Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS Financial Statements of GRAUER & WEIL (INDIA) LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss, including the Statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the Significant Accounting Policies and Other Explanatory Information.
Managementâs 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 (âthe Actâ) with respect to the preparation of these Standalone Ind AS Financial Statements that give a true and fair view of the financial position, financial performance including the 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 specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS Financial Statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the Standalone Ind AS Financial Statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS Financial Statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of Standalone Ind AS Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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 standalone Ind AS Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, its profit including other comprehensive income, its cash flows and changes in equity for the year ended on that date.
Emphasis of Matter
We draw attention to:
Note No. 33 (M) to the financial statements on non provision for diminution in the value of investments in equity shares of an associate, whose net worth has fully eroded. For reasons explained in the said note, including the associates'' business plans, such impairment, if any, is considered to be temporary in nature, upon which, we have placed our reliance and no provision is considered necessary in the accounts of the Company.
Other Matters
The comparative 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 Ind AS Financial Statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended 31st March 2017 and 31st March 2016 dated 30th May, 2017 and 30th May, 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, have been audited by us.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act we give in the âAnnexure Aâ - 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 the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the Accounting Standards specified under Section 133 of the Act.
(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 âAnnexure B"; and
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Ind AS financial statements - Refer Note 33 (A) to the financial statements;
ii. The Company has made provision, as required under the applicable law or Accounting Standards, for material foreseeable losses, if any, on long term contracts including derivative contracts.
iii. There has been no delay in transferring amounts required to be transferred, to the Investor Education and Protection Fund by the Company.
i) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
b) As explained to us, the assets have been physically verified by the management in accordance with a phased programme of verification, which in our opinion is reasonable, considering the size and the nature of its business. We are informed that there are no major discrepancies, as regards plant and machinery and in respect of other assets, discrepancies, if any, will then be dealt with in the accounts once the process of reconciliation is complete.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company the title deeds of immovable properties are held in the name of the Company.
ii) The inventory, excluding goods-in-transit, has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification. As regards materials lying with third parties, confirmations have been obtained;
iii) The Company has not granted any loans, secured or unsecured during the year to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly the clauses 3(iii) (a), (b) and (c) of the Order are not applicable to the Company. However in respect of a loan given to an associate company in an earlier year, the receipt of interest is regular. There is no stipulation regarding repayment of principal amount.
iv) The Company has not granted any loan, neither made any investments, nor given any guarantee or security, during the year, covered by the provisions of Sections 185 and 186 of the Act.
v) The Company has not accepted any deposits within the meaning of Provisions of Section 73 to 76 of the Act, and the rules framed there under from the public.
vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148 (1) of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
vii) a) The Company is regular in depositing undisputed statutory dues, including provident fund, employees'' state insurance, income tax, sales tax, service tax, goods & service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with appropriate authorities, where applicable. According to the information and explanations given to us, there are no undisputed amounts payable in respect of such statutory dues which have remained outstanding as at 31st March, 2018 for a period of more than six months from the date they became payable.
b) According to the records of the Company, the dues outstanding of income tax, sales tax, service tax, duty of customs, duty of excise and value added tax on account of any dispute, are as follows:
Particulars |
Period to which the amount related |
Forum where the dispute is pending |
Amount (Rs. In Lacs) |
Income Tax |
2004-05 |
Income Tax Appellant Tribunal |
9.68 |
2011-12 |
Commissioner of Income Tax (Appeals) |
14.56 |
|
Excise Duty |
1996-97 to 2001-02 |
Commissioner of Excise & Customs (Appeals) |
12.94 |
2009-10 to 2013-14 |
Commissioner of Excise & Customs (Appeals), Chandigarh |
19.33 |
|
2007-2011, 2010-2014, 2007-12, 2011-16 |
Commissioner ( Appeal) |
228.53 |
|
2011-2016 |
Joint Commissioner (Audit II) |
83.36 |
|
2009-10 to 2012-13, 2013-14 |
Commissioner of Central Excise (Appeals) |
35.02 |
|
Service Tax |
2003-06 |
Commissioner of Service Tax (Appeal) |
121.70 |
2010-2011, 2009-10 to 2013-14, 2014-15, 2015-16 & 2016-17 |
Commissioner of Service Tax |
131.64 |
|
Sales Tax |
1998-99 and 2011-12 |
Joint/Deputy Commissioner (Appeal) |
17.65 |
2012-2013 |
53.60 |
viii) The Company has not defaulted in repayment of its loans or borrowings to banks. The Company does not have any borrowings by way of debentures.
ix) The Company has not raised any moneys by way of initial public offer or further public offer (Including debt instruments). Moneys raised by way of term loan were applied for the purpose for which those are raised.
x) On the basis of our examination and according to the information and explanations given to us, no fraud by the Company or any material fraud on the Company by its officers or employees has been noticed or reported during the year, nor have we been informed of any such case by the management.
xi) The managerial remuneration has been paid in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii) The Company is not a nidhi Company and accordingly provisions of clause (xii) of Para 3 of the order are not applicable to the Company.
xiii) On the basis of our examination and according to the information and explanations given to us, we report that all the transaction with the related parties are in compliance with Section 177 and 188 of the Act, and the details have been disclosed in the financial statements in Note No.33(P) as required by the applicable accounting standards.
xiv) The Company has not made any preferential allotment or private placement of share or fully or partly convertible debentures during the year and accordingly provisions of clause (xiv) of Para 3 of the Order are not applicable to the Company.
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 any non-cash transactions with directors or persons connected with him. Accordingly provisions of clause (xv) of Para 3 of the Order are not applicable to the Company.
xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and accordingly, provisions of clause (xvi) of Para 3 of the Order are not applicable to the Company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of GRAUER & WEIL (INDIA) LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by The Institute of Chartered Accountants of India. 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.
Auditorâs 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 âGuidance Noteâ) and the Standards on Auditing, issued by Institute of Chartered accountants of India 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 judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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 authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 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 issued by The Institute of Chartered Accountants of India.
For SCA & ASSOCIATES
Chartered Accountants
(Firm Registration No.101174W)
Kiron Mallapur
Partner
Membership No.036336
Place: Mumbai
Date: 30th May 2018
Mar 31, 2017
TO THE MEMBERS OF GRAUER & WEIL (INDIA) LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of GRAUER & WEIL (INDIA) LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with 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 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
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 auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating 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, 2017, its profit and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to:
Note No. 27 (M) (i) to the financial statements on non provision for diminution in the value of investments in equity shares of an associate, whose net worth has fully eroded. For reasons explained in the said note, including the associates'' business plans & growing prospects, such impairment, if any, is considered to be temporary in nature, upon which, we have placed our reliance and no provision is considered necessary in the accounts of the Company.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 20l6(âthe Orderâ) issued by the Central Government of India in terms of sub-section
(11) of section 143 of the Act we give in the âAnnexure Aâ - a statement on the matters specified in 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, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 27 (A) to the financial statements;
ii. The Company has made provision, as required under the applicable law or Accounting Standards, for material foreseeable losses, if any, on long term contracts including derivative contracts.
iii. There has been no delay in transferring amounts required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November 2016 to 30th December, 2016. Based on audit procedures and relying on the management representation we report that the disclosures are in accordance with the books of accounts maintained by the Company and as produced by the Management.
