March, 2012 were
audited by another auditor whose report dated 2 July 2012 expressed an
unmodified opinion. We have relied on the said financial statement for
the purpose of confirming the opening balances of assets and
liabilities as on 1 April, 2012 in respect of the year under audit.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by sub-section 3 of Section 227 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 Com- pany so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956; and
st
e. on the basis of written representations received from the directors
as on 31 March
2013, and taken on record by the Board of Directors, none of the
directors is disqualified as on 31 March 2013, from being appointed as
a director in terms of clause (g) of sub- section (1) of section 274 of
the Companies Act, 1956.
Annexure to the Auditors'' Report
The Annexure referred to in our Report to the members of Foundry Fuel
Products Limited (''the Company'') for the year ended 31 March 2013. We
report that:
1. a. The Company has maintained the fixed asset register showing
full particulars including
quantititative details and situations of its fixed assets.
b. As per information and explanation given to us, the Company has
physically verified substantial part of the fixed assets subsequent to
year end. In our opinion, the frequency for physical verification of
fixed assets is reasonable. As explained to us no material dis-
crepancies were noticed on such verification.
c. In our opinion and according to the information and explanations
given to us, the Com- pany has not disposed off substantial part of its
fixed assets during the year and there- fore do not affect going
concern status.
2. Since the Company does not hold any inventory, in our opinion,
clause (ii) (a) (b) & (c) of paragraph 4 of the Order is not applicable
3. a. According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms, or parties covered in the register maintained under Section 301
of the Companies Act, 1956. Accordingly, clause (iii) (b), (iii) (c)
and (iii) (d) of paragraph 4 of the said Order are not applicable.
* Loan converted to equity share capital pursuant to BIFR Order.
Other than above, the Company has not taken loan from other parties as
listed in the register maintained under section 301 of the Companies
Act, 1956.
c. As per the information and explanations given, loans taken are
interest free and terms for repayment have not been specified in
writing. Considering the same, loans taken are not prima facie
prejudicial to the interest of the Company.
d. According to the information and explanations given to us, the
loans are interest free and do not have any terms and conditions
regarding repayment of principal. In absence of repayment terms,
principal amount is considered as repayable on demand. As informed to
us,
principal amount in respect of Group Company has been repaid as and
when demanded. Further loan taken from director was converted into
equity share capital pursuant to BIFR order during the year.
4. Though there were no transactions for the purchase of inventory &
fixed assets and sale of goods and services during the year, in our
opinion and according to the information and explanations given to us,
there is an adequate internal control system commensurate with the size
of the Company and nature of its business for such transactions. During
the course of our audit, we have not observed any continuing failure to
correct major weakness in internal control system of the Company.
5. a. According to information and explanations given to us, the
particulars of contracts or Arrangements referred to in section 301 of
the Companies Act, 1956 which needs to be entered in the register
required to be maintained under that section have been so entered.
b. According to the information and explanation given to us in respect
of transactions made in pursuance of contracts or arrangements entered
in the register maintained under section 301 of the Companies Act, 1956
does not exceed Rs. 500,000/- in respect of any party, Therefore,
provisions of the clause (v)(b) of paragraph 4 of the Order are not
applicable to the Company.
6. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under. We are informed that no order relating to Company has been
passed by the Company law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal.
7. The Company has appointed a firm of chartered accountants to carry
out concurrent audit function pursuant to BIFR order. In our opinion,
internal audit system is commensurate with the size of the Company and
nature of its business
8. As informed to us, the Central Government has prescribed the
maintenance of cost records under Section 209( 1 )(d) of the Companies
Act, 1956 in respect of coke manufacturing. How- ever, there was no
production of coke during the year and hence no cost records have been
maintained and hence question of our comment on maintenance of these
records does not arise.
