Mar 31, 2018
Report on the Financial Statements
1. We have audited the accompanying financial statements of GP Petroleums Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Ind AS Financial Statements
2. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the state of affairs ( financial position) , profit or loss (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. 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.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on these financial statements based on our audit.
4. 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 Rules made thereunder.
5. 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 these financial statements are free from material misstatement.
6. 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 auditorâs 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 Companyâs 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 Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on these financial statements.
Opinion
8. 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 including Ind AS specified under Section 133 of the Act, of the state of affairs (financial position) of the Company as at 31st March, 2018, and its profit ( financial performance including other comprehensive income ), its cash flows and the changes in equity for the year ended on that date.
Other Matters
9. The financial information of the company for the year ended March 31, 2016 and the transition date opening balance sheet as at April 1, 2016 included in these financial statements, are based on the previously issued statutory financial statements for the year ended March 31, 2017 and March 31, 2016 prepared in accordance with the Companies (Accounting Standards) Rules 2006 (as amended) which were audited by us, on which we expressed an unmodified opinion. The adjustments to those financial statements for the differences in accounting principles adopted by the company on transition to the have been audited by us.
Report on other Legal and Regulatory Requirements
10. As required by the âCompanies (Auditorâs Report) Order, 2016â (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, 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 a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
11. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income , the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act;
e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure B.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, 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 , if any, of pending litigations as at March 31, 2018 on its financial position in its financial statements.
ii. The Company has made provisions as at March 31, 2018, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018.
ANNEXURE A TO THE INDEPENDENT AUDITORSâ REPORT
Referred to in paragraph 9 of the Independent Auditorsâ Report of even date to the members of GP Petroleums Limited on the financial statements for the year ended March 31, 2018.
I. (a) The company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of 3 years which, in our opinion, is reasonable having regards to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) The title deeds of immovable properties, as disclosed in Note 2 on fixed assets to the financial statements, are held in the name of the Company, except flat at Mumbai having a carrying value of Rs. 418.27 Lakhs as at March 31, 2018.
II. The physical verification of inventory excluding stocks with third parties has been conducted at reasonable intervals by the management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been appropriately dealt with in the books of accounts.
III. The company has not granted unsecured loans to the company covered in the register maintained under Section 189 of the Companies Act.
There are no firms / LLP/ other parties covered in the register maintained under Section 189 of the Companies Act.(Register of contracts and arrangements in which director are interested).
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 Companies Act, 2013 in respect of loans and investment made, and guarantees and security provided by it.
V. The company has not accepted any deposits from the public within the meaning of Sections 73 &74, 75 and 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 subsection (1) of the Section 148 of the act in respect to its products. The Company has also appointed Cost Auditor to audit its cost records in pursuance of the provisions contained in Companies Act, 2013, The Cost Auditor has audited cost records for the financial year ended on 31st March 2018 and we have not noticed any adverse comment in their report issued in pursuance to such report. 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 information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues in respect of sales tax including value added tax, and is regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income tax, service tax, duty of customs, duty of excise, cess and other material statutory dues, as applicable, 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 (net of deposit under protest or under stay condition amounting to Rs. 8,01,71,419/- and stated under Non-Current Assets as recoverable) in respect of income tax, sales tax including value added tax, service tax, duty of customs, duty of excise, cess as at March 31st 2018 which have not been deposited on account of a dispute, are as follows:
Name of the statute |
Nature of dues |
Amount (Rs.) |
Period to which the amount relates |
Forum where the dispute is pending |
Central Sales Tax, 1956 and Local Local Sales Tax Act |
Central sales tax and local sales tax |
3,92,67,534 |
2003-04, 2004-05, 2009-10, 201011, 2011-12, 2012-13, 2013-14, 2014-15, 2015-16 |
First Appellate Authorities |
Central Excise Act, 1944 |
Excise Duty |
1,78,98,416 |
2013-14 |
Asst. Registrar CESTAT |
Central Excise Act, 1944 |
Excise Duty |
99,08,719 |
Up to 2005 |
Asst. Registrar CESTAT |
Central Excise Act, 1944 |
Excise Duty |
31,32,098 |
Oct 15 to JuneRs. 17 |
Commissioner Appeal |
Central Excise Act, 1944 |
Excise Duty |
24,15,506 |
JanRs. 14 to June,15 |
Asst. Registrar CESTAT |
Service Tax Act |
Service Tax |
48,63,711 |
AprRs. 11 to Apr 15 |
Joint Commissioner |
Service Tax Act |
Service Tax |
26,85,435 |
Feb14 to March 17 |
Asst. Registrar CESTAT |
VIII. According to the records of the company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holder as at the balance sheet date.