âANNEXURE Aâ TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF GRAUER & WEIL (INDIA) LIMITED
i) In respect of its Fixed Assets:
a) The Company has maintained proper records showing full particulars, including quantitative details and situation of Fixed Assets;
b) As explained to us, the Assets have been physically verified by the management in accordance with a phased programme of verification, which in our opinion is reasonable, considering the size and the nature of its business. We are informed that there are no major discrepancies, as regards plant and machinery and in respect of other assets, discrepancies, if any, will then be dealt with in the accounts once the process of reconciliation is complete.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company the title deeds of immovable properties are held in the name of the Company.
ii) The inventory, excluding goods-in-transit, has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification. As regards materials lying with third parties, confirmations have been obtained;
iii) The Company has not granted any loans, secured or unsecured during the year to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly the clauses 3(iii) (a), (b) and (c) of the Order are not applicable to the Company. However in respect of a loan given to an associate company in an earlier year, the receipt of interest is regular. There is no stipulation regarding repayment of principal amount.
iv) The Company has not granted any loan, neither made any investments, nor given any guarantee or security, during the year, covered by the provisions of Sections 185 and 186 of the Act.
v) The Company has not accepted any deposit from public during the year. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 74 of the Act, read with relevant rules there under, with regard to repayment of the deposits accepted before the commencement of the Act. We are informed by the management that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal on the Company.
vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148 (1) of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
vii) a) The Company is regular 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 and any other statutory dues with appropriate authorities, where applicable. According to the information and explanations given to us, there are no undisputed amounts payable in respect of such statutory dues which have remained outstanding as at 31st March, 2017 for a period of more than six months from the date they became payable.
b) According to the records of the Company, the dues outstanding of Income-Tax, Sales-Tax, Service Tax, Duty of Customs, Duty of Excise and Value Added Tax on account of any dispute, are as follows:
Particulars |
Period to which the amount related |
Forum where the dispute is pending |
Amount (Rs. In Lacs) |
Income Tax |
2004-05 |
Income Tax Appellant Tribunal |
9.68 |
2011-12 |
Commissioner of Income Tax (Appeals) |
14.56 |
|
1996-97 to 2001-02 |
Commissioner of Excise & Customs (Appeals) |
12.94 |
|
Excise Duty |
2009-10 to 2013-14 |
Commissioner of Excise & Customs (Appeals), Chandigarh |
19.33 |
1990-91, 1993-94, 1996-97, 1997-98, 1998-99, 1999-2000, and 2000-01 |
Deputy/Assistant Commissioner |
11.72 |
|
2006-2012 and 2011-2016 |
Commissioner of Excise & Customs (Appeals) |
231.36 |
|
Service Tax |
2003-04 to 2010-11, 2011-12 to 2013-14 |
Commissioner of Service Tax (Appeals) |
211.53 |
Sales Tax |
1998-99 and 2011-12 |
Joint/Deputy Commissioner (Appeals) |
17.65 |
2012-2013 |
53.60 |
viii) The Company has not defaulted in repayment of its loans or borrowings to banks. The Company does not have any borrowings by way of debentures.
ix) The Company has not raised any moneys by way of Initial public offer or further Public offer (Including debt instruments). Moneys raised by way of Term Loan were applied for the purpose for which those are raised.
x) On the basis of our examination and according to the information and explanations given to us, no fraud by the Company or any material fraud on the Company by its officers or employees has been noticed or reported during the year.
xi) The managerial remuneration has been paid in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii) The Company is not a nidhi Company and accordingly provisions of clause (xii) of Para 3 of the order are not applicable to the Company.
xiii) On the basis of our examination and according to the information and explanations given to us, we report that all the transaction with the related parties are in compliance with Section 177 and 188 of the Act, and the details have been disclosed in the Financial statements in Note no.27(Q) as required by the applicable accounting standards.
xiv) The Company has not made any preferential allotment or private placement of share or fully or partly convertible debentures during the year and accordingly provisions of clause (xiv) of Para 3 of the Order are not applicable to the Company.
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 any non-cash transactions with directors or persons connected with him. Accordingly provisions of clause (xv) of Para 3 of the Order are not applicable to the Company.
xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and accordingly, provisions of clause (xvi) of Para 3 of the Order are not applicable to the Company.
âANNEXURE Bâ TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF GRAUER & WEIL (INDIA) LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of GRAUER & WEIL (INDIA) LIMITED (âthe Companyâ) as of March 31, 2017 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by The Institute of Chartered Accountants of India. 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.
Auditorsâ 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 âGuidance Noteâ) and the Standards on Auditing, issued by Institute of Chartered accountants of India 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 judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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 authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by The Institute of Chartered Accountants of India.
For M. M. NISSIM & CO.
Chartered Accountants
(Firmâs Registration No.l07l22W)
(N. KASHINATH)
Partner
Membership No. 036490
Place: Mumbai
Date: 30th May 2017
Mar 31, 2016
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of GRAUER & WEIL (INDIA) LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with 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 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
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 auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating 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, 2016, its profit and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to:
Note No. 27 (M) (i) to the financial statements on non provision for diminution in the value of investments in equity shares of an associate, whose net worth has fully eroded. For reasons explained in the said note, including the associates'' business plans & growing prospects, such impairment, if any, is considered to be temporary in nature, upon which, we have placed our reliance and no provision is considered necessary in the accounts of the Company.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2016(âthe Orderâ) issued by the Central Government of India in terms of sub-section
(11) of section 143 of the Act we give in the âAnnexure Aâ - a statement on the matters specified in 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, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 27 (A) to the financial statements;
ii. The Company has made provision, as required under the applicable law or Accounting Standards, for material foreseeable losses, if any, on long term contracts including derivative contracts.
iii. There has been no delay in transferring amounts required to be transferred, to the Investor Education and Protection Fund by the Company.
i) In respect of its Fixed Assets:
a) The Company has maintained proper records showing full particulars, including quantitative details and situation of Fixed Assets;
b) As explained to us, the Assets have been physically verified by the management in accordance with a phased programme of verification, which in our opinion is reasonable, considering the size and the nature of its business. We are informed that there are no major discrepancies, as regards plant and machinery and in respect of other assets, discrepancies, if any, will then be dealt with in the accounts once the process of reconciliation is complete.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company the title deeds of immovable properties are held in the name of the Company.
ii) The inventory, excluding goods-in-transit, has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification. As regards materials lying with third parties, confirmations have been obtained;
iii) The Company has not granted any loans, secured or unsecured during the year to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly the clauses 3(iii) (a), (b) and (c) of the Order are not applicable to the Company. However in respect of a loan given to an associate company in an earlier year, the receipt of interest is regular. There is no stipulation regarding repayment of principal amount.
iv) The Company has not granted any loan, neither made any investments, nor given any guarantee or security, during the year, covered by the provisions of Sections 185 and 186 of the Act.
v) The Company has not accepted any deposit from public during the year. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 74 of the Act, read with relevant rules there under, with regard to repayment of the deposits accepted before the commencement of the Act. We are informed by the management that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal on the Company.
vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148 (1) of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
vii) a) The Company is regular 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 and any other statutory dues with appropriate authorities, where applicable. According to the information and explanations given to us, there are no undisputed amounts payable in respect of such statutory dues which have remained outstanding as at 31st March, 2016 for a period of more than six months from the date they became payable.
b) According to the records of the Company, the dues outstanding of Income-Tax, Sales-Tax, Service Tax, Duty of Customs, Duty of Excise and Value Added Tax on account of any dispute, are as follows:
Particulars |
Period to which the amount related |
Forum where the dispute is pending |
Amount (Rs. In Lacs) |
Income Tax |
2004-05 |
Income Tax Appellant Tribunal |
9.68 |
2011-12 |
Commissioner of Income Tax (Appeals) |
14.56 |
|
Excise Duty |
1996-97 to 2001-02 |
Commissioner of Excise & Customs (Appeals) |
12.94 |
2009-10 to 2013-14 |
Commissioner of Excise & Customs (Appeals), Chandigarh |
19.33 |
|
1990-91, 1993-94, 1996-97, 1997-98, 1998-99, 1999-2000, and 2000-01. |
Deputy/Assistant Commissioner |
11.72 |
|
2006-2012 |
Commissioner of Excise & Customs (Appeals) |
46.67 |
|
Service Tax |
2003-04 to 2010-11, 2011-12 to 2013-14. |
Commissioner of Service Tax (Appeals) |
180.71 |
Sales Tax |
1998-99 and 2011-12. |
Joint/Deputy Commissioner (Appeals) |
18.77 |
viii) The Company has not defaulted in repayment of its loans or borrowings to banks. The Company does not have any borrowings by way of debentures.
