Mar 31, 2018
Report on the Standalone Indian Accounting Standards (IND AS) Financial Statements
We have audited the accompanying Standalone Financial Statements of Gokul Refoils and Solvent Limited, which comprise the Balance Sheet as at 31st March, 2018 the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement for the year then ended and the Statement of Changes in Equity for the year ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone IND AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (Act) with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance(including other comprehensive income), cash flows and changes in equity of the Company in accordance with the Accounting Principles Generally Accepted in India, including the Indian Accounting Standards(Ind AS) specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015(as amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these Standalone Financial Statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing 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 auditors'' 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 the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Accounting Principles Generally Accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit (including Other Comprehensive Income), its cash flows and the changes in equity for the year ended on that date.
Other Matter
The financial information of the Company for the year ended 31st March, 2017 and the transition date opening balance sheet as at 1st April 2016 included in these Standalone financial statements, are based on the previously issued statutory financial statements for the years ended 31st March, 2017 and 31st March, 2016 prepared in accordance with the Companies(Accounting Standards) Rules, 2006 (as amended) which were audited by M/s. M.R.Pandhi & Associates ,Chartered Accountants on which they have expressed an unmodified opinion dated 25th May, 2017 and 25th May, 2016 respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition have been audited by us.
Report on Other Legal and Regulatory Requirements
As required by ''The Companies (Auditors'' Report) Order, 2016'', issued by the Central Government of India in terms of subsection (11) of Section 143 of the Act (hereinafter referred to as the "Order") and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the order.
As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director interms 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 A"
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on the financial position in its financial statements as referred to in note 38 to the Financial Statements.
ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018.
ANNEXURE TO AUDITORS'' REPORT
Referred to in paragraph 1 under the heading of "report on other legal and regulatory requirements" of our report of even date.
On the basis of such checks as we considered appropriate and according to the information and explainations given to us during the course of out audit, we report that.
(i) a. The Company has maintained proper records showing full particulars including quantitative details and location of the fixed assets.
b. As explained to us, the management during the year has physically verified all the fixed assets. According to the information and explanations given to us, 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. The company did not hold/own any immovable properties as on March 31, 2018. Therefore provisions of clause 3 (i) (c) of the order are not applicable to the company and hence not commented upon.
(ii) As explained to us, inventories were physically verified during the year by the management at reasonable intervals. In our opinion,the frequency of verification is reasonable. No material discrepancies were noticed on physical verification of inventories as compared to the book records
(iii) In respect of the loans, secured or unsecured, granted by the Company to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013:
a. In our opinion and according to the information and explanations given to us, the terms and conditions of grant of such loans are prima facie not prejudicial to the interest of the company.
b. As per the information and explanations given to us, in respect of loan granted, repayment of principal amount is as stipulated and payment of interest has been regular.
c. There are no overdue amounts as at the year-end in respect of both principal and interest.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act in respect of loans and investment and guarantee made/granted. The Company has not given any guarantee or provided any security in connection with such loan.
(v) According to the information and explanations given to us, the Company has not accepted any deposit from the public within the meaning of Sections 73 to 76 of the Act and the rules framed thereunder to the extent notified.
(vi) Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under sub-section (1) of Section 148 of the Companies Act 2013 in respect of its products. We have broadly reviewed the same and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
(vii) a. According to the information and explanations given to us and on the basis of our examination of the records of the Company apart from certain instances of delays in depositing 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, Goods and Service Tax and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
b. According to information and explanation given to us and the records of the company examined by us, the particulars of dues of Income tax, VAT/CST/GST, Entry tax, duty of customs / drawback, service tax and Municipal Tax as at March 31, 2018 which have not been deposited on account of dispute are as follows.
Sr. No. |
Name of Statute |
Nature of Dues |
Amt (Rs. in Lakhs) |
Period to which the amount relates |
Forum Where dispute is pending |
1 |
West Bengal Tax on Entry of Goods in to Local Areas Act 2012 |
Entry Tax (F.Y. 13-14) |
4,553.21 |
2013-14, 2014-15 & 2015-16 |
Kolkata High court |
2 |
Custom Act, 1962 |
Custom Duty / Duty Drawback |
412.62 |
2013-14 |
Comm. of Custom, Kandla |
3 |
Service tax under Finance Act, 1994 |
Service Tax |
251.66 |
2014-15 |
Comm. of Central Excise, Ahmedabad and Mehsana. |
4 |
Service tax under Finance Act, 1994 |
Service Tax |
14.06 |
2011-12 |
Customs, Excise and Service Tax Appellate Tribunal, Ahmedabad |
5 |
West Bengal Value Added Tax Act 2003 |
VAT |
55.35 |
2009-10 |
WBCT Appellate & Revisional Board, Kolkata |
125.92 |
2010-11 |
||||
59.07 |
2011-12 |
||||
140.20 |
2013-14 |
||||
Penalty |
105.00 |
2010-11 |
|||
6 |
Central Sales Tax Act 1956 |
CST |
5.76 |
2011-12 |
WBCT Appellate & Revisional Board, Kolkata |
CST |
40.99 |
2013-14 |
|||
7 |
Central Sales Tax Act 1956 |
CST |
52.67 |
2011-12 |
Joint Commissioner of Sales Tax, Mumbai |
CST |
115.28 |
2012-13 |
(viii) In our opinion and according to information and explanations given to us, the Company has borrowed funds from Banks, Financial Institution, Government or Debenture holders. According to the information and explanations given to us and the records of the Company examined by us, company has not defaulted in repayment of loans and borrowings or dues to any financial institution or bank or Government as at the balance sheet date. The company has not borrowed from debenture holder.
(ix) In our opinion and according to information provided to us, the Company has not raised any money by way of initial public offer or further public offer (Including Debt Instruments) and term loans during the year hence not commented upon.
(x) During the course of our examination of books and records of the Company carried out in accordance with the generally accepted auditing practice in India and according to the information and explanations given to us, we have neither come across any instance of material fraud by the company or on the company by its officers or employees have been noticed or reported during the year, nor have we been informed of such case by the Management.
(xi ) In our opinion and according to information provided to us, the company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion, the Company is not a Nidhi Company. Therefore the provisions of clause 3(xii) of the Order are not applicable to the Company and hence not commented upon.
(xiii) According to information and explanations provided by the management, transactions with related parties are in compliance with section 177 and 188 of the Companies act, 2013 where applicable and the details have been disclosed in the financial statements, as required by the applicable accounting standards.