IX. In our opinion, and according to the information and explanations given to us, the terms loans have been applied, on an overall basis, for the purposes for which they were obtained.
X. During the course of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices 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, noticed or reported during the year, nor have we been informed of any such case by the Management.
XI. In our opinion and according to the information and explanations given to us, the Company has not paid/provided for any managerial remuneration, except board meeting sitting fees paid to Independent Director(s) during the year as stipulated to Section 197 read with Schedule V to the Act, hence clause (xi) of paragraph 3 of the Order is not applicable.
XII. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company, hence clause (xii) of paragraph 3 of the Order regarding default is not applicable.
XIII. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties have been entered into by the company in its ordinary course of business on an armâs length basis and therefore the provisions of Section 177 and 188 of the Act are not applicable to the company, however the details of such transactions have been disclosed in the financial statements as required under Accounting Standard (AS) 18 related party disclosures specified under Section 133 of the Act, read with rule 7 of the Companies ( Accounts) Rules 2014.
XIV. According to the records of Company, 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 provisions of clause (xiv) of paragraph 3 of the Order are not applicable.
XV. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with its directors or persons connected with him. Therefore provisions of clause (xv) of paragraph 3 of the Order are not applicable.
XVI. In our opinion and according to the information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934. Therefore provisions of clause (xvi) of paragraph 3 of the Order are not applicable.
ANNEXURE B TO THE INDEPENDENT AUDITORSâ REPORT
Referred to in paragraph 10(f) of the Independent Auditorsâ Report of even date to the members of GP Petroleums Limited on the financial statements for the year ended March 31, 2018.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
1. We have audited the internal financial controls over financial reporting of GP Petroleums Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
2. The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, 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.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31stMarch 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 PNG & Co.
Chartered Accountants
Firm Registration No.021910N
Prabhat Kumar
Partner
Membership No. 087257
Mumbai, May 29, 2018
Mar 31, 2015
We have audited the accompanying financial statements of GP Petroleums
Limited ("the Company"), which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act and the rules made thereunder including the
accounting standard and matters which are required to be included in
the audit report.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards and pronouncements require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the 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 Act, 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, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
f) With respect to the other matters 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 as at
March 31, 2015 on its financial position in its financial statements.
ii. The Company has made provisions as at March 31, 2015, as required
under the applicable law or accounting standard, for material
foreseeable losses, if any, on long-term contracts including derivative
contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended March 31,2015.
Referred to in paragraph 9 of the Independent Auditors' Report of even
date to the members of GP Petroleums Limited on the financial
statements as of and for the year ended March 31,2015, we report that
I. a) The company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets are physically verified by the Management
according to a phased programme designed to cover all the items over a
period of 3 years which, in our opinion, is reasonable having regards
to the size of the company and the nature of its assets. Pursuant to
the programme, a portion of the fixed assets has been physically
verified by the Management during the year and no material
discrepancies have been noticed on such verification.
II. a) The inventory, including stocks with certain third parties,
has been physically verified by the Management during the year. In
respect of inventory lying with third party, these have substantially
been confirmed by them. In our opinion, the frequency of verification
is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) On the basis of our examination of the inventory reports, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
III. The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act.
IV. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. Further, on the basis of our examination of
the books and records of the company, and according to the information
and explanations given to us, we have neither come across, nor have
been informed of, any continuing failure to correct major weaknesses in
the aforesaid internal control system.