ix) The Company has not raised any moneys by way of Initial public offer or further Public offer (Including debt instruments). Moneys raised by way of Term Loan were applied for the purpose for which those are raised.
x) On the basis of our examination and according to the information and explanations given to us, no fraud by the Company or any material fraud on the Company by its officers or employees has been noticed or reported during the year.
xi) The managerial remuneration has been paid in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii) The Company is not a nidhi Company and accordingly provisions of clause (xii) of Para 3 of the order are not applicable to the Company.
xiii) On the basis of our examination and according to the information and explanations given to us, we report that all the transaction with the related parties are in compliance with Section 177 and 188 of the Act, and the details have been disclosed in the Financial statements in Note no.27(Q) as required by the applicable accounting standards.
xiv) The Company has not made any preferential allotment or private placement of share or fully or partly convertible debentures during the year and accordingly provisions of clause (xiv) of Para 3 of the Order are not applicable to the Company.
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 any non-cash transactions with directors or persons connected with him. Accordingly provisions of clause (xv) of Para 3 of the Order are not applicable to the Company.
xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and accordingly, provisions of clause (xvi) of Para 3 of the Order are not applicable to the Company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of GRAUER & WEIL (INDIA) LIMITED (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by The Institute of Chartered Accountants of India. 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.
Auditorâs 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 âGuidance Noteâ) and the Standards on Auditing, issued by The Institute of Chartered Accountants of India 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 judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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 authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by The Institute of Chartered Accountants of India.
For M.M. NISSIM & CO.
Chartered Accountants
(Firm Registration No.l07l22W)
N. KASHINATH
Partner
Membership No.036490
Place: Mumbai
Date: 30th May 2016
Mar 31, 2015
We have audited the accompanying Standalone Financial Statements of
GRAUER & WEIL (INDIA) LIMITED ("the Company"), which comprises 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 Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these Standalone Financial Statements
that give a true and fair view of the financial position, financial
performance and the 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 of the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these Standalone
Financial Statements based on our audit.
We have taken into account the provisions of the Act, the Accounting
and Auditing Standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Board of 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, 2015, its profit and its cash flows for the year ended
on that date.
Emphasis of Matter
We draw attention to:
a. Note No. 1 (r) to the financial statements, indicate that the
Company with effect from 1st April, 2014, has charged depreciation
based on the revised remaining useful life of the assets, as per the
requirements of Schedule II of the Companies Act, 2013. As a result of
these changes, the depreciation charge for the year ended 31st March,
2015 is higher by Rs. 461.56 Lacs. Carrying amount of Rs. 219.60 Lacs
(net of Deferred Tax Rs. 113.08 Lacs) on account of assets, whose
useful lives are already exhausted as on 1st April, 2014 has been
adjusted to the opening balance of Reserves and Surplus. The assets and
the reserves of the Company are lower by the above amounts.
b. Note No. 27 (M) (i) to the financial statements on non provision for
diminution in the value of investments in equity shares of a subsidiary
and associates, whose net worth has fully eroded. For reasons explained
in the said note, including the subsidiary''s/associates'' business plans
& growing prospects, such impairment, if any, is considered to be
temporary in nature, upon which, we have placed our reliance and no
provision is considered necessary in the accounts of the Company.
Our opinion is not modified in respect of the aforesaid matters.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act we give in the annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
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, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid Standalone Financial Statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with 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 on its
financial position in its financial statements - Refer Note 27(A) to
the financial statements;
ii. The Company has made provision, as required under the applicable
law or Accounting Standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts.
iii. There has been no delay in transferring amounts required to be
transferred, to the Investor Education and Protection Fund by the
Company.
(Referred to in our report of even date to the members of Grauer & Weil
(India) Limited as at and for the year ended 31st March, 2015).
i) In respect of its fixed assets:
a) The Company has compiled itemwise lists of all its fixed assets,
showing full particulars including quantitative details and location of
fixed assets.
b) As explained to us, all the assets have been physically verified by
the management in accordance with a phased programme of verification
which in our opinion is reasonable, considering the size and nature of
its business. We are informed that there are no major discrepancies, as
regards plant and machinery and in respect of other assets,
discrepancies, if any, will then be dealt with in the accounts once the
process of reconciliation is complete.
ii) In respect of its inventories:
a) The inventory, excluding goods in transit has been physically
verified by the management during the year. In our opinion, the
frequency of verification is reasonable. As regards goods lying with
third parties, confirmations have been obtained;
b) The procedures of physical verification of inventory followed by the
management are, in our opinion, reasonable and adequate in relation to
the size of the Company and nature of its business.
c) On the basis of our examination of the inventory records of the
Company, we are of the opinion that the Company is maintaining proper
records of its inventory. The discrepancies noticed on verification
between the physical stocks and book records have been properly dealt
with in the books of account.
iii) a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 189 of the Act during the year. In our opinion, the
receipt of the principal amount and interest with respect to loan to a
party given in earlier years has been regular.
b) In our opinion, there have been no overdue amounts on the said
loans. Accordingly, the provisions of Clause 3(iii)(b) is not
applicable.
iv) In our opinion there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories, fixed assets and for
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal control.
v) The Company has not accepted any deposit from public during the
year. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section 74
of the Act, read with relevant rules thereunder, with regard to
repayment of the deposits accepted before the commencement of the Act.
vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 148 (1) of the Act, and are
of the opinion that prima facie, the prescribed accounts and records
have been made and maintained.
vii) a) The Company is regular in depositing undisputed statutory dues,
including Provident Fund, Employees'' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise,
Value Added Tax, Cess and any other statutory dues with appropriate
authorities, where applicable. According to the information and
explanations given to us, there are no undisputed amounts payable in
respect of such statutory dues which have remained outstanding as at
31st March, 2015 for a period of more than six months from the date
they became payable.
b) According to the records of the Company, the dues outstanding of
Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty
of Excise, Value Added Tax and Cess on account of any dispute, are as
follows:
Particulars Period to which the amount related
Income Tax 2011-12
1984-85, 1985-86, 1990-91, 1991-92,
1992-93, 1993-94 and 1994-95.
1996- 97 to 2001-02
Excise Duty 2009-10 to 2013-14
1990-91, 1993-94, 1996-97,
1997- 98, 1998-99, 1999-2000, and 2000-01.
Service Tax 2003-04 to 2010-11,2011-12 and 2012-13.
Sales Tax 1998-99, 2003-04, 2005-06, and 2012-13.
Customs Duty 2007-08 and 2008-09
Particulars Forum where the dispute is pending Amount
(Rs. In Lacs)
Incomr Tax Commissioner of Income Tax (Appeal) 13.92
Central Excise Gold Appellate Tribunal 20.58
Excise Duty Mumbai High Court 12.94
Commissioner of Excise & Customs (Appeals), 20.89
Chandigarh
Deputy/Assistant Commissioner 11.72
Service Tax Assistant/ Additional Commissioner (Appeal) 107.35
Sales Tax Joint / Deputy Commissioner (Appeal) 25.05
Customs Duty Commissioner of Customs (Import) 35.82
c) On the basis of our examination and according to the information and
explanations given to us, there were no delay in transferring the
amounts which were required to be transferred to the Investor Education
and Protection Fund by the Company.
viii) The Company has no accumulated losses at the end of the financial
year and has not incurred cash losses, in the current financial year
and in the immediate preceding financial year.
ix) The Company has not defaulted in repayment of its dues to banks.