(xiv) In our opinion and according to information and explanations given to us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Therefore the provisions of clause 3(xiv) of the Order are not applicable to the Company and not commented upon.
(xv) According to information and explanations provided by the management, the company has not entered into any non-cash transactions with directors or persons connected with him as specified under Section 192 of the Companies Act, 2013. Therefore the provisions of clause 3(xv) of the Order are not applicable to the Company and not commented upon.
(xvi) According to information and explanation provided by the management, the provisions of Section 45-1A of the Reserve Bank of India Act, 1934 are not applicable to the Company and not commented upon.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT OF EVEN DATE ON
THE STANDALONE FINANCIAL STATEMENTS OF GOKUL REFOILS AND SOLVENT LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section 143 of the Companies Act, 2013
We have audited the Internal Financial Controls over financial reporting of Gokul Refoils and Solvent Limited as of 31st March, 2018 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 controlstated 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, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of Internal Financial Controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal Financial Controls system over financial reporting and their operating effectiveness. Our audit of Internal Financial Controls over financial reporting included obtaining an understanding of Internal Financial Controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the Auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 31st March, 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, M. M. Thakkar & Co
Chartered Accountants
Firm Registration No.: 110905W
D. M. Thakkar
Place: Rajkot Partner
Date: May 21, 2018 Membership No.: 103762
Mar 31, 2015
Report on the Financial Statements
We have audited the accompanying financial statements of Gokul Refoils
& Solvent Ltd ("the company ") which comprise the Balance sheet as at
31st March 2015 and Statement of Profit and Loss and the Cash Flow
Statement for the year ended on 31st March,2015, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134 (5) of the Companies Act 2013 (" the Act") with respect
to the preparation 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 the accounting principles
generally accepted in India including the Accounting Standards
specified under Section 133 of the Act read with Rule 7 of the
Companies ( Accounts ) Rules 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgements
and estimates that are reasonable and prudent ; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement,whether due to fraud or error.
Auditors' Responsibilty
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 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 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 Companies Act, 2013, we give in
the Annexure a statement on the matters specified in paragraph 3 and 4
of the said Order to the extent applicable.
2 As required by section 143(3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations,
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
(b) in our opinion, the Company has kept proper books of account as
required by law, 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
account.
(d) in our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under section 133 of the Act read Rule 7
of the Companies (Accounts) Rules, 2014.
(e) on the basis of written representations received from the directors
as on March 31, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of section 164 (2 ) of the Companies
Act, 2013.
(f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors
) Rules ,2014 in our opinion and to the best of our information and
according to the explanations given to us :- (i) The company has
disclosed the impact of pending litigations on the financial position
in its financial statements as referred to in Note 2 to the Financial
Statements.
(ii ) The Company did not have any long term contracts including
derivative contracts for which there were any material forseable
losses.
(iii) There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
Referred to in paragraph 1 under the heading of "report on other legal
and regulatory requirements" of our report of even date.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that.
(i ) In respect of Fixed Assets
a. The Company has maintained proper records showing full particulars
including quantitative details and location of the fixed assets.
b. As explained to us, the fixed assets have been verified by the
management at reasonable intervals, according to a phased verification
programme 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.
(ii ) In respect of Inventories
a. As explained to us, inventories were physically verified during the
year by the management at reasonable intervals.
b. In our opinion, the procedures of physical verification of stock
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and as explained to us no material discrepancies were
noticed on physical verification of inventories as compared to the book
records.
(iii ) The company has granted unsecured loans agreegatimg of Rs.
1055.20 lacs to seven companies covered in the register maintained
u/s.189 of the Companies Act, 2013.
The Company has not granted any secured / unsecured loans to firms or
other parties covered in the register maintained under Section 189 of
the Act.
a. The receipt of principal amount and interest are regular.
b. There is no overdue amount.
(iv) As per the information and explanations given to us, there is in
our opinion an adequate internal control system commensurate with the
size of the Company and nature of its business for the purchase of
Inventory and Fixed Assets and for 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.
(v) The Company has not accepted any deposit from the public Therefore,
the provisions of clause (v) of paragraph 3 of the Order are not
applicable to the Company
(vi) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government Of India, the maintenance of cost records has been
specified under sub-section (1) of Section 148 of the Companies Act
2013, and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained.We have not, however,made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
(vii) According to information and explanations given to us in respect
of statutory and other dues:
a. According to the information and explanations given to us and on
the basis of our examination of the records of the Comany apart from
certain instances of delays 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 other material statutory dues have been regularly
deposited during the year by the Company with the appropriate
authorities.
b. According to information and explanation given to us, and the
records of the company examined by us ,the particulars of dues of sales
tax including value added tax, duty of customs and duty of excise as at
31st March 2015 which have not been deposited on account of a dispute
are as follows.
Sr.
No. Name of Statute Nature of Dues Amt
(Rs.in Lacs)
1 Income Tax Act 1961 Income Tax (F.Y.07-08) 211.31
2 Income Tax Act 1961 Income Tax (F.Y.10-11) 97.06
3 West Bengal Tax on
Entry of Entry Tax (F.Y 12-13 945.64
Goods in to Local
Areas and F.Y. 13-14)
Act 2012
4 Custom Act, 1962 Custom Duty/Duty 745.00
Draw Back
5 Central Excise
Act, 1944 Service Tax 274.28
6 Central Excise
Act, 1944 Service Tax 26.16
7 Haldia Municipality Municipal Tax 123.37
(Property Tax)
Name of Statute Period to which the Forum Where
amount relates dispute is pending
Income Tax Act 1961 2007-08 ITAT Ahmedabad
Income Tax Act 1961 2010-11 CIT(A) Gandhinagar
West Bengal Tax on Entry
of Goods in to Local
Areas Act 2012 2012-13 & 2013-2014 Kolkata High court
Custom Act, 1962 2013-14 Commissioner of
Custom, Kandla
Central Excise Act, 1944 2014-15 Commissioner of
Central Excise,
Ahmedabad and Mehsana.
Central Excise Act, 1944 2011-12 & 2013-14 Customs, Excise and
Service Tax Appellate
Tribunal, Ahmedabad
Haldia Municipality 2012-13 & 2013-14 Office of The Haldia
Municipality
According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of wealth tax
which have not been deposited on account of any dispute.
c. No amount is required to be transferred to Investor Education and
Protection Fund in accordance with the relevant provisions of the
Companies Act, 2013 and rules made thereunder.