9. a. According to the information and explanations given to us and on
the basis of our exami- nation of records of the company, in respect of
amounts deducted / accrued in the books of account, the Company is
regular in depositing the undisputed statutory dues including investor
education & protection fund, provident fund, income-tax, wealth tax,
customs duty, cess and any other material statutory dues as applicable
with the appropriate au- thorities except minor delays in depositing of
service tax and tax deducted at source. There were no undisputed
amounts outstanding as at 31 March, 2013 for a period of more than six
months from the date when they became payable.
b. According to the information and explanations given to us, there
were no dues in respect of Income Tax, Sales Tax, Service Tax, Customs
Duty, Wealth Tax, Excise Duty or Cess that have not been deposited on
account of dispute.
10. The Company''s accumulated losses as at the year-end is more than
50% of its net worth. The Company has incurred cash loss during the
current financial year of Rs. 3,281,093. The Company had not incurred
any cash losses in the immediately preceding financial year.
11. Based on our audit procedures and the information and explanations
given by the management, the Company has not taken any loans from banks
/ financial institutions / debenture holders during the year. Therefore
clause (xi) of paragraph 4 of the Order is not applicable.
12. According to information and explanation given to us, the Company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities and accordingly
clause (xii) of the paragraph 4 of the said Order relating to main-
tenance of documents and records is not applicable.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
the paragraph 4 of the said Order relating to compliance with the
provisions of special statute relevant 10 chit fund and nidhi/mutual
benefit/societies are not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accord- ingly, provisions
of clause (xiv) of the paragraph 4 of the said Order relating to the
main- tenance of proper records and timely entries are not applicable
to the Company. All the in- vestments are held in Company''s name except
as per the exemption given under section 49 of The Companies Act, 1956.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions. Therefore Clause (xv) of the paragraph
4 of the order is not applicable to the Company.
16. According to the information and explanations given to us, the
Company has not taken any term loan. Therefore, clause (xvi) of the
paragraph 4 of the Order regarding use of term loan is not applicable
to the Company.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the Company, we report that during the year, the Company has not
utilised funds raised on short term basis for the purpose of long term
investments.
18. During the year, the Company has made the preferential allotment
of shares to a party covered under register maintained under section
301 of the Companies Act, 1956 in ac- cordance with BIFR Order. In our
opinion, the prices at with shares have been issued is not prejudicial
to the interest of the company.
Other than above, the Company has not made preferential allotment to
companies listed in the register maintained under section 301 of the
Companies Act, 1956.
19. The Company has not issued any debentures and hence no securities
are required to be created.
20. The Company has not raised any money by way of public issue.
Therefore, the provisions of clause (xx) of paragraph 4 of the
aforesaid Order are not applicable.
21. During the course of our examination of the books of account,
carried out in accordance with generally accepted auditing practices in
India, and according to the information and ex- planations given to us,
we have neither come across of any incidence of fraud on or by the
Company which is noticed or reported during the year, nor have we been
informed of any such case by the management.
For N.A.Shah Associates
Chartered Accountants
Firm Registration No.: 116560W
sd/-
Sandccp Shah Partner
Membership No. 37381
Place: Mumbai
Dated: 29th May, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of M/s Foundry Fuel Products
Ltd. as at 31st March 2012 and also the Profit and Loss Account for the
year ended on that date annexed thereto and Cash Flow Statement for the
year ended on that date. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance that 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.
As required by the Companies (Auditors Report) Order, 2004 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of
our audit;
(ii) 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;
(iii) The Balance Sheet and Profit and Loss Account and cash flow
statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet and Profit and Loss Account and
cash flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 31s1 March, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and Notes thereon give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012; and
(b) in the case of the Profit and Loss Account, of the Loss for the
year ended on that date.
(c) In the case of Cash Flow Statement of the Cash flows of the
company for the year ended on that date.
Annexure
Referred to in paragraph 3 of our report of even date.
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information.
(b) All the fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) In our opinion, the company has not disposed off substantial part
of fixed assets during the year and the going concern status of the
company is not affected.