The Company does not have any borrowings by way of debentures.
x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
xi) On the basis of the records examined by us we have to state that,
the Company has, prima facie, applied the term loans for the purposes
for which they were obtained.
xii) On the basis of our examination and according to the information
and explanations given to us, no fraud on or by the Company, has been
noticed or reported during the year.
For M. M. NISSIM & CO.
Chartered Accountants
(Firm Reg No. 107122W)
(N. KASHINATH)
Partner
Membership No. 36490
Mumbai, 29th May, 2015
Mar 31, 2014
We have audited the accompanying Financial Statements of GRAUER & WEIL
(INDIA) LIMITED (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 the explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of Section 211
of the Companies Act, 1956 (''the Act''). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgement, 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 by the Act 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 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.
Emphasis of Matter
We draw attention to Note No. 27 (L) to the accounts on non provision
for diminution in the value of investments in equity shares of a
subsidiary and associates whose net worth has eroded. For reasons
explained in the said note, including the subsidiary''s/associates
business plans & growing prospects, such impairment, if any, is
considered to be temporary in nature, upon which, we have placed our
reliance and no provision is considered necessary in the accounts of
the Company.
Our opinion is not qualified in respect of the aforesaid matter.
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 Companies Act, 1956 (the ''Act'')
we give in the annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
2. Further to our comments referred to in paragraph 1 above:
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 dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Act;
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 of
the Company and on the basis of examination and records of the Company,
we report and certify that none of the Director 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 Act, on the said date.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in our report of even date to the Members of Grauer & Weil
(India) Limited as at and for the year ended 31st March, 2014)
i. In respect of its fixed assets:
(a) The Company has compiled itemwise lists of all its fixed assets,
showing full particulars including quantitative details and location of
fixed assets.
(b) As explained to us, all the assets have been physically verified by
the management in accordance with a phased programme of verification
which in our opinion is reasonable, considering the size and nature of
its business. We are informed that there are no major discrepancies, as
regards Plant and Machinery and in respect of other assets,
discrepancies, if any, will then be dealt with in the accounts once the
process of reconciliation is complete.
(c) The Company has not disposed of any substantial part of its fixed
assets so as to affect its going concern. ii. In respect of its
inventories:
(a) The inventory, excluding goods in transit has been physically
verified by the management during the year. In our opinion, the
frequency of verification is reasonable. As regards goods lying with
third parties, confirmations have been obtained.
(b) The procedures of physical verification of inventories followed by
the management are, in our opinion, 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 records of the
Company, we are of the opinion that the Company is maintaining proper
records of its inventory. The discrepancies noticed on verification
between the physical stocks and book records have been properly dealt
with in the books of account.
iii. (a) The Company has during the year granted unsecured loans to a
Company listed in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 50.22 Lacs (Previous Year Rs. 50.00 Lacs) and the year end balance
of loans granted to such party was Rs. 50.00 Lacs (Previous Year Rs.
50.00 Lacs).
(b) In our opinion, the rate of interest and other terms and conditions
on which unsecured loan has been granted to a Company listed in the
register maintained under Section 301 of the Companies Act, 1956 is
not, prima facie, prejudicial to the interest of the Company.
(c) The Company has repaid the principal amounts as stipulated and have
been regular in the payment of interest where applicable.
(d) There is no overdue amount of loan granted to a Company listed in
the register maintained under Section 301 of the Companies Act, 1956.
(e) The Company has taken unsecured loans from 5 Companies and a
Director, covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 533.50 Lacs (Previous Year Rs. 533.50 Lacs) and the year end
balance of such loans taken was Rs. 390.50 Lacs (Previous Year Rs.
533.50 Lacs).
(f) The rate of interest and other terms and conditions of unsecured
loans taken by the Company, are not prima facie prejudicial to the
interest of the Company.
(g) The Company has repaid the principal amounts as stipulated and has
been regular in the payment of interest, where applicable.
iv. In our opinion, there are adequate internal control systems
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, 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
controls.
v. (a) Based on the audit procedure applied by us and according to the
information, explanations and representation given to us, we are of the
opinion that particulars of contracts or arrangements referred to in
Section 301 of the Companies Act, 1956 that need to be entered in the
register maintained under that Section have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of rupees five lacs in respect of each
party during the year have been made at prices which are prima- facie,
reasonable having regard to prevailing market prices at that time
except that in respect of certain specialised services availed no
comparison of prices could be made as we were informed that there are
no prevailing market prices.
vi. The Company has complied with the provisions of Section 58A, 58AA
of the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rule, 1975 with regards to deposits accepted from the public. We are
informed by the management that no order has been passed by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal in respect of aforesaid deposits.
vii. The Company does not have a formal internal audit system. However,
in our opinion, there are adequate internal control procedures
commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 in respect of the Company''s products to which the said rules
are applicable and are of the opinion that prima facie the prescribed
accounts have been made and maintained. We have however, not made a
detailed examination of the records with a view to determining whether
they are accurate, or complete.
ix. (a) The Company is regular in depositing undisputed statutory dues,
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other Statutory dues with the
appropriate authorities, where applicable. According to the information
and explanations given to us, there are no undisputed amounts payable
in respect of such statutory dues which have remained outstanding as at
31st March, 2014 for a period of more than six months from the date
they became payable.
(b) According to the records of the Company, Excise Duty, Sales Tax and
Income Tax which have not been deposited on account of any disputes,
are as detailed below:
Particulars Period to which
the amount related Forum where the
dispute is pending Amount
(Rs. In Lacs)
Income Tax 2011-12 Commissioner of
Income Tax (Appeal) 4.36
Excise Duty 1984-85, 1985-86,
1990-91,1991-92,
1992-93, Central Excise Gold
Appellate Tribunal 20.58
1993-94 and 1994-95.
1990-91, 1993-94,
1996-97, 1997-98,
1998-99, Deputy/Assistant
Commissioner 11.72
1999-2000 and
2000-01.
Service Tax 2003-04 to 2010-11,
2011-12 and 2012-13. Assistant/ Addl.
Commissioner
(Appeal) 160.20
Sales Tax 1998-99, 2003-04,
2005-06, 2009-10 and
2012-13. Commissioner
(Appeal)/Financial 27.87
Commissioner
Customs Duty 2007-08 and 2008-09 Commissioner of
Customs (Import) 35.82
x. The Company has no accumulated losses at the end of the financial
year and has not incurred cash losses, in the current financial year
and in the immediately preceding financial year.
xi. The Company has not defaulted in repayment of its dues to banks.
The Company has not borrowed by way of debentures and from Financial
Institutions.
xii. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities.
xiii. The Company is not a chit fund or nidhi or mutual benefit fund or
society and hence the provisions of Clauses 4(xiii) (a) to (d) of the
Order, are not applicable to the Company.
xiv. The Company is not dealing or trading in shares, securities,
debentures, and other investments. Accordingly, the provisions of
Clause 4 (xiv) of the Order are not applicable to the Company.
xv. Based on our examination of the records and according to the
information and explanations given to us, the Company has not given any
corporate guarantee for loans taken by others from any bank or
financial institution.
xvi. On the basis of the records examined by us and relying on the
information compiled by the Company for co-relating the funds raised to
the end use of the terms loans, we have to state that, the Company has,
prima-facie, applied the term loans for the purpose for which they were
raised.
xvii. 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 no funds raised on short term
basis have been used for long term investments.
xviii. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any money through a public issue,
during the year.
xxi. According to the information and explanations given to us and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed or reported by the Company during the year.
For M. M. NISSIM AND CO.