(viii) The company does not have accumulated losses at the end of the
financial year. Company has not incurred cash losses during the
financial year covered by audit or in the immediately preceding
financial year.
(ix) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in the repayment of dues to Banks. The
Company has not borrowed funds from Financial Institution or Debenture
holder.
(x) According to the information and explanations given to us and
representations made by the management, during the year under review,
the company has not given guarantee for loans taken by others from bank
or financial institutions.
(xi ) In our opinion and according to the information and explanations
given to us, term loans have been applied for the purposes for which
they were obtained.
(xii) To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the company was noticed or reported during the year nor we have been
informed of such case by the management.
For, M. R. PANDHI & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No.112360W
N.R.Pandit
Place : Ahmedabad Partner
Date : 30th May, 2015 Membership No.033436
Mar 31, 2014
We have audited the accompanying financial statements of Gokul Refoils
and Solvent Limited, Ahmedabad ("the Company"), which comprise the
Balance Sheet as at March 31, 2014, and the Statement of Profit and
Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards, notified under the Companies Act, 1956 (the
Act) read with the General Circular 15/2013 dated 13th September, 2013
of the Ministry of Corporate Affairs in respect of Section 133 of
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 company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards notified under
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
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.
Referred to in paragraph 1 under the heading of "Report on Other Legal
& Regulatory Requirements of our report of even date;
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(1) In respect of Fixed Assets:
a) The Company has generally maintained proper records showing full
particulars including quantitative details and location of the fixed
assets.
b) As explained to us, the fixed assets have been verified by the
management at reasonable intervals, according to a phased verification
programme 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 and according to the information and explanation
given to us the company has not made any substantial disposals during
the year.
(2) In respect of its Inventories:
a) As explained to us, inventories have been physically verified during
the year by the management. In our opinion the frequency of
verification is reasonable.
b) In our opinion and according to information and explanations given
to us, 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) In our opinion and according to the information and explanations
given to us, the Company has maintained proper record of its
inventories. As explained to us no material discrepancies were noticed
on physical verification, of inventories as compared to the book
records.
(3) In respect of loans, secured or unsecured, granted or taken by the
Company to or from companies, firms or others parties covered in the
register maintained u/s 301 of the Companies Act 1956, according to the
information and explanation given to us:
In respect of Loan granted:
a) The company has granted unsecured loans aggregating to Rs 2803.70
Lacs to Four companies covered in the register maintained u/s 301 of
the Companies Act 1956. The maximum amount involved during the year was
Rs 11194.94 Lacs and the year end balance of loans granted to such
parties was Rs 9301.54 Lacs.
b) In our opinion and according to information and explanations given
to us, the rate of interest 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. The interest is payable
on demand.
d) In respect of said loans, the same are repayable on demand and
therefore the question of overdue amounts do not arise. In respect of
interest, there are no overdue amounts
In respect of Loan taken:
a) The company has taken unsecured loans aggregating to Rs. 5,000 lacs
from two parties listed in the register maintained u/s 301 of the
Companies Act 1956 during the year. The maximum amount at any time
during the year was Rs. 5000 lacs and year end balance is also Rs. 5000
Lacs.
b) In our opinion the rate of interest and other terms and conditions
of such loans are not prima facie prejudicial to the interest of the
company.
c) The payment of principal amount of such loans is regular as
stipulated. The said loans are interest free.
d) There is no overdue amount in respect of such loans.
(4) In our opinion and according to the information and explanations
given to us, there are, generally, adequate internal control procedures
commensurate with the size of the company and nature of its business
with regard to purchase of inventory and fixed assets and also for 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) In respect of transactions entered in the register maintained in
pursuance of section 301 of The Companies Act 1956.
a) On the basis of the audit procedures performed by us, and according
to the information, explanations and representation given to us the
particulars of all transactions in which directors were interested, as
contemplated under section 297 and section 299 of the Companies Act,
1956 and which were required to be entered in the register maintained
under section 301 of the said Act have been so entered.
b) In our opinion and according to the information and explanation
given to us the transactions made in pursuance of contracts or
arrangements entered in the register maintained under 301 of the
Companies Act, 1956 exceeding value of Rs. 5 Lacs in respect of each
party during the year have been made at prices which prima facie appear
reasonable as per information available with the company.
(6) The company has not accepted any deposits from public during the
year within the meaning of section 58A and section 58AA of the
Companies act, 1956. Therefore the requirements of clauses (VI) of
paragraph 4 of the Order are not applicable.
(7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(8) We have broadly reviewed the cost records maintained by the Company
pursuant to Companies Cost Accounting Records/Rules 2011 prescribed by
the Central Governments under section 209 (I) (d) of the Companies Act,
1956 and are of the opinion that prima facie
the prescribed cost records have been maintained. We have not, however,
made a detailed examination of the records with a view to determining
whether they are accurate or complete. (9) According to information
and explanations given to us in respect of statutory and other dues:
a) According to the records of the Company apart from certain instances
of delays in depositing undisputed statutory dues, the Company has been
regular in depositing undisputed statutory dues, including Provident
Fund, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Cess, excise
duty, service tax and other material statutory dues with the
appropriate authorities during the year. According to the information
and explanations given to us, no undisputed amounts payable in respect
of the aforesaid dues were outstanding as at March 31, 2014 for a
period of more than six months from the date of becoming payable.
b) According to the information and explanation given to us and the
records of the company the company has not deposited disputed statutory
dues aggregating to Rs. 2357.35 Lacs on account of disputed matters
pending before appropriate authority as mentioned below.
Sr Name of Statute Nature of Dues
1 Income Tax Act 1961 Income Tax (F.Y. 01-02)
and (F.Y. 08-09 )
Income Tax (F.Y.07-08)
2 West Bengal Tax on Entry Tax (F.Y 12-13 and F.Y. 13-14)
Entry of Goods in to
Local Areas Act 2012
3 Custom Act, 1962 Custom Duty/Duty Draw Back
4 Central Excise Act, Service Tax
1944
5 Haldia Municipality Municipal Tax (Property Tax)
Name of Staute Amount Forum where dispute is pending
(Rs.in Lacs)
Income tax Act 1961 532.39 Commissioner of income tax
(Appeal) Gandhinagar
211.31 ITAT Ahmedabad
West Bengal Tax on 947.60 Kolkata High court
Entry og Goodsin to
Local Areas Act 2012
Custom Act, 1962 742.60 Commissioner of Custom, Kandla
Central Exise Act, 44.74 Commissioner of Central Excise,
1944 Ahmedabad and Mehsana.
Haldia Municipality 90.02 Office of The Haldia Municipality
(10) The company does not have accumulated losses at the end of the
financial year. Company has not incurred cash losses during the
financial year covered by audit.