V. The company has not accepted any deposits from the public within the
meaning of Sections 73 & 74 of the act and the rules framed thereunder
to the extent notified.
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 subsection (1) of the Section 148 of the act, 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 information and explanations given to us
and the records of the company examined by us, in our opinion, the
company is generally regular in depositing the undisputed statutory
dues, including provident fund, employee state insurance, income tax,
sales tax, wealth tax, service tax, duty of custom, duty of excise,
value added tax and other material statutory dues, as applicable, 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 in
respect of income tax, sales tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax, cess as at March 31st 2015
which have not been deposited on account of a dispute, are as follows:
Name of Statute Nature of Dues Amount
Central Sales Tax, 1956 Central Sales Tax, and local 3,19,61,391
and Local Sales Tax Act sales tax
Customs Act, 1965 Custom Duty 6,85,53,884
44,17,377
Name of Statute Period to which the Forum where the dispute
amount relates is pending
Central Sales Tax, 1956 2003-04, 2004-05, First Appellate
2005- 06 and 2010-11 Authorities
Customs Act, 1965 2012-13 High Court
2010-11,2011-12 Departmental Authorities
c) The amount required to be transferred to investor's education and
protection fund has been transferred with in the stipulated time in
accordance with the provisions of the companies act, 2013 and the rules
made thereunder.
VIII. The Company has no accumulated losses as at the end of the
financial year and it has not incurred any cash losses in the financial
year ended on that date or in the immediately preceding financial year.
IX. According to the records of the company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holder as at the balance sheet date.
X. According to the information and explanations given to us, the
company has not given any 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, the terms loans have been applied, on an overall basis,
for the purposes for which they were obtained.
XII. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the company, noticed or reported during the
year, nor have been informed of any such case by the Management.
For PNG & Co.
Chartered Accountants
Firm Registration No.021910N
Prabhat Kumar
Place: Mumbai Partner
Date : 28 May, 2015 Membership No. 087257
Mar 31, 2014
We have audited the accompanying financial statements of Sah Petroleums
Limited (the Company) which comprise the Balance Sheet as at 31st
March, 2014, 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'') read with the General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
b) in the case of the Statement of Profit and Loss, 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") as amended by "the Companies (Auditor''s Report) (Amendment)
Order, 2004", issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub - section (3C) of section 211 of the Companies Act, 1956 read with
the General Circular 15/2013 dated 13th September, 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act,
2013; and
e) on the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT:
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date
i. a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) All the Fixed assets have not been physically verified by management
during the year but there is 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) During the year the company has not disposed off a substantial part
of its fixed assets.
ii. a) The inventory (excluding stocks with third parties) has been
physically verified during the year by the management. In our opinion,
the frequency of verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. No material
discrepancies have been noticed on physical verification of stocks as
compared to book records.
iii. The Company has neither granted nor taken any loans, secured or
unsecured, to or from companies, firms or other parties covered in the
register maintained under Section 301 of the Act.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods. We
have not observed any major weakness in the internal control system
during the course of audit.
v. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, there are no
transactions during the year that need to be entered into the register
maintained under Section 301 of the Companies Act, 1956.
vi. The Company has not accepted any deposits from the public.
Therefore, the provisions of clause 4(vi) of the Companies (Auditor''s
Report) Order 2003 is not applicable to the company.
vii. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii. We have broadly reviewed the basic cost records maintained by
the Company pursuant to the Companies (Cost Accounting Records) Rules,
2011 prescribed by the Central Government under Section 209(1)(d) of
the Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
ix. a) The Company is generally regular in depositing with the
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
c) According to the records of the Company, the dues outstanding of
Sales Tax and Custom Duty on account of any dispute are as follows:
Name of Statute Nature of Dues Amount
(Rs.)