Chartered Accountants
(Firm Reg No. 107122W)
N. KASHINATH
Partner
Membership No. 36490
Mumbai
30th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying Financial Statements of GRAUER & WEIL
(INDIA) LIMITED (the ÂCompany''), which comprise the Balance Sheet as at
March, 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 the 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 (Âthe act''). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required by the Act 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, 2013;
b) In the case of 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.
Emphasis of Matter
We draw attention to Note no. 27 (L) to the accounts on non provision
for diminution in the value of investments relating to investments in
equity shares of a subsidiary and associates. The management considers
these investments as strategic investments and based upon projected
future earnings expect the diminution in value to be temporary, upon
which, we have placed our reliance.
Our opinion is not qualified in respect of the aforesaid matter.
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 Companies Act, 1956 (the ÂAct'') we
give in the annexure a statement on the matters specified in paragraphs
4 and 5 of the Order.
2. Further to our comments referred to in paragraph 1 above.
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 & 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 & 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 Act;
e. On the basis of written representations received from the Directors
as on 31st March 2013 and taken on record by the Board of Directors of
the Company and on the basis of examination and records of the company,
we report and certify that none of the Directors is disqualified as on
31 March, 2013 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Act, on the said date;
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in our report of even date to the members of Grauer & Weil
(India) Ltd. as at and for the year ended 31st March, 2013)
i. In respect of its fixed assets:
(a) The Company has compiled itemwise lists of all its fixed assets.
Showing full particulars including quantitative details and location of
fixed assets.
(b) As explained to us, all the assets have been physically verified by
the management in accordance with a phased programme of verification
which in our opinion is reasonable, considering the size and nature of
its business. We are informed that there are no major discrepancies, as
regards Plant and Machinery and in respect of other assets,
discrepancies, if any, will then be dealt with in the accounts once the
process of reconciliation is complete.
(c) The Company has not disposed off any substantial part of its Fixed
Assets so as to affect its going concern. ii. In respect of its
inventories:
(a) The Inventory, excluding goods in transit has been physically
verified by the management during the year. In our opinion, the
frequency of verification is reasonable. As regards goods lying with
third parties, confirmations have been obtained.
(b) The procedures of physical verification of Inventories followed by
the management are, in our opinion, 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 records of the
Company, we are of the opinion that the Company is maintaining proper
records of its inventory. The discrepancies noticed on verification
between the physical stocks and book records have been properly dealt
with in the books of account.
iii. (a) The Company has during the year granted unsecured loans to a
Company listed in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 50 Lacs (50.00 Lacs) and the year end balance of Loans granted to
such party was Rs. 50 Lacs (50.00 Lacs).
(b) In our opinion, the rate of interest where applicable and other
terms and conditions on which unsecured loans have been granted to
Companies listed in the register maintained under section 301 of the
Companies Act, 1956 are not, prima facie, prejudicial to the interest
of the Company.
(c) The Companies have repaid the principal amounts as stipulated and
have been regular in the payment of interest where applicable.
(d) There is no overdue amount of loans granted to Companies listed in
the register maintained under section 301 of the Companies Act, 1956.
(e) The company has taken unsecured loans from 5 Companies and a
Director, covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 533.50 Lacs (508.50 Lacs) and the year end balance of such loans
taken was Rs.533.50 Lacs (458.50 Lacs).
(f) The rate of interest, where applicable and other terms and
conditions of unsecured loans taken by the Company, are not prima facie
prejudicial to the interest of the Company.
(g) The Company has repaid the principal amounts as stipulated and has
been regular in the payment of interest, where applicable.
iv. In our opinion, there are adequate internal control systems
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, 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
controls.
v. (a) Based on the audit procedure applied by us and according to the
information, explanations and representation given to us, we are of the
opinion that particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956 that need to be entered in the
register maintained under that section have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of rupees five lacs in respect of each
party during the year have been made at prices which are prima- facie,
reasonable having regard to prevailing market prices at that time
except that in respect of certain specialized services availed no
comparison of prices could be made as we were informed that there are
no prevailing market prices.
vi. The Company has complied with the provisions of Section 58A, 58AA
of the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rule, 1975 with regards to deposits accepted from the public. We are
informed by the management that no order has been passed by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other tribunal in respect of aforesaid deposits.
vii. The Company does not have a formal internal audit system. However,
in our opinion, there are adequate internal control procedures
commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 in respect of the Company''s products to which the said rules
are applicable and are of the opinion that prima facie the prescribed
accounts have been made and maintained. We have however, not made a
detailed examination of the records with a view to determining whether
they are accurate, or complete.
ix. (a) The Company is regular in depositing undisputed statutory dues,
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other Statutory dues with the
appropriate authorities, where applicable. According to the information
and explanations given to us, there are no undisputed amounts payable
in respect of such statutory dues which have remained outstanding as at
31st March 2013 for a period of more than six months from the date they
became payable.
x. The Company has no accumulated losses at the end of the financial
year and has not incurred cash losses, in the current financial year
and in the immediately preceding financial year.
xi. The Company has not defaulted in repayment of its dues to banks.
The company has not borrowed by way of debentures and from Financial
Institutions.
xii. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities.
xiii. The Company is not a chit fund or nidhi or mutual benefit fund or
society and hence the provisions of Clauses 4(xiii) (a) to (d) of the
Order, are not applicable to the Company.
xiv. The Company is not dealing or trading in shares, securities,
debentures, and other investments. Accordingly, the provisions of
Clause 4 (xiv) of the Order are not applicable to the Company.
xv. Based on our examination of the records and according to the
information and explanations given to us, the company has not given any
corporate guarantee for loans taken by others from any bank or
financial institution.
xvi. On the basis of the records examined by us and relying on the
information compiled by the Company for co-relating the funds raised to
the end use of the terms loans, we have to state that, the Company has,
prima-facie, applied the term loans for the purpose for which they were
raised.
xvii. 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; no funds raised on short term
basis have been used for long term investments.
xviii. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any money through a public issue,
during the year.
xxi. According to the information and explanations given to us and to
the best of our knowledge and belief no fraud on or by the Company, has
been noticed or reported by the Company during the year.
For M. M. Nissim And Co.
Chartered Accountants
(Firm Reg No: 107122W)
N. KASHINATH
Partner
Mem. No. 36490
Mumbai
30th May, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of GRAUER & WEIL (INDIA)
LIMITED, as at 3lst March, 20l2 and also the statement of Profit and
Loss and the cash flow statement of the Company for the year ended on
that date, annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Our audit includes an examination, on a
test basis, of evidence relevant to the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates and judgments made by the management in the
preparation of financial statements and evaluating the overall
financial statement presentation.
We planned and performed our audit, so as to obtain all the information
and explanations which we considered necessary in order to provide us
with sufficient evidence to give reasonable assurance that the
financial statements are free from material misstatements and to
provide a reasonable basis for our opinion and report that:
1) As required by the Companies (Auditors' Report) Order, 2003 issued
by the Company Law Board in terms of Section 227(4A) of the Companies
Act, l956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
2) Without qualifying our report, we draw attention to Note no. 27 (L)
to the accounts on non provision for diminution in the value of
investments relating to investments in equity shares of a subsidiary
and associates. The management considers these investments as strategic
investments and based upon projected future earnings expect the
diminution in value to be temporary, upon which, we have placed our
reliance.
In view of the above, the aggregate impact of the same is not
quantifiable.
3) Further to our comments referred to in paragraph l above.
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 the
books.
c) The Balance Sheet, statement of Profit and Loss and Cash Flow
Statement, under 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 referred to in this report comply with the
Accounting Standards referred to in Section 2ll(3C) of the Companies
Act, l956.
e) On the basis of written representations received from the Directors
as on March 3l, 20l2 and taken on record by the Board of Directors, we
report and certify that none of the Directors is disqualified from
being appointed as Director under Clause (g) of sub- section (l) of
Section 274 of the Companies Act, l956 on the said date.
4) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with para 2 above
and together with the notes thereon, give the information as required
by the Companies Act, l956 in the manner so required and also 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 March, 20l2.
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 the Cash Flow Statement, of the Cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in our report of even date to the members of Grauer & Weil
(India) Ltd. as at and for the year ended 31st March. 2012)
i. In respect of its fixed assets:
(a) The Company has compiled item wise lists of all its fixed assets.
Showing full particulars including quantitative details and location of
fixed assets.
(b) As explained to us, all the assets have been physically verified by
the management in accordance with a phased programme of verification
which in our opinion is reasonable, considering the size and nature of
its business. We are informed that there are no major discrepancies, as
regards Plant and Machinery and in respect of other assets,
discrepancies, if any, will then be dealt with in the accounts once the
process of reconciliation is complete.
(c) The Company has not disposed off any substantial part of its Fixed
Assets so as to affect its going concern.
ii. In respect of its inventories:
(a) The Inventory, excluding goods in transit has been physically
verified by the management during the year. In our opinion, the
frequency of verification is reasonable. As regards goods lying with
third parties, confirmations have been obtained.
(b) The procedures of physical verification of Inventories followed by
the management are, in our opinion, 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 records of the
Company, we are of the opinion that the Company is maintaining proper
records of its inventory. The discrepancies noticed on verification
between the physical stocks and book records have been properly dealt
with in the books of account.
iii. (a) The Company has during the year granted unsecured loans to a _
Company listed in the register maintained under section 30l of the
Companies Act, l956. The maximum amount involved during the year was
Rs. 50.00 Lacs (78.93 Lacs) and the year end balance of Loans granted
to such parties was Rs. 50.00 Lacs (50.00 Lacs).
(b) In our opinion, the rate of interest where applicable and other
terms and conditions on which unsecured loans have been granted to
Companies listed in the register maintained under section 30l of the
Companies Act, l956 are not, prima facie, prejudicial to the interest
of the Company.
(c) The Companies have repaid the principal amounts as stipulated and
have been regular in the payment of interest where applicable.
(d) There is no overdue amount of loans granted to Companies listed in
the register maintained under section 30l of the Companies Act, l956.
(e) The company has taken unsecured loans from 5 Companies and 2
Directors, covered in the register maintained under section 30l of the
Companies Act, l956. The maximum amount involved during the year was
Rs.508.50 Lacs (378.50 Lacs) and the year end balance of such loans
taken was Rs. 458.50 Lacs (378.50 Lacs).
(f) The rate of interest, where applicable and other terms and
conditions of unsecured loans taken by the Company, are not prima facie
prejudicial to the interest of the Company.
(g) The Company has repaid the principal amounts as stipulated and has
been regular in the payment of interest, where applicable.
iv. (a) In our opinion, there are adequate internal control systems
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, 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
controls.
v. (a) Based on the audit procedure applied by us and according to the
information, explanations and representation given to us, we are of the
opinion that particulars of contracts or arrangements referred to in
section 30l of the Companies Act, l956 that need to be entered in the
register maintained under that section have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of rupees five lacs in respect of each
party during the year have been made at prices which are prima- facie,
reasonable having regard to prevailing market prices at that time
except that in respect of certain specialized services availed no
comparison of prices could be made as we were informed that there are
no prevailing market prices.
vi. The Company has complied with the provisions of Section 58A, 58AA
of the Companies Act, l956 and the Companies (Acceptance of Deposits)
Rule, l975 with regards to deposits accepted from the public. We are
informed by the management that no order has been passed by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other tribunal in respect of aforesaid deposits.
vii. The Company does not have a formal internal audit system. However,
in our opinion, there are adequate internal control procedures
commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for
maintenance of cost records under section 209(l)(d) of the Companies
Act, l956 in respect of the Company's products to which the said rules
are applicable and are of the opinion that prima facie the prescribed
accounts have been made and maintained. We have however, not made a
detailed examination of the records with a view to determining whether
they are accurate, or complete.
ix. (a) The Company is regular in depositing undisputed statutory
dues, including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other Statutory dues with the
appropriate authorities, where applicable. According to the information
and explanations given to us, there are no undisputed amounts payable
in respect of such statutory dues which have remained outstanding as at
3lst March 20l2 for a period of more than six months from the date they
became payable.
(b) According to the records of the company Excise Duty, Sales Tax and
Income tax which have not been deposited on account of any disputes,
are as detailed below;
Particulars Period to which Forum where the
dispute is pending Amount
the amount related (Rs. In Lacs)
1984-85, 1985-86,
1989-90, Central Excise Gold
Appellate Tribunal 27.39
Excise Duty 1990-91,1991-92,
1992-93, 1993-94,
1994-95, 1995-96.
1989-90, 1990-9l, Deputy/Assistant
Commissioner
1993-94, 1996-97, 16.77
1997-98, 1999-2000,
2000-2001.
Service Tax 2003-04 to 20l0-11 Commissioner
(Appeal) l87.37
Sales Tax 1998-99,2003-2004
and 2005-06 Commissioner
(Appeal)/Financial
Commissioner. 23.96
Income Tax 2008-2009 Commissioner (Appeal) 0.94
x. The Company has no accumulated losses at the end of the financial
year and has not incurred cash losses, in the current financial year
and in the immediately preceding financial year.
xi. The Company has not defaulted in repayment of its dues to banks.
The company has not borrowed by way of debentures and from Financial
Institutions.
xii. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities.
xiii. The Company is not a chit fund or nidhi or mutual benefit fund
or society and hence the provisions of Clauses 4(xiii) (a) to (d) of
the Order, are not applicable to the Company.
xiv. The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of Clause
4 (xiv) of the Order are not applicable to the Company.
xv. Based on our examination of the records and according to the
information and explanations given to us, the company has not given any
corporate guarantee for loans taken by others from any bank or
financial institution.
xvi. On the basis of the records examined by us and relying on the
information compiled by the Company for co-relating the funds raised to
the end use of the terms loans, we have to state that, the Company has,
prima-facie, applied the term loans for the purpose for which they were
raised.
xvii. 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; no funds raised on short term
basis have been used for long term investments.
xviii. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
30l of the Companies Act, l956.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any money through a public issue,
during the year.
xxi. According to the information and explanations given to us and to
the best of our knowledge and belief no fraud on or by the Company, has
been noticed or reported by the Company during the year.
For M. M. Nissim And Co.
Chartered Accountants
(Firm Reg No: I07I22W)
N. KASHINATH
Partner
Mem. No. 36490
Mumbai
26th July, 2012
Mar 31, 2011
We have audited the attached Balance sheet of GRAUER & WEIL (INDIA)
LIMITED, as at 31st March, 2011 and also the attached Profit and Loss
Account and the cash flow statement of the company for the year ended
on that date, annexed thereto. These financial statements are the re-
sponsibility 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 the auditing standards
generally accepted in India. Our audit includes an examination, on a
test basis, of evidence relevant to the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates and judgements made by the management in the
preparation of financial statements and evaluating the overall
financial statement presentation.
We planned and performed our audit, so as to obtain all the information
and explanations which we considered necessary in order to provide us
with sufficient evidence to give reasonable assurance that the
financial statements are free from material misstatements and to
provide a reason- able basis for our opinion and report that:
1) As required by the companies (Auditors' 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.
2) Without qualifying our report, we draw attention to Note no- 17 of
schedule O to the accounts on non provision for diminution in the value
of investments relating to investments in equity shares of a
subsidiary, associates. The management considers these investments as
strategic investments and based upon projected future earnings expect
the diminution in value to be temporary, upon which, we have placed our
reliance.