(11) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in the repayment of dues to banks. The
Company has not borrowed funds from Financial Institution or Debenture
holder.
(12) In our opinion and according to the explanation given to us, the
Company has not given any loans and advances on the basis of security
by way of pledge of shares, debenture and other securities.
(13) In our opinion, the Company is not a chit fund /Nidhi /mutual
benefit fund/society. Therefore, the provisions of the clause (xiii) of
paragraph Â4 of the Order are not applicable to the company.
(14) According to the information and explanation given to us, the
Company is not trading in shares, securities and debentures. The
company has maintained proper records of the transactions in respect of
dealing in shares and other investments and timely entries have been
made there in. All shares and other investments have been held by the
company in its own name.
(15) According to the information and explanations given to us and
representations made by the management, the company has given guarantee
for loans taken by a firm in which the company is a partner, from
banks. According to the information and explanations given to us, we
are of the opinion that the terms and conditions of such guarantees are
not prima facie prejudicial to the interests of the company.
(16) In our opinion and according to the information and explanations
given to us, term loans have been applied for the purposes for which
they were obtained.
(17) According to the information and explanations given to us, and on
an overall examination of the financial statements of the Company, we
are of the opinion that prima facie, short term funds have not been
used for the long term investments.
(18) According to the information and explanations given to us the
company has not made any preferential allotment of share to parties and
Companies covered in the register maintained u/s 301 of the Companies
Act 1956.
(19) According to the information and explanations given to us and the
records examined by us, the company has not issued any debenture during
the financial year and therefore the question of creating security or
charge in respect thereof does not arise.
(20) The Company has not raised any monies by way of public issue
during the year.
(21) To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the company was noticed or reported during the year nor we have been
informed of such case by the management.
For, M. R. Pandhi & Associates,
Chartered Accountants
FRN: 112360W
M.R.Pandhi
Partner
mbership No. : 33057
Place : Ahmedabad
Date : 30th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Gokul Refoils
and Solvent Limited, Ahmedabad (tin Company"), which comprise the
Balance Sheet as at March 31, 2013, and the Statement of Profit and
Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-Section (3C) of Section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, im pie mentation 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 out audit fn 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 invaLves performing procedures to obtain audit evidence about
the amounts ami disclosures in the financial statements. The procedures
selected depend an the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In mac''ng those risk assessments, the auditor
considers internal cont''d relevant to the Company''s preparation and far
presentation of the financial statements in order to design audit
procedures that aTe appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31" March, £013;
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) In the case of the Cash flow Statement, of the cash flows for the
year ended on that date.
Report an 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;
h) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3t) of Section 211 of the Companies Act, 1356;
e) On the basis of written representations received from the directors
as on 3"tE March, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31rt 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.
Referred to In paragraph 1 under the heading of "Report an Other Legal
& Regulatory Requirements of our report of even date:
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(1) In respect of fixed Assets;
a) The Company has generally maintained proper records showing lull
particulars including quantitative details and location of the fixed
assets.
b) As explained to us, the fixed assets have been verified i)y the
management at reasonable intervals, according to a phased verification
programme 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 and according to the information and explanation
given to us the Company has not made any substantial disposals during
the yean
(Z) In respect of its Inventories:
a) As explained to us, inventories have been physically verified during
the year by the management. In our opinion the Frequency of
verification is reasonable.
b) In our opinion and according to information and explanations given
to us, 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) In our opinion and according to the information and explanations
given to us, the Company has maintained proper record of its
inventories. As explained to us no material discrepancies were noticed
on physical verification, of inventories as compared to the book
records.
(3) In respect of loans, secured or unsecured, granted or taken by the
Company to or horn companies, firms or others parties covered in the
register maintained under Section 301 of the Companies Act 1956,
according to the information and explanation given to us:
In respect of Loan granted:
a) The Company has granted unsecured loans aggregating to t 2441.25
Lacs to three Companies covered in the register maintained u/s 301 of
the Companies Act 1956. The maximum amount involved during the year was
Rs. 6513.54 Lacs and the ycnr end balance of loans granted to such
parties was Rs. 6497.84 Lacs,
b) In our opinion and according to information and explanations given
bo us, the rate of interest 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. The interest is payable on demand.
d) In respect of said loans, the same are repayable on demand and
therefore the question of overdue amounts do not arise. In respect of
interest, there are no overdue amounts.
In respect of Loan taken:
a) The Company has not taken any unsecured loan during the year from
companies, firm or the other parties listed In the register maintained
under Section 301 of the Companies Act, ig56. Consequently, the
requirements of clauses {iii) (f) arc (hi) (g) of paragraph 4 of the
Order are not applicable.
(4) In our opinion and according to the information and explanations
given to us, there are, generally, adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard ta purchase of inventory and fixed assets and also for 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) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956.
a) On the basis of the audit procedures performed by us, and according
to the information, explanations and representation given to us the
particulars oF all transactions (n which directors were interested, as
contemplated under Section 297 and Section 295 of the Companies Act,
1956 and which were required to be entered in the register maintained
under Section 301 of the said Act have been so entered.
b) In our opinion and according to the information and explanation
given to us the transactions made fn pursuance of contracts or
arrangements entered in the register maintained under 301 of the
Companies Act, 1956 exceeding value of T 5 Lacs in respect of each
party during the year have been made at prices which prima facie appear
reasonable as per information available with the Company.
(6) The Company has not accepted any deposits from public during the
year within the meaning of Section 58A and Section 58AA of the
Companies Act, 1956. Therefore the requirements of clauses (VI) of
paragraph 4 of the Order are not applicable.
(7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(S) We have broadly reviewed the cost records maintained by the Company
pursuant to Companies Cost Accounting Records/Rules 2011 prescribed by
The Central Governments under Section 2C9(l){d) o* the Companies Act
1*56 and are of the opinion that prima facie the prescribed cost
records have been maintained. We have not, however, made a detailed
examination of the reef''-ds with a view to deter mi nin
(9) According to information and explanations given to us in respect of
statutory and other dues:
a) According to the records of the Company apart from certain instances
of delays in depositing undisputed statutory dues, the Company has been
regular in depositing undisputed statutory dues. Including Provident
Fund, Income Tax. Sales Tax, Wealth Tax, Custom Duty, Cess, excise
duty, service tax and other material statutory dues with the
appropriate authorities during the year. According to the information
and explanations given to js, no undisputed amounts payable in aspect
of the aforesaid dues were outstanding as at 31" March, 2013 for a
period of more than six months from the date of becoming payable.
b) According to the information and explanation given to us and the
records of the Company, the Company has not deposited disputed
statutory dues aggregating to 7 966.26 Lacs on account of disputed
matters pending before appropriate authority as mentioned below.