Central Sales Tax, 1956 Central Sales Tax, Local 4,15,75,724
and
Sales Tax (including Value 3,06,00,650
Local Sales Tax Act Added) 2005-06
Customs Act, 1965 Custom Duty 6,85,53,884
44,17,377
Name of Statute Period to which the Forum where the
dispute
amount relates is pending
Central Sales Tax, 1956 2003-04 Appellate Tribunal
and
2003-04, 2004-05, Departmental
Authorities
Local Sales Tax Act
Customs Act, 1965 2012- 13 High Court
2010-11, 2011-12 Departmental
Authorities
x. The Company has no accumulated losses as at 31st March, 2014 and
has not incurred any cash losses in the financial year ended on that
date and in the immediately preceding financial year.
xi. Based on the examination of the books of account and related
records and according to the information and explanations given to us,
the Company has not defaulted in repayment of dues to any bank.
xii. In our opinion and according to the information and explanations
given to us, the company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiii. In our opinion, the Company is not a chit fund/nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order 2003 are not applicable to the
company.
xiv. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
xv. According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi. On the basis of an overall examination of the Balance Sheet of the
company, in our opinion, there are no funds raised on short-term basis
which have been used for long-term investment.
xvii. The Company has not made any Preferential Allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act, during the year.
xviii. During the course of our examination of the books and records
of the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the Management.
xix. The Company has not raised any money by public issue during the
year.
For N.D.DAGA & CO.
Firm Registration No.101993 W
Chartered Accountants
N.D.Daga
Proprietor
Membership No. 9921
Mumbai.
Date : 30th May, 2014
Mar 31, 2012
1. We have audited the attached Balance Sheet of Sah Petroleum's
Limited as at 31st March, 2012, the related statement of Profit and
Loss for the year ended on that date annexed thereto, and the Cash Flow
Statement for the year ended on that date, which we have signed under
reference to this report. These financial statements are the
responsibility of the company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. 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 the test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Company Law Board in terms of Section 227 (4A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of the
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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) 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 (3 C) of Section 211 of the
Companies Act, 1956;
e) On the basis of the written representations received from the
directors as on March 31, 2012 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2012
from being appointed as director in terms of section 274 (1)(g) of the
Act;
f) In our opinion and to the best of our information and according to
the explanations given to us, they said accounts read together with the
Significant Accounting Policies and notes thereon give the information
required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
ii. In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
iii. In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
i. (a) The company has maintained proper records
showing full particulars, including quantitative details and situation
of fixed assets.
(b) All the Fixed assets have not been physically verified by
management during the year but there is 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) During the year the company has not disposed off a substantial part
of its fixed assets.
ii. (a) The inventory (excluding stocks with third parties) has been
physically verified during the year by the management. In our opinion,
the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No
material discrepancies have been noticed on physical verification of
stocks as compared to books records.
iii. The Company has neither granted nor taken, during the year, any
loans, secured or unsecured, to or from companies, firms or other
parties covered in the register maintained under Section 301 of the
Act.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. During the course of audit, no major weakness has been
noticed in these internal controls.
v. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
transactions that need to be entered into the register maintained under
Section 301 of the Companies Act, 1956 have been so entered. .
vi. The Company has not accepted any deposits from public within the
meaning of Section 58A & 58AA of the Companies Act, 1956, read with
Companies (Acceptance of Deposits) Rules, 1975. Accordingly, the
provisions of clause 4(vi) of the Companies (Auditor's Report) Order
2003 is not applicable to the company.
vii. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii. We have broadly reviewed the basic cost records maintained by
the Company pursuant to the Companies (Cost Accounting Records) Rules,
2011 prescribed by the Central Government under Section 209(1 )(d) of
the Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
ix. (a) The Company is generally regular in depositing with the
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues applicable to it
There were no arrears as at 31st March 2012 for a period of more than
six months from the date they became payable.