In view of the above, the aggregate impact of the same is not
quantifiable.
3) further to our comments referred to in paragraph 1 above.
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 the
books.
c) The Balance sheet, Profit and Loss Account and cash flow statement,
under Report are in agreement with the books of account.
d) In our opinion, the Balance sheet, Profit and Loss Account and cash
flow statement referred to in this report comply with the Accounting
standards referred to in section 211(3c) of the companies Act, 1956.
e) On the basis of written representations received from the Directors
as on March 31, 2011 and taken on record by the Board of Directors, we
report and certify that none of the Directors is disqualified from
being appointed as Director under clause (g) of sub- section (1) of
section 274 of the companies Act, 1956 on the said date.
4) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with para 2 above
and together with the notes thereon, give the information as required
by the companies Act, 1956 in the manner so required and also 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 March, 2011.
i) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
ii) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGAPH 1 OF THE AUDITORS' REPORT OF EVEN DATE
i. In respect of its fixed assets:
(a) The company has compiled itemwise lists of only Plant & Machinery.
In respect of other assets, we are informed that the company is still
in the process of compiling proper records.
(b) As explained to us, the assets have been physically verified by the
management in accordance with a phased programme of verification which
in our opinion is reasonable, considering the size and nature of its
business. We are informed that there are no major discrepancies, as
regards Plant and Machinery and in respect of other assets,
discrepancies, if any, will then be dealt with in the accounts once the
process of compilation is complete.
(c) The company has not disposed off any substantial part of its fixed
Assets so as to affect its going concern. ii. In respect of its
inventories:
(a) The Inventory, excluding goods in transit has been physically
verified by the management during the year. In our opinion, the
frequency of verification is reasonable. As regards goods lying with
third parties, confirmations have been obtained.
(b) The procedures of physical verification of Inventories followed by
the management are, in our opinion, 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 records of the
company, we are of the opinion that the company is maintaining proper
records of its inventory. The discrepancies noticed on verification
between the physical stocks and book records have been properly dealt
with in the books of account.
iii. (a) The company has during the year granted unsecured loans to 2
companies listed in the register maintained under section 301 of the
companies Act, 1956. The maximum amount involved during the year was
Rs. 78.93 Lacs (157.40 Lacs) and the year end balance of Loans granted
to such parties was Rs. 50.00 Lacs (66.43 Lacs).
(b) In our opinion, the rate of interest where applicable and other
terms and conditions on which unsecured loans have been granted to
companies listed in the register maintained under section 301 of the
companies Act, 1956 are not, prima facie, prejudicial to the interest
of the company.
(c) The companies have repaid the principal amounts as stipulated and
have been regular in the payment of interest where applicable.
(d) There is no overdue amount of loans granted to companies listed in
the register maintained under section 301 of the companies Act, 1956.
(e) The company has taken unsecured loans from 4 companies and 2
Directors, covered in the register maintained under section 301 of the
companies Act, 1956. The maximum amount involved during the year was
Rs. 378.50 Lacs (255 Lacs) and the year end balance of such loans taken
was Rs. 378.50 Lacs (255 Lacs).
(f) The rate of interest, where applicable and other terms and
conditions of unsecured loans taken by the company, are not prima facie
prejudicial to the interest of the company.
(g) The company has repaid the principal amounts as stipulated and has
been regular in the payment of interest, where applicable.
iv. (a) In our opinion, there are adequate internal control systems
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, 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
controls.
v. (a) Based on the audit procedure applied by us and according to the
information, explanations and representation given to us, we are of the
opinion that particulars of contracts or arrangements referred to in
section 301 of the companies Act, 1956 that need to be entered in the
register maintained under that section have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of rupees five lacs in respect of each
party during the year have been made at prices which are prima- facie,
reasonable having regard to prevailing market prices at that time
except that in respect of certain specialized services availed no
comparison of prices could be made as we were informed that there are
no prevailing market prices.
vi. The company has complied with the provisions of section 58A, 58AA
of the companies Act, 1956 and the companies (Acceptance of Deposits)
Rule, 1975 with regards to deposits accepted from the public. We are
informed by the management that no order has been passed by the company
Law Board or National company Law Tribunal or Reserve Bank of India or
any court or any other tribunal in respect of aforesaid deposits.
vii. The company does not have a formal internal audit system. however,
in our opinion, there are adequate internal control procedures
commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the central Government for
maintenance of cost records under section 209(1) (d) of the companies
Act, 1956 in respect of the company's products to which the said rules
are applicable and are of the opinion that prima facie the prescribed
accounts have been made and maintained. We have however, not made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
ix. (a) The company is regular in depositing undisputed statutory dues,
including Provident fund, Investor education and Protection fund,
employees state Insurance, Income Tax, sales Tax, Wealth Tax, service
Tax, customs Duty, excise Duty, cess and other statutory dues with the
appropriate authorities, where applicable. According to the information
and explanations given to us, there are no undisputed amounts payable
in respect of such statutory dues which have remained outstanding as at
31st March 2011 for a period of more than six months from the date they
become payable.
(b) According to the records of the company excise Duty, sales Tax and
Income tax which have not been deposited on account of any disputes,
are as detailed below:
Particulars Period to which the amount
related Forum where
the dispute
is pending Amount
(Rs. in Lacs)
Excise Duty 1984-85, 1985-86, 1989-90,
1990-91, 1991-92, Central excise
Gold Appellate Tribunal 27.39
1992-93, 1993-94, 1994-95,
1995-96.
1989-90, 1990-91, 1993-94,
1996-97, Deputy/Assistant
Commissioner 16.77
1997-98, 1999-2000, 2000-2001.
Sales Tax 2002-2003 and 2003-2004 Commissioner
(Appeal)/financial
Commissioner 29.29
Income Tax 2008-2009 Commissioner
(Appeal) 0.94
x. The company has no accumulated losses at the end of the financial
year and has not incurred cash losses, in the current financial year
and in the immediately preceding financial year.
xi. The company has not defaulted in repayment of its dues to banks.
The company has not borrowed by way of debentures and from financial
Institutions.
xii. As explained to us, the company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities.
xiii. The company is not a chit fund or nidhi or mutual benefit fund or
society and hence the provisions of clauses 4(xiii) (a) to (d) of the
Order, are not applicable to the company.
xiv. The company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4 (xiv) of the Order are not applicable to the company.
xv. Based on our examination of the records and according to the
information and explanations given to us, the company has not given any
corporate guarantee for loans taken by others from any bank or
financial institution.
xvi. On the basis of the records examined by us and relying on the
information compiled by the company for co-relating the funds raised to
the end use of the term loans, we have to state that, the company has,
prima-facie, applied the term loans for the purpose for which they were
raised.
xvii. 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; no funds raised on short term
basis have been used for long term investments.
xviii. The company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the companies Act, 1956.
xix. The company has not issued any debentures during the year.
xx. The company has not raised any money through a public issue,
during the year.
xxi. According to the information and explanations given to us and to
the best of our knowledge and belief no fraud on or by the company, has
been noticed or reported by the company during the year.
For M. M. Nissim And Co.
Chartered Accountants
(firm Reg No: 107122W)
N. KASHINATH
Partner
Mem. No. 36490
Mumbai
2nd September, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of GRAUER & WEIL (INDIA)
LIMITED, as at 31st March, 2010 and also the attached Profit and Loss
Account and the cash flow statement of the Company for the year ended
on that date, annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Our audit includes an examination, on a
test basis, of evidence relevant to the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates and judgements made by the management in the
preparation of financial statements and evaluating the overall
financial statement presentation.