Sr.
No Name Of Statute Nature of Dues Amount
(Rs.in
Lacs) Forum where
Dispute is pending
1 Income Tax Act 1961 Income Tax
(f.y.01-02, 256.56 Commissioner of
income tax (Appeal)
5,05-O6,06-07
& 06-09) Gandhinager
2 West Bengal Tax on Entry Tax
(F.Y 12-13) 729.70 Kolkata High court
Entry of Goods
in to Local Areas
Act 2012
(10) The Company does not have accumulated Losses at the end of *.he
financial year; Company has not incurred cash losses during the
Financial year covered by audit. Company had incurred cash losses in
the Immediately preceding financial year.
(11) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Co-npary has nut defaulted in the repayment of dues to baiks. InRs.
Company has not borrowed Funds from Financial InstitLtron or Debenture
holder.
(12) In our opinion and according to the explanation given to us, the
Company has not given any loans and advances or. the basis of security
by way of pledge of shares, debenture and other securities.
(13) In our opinion, the Company is not a chit fund /Nidhi /mutua.
benefit fund/society. Therefore, the provisions of the clause (xiii) of
paragraph -4 of the Order are not applicable to the Company.
(14) According to the information and expjnation rpven to its, the
Company is riot trading in shares, securities and debentures. The
Co-npary has maintained proper ''ecords of the transactions in resoect
of dealing in shares and other investments and timely entries have been
made there in. All shares and other investments have been held by the
Company in its own name.
(15) According to the information and expiations given to us and
representations made by the management, the Company has given guarantee
for loans taken by its subsidiary and firm in which the Company is a
partner, from banks. According to the information and explanations
given to us, we are of the opinion that the terms and conditions of
such guarantees are not prima facie prejudicial to the interests of the
Company,
(16) In our opinion and according to the information an explanations
given to us, term loans have been applied for the purposes for which
they were obtained,
(17) According to the information and explanations given to us and on
an overall examination of the financial statements of the Company, we
report that the Company has used short term funds to the extent of Rs.
1535,83 Lacs for long term investment.
(IS) According to the information ard explanations given to us the Coma
any has not made any preferential allotment of share to parties and
Companies covered in the register maintained under Section 301 of the
Companies Act, 1955.
(19) According to the information and explanations given tD js and the
records examinee by us, the Company has not issued any debenture Curing
the financial year and therefore the question of creating security or
charge in respect thereof does not arise.
(2G) The Company has not raised any monies by way nf public issue
during the year.
(21) To the best of our knowledge and belief and according to the
information and explanations given to us, nD material fraud on nr by
the Company was noticed or reported during the year nor we have been
informed of such case by the management.
For, H. R. Pardhi & Associates,
Chartered Accountants
FRN:11236GW
Place : Ahmedabad M.Ft.Pandhi
Date : 30th May, 2013 Partner
Membership No. : 33057
Mar 31, 2012
We have audited the attached Balance Sheet of GOKUL REFOILS AND SOLVENT
LIMITED ("the Company") as at 31st March, 2012 and the Statement of
Profit and Loss and also the Cash Flow Statement of the Company for the
year ended annexed thereto. These financial statements are
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free 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 applied and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides reasonable
basis for our opinion.
1. 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.
2. In our opinion, the Company has kept proper books of account as
required by law, so far, as it appear from our examination of the
books.
3. 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 of the Company.
4. In our opinion, the Balance Sheet, 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 Section 211 of
the Companies Act, 1956.
5. On the basis of written representations received from the Directors
as on 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the Directors is as on 31st March, 2012, prima
facie disqualified from being appointed as a Director in terms of
clause (g) of sub -Section (1) of Section 274 of Companies Act, 1956.
6. 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, 1956, in the manner so required and give
a true and fair view in conformity with 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 ADs-
(b) In the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date ADs- and
(c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
As required by the Companies (Auditor's Report) Order, 2003, as amended
by the Companies (Auditors Report) (Amendment) Order, 2004 issued by
the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 and on the basis of such checks of books and
records of the Company as considered appropriate and as per the
information and explanations given to us, we further report that
(i) In respect of Fixed Assets:
1) The Company has generally maintained proper records showing full
particulars including quantitative details and location of the fixed
assets.
2) As explained to us, the fixed assets have been verified by the
management at reasonable intervals, according to a phased verification
program 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.
3) In our opinion Company has not disposed off substantial part of its
fixed asset during the year and the going concern status of the Company
is not affected.
(ii) In respect of its Inventories:
1) As explained to us, inventories have been physically verified during
the year by the management. In our opinion the frequency of
verification is reasonable.
2) In our opinion and according to information and explanations given
to us, 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.
3) In our opinion and according to the information and explanations
given to us, the Company has maintained proper record of its
inventories. As explained to us no material discrepancies were noticed
on physical verification, of inventories as compared to the book
records.
(iii) In respect of loans, secured or unsecured, granted or taken by
the Company to or from companies, firms or others parties covered in
the register maintained u/s 301 of the Companies Act 1956, according to
the information and explanation given to us:
(A) In respect of Loans granted
1) The Company has granted unsecured loans during the year aggregating
to Rs. 670.73 Lacs to four companies covered in the register maintained
u/s 301 of the Companies Act 1956. The maximum amount involved during
the year including opening balance was Rs.4271.94 Lacs and the year-end
balance of loans granted to such parties was Rs. 3119.74 Lacs.
2) In our opinion and according to the information and explanations
given to us ,the rate of interest and other terms and conditions of the
loans given by the Company, are not prima facie prejudicial to the
interest of the Company.
3) The principal amount is repayable on demand and there is no
repayment schedule. The interest is payable on demand.
4) In respect of said loans, the same are repayable on demand and
therefore the question of overdue amounts does not arise. In respect of
interest, there are no overdue amounts
(B) In respect of Loans taken
1) The Company has not taken any unsecured loan during the year from
companies, firm or the other parties listed in the register maintained
u/s 301 of the Companies Act 1956. Consequently, the requirements of
clauses (iii) (f) and (iii) (g) of paragraph 4 of the Order are not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are, generally, adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to purchase of inventory and fixed assets and also for 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.