(b) On the basis of our examination of the documents and records, there
are no dues of Income Tax, Wealth Tax, Service Tax, Customs duty and
Cess which have not been deposited on account of any dispute. The
particulars of Sales tax as on 31st March 2012 which have not been
deposited on account of disputes is as follows: '
Name of Statute Nature of Dues Amount (Rs.)
Central Sales Tax, Central Sales Tax, 4,15,75,724
1956 and Sales Tax Local Sales Tax and
Acts of various
States Commercial Tax 8,84,07,98
Name of Statute Period to which the Forum where the
amount relates dispute is pending
Central Sales Tax 2003-04 Appellate Tribunal
1956 and Sales Tax 1996-97, 2003-04 to Departmental
Acts of Various states 2005-06, 2007-08,
2010-11 Authorities
x. The Company has no accumulated losses as at 31st March, 2012 and
has not incurred any cash losses in the financial year ended on that
date and in the immediately preceding financial year.
xi. Based on the examination of the books of account and related
records and according to the information and explanations given to us,
the Company has not defaulted in repayment of dues to the banks.
xii. According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii. The company is not a chit fund or a nidhi mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order 2003 are not applicable to the
company.
xiv. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, the provisions of clause 4(xiv) of the
Companies (Auditor's Report) Order 2003 are not applicable to the
company. '
xv. According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions, during the year.
xvi. On the basis of an overall examination of the Balance Sheet of the
company, in our opinion, there are no funds raised on short- term basis
which have been used for long-term investment.
xvii. The Company has not made any Preferential Allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act, during the year.
xviii. During the course of our examination of the books and records
of the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have,we been informed of such case by the Manager.
xix. The Company has not raised any money by public issue during the
year.
For N.D.DAGA & CO.
Firm Registration No. 101993 W
Chartered Accountants
N.D. Daga
Proprietor
Membership No. 9921
Mumbai.
Date: 30th May, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of Sah Petroleums
Limited as at 31st March, 2011, the related Profit and Loss Account for
the year ended on that date annexed thereto, and the Cash Flow
Statement for the year ended on that date, which we have signed under
reference to this report. These financial. statements are the
responsibility of the company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. 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 the test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Company Law Board in terms of Section 227 (4A) of- the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of the
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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) 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 (3 C) of Section 211 of the
Companies Act, 1956;
e) On the basis of the written representations received from the
directors as on March 31, 2011 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2011
from being appointed as director in terms of section 274 (1 )(g) of the
Act;
f) In our opinion and to the best of our information and according to
explanations given to us, the said financial statements together with
notes thereon give the information required by the Companies Act,
195,6, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India;
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
ii. In the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
iii. In the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARA I:
i. (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the Fixed assets have not been physical)/verified by management
during the year but there is 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) During the year the company has not disposed off a substantial part
of its fixed assets.
ii. (a) The inventory (excludipg stocks with third parties) has been
physically verified during the year by the management. In our opinion,
the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No
material discrepancies have been noticed on physical verification of
stocks as compared to books records.
iii. The Company has neither granted nor taken, during the year, any
loans, secured or unsecured, to or from companies, firms or other
parties covered in the register maintained under Section 301 of the
Act.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. During the course of audit, no major weakness has been
noticed in these internal controls.
v. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
transactions that need to be entered into the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
vi. The Company has not accepted any deposits from public within the
meaning of Section 58A & 58AA of the Companies Act, 1956, read with
Companies (Acceptance of Deposits) Rules, 1975. Accordingly, the
provisions of clause 4(vi) of the Companies (Auditor's Report) Order
2003 is not applicable to the company.
vii. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii. The Central Government has not prescribed the maintenance of
cost records by the Company under Section 209(1) (d) of the Companies
Act, 1956 for any of its products.
ix. (a) The Company is generally regular in depositing with the
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income-tax, Sales-tax, Wealth tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues applicable to it.
There were no arrears as at 31 st March 2011 for a period of more than
six months from the date they became payable.