(ii) According to information and explanations given to us, there was
no inventory. Therefore, the provisions of clause 4(ii) of the
Companies (Auditors Report) Order, 2004 are not applicable to the
company.
(iii) (a) The Company has not granted any loan secured or Unsecured to
the companies, Firm or other parties covered in registered maintained
u/s. 301 of the Companies Act 1956. Accordingly clause (iii) (b) to
(iii) (d) of paragraph 4 of the Order are not applicable to the company
for the current year.
(b) The company has taken interest free un-secured loan from one party
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year was Rs. 95.00
Lacs and the year-ended balance of loans taken from such Party was Rs.
95.00 Lacs.
(c) In our opinion and according to the information and explanation
given to us, the rate of Interest and other terms and conditions on
which loan have been taken are not, prima facie prejudicial to the
interest of the company.
(d) There was no stipulation for repayment of the above loan but the
same was stated to be repayable on demand .
(iv) In our opinion and according to the information and explanations
given to us, there are ad- equate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases 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 controls system.
(v) (a)(b) In our opinion and according to the information and
explanations given to us, the trans- actions made in pursuance of
contacts or arrangements, that needed to be entered in the register
maintained under section 301 of the Companies Act, 1956 have been so
entered. In our opinion and according to the information and
explanations given to us, there are no transaction in pursuance of
contract or arrangements entered in the register maintained under
section 301 of the Companies Act, 1956 aggregating during the year to
Rs. 5,00,000/- or more in respect of any party in the said financial
year.
(vi) According to information and explanations given to us, the company
has not accepted any deposits from public; hence the provisions of
sections 58A and 58AA of the Companies Act, 1956 and rules framed there
under are not applicable.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) As informed to us the Central Government has not prescribed the
maintenance of cost records under section 209(1) (d) if the Companies
Act, 1956 for the company. .
(ix) (a) In our opinion and according to information given to us the
company is generally regular in depositing undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income tax, sales tax, wealth tax, service
tax, customs duty, excise duty, cess and other material statutory dues
as applicable with the appropriate authorities. No statutory dues were
in arrears, as at 31.03.2012 for a period of more than six months from
the date they became payable. .
(b) According to the information and explanation given to us, there are
no dues of sale tax, income tax, wealth tax, service tax, customs duty,
excise duty and cess which have not been deposited on account of any
dispute.
(x) Accumulated losses of the company are more than 50% of its net
worth. The company has not incurred cash losses during the financial
year covered by our audit and also not incurred cash losses in
immediately preceding financial year.
(xi) Based on our audit procedures and as per the information &
explanation given by the management, the company has not taken any
amount during the year from any financial institutions or banks and
the company has not issued any debentures. Therefore, the provisions of
clause 4(xi) of the Companies (Auditors Report) Order, 2004 are not
applicable to the company
(xii) According to information and explanations given to us and based
on the documents and records produced to us, the company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. There- fore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2004 are not applicable to
the company.
(xiv) According to the information and explanations given to us the
company has not entered in any transactions or contracts in respect of
trading in shares, securities, debentures and other investments.
(xv) According to the information and explanations given to us the
company has not given guarantees for loan taken by others from banks
or financial institutions.
(xvi) In our opinion, the company has not taken any term loan.
(xvii) According to the information and explanations given to us and
overall examination of the Cash Flow Statement and Balance Sheet of the
Company, in our opinion, the fund raised on short term basis have,
prima facie, not been used for long term Investment..
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act, 1956.
(xix) According to the information and explanations given to us, the
company has not is- sued any secured debentures during the period
covered by our report. Accordingly provisions of Clause 4 (xix) of the
Companies (Auditors Report) Order 2004 are not applicable to the
company.
(xx) During the period covered by our audit report, the company has not
raised any money by way of public issues during the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanation given by the management, we report,
that no material fraud on or by the company has been noticed or
reported during the course of our audit.