(v) In respect of transactions entered in the register maintained in
pursuance of Section 301 of The Companies Act 1956.
1) On the basis of the audit procedures performed by us, and according
to the information, explanations and representation given to us the
particulars of all transactions in which directors were interested, as
contemplated under Section 297 and Section 299 of the Companies Act,
1956 and which were required to be entered in the register maintained
under Section 301 of the said Act have been so entered.
2) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained u/s 301 of the
Companies Act, 1956 exceeding value of Rs. 5 Lacs in respect of each
party during the year have been made at prices which appear reasonable
as per information available with the Company.
(vi) The Company has not accepted any deposits from public during the
year within the meaning of Section 58A and Section 58AA of the
Companies act, 1956. Therefore the requirements of clauses (vi) of
paragraph 4 of the Order are not applicable.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to Companies Cost Accounting Records/Rules 2011
prescribed by The Central Governments under Section 209 (1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have not, however,
made a detailed examination of the records with a view to determining
whether they are accurate or complete.
(ix) According to information and explanations given to us in respect
of statutory and other dues
a. According to the records of the Company apart from certain
instances of delays in depositing undisputed statutory dues, the
Company has been regular in depositing undisputed statutory dues,
including Provident Fund, Income Tax, Sales Tax, Wealth Tax, Custom
Duty, Cess , excise duty, service tax and other material statutory dues
with the appropriate authorities during the year. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March,
2012 for a period of more than six months from the date of becoming
payable.
b. According to the information and explanation given to us and the
records of the Company, the Company has not deposited disputed
statutory dues aggregating to Rs.1008.15 Lacs on account of disputed
matters pending before appropriate authority as mentioned below.
Sr.
No Name of Statute Nature of Dues Amount Forum where dispute
is pending
(Rs.in Lacs)
1 Custom Act 1962 Custom Duty
(F.Y2003-04)
(F.Y 2004-05) 730.94 Commissioner of
Custom Kandla
2 Income Tax
Act 1961 Income Tax
(F.Y2007-08) 277.21 Commissioner of
Appeal Gandhinagar
Range Ahmedabad
(x) The Company does not have accumulated losses at the end of the
financial year ADs- Company has incurred cash losses during the financial
year covered by audit. Company had not incurred cash losses in the
immediately preceding financial year.
(xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in the repayment of dues to banks. The
Company has not borrowed funds from Financial Institution or Debenture
holder.
(xii) In our opinion and according to the explanation given to us, the
Company has not given any loans and advances on the basis of security
by way of pledge of shares, debenture and other securities.
(xiii) In our opinion, the Company is not a chit fund /Nidhi /mutual
benefit fund/society. Therefore, the provisions of the clause (xiii) of
paragraph -4 of the Order are not applicable to the Company.
(xiv) According to the information and explanation given to us, the
Company is not trading in shares, securities and debentures. The
Company has maintained proper records of the transactions in respect of
dealing in shares and other investments and timely entries have been
made there in. All shares and other investments have been held by the
Company in its own name.
(xv) According to the information and explanations given to us and
representations made by the management, the Company has given guarantee
for loans taken from banks by its subsidiary and firm in which the
Company is a partner. According to the information and explanations
given to us, we are of the opinion that the terms and conditions of
such guarantees are not prima facie prejudicial to the interests of the
Company.
(xvi) In our opinion and according to the information and explanations
given to us, term loans have been applied for the purposes for which
they were obtained.
(xvii) According to the information and explanations given to us, and
on an overall examination of the financial statements of the Company,
we report that the Company has used short term funds to the extent of Rs.
1120.97 Lacs for long term investment.
(xviii) According to the information and explanations given to us the
Company has not made any preferential allotment of share to parties and
Companies covered in the register maintained u/s 301 of the Companies
Act 1956.
(xix) According to the information and explanations given to us and the
records examined by us, the Company has not issued any debenture during
the financial year and therefore the question of creating security or
charge in respect thereof does not arise.
(xx) The Company has not raised any monies by way of public issue
during the year.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the Company was noticed or reported during the year.
For, M.R. PANDHI AND ASSOCIATES
Chartered Accountants
(Firm Registration No.: 112360W)
M.R. Pandhi
Date : 13th August, 2012 Partner
Place : Ahmedabad Membership No.: 33057
Mar 31, 2011
We have audited the attached Balance Sheet of GOKUL REFOILS AND SOLVENT
LIMTED ("the Company") as at 31st March, 2011and the Profit and Loss
Account and also the Cash Flow Statement of the Company for the year
ended on that date annexed thereto. These financial statements are
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free 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 applied and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides reasonable
basis for our opinion.
1. 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.
2. In our opinion, the Company has kept proper books of account as
required by law, so far, as it appear from our examination of the
books.
3. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account of
the Company.
4. In our opinion, the Balance Sheet, 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.
5. On the basis of written representations received from the Directors
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the Directors is as on 31st March, 2011, prima
facie disqualified from being appointed as a Director in terms of
Clause (g) of Sub-Section (1) of Section 274 of Companies Act, 1956.
6. 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, 1956, in the manner so required and give
a true and fair view in conformity with 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, 2011 ;
(b) In the case of Profit and Loss Account, of the Profit for the year
ended on that date.; and
(c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
As required by the Companies (Auditor's Report) Order, 2003, as amended
by the Companies (Auditors Report) (Amendment) Order, 2004 issued by
the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 and on the basis of such checks of books and
records of the Company as considered appropriate and as per the
information and explanations given to us, we further report that
(i) In respect of Fixed Assets:
1) The Company has generally maintained proper records showing full
particulars including quantitative details and location of the fixed
assets.
2) As explained to us, the fixed assets have been verified by the
management at reasonable intervals, according to a physical
verification programme 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.
3) In our opinion and according to the information and explanation
given to us the Company has not made any substantial disposals during
the year.
(ii) In respect of its Inventories:
1) As explained to us, inventories have been physically verified during
the year by the management. In our opinion the frequency of
verification is reasonable.
2) In our opinion and according to information and explanations given
to us, 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.
3) In our opinion and according to the information and explanations
given to us, the Company has maintained proper record of its
inventories. As explained to us no material discrepancies were noticed
on physical verification, of inventories as compared to the book
records.