(b) On the basis of our examination of the documents and records, there
are no dues of Income Tax, Wealth Tax, Service Tax, Customs duty and
Cess which have not been deposited on account of any dispute. The
particulars of Sales tax as on 31 st March 2011 which have not been
deposited on account of disputes is as follows:
Name of Statute Nature of Dues Amount Period to
which the Forum where the
(Rs.) amount
relates dispute is
pending
Central Sales
Tax, 1956 and Central Sales
Tax, Local Sales 41,575,724 2003-04 Appellate
Tribunal
Sales Tax Acts
of various
States Tax and
Commercial Tax 89,503,356 1996-97,
2003-04 to Departmental
2005-06,
2007-08,
2010-11 Authorities
x. The Company has no accumulated losses as at 31 st March, 2011 and
has not incurred any cash losses in the financial year ended on that
date but had incurred cash losses during the immediately preceding
financial year.
xi. Based on the examination, of the books of account and related
records and according to the information and explanations given to us,
the Company has not defaulted in repayment of dues to the banks.
xii. According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii. The company is not a chit fund or a nidhi mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order 2003 are not applicable to the
company.
xiv. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, the provisions of clause 4(xiv) of the
Companies (Auditor's Report) Order 2003 are not applicable to the
company.
xv. According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from
banks or ffnancial institutions, during the year.
xvi. On the basis of an overall examination of the Balance Sheet of the
company, in our opinion, æthere are no funds raised on short-term basis
which have been used for long-term investment.
xvii. The Company has not made any Preferential Allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act, during the year.
xviii. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year,
nor.have we been informed of such case by the Manager.
xix. The Company has not raised any money by public issue during the
year.
For N.D.DAGA & CO.
Firm Registration No. 101993 W
Chartered Accountants
N.D.Daga
Proprietor
Mumbai. 12.08.2011 Membership No. 9921
Mar 31, 2010
1. We have audited the attached Balance Sheet of Sah Petroleums
Limited as at 31st March, 2010, the related Proft and Loss Account for
the year ended on that date annexed thereto, and the Cash Flow
Statement for the year ended on that date, which we have signed under
reference to this report. These fnancial statements are the
responsibility of the companys management. Our responsibility is to
express an opinion on these fnancial statements based on our audit.
2. 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
fnancial statements are free of material misstatement. An audit
includes examining, on the test basis, evidence supporting the amounts
and disclosures in the fnancial statements. An audit also includes
assessing the accounting principles used and signifcant estimates made
by the management, as well as evaluating the overall fnancial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (AuditorÃs Report) Order, 2003 issued
by the Company Law Board in terms of Section 227 (4A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specifed in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of the
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, Proft and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Proft and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3 C) of Section 211 of the
Companies Act, 1956;
e) On the basis of the written representations received from the
directors as on March 31, 2009 and taken on record by the Board of
Directors, none of the directors is disqualifed as on March 31, 2010
from being appointed as director in terms of section 274 (1)(g) of the
Act;
f) In our opinion and to the best of our information and according to
explanations given to us, the said fnancial statements together with
notes thereon give the information required by the Companies Act, 1956,
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India;
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
ii. In the case of the Proft and Loss Account, of the Loss for the
year ended on that date; and
iii. In the case of Cash Flow Statement, of the cash fows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARA I:
i. (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fxed
assets.
(b) All the Fixed assets have not been physically verifed by management
during the year but there is regular programme of verifcation 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 verifcation.
(c) During the year the company has not disposed off a substantial part
of its fxed assets.
ii. (a) The inventory (excluding stocks with third parties) has been
physically verifed during the year by the management. In our opinion,
the frequency of verifcation is reasonable.