For ASHOK KEDIA & COMPANY,
CHARTEREDACCOUNTANTS,
Regn. No. 323330E
4, Gangadhar Babu Lane,
Kolkata-700 012.
Dated the 2nd day of July, 2012. CA. A.K. KEDIA
PARTNER
M. No. 050510
Mar 31, 2010
We have audited the attached Balance Sheet of M/s Foundry Fuel Products
Ltd. as at 31st March 2010 and also the Profit and Loss Account for the
year ended on that date annexed thereto and Cash Flow Statement for the
year ended on that date. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assur- ance that the financial
statements are free of material misstatement. An audit includes examin-
ing, 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.
As required by the Companies (Auditors Report) Order, 2004 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) 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;
(iii) The Balance Sheet and Profit and Loss Account and cash flow
statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet and Profit and Loss Account and
cash flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 31st March, 2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2010 from being ap- pointed as a director in terms of
clause (g) of sub-section (1) of section 274 of the Companies Act,
1956;
(vi) In our opinion and to the best of our information and according to
the expla- nations given to us, the said accounts read with Notes to
the account in Schedule No. 11 give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010; and
(b) in the case of the Profit and Loss Account, of the Loss for the
year ended on that date.
(c) In the case of Cash Flow Statement of the Cash flows of the
company for the year ended on that date.
Annexure Referred to in paragraph 3 of our report of even date.
i) (a) The company has maintained proper records showing full
particulars including quan- titative details and situation of fixed
assets on the basis of available information.
(b) All the fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reason- able having regard to
the size of the company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) During the year, the company has not disposed of any fixed assets.
(ii) According to information and explanations given to us, there was
no inventory. Therefore, the provisions of clause 4(ii) of the
Companies (Auditors Report) Order, 2004 are not applicable to the
company.
(iii) (a) The Company has not granted any loan secured or Unsecured to
the companies, Firm or other parties covered in registered maintained
u/s. 301 of the Companies Act 1956. Accordingly clause (iii) (b) to
(iii) (d) of paragraph 4 of the Order are not applicable to the company
for the current year.
(e) The company has taken interest free un-secured loan from one party
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year was Rs. 95.00
Lacs and the year-ended balance of loans taken from such Party was Rs.
95.00 Lacs.
(f) In our opinion and according to the information and explanation
given to us, the rate of Interest and other terms and conditions on
which loan have been taken are not, prima facie prejudicial to the
interest of the company.
(g) Loans taken by the company is repayable on demand.
(iv) 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 purchases 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 controls system.
(v) (a) In our opinion and according to the information and
explanations given to us, the transactions made in pursuance of
contacts or arrangements, that needed to be entered in 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, there are no transaction in pursuance of contract or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 aggregating during the year to Rs. 5,00,000/-
or more in respect of any party in the said financial year.
(vi) According to information and explanations given to us, the company
has not accepted any deposits from public; hence the provisions of
sections 58 A and 58AA of the Compa- nies Act, 1956 and rules framed
there under are not applicable.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) As informed to us the Central Government has not prescribed the
maintenance of cost records under section 209(1) (d) if the Companies
Act, 1956 for the company.
(ix) (a) The Company has been generally regular in depositing
income-tax, sales tax and cess with the appropriate authorities. The
provisions relating to provident fund, in- vestor education and
protection fund, employees state insurance, wealth tax, service tax,
custom duty and excise duty are not applicable to the Company.
According to the information & explanation given to us, there is no
undisputed amount payable in respect of income-tax, sales tax and cess
which were outstanding at the year end, for a period of more than six
months from the date they become payable. The provisions relating to
provident fund, employees state insurance, wealth tax, service tax,
custom duty and excise duty are not applicable to the Company.