(iii) In respect of loans, secured or unsecured, granted or taken by
the Company to or from companies, firms or others parties covered in
the register maintained u/s Section 301 of the Companies Act 1956,
according to the information and explanation given to us: -
A In respect of Loan taken
1) The Company has not taken any unsecured loan during the year from
companies, firm or the other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Consequently, the
requirements of clauses (iii) (f) and (iii) (g) of paragraph 4 of the
Order are not applicable.
B In respect of Loan granted
1) The Company has granted unsecured loans aggregating to Rs. 9,756
lacs to four companies covered in the register maintained under Section
301 of the Companies Act 1956. The maximum amount involved during the
year was Rs. 8,586 lacs and the year-end balance of loans granted to
such parties was Rs. 3,966 lacs.
2) In our opinion and according to information and explanations given
to us ,the rate of interest and other terms and conditions of the loans
given by the Company, are not prima facie prejudicial to the interest
of the Company.
3) The principal amount is repayable on demand and there is no
repayment schedule. The interest is payable on demand.
4) In respect of said loans, the same are repayable on demand and
therefore the question of overdue amounts do not arise. In respect of
interest, there are no overdue amounts.
(iv) In our opinion and according to the information and explanations
given to us, there are, generally, adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to purchase of inventory and fixed assets and also for 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.
(v) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956.
1. On the basis of the audit procedures performed by us, and according
to the information, explanations and representation given to us the
particulars of all transactions in which Directors were interested, as
contemplated under Section 297 and Section 299 of the Companies Act,
1956 and which were required to be entered in the register maintained
under Section 301 of the said Act have been so entered.
2. In our opinion and according to the information and explanation
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 exceeding value of Rs. 5 lacs in respect of any
party during the year have been made at prices which appear reasonable
as per information available with the Company.
The Company has not accepted any deposits from public during the year
within the meaning of Section 58A and Section 58AA of the Companies
Act, 1956. Therefore the requirements of clauses (vi) of paragraph 4 of
the Order are not applicable.
(vi) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(vii) The Central Government has prescribed maintenance of cost records
under Section 209 (1) (d) of the Companies Act, 1956 in respect of
certain manufacturing activities of the Company. We have broadly
reviewed the accounts and records of the Company in this connection and
are of the opinion that prima facie the prescribed accounts and records
have been maintained/are being made up. We have not, however, made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
(viii) According to information and explanations given to us in respect
of statutory and other dues:
a. According to the records of the Company apart from certain
instances of delays in depositing undisputed statutory dues, the
Company has been regular in depositing undisputed statutory dues,
including provident fund, income tax, sales tax, wealth tax, custom
duty, cess , excise duty, service tax and other material statutory dues
with the appropriate authorities during the year. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March,
2011 for a period of more than six months from the date of becoming
payable.
b. According to the information and explanation given to us and the
records of the Company, the Company has not deposited disputed
statutory dues aggregating to Rs. 730.94 lacs on account of disputed
matters pending before appropriate authority as mentioned below.
Sr. Nature of Nature of Amount Forum where
No Statute Dues (Rs .in
lacs) dispute is
pending
1 Customs DEPB 730.94 Commissioner of
Act 1962 Custom Kandla
(ix) The Company neither has accumulated losses at the end of the
financial year, nor incurred cash losses during the current and the
immediately preceding financial year.
(x) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in the repayment of dues to banks. The
Company has not borrowed funds from Financial Institution or Debenture
holders.
(xi) According to the information and explanations given to us, the
Company has not given any loans and advances on the basis of security
by way of pledge of shares, debenture and other securities.
(xii) In our opinion, the Company is not a chit fund /Nidhi / mutual
benefit fund/society. Therefore, the provisions of the clause (xiii) of
paragraph Ã4 of the Order are not applicable to the Company.
(xiii) According to the information and explanation given to us, the
Company is not trading in shares, securities and debentures. The
Company has maintained proper records of the transactions in respect of
dealing in shares and other investments and timely entries have been
made there in. All shares and other investments have been held by the
Company in its own name.
(xiv) According to the information and explanations given to us and
representations made by the management, the Company has given guarantee
for loans taken by its subsidiary and firm in which the Company is a
partner, from banks .According to the information and explanations
given to us, we are of the opinion that the terms and conditions of
such guarantees are not prima facie prejudicial to the to the interests
of the Company.
(xv) To the best of our knowledge and belief and according to the
information an explanations given to us, term loans availed by the
Company were, prima facie, applied by the Company during the year for
the purposes for which the loans were obtained.
(xvi) According to the information and explanations given to us, and on
an overall examination of the financial statements of the Company, we
are of the opinion that prima facie, short term funds have not been
used for long term investment.
(xvii) According to the information and explanations given to us the
Company has not made any preferential allotment of share to parties and
Companies covered in the register maintained u/s 301 of the Act.
(xviii) According to the information and explanations given to us and
the records examined by us, the Company has not issued any debenture
during the financial year and therefore the question of creating
security or charge in respect thereof does not arise.
(xix) The Company has not raised any money by way of public issues
during the year.
(xx) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year nor we have been informed of
such case by the management.
For, M.R.Pandhi and Associates
Chartered Accountants
(Registration No. 112360W)
M.R. Pandhi
Ahmedabad Partner
15th June, 2011 Membership No.: 33057
Mar 31, 2010
We have audited the attached Balance Sheet of GOKUL REFOILS AND SOLVENT
LIMTED ("the Company") as at March 31, 2010 and the Profit and Loss
Account and also the Cash Flow Statement of the Company for the year
ended on that date annexed thereto. These financial statements are
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free 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 applied and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides reasonable
basis for our opinion.
1. 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.
2. In our opinion, the Company has kept proper books of account as
required by law, so far, as it appears from our examination of the
books.
3. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account of
the Company.
4. In our opinion ,the Balance Sheet, 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,
5. 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 as on March 31 ,2010, prima
facie disqualified from being appointed as a Director in terms of
clause (g) of sub -section (1) of section 274 of Companies Act, 1956.
6. 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, 1956, in the manner so required and give
a true and fair view in conformity with accounting principles generally
accepted in India.
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010 ;
(b) In the case of Profit and Loss Account, of the Profit for the year
ended on that date. ; and
(c) In the case of Cash Flow Statement, of the cash flows for the year
encfed on that date.
As required by the Companies (Auditors Report) Order, 2003, as amended
by the Companies (Auditors Report) (Amendment) Order, 2004 issued by
the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 and on the basis of such checks of books and
records of the Company as considered appropriate and as per the
information and explanations given to us, we further report that
(i) In respect of Fixed Assets:
1) The Company has generally maintained proper records showing full
particulars including quantitative details and location of the fixed
assets.