(b) The procedures of physical verifcation of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No
material discrepancies have been noticed on physical verifcation of
stocks as compared to books records.
iii. The Company has not granted or taken any loans, secured or
unsecured, to or from companies, frms or other parties covered in the
register maintained under section 301 of the Act.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fxed assets and for the
sale of goods. During the course of audit, no major weakness has been
noticed in these internal controls.
v. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
transactions that need to be entered into the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
vi. The Company has not accepted any deposits from public within the
meaning of section 58A of the Companies Act, 1956, read with Companies
Acceptance of Deposit Rules(1975). Accordingly, the provisions of
clause 4(vi) of the Companies (AuditorÃs Report) Order 2003 is not
applicable to the company.
vii. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii. The Central Government has not prescribed the maintenance of cost
records by the Company under section 209(1)(d) of the Companies Act,
1956 for any of its products.
ix. (a) The Company is generally regular in depositing with the
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employeesà State
Insurance, Income-tax, Sales-tax, Wealth Tax, Custom Duty, Excise Duty,
Cess and other material Statutory Dues applicable to it. There were no
arrears as at 31st March 2010 for a period of more than six months from
the date they became payable.
(b) On the basis of our examination of the documents and records, there
are no dues of Income Tax, Wealth Tax, Customs duty and Cess which have
not been deposited on account of any dispute. The particulars of Sales
tax as at 31st March 2010 which have not been deposited on account of
disputes is as follows
Name of statute Nature of Dues Amount Rs. Period
MP Commercial Tax
Act, 1944 Commercial Tax 153,855 1996-97
UP Commercial Tax
Act, 1948 Commercial Tax 523,360 2007-08
BST Act 1959 & CST
Act 1956 Sales Tax 41,474,428 2003-04
CST Act 1956 Sales Tax 3,124,568 2003-04
CST Act 1956 Sales Tax 4,654,762 2004-05
CST Act 1956 Sales Tax 57,668,891 2005-06
Bihar Commercial
Tax Act, 1981 Commercial Tax 589,003 2003-04
Bihar Commercial
Tax Act, 1981 CST Tax 12,573 2003-04
M.P. VAT Act, 2002 VAT 764,098 2006-07
Name of statute Forum where the dispute is pending
MP Commercial Tax Dy. Commissioner of Commercial Tax,
Act, 1944 Indore
UP Commercial Tax Asst. Commissioner of Trade Tax
Act, 1948 Squad Unit-I, Moradabad
BST Act 1959 & CST Sales Tax Tribunal, Mumbai
Act 1956
CST Act 1956 Commissioner of Sales Tax, Daman
CST Act 1956 Commissioner of Sales Tax, Daman
CST Act 1956 Commissioner of Sales Tax, Daman
Bihar Commercial Dy. Commissioner of Commercial Tax,
Tax Act, 1981 Jamshedpur
Bihar Commercial Dy. Commissioner of Commercial Tax,
Tax Act, 1981 Jamshedpur
M.P. VAT Act, 200 Appellate Authority, Indore
x. The Company has no accumulated losses at the end of the fnancial
year and it has incurred cash losses during the year but not in the
immediately preceding fnancial year.
xi. Based on the examination of the books of account and related
records and according to the information and explanations given to us,
the Company has not defaulted in repayment of dues to the banks.
xii.According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii.The company is not a chit fund or a nidhi mutual beneft
fund/society. Therefore, the provisions of clause 4 (xiii) of the
Companies (Auditors Report) Order 2003 are not applicable to the
company.
xiv. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, the provisions of clause 4(xiv) of the
Companies (Auditors Report) Order 2003 are not applicable to the
company. xv. According to the information and explanation given to us
the Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi. On the basis of an overall examination of the Balance Sheet of
the company, in our opinion, there are no funds raised on short-term
basis which have been used for long-term investment.
xvii. The Company has not made Preferential Allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
xviii. We have verifed the end use of money raised by Preferential
Allotment of shares as disclosed in the notes to accounts. ( Note 3 of
Schedule 21)
xix. Based upon the audit procedures performed and information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit.
xx. The Company has not raised any money by way of public issue during
the year.
For N.D.DAGA & CO.
Firm Registration No.101993 W
Chartered Accountants
N.D. Daga
Proprietor
Mumbai. 10.08.2010 Membership No. 9921
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