(b) As at 31st March 2010, according to the records of the company and
information & explanation given to us, the disputed statutory dues
aggregating Rs.72,30,746.32, that have not been deposited on account of
disputed matters pending before appro- priate authorities arc as under.
Period to
Name of Nature of dues Amount which the
statute in Rs. amount
relates
Sales Tax Law Central Sales Tax 323,762.00 Year Ended
31.03.1986
Sales Tax Law Central Sales Tax 97405.00 Year Ended
31.03.1987
Sales Tax Law Central Sales Tax 3,14,413.64 Year Ended
Jharkhand Sales Tax 1,44,412.68 31.03.1995
Sales Tax Law Central Sales Tax 10,71,905.00 Year Ended
Jharkhand Sales Tax 156,586.00 31.03.1997
Sales Tax Law Central Sales Tax 54932.00 Year Ended
31.03.1999
Sales Tax Law Central Sales Tax 2,09,875.00 Year Ended
Jharkhand Sales Tax 69,493.00 31.03.2000
Sales Tax Law Central Sales Tax 71,373.00 Year Ended
31.03.2001
Sales Tax Law Central Sales Tax 11,56,995.00 Year Ended
31.03.2002
Sales Tax Law Central Sales Tax 10,75,838.00 Year Ended
31.03.2003
Sales Tax Law Central Sales Tax 9,30,420.00 Year Ended
31.03.2004
Sales Tax Law Central Sales Tax 12,96,892.00 Year Ended
31.03.2005
Sales Tax Law Central Sales Tax 1,68,338.00 Year Ended
Jharkhand Sales Tax 88,106.00 31.03.2006
Name of Forum where
statute dispute is pending
Sales Tax Law DCCT, Dhanbad
Sales Tax Law DCCT, Dhanbad
Sales Tax Law DCCT, Dhanbad
Sales Tax Law DCCT, Dhanbad
Sales Tax Law DCCT, Dhanbad
Sales Tax Law DCCT, Dhanbad
Sales Tax Law DCCT, Dhanbad
Sales Tax Law DCCT, Dhanbad
Sales Tax Law DCCT, Dhanbad
Sales Tax Law DCCT, Dhanbad
Sales Tax Law DCCT, Dhanbad
Sales Tax Law DCCT, Dhanbad
(x) Accumulated losses of the company are more than 50% of its net
worth. The company has incurred cash losses during the financial year
covered by our audit but not incurred cash losses in immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information &
explanation given by the management, the company has not taken any
amount during the year from any financial institution and bank and the
company has not issued any debentures. Therefore, the provisions of
clause 4(xi) of the Companies (Auditors Report) Order, 2004 are not
applicable to the company
(xii) According to information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) 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, 2004 are not applicable to the
company.
(xiv) According to the information and explanations given to us the
company has not entered in any transactions or contracts in respect of
trading in securities, debentures and other investments.
(xv) According to the information and explanations given to us the
company has not given guarantees for loan taken by others from banks or
financial institutions.
(xvi) In our opinion, the company has not taken any term loan.
(xvii) According to the information and explanations given to us and
overall examination of the Cash Flow Statement and Balance Sheet of the
Company, in our opinion, the fund raised on short term basis have,
prima facie, not been used for long term Investment..
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register main- tained under section 301 of the
Act, 1956.
(xix) According to the information and explanations given to us, the
company has not issued any secured debentures during the period covered
by our report. Accordingly provi- sions of Clause 4 (xix) of the
Companies (Auditors Report) Order 2004 are not appli- cable to the
company.
(xx) During the period covered by our audit report, the company has not
raised any money by way of public issues during the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanation given by the management, we report,
that no material fraud on or by the company has been noticed or
reported during the course of our audit.
For ASHIOK KEDIA & COMPANY,
CHARTERED ACCOUNTANTS
CA. A.K. KEDIA
PARTNER
M. No. 050510
4, Gangadhar Babu Lane,
Kolkata-700012.
Dated the 21st day of July, 2010.
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