2) As explained to us, the fixed assets have been verified by the
management at reasonable intervals, according to a phased verification
programme 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.
3) In our opinion and according to the information and explanation
given to us the company has not made any substantial disposals during
the year.
(ii) In respect of its Inventories:
1) As explained to us, inventories have been physically verified during
the year by the management. In our opinion the frequency of
verification is reasonable.
2) In our opinion and according to information and explanations given
to us, 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.
3) In our opinion and according to the information and explanations
given to us, the Company has maintained proper record of its
inventories. As explained to us no material discrepancies were noticed
on physical verification, of inventories as compared to the book
records.
(iii) In respect of loans, secured or unsecured, granted or taken by
the Company to or from companies, firms or others parties covered in
the register maintained u/s 301 of the Companies Act 1956, according to
the information and explanation given to us: -
A In respect of Loan taken
1) The company has not taken any unsecured loan during the year from
companies, firm or the other parties listed in the register maintained
u/s 301 of the Companies Act 1956. Consequently ,the requirements of
clauses (iii) (f) and (iii) (g) of paragraph 4 of the Order are not
applicable.
B In respect of Loan granted
1) The company has granted unsecured loans aggregating to Rs.4597.35
lacs to four companies covered in the register maintained u/s 301 of
the Companies Act 1956. The maximum amount involved during the year was
Rs. 5142.03 Lacs and the year-end balance of loans granted to such
parties was Rs.4577.35 Lacs.
2) In our opinion and according to information and explanations given
to us ,the rate of interest and other terms and conditions of the loans
given by the company, are not prima facie prejudicial to the interest
of the company.
3) The principal amount is repayable on demand and there is no
repayment schedule. The interest is payable on demand.
4) In respect of said loans, the same are repayable on demand and
therefore the question of overdue amounts does not arise. In respect of
interest, there are no overdue amounts.
(iv) In our opinion and according to the information and explanations
given to us, there are, generally, adequate internal control procedures
commensurate with the size of the company and nature of its business
with regard to purchase of inventory and fixed assets and also for 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.
(v) In respect of transactions entered in the register maintained in
the pursuance of section 301 of The Companies Act 1956.
1 On the basis of the audit pcocedures performed by us, and according
to the information, explanations and representation given to us the
particulars of all transacations in which directors were interested, as
contemplated under section 297 and section 299 of the Companies Act,
1956 and which were required to be entered in the register maintained
under section 301 of the said Act have been so entered.
2 In our opinion and according to the information and explanation given
to us the transactions made in pursuance of contracts or arrangements
entered in the register maintained under 301 of the Companies Act ,
1956 exceeding value of Rs. 5 Lacs in respect of any party during the
year have been made at prices which appear reasonable as per
information available with the company..
3 The company has not accepted any deposits from public during the year
within the meaning of section 58A and section 58AA of the Companies
act, 1956.Therefore the requirements of clauses (vi) of paragraph 4 of
the Order are not applicable.
(vi) On the basis of internal audit reports broadly reviewed by us, we
are of the opinion that, the coverage of internal audit functions
carried out by a firm of chartered accountants appointed by the
management as well as companys internal audit department is
commensurate with the size of the company and the nature of its
business.
(vii) The Central Government has prescribed maintenance of cost records
under section 209 (I ) (d) of the Companies Act, 1956 in respect of
certain manufacturing activities of the company. We have broadly
reviewed the accounts and records of the company in this connection and
are of the opinion that prima facie the prescribed accounts and records
have been maintained/are being made up. We have not, however, made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
(viii)According to information and explanations given to us in respect
of statutory and other dues:
a. According to the records of the Company apart from certain
instances of delays in depositing undisputed statutory dues, the
Company has been regular in depositing undisputed statutory dues,
including Provident Fund, Income Tax, Sales Tax, Wealth Tax, Custom
Duty, Cess , excise duty, service tax and other material statutory dues
with the appropriate authorities during the year .According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at March 31st,2010
for a period of more than six months from the date of becoming payable.
b. According to the information and explanation given to us and the
records of the company the company has not deposited disputed statutory
dues aggregating to Rs. 2.40 Lacs on account of disputed matters
pending before appropriate authority as mentioned below.
Sr. Nature of Nature of Amount Forum
No. Statute Dues (Rs.in where
Lacs) dispute
is pending
1 Sales Tax Act Sales Tax 2.40 Joint
of Gujarat Commissioner of Sales Tax.
Ahmedabad
(ix) The company neither has accumulated losses at the end of the
financial year, nor incurred cash losses during the current and the
immediately preceding financial year,
(x) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in the repayment of dues to banks. The
Company has not borrowed funds from Financial Institution or Debenture
holder.
(xi) According to the information and explanations given to us, the
Company has not given any loans and advances on the basis of security
by way of pledge of shares, debenture and other securities
(xii)ln our opinion, the Company is not a chit fund /Nidhi /mutual
benefit fund/society. Therefore, the provisions of the clause (xiii) of
paragraph -4 of the Order are not applicable to the company.
(xiii) In our opinion, the Company is not dealing or trading in shares,
securities, debenture and other investments during the year.
(xiv) According to the information and explanations given to us and
representations made by the management, the company has given guarantee
for loans taken by its subsidiary and firm in which the company is a
partner, form banks .According to the information and explanations
given to us, we are of the opinion that the terms and conditions of
such guarantees are not prima facie prejudicial to the to the interests
of the company.
(xv) To the best of our knowledge and belief and according to the
information an explanations given to us, term loans availed by the
company were, prima facie applied by the company during the year for the
purposes for which the loans were obtained.
(xvi) According to the information and explanations given to us, and on
an overall examination of the financial statements of the Company, we
are of the opinion that prima facie, short term funds have not been
used for long term investment.
(xvii) According to the information and explanations given to us the
company has not made any preferential
allotment of share to parties and Companies covered in the register
maintained u/s 301 of the Act.
(xviii) According to the information and explanations given to us and
the records examined by us, the company has not issued any debenture
during the financial year and therefore the question of creating
security or charge in respect thereof does not arise
(xix) The Company has not raised any monies by way of public issues
during the year.
(xx)To the best of out knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year nor we have been informed of
such case by the management.
For, M.R.PANDHI AND ASSOCIATES
Chartered Accountants
(Registration No 112360W)
Place : Ahmedabad M. R. Pandhi
Date : 14th June, 2010 Partner
Membership No.: 33057
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