We planned and performed our audit, so as to obtain all the information
and explanations which we considered necessary in order to provide us
with sufficient evidence So gfwe reasonable assurance that die
financial statements are free from material misstatements and to
provide a reasonable basis for our opinion and report that.
1) As required by the Companies {Auditors Report) Order, 2003 issued
by the Company Law Board in terms of Section 227(4A) of the Companies
Act, 19%, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
2) Without qualifying our report, we draw attention to Note no- 17 of
schedule O to the accounts on non provision for diminution in the value
of investments relating to investments hi equity shares of a
subsidiary, associates. The management considers these investments as
strategic investments and based upon projected future earnings expect
die diminution in value to be temporary, upon which, we have placed our
reliance.
In view of die above, the jggm&Ui impact of die same is not
quantifiable.
3) Further to our comments referred to in paragraph I above.
a) We have obtained al 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 die
books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement,
under Report are in agreement with the books of account.
d) In our opinion, die Balance Sheet, Profit aid Loss Account and Cash
Flow Statement referred to in this report comply with die Accounting
Standards referred to in Section 2! 1(3Q of die Companies Act, 1956.
e) On die basis of written representations received from die Directors
as on March 31, 2010 and taken on record by the Board of Directors, we
report and certify that none of the Directors is disqualified from
being appointed as Director under Clause (g) of sub- section
(i)ofSecrën 274 of the Companies Act, 1956 on die said date.
4) In our opinion and tt> the best of our information and according to
die explanations given to us, the said accounts read with para 2 above
and together wim the notes thereon, give the information as required by
die Companies Act, 1956 in the manner so required and also give a true
and fair view in conformity vHth the accounting principles generally
accepted in India.
i) in die case of Che Balance Sheet, of the state oi affairs of the
Company as at March, 2010.
ii) in die case of the Profit and Loss Account, of die Profit for the
year ended on that date; and
iii) in Che case of the Cash How Statement, of die Cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGAPH I OF THE AUDITORS REPORT OF EVEN DATE
i. In respect of its fixed assets:
(a) The Company has compiled itemwise lists of only Plant & Machinery.
In respect of other assets, we are informed that the Company is still
in the process of compiling proper records .
(b) As explained to us, the assets have been physically verified by the
management in accordance with a phased programme of verification which
in our opinion, is reasonable, considering the size and nature of its
business. We are informed that there are no major discrepancies, as
regards Plant and Machinery and in respect of other assets,
discrepancies, if any, will then be dealt with in the accounts once the
process of compilation is complete.
(c) The Company has not disposed off any substantial part of its Fixed
Assets so as to affect its going concern.
ii. In respect of its inventories:
(a) The Inventory, excluding goods in transit has been physically
verified by the management during the year. In our opinion, the
frequency of verification is reasonable. As regards goods lying with
third parties, confirmations have been obtained.
(b) The procedures of physical verification of Inventories followed by
the management are, in our opinion, 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 records of the
Company, we are of the opinion that the Company is maintaining proper
records of its inventory. The discrepancies noticed on verification
between the physical stocks and book records have been properly dealt
with in the books of account.
iii. (a) The Company has during the year granted unsecured loans to
2_Companies listed in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 157.40 Lacs ( 156 Lacs ) and the year end balance of Loans granted
to such parties was Rs. 66.43 Lacs ( 156 Lacs ).
(b) In our opinion, the rate of interest where applicable and other
terms and conditions on which unsecured loans have been granted to
Companies listed in the register maintained under section 301 of the
Companies Act, 1956 are not, prima facie, prejudicial to the interest
of the Company.
(c) The Companies have repaid the principal amounts as stipulated and
have been regular in the payment of interest where applicable.
(d) There is no overdue amount of loans granted to Companies listed in
the register maintained under section 301 of the Companies Act, 1956.
(e) The company has taken unsecured loans from 4 Companies and a
Director, covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 255 Lacs (215 Lacs ) and the year end balance of such loans taken
was Rs. 255 Lacs(210 Lacs ).
(f) The rate of interest, where applicable and other terms and
conditions of unsecured loans taken by the Company, are not prima facie
prejudicial to the interest of the Company.
(g) The Company has repaid the principal amounts as stipulated and has
been regular in the payment of interest, where applicable.
iv. (a) In our opinion, there are adequate internal control systems
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, 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
controls.
v. (a) Based on the audit procedure applied by us and according to the
information, explanations and representation given to us, we are of the
opinion that particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956 that need to be entered in the
register maintained under that section have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of rupees five lacs in respect of each
party during the year have been made at prices which are prima- facie,
reasonable having regard to prevailing market prices at that time
except that in respect of certain specialized services availed no
comparison of prices could be made as we were informed that there are
no prevailing market prices.
vi. The Company has complied with the provisions of Section 58A, 58AA
of the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rule, 1975 with regards to deposits accepted from the public. We are
informed by the management that no order has been passed by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other tribunal in respect of aforesaid deposits.
vii. The Company does not have a formal internal audit system. However,
in our opinion, there are adequate internal control procedures
commensurate with the size and nature of its business.
viii. We are informed that the Central Government has not prescribed
the maintenance of cost records under section 209 (I) (d) of the
Companies Act, 1956,except for its paints Division. We have broadly
reviewed the Books of Accounts maintained by its Paints Division and
are of the opnion that, premia facie, the prescribed accounts and
records have been made and maintained.
ix. (a) The Company is regular in depositing undisputed statutory dues,
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other Statutory dues
with the appropriate authorities, where applicable. According to the
information and explanations given to us, there are no undisputed
amounts payable in respect of such statutory dues which have remained
outstanding as at 31st March 2010 for a period of more than six months
from the date they become payable.
(b) According to the records of the company Excise Duty, Sales Tax and
Income tax which have not been deposited on account of any disputes,
are as detailed below;
Particulars Period to which Forum where the
dispute is Amount
the amount related pending (Rs. in Lacs)
1984-85, 1985-86,
1989-90, 1990-91,
1991-92, 1992-93, Central Excise
Gold Appellate 27.39
Tribunal
1993-94, 1994-95,
Excise Duty 1995.95
1989-90, 1990-91,
1993-94, 1996-97,
1997-98, 1999-2000, Deputy/Assistant
Commissioner 16.77
2000-2001.
1998-99, 1999-2000, Commissiones
Sales Tax 2000 2001 And Commissioner 45.34
2002-2003
2003-2004,
Income lax 2004-2005 And Commissioner
(Appeal) 58.50
x. The Company has no accumulated losses at the end of the financial
year and has not incurred cash losses, in the current financial year
and in the immediately preceding financial year.
xi. The Company has not defaulted in repayment of its dues to banks.
The company has not borrowed by way of debentures and from Financial
Institutions.
xii. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities.
xiii. The Company is not a chit fund or nidhi or mutual benefit fund or
society and hence the provisions of Clauses 4(xiii) (a) to (d) of the
Order, are not applicable to the Company.
xiv. The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of Clause
4 (xiv) of the Order, are not applicable to the Company.
xv. Based on our examination of the records and according to the
information and explanations given to us, the company has not given any
corporate guarantee for loans taken by others from any bank or
financial institution.
xvi. On the basis of the records examined by us and relying on the
information compiled by the Company for co-relating the funds raised to
the end use of the terms loans, we have to state that, the Company has,
prima-facie, applied the term loans for the purpose for which they were
raised.
xvii. 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, no funds raised on short term
basis have been used for long term investments.
xviii.The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any money through a public issue,
during the year.
xxi. According to the information and explanations given to us and to
the best of our knowledge and belief no fraud on or by the Company, has
been noticed or reported by the Company during the year.
For M. M. Nissan AnrJ Co,
Chartered Accountants
(Firm Reg No: I0712ZW)
N. KASH1NATH
Partner
Mem. No. 36490
Mumbai, 25th August, 2010