Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Hindustan Motors Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash flows and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "Ind AS financial statements").
Management''s Responsibility for the 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 ("the Act") with respect to the preparation of these Ind AS financial statements that give a true and fair view of the state of affairs (financial position), profit (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS 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 Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the 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 the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the 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 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 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 including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018, its profit (financial performance including other comprehensive income),its cash flows and changes in equity for the year ended on that date.
Emphasis of Matters
We draw attention to the following Note to the Ind AS financial statements:
Note 52 to the Notes to the Ind AS financial statements which indicates that the net worth of the Company is fully eroded as at 31st March, 2018, leading to a material uncertainty about the Company''s ability to continue as a ''going concern''. However, the financial statements of the Company have been prepared on a ''going concern'' basis for the reasons stated in the said Note.
Our opinion is not modified in respect of the matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of subsection (11) of Section 143 of the Act, we give in the Annexure, a statement on the matters specified in the paragraphs 3 and 4 of the Order, to the extent applicable
2. As required by Section 143 (3) of the Act, we report, to the extent applicable, 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 read with Note 54 to the Ind AS financial statements;
(c) the Balance Sheet, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act read with relevant rules issued thereunder;
(e) The ''going concern'' matter described under the Emphasis of Matters paragraph above, in our opinion, may have an adverse effect on the functioning of the Company;
(f) On the basis of the written representations received from the directors as on 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;
(g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A"; and
(h) 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 Ind AS financial statements - Refer Note 44 to the Ind AS financial statements;
(ii) the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii) there has been no delay in transferring amounts which were required to be transferred to the Investor Education and Protection Fund by the Company except as indicated in Note 25 to the Ind AS financial statements.
Annexure to the Auditorâs Report
(Referred to in paragraph 1 under the heading ''Report on Other Legal and Regulatory Requirements'' of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details andsituation of its fixed assets.
(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of such verification in a phased manner to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification during the period.
(c) The title deed of immovable properties are held in the name of the Company.
(ii) The management has not conducted any physical verification of inventory during the year and as a result, material discrepancies, if any, were not ascertained and dealt with in the books of account.
(iii) According to the information and explanation given to us, during the year, the company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, provisions of clauses (iii) (a), (b) and (c) of paragraph 3 of the aforesaid Order are not applicable to the Company.
(iv) According to the information and explanation given to us, during the year the Company has not given loans, made investments, given guarantees and provided securities covered by provisions of section 185 and 186 of the Act.
(v) According to the information and explanations given to us, the Company has not accepted any deposits during the year.
(vi) The Company is not required to maintain cost records as specified under Sub-Section (1) of Section 148 of the Companies Act, 2013.
(vii) (a) According to the information and explanations given to us and on the basis of checking the records of theCompany, we are of the opinion that the Company is generally 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 though there has been delays in respect of sales tax, value added tax and municipal tax. The extent of arrears of outstanding statutory dues as on the last day of the financial year concerned for a period of more than six months from the date they became payable, are as mentioned below:
Nature of the Statute |
Nature of dues |
Amount (Rs.in lacs) |
Period to which amount relates |
Due Date |
Date of payment |
The Central Sales Tax Act, 1956 |
CST |
42.78 |
April, 2013 to June, 2014 |
May, 2013 to July, 2014 |
Not paid |
West Bengal Value Added Tax Act, 2003 |
VAT |
64.06 |
April, 2013 to June, 2014 |
May, 2013 to July, 2014 |
Not paid |
The Central Sales Tax Act, 1956 |
ST Deferral credit |
599.55 |
June, 2012 to June, 2014 |
July, 2012 to July, 2014 |
Not paid |
West Bengal Sales Tax Act, 1994 |
S T Deferral credit |
1159.69 |
June, 2012 to March, 2014 |
July, 2012 to April, 2014 |
Not paid |
West Bengal Value Added Tax Act, 2003 |
S T Deferral credit |
32.26 |
April, 2014 to June, 2014 |
July, 2014 |
Not paid |
The West Bengal Municipal Act, 1993 |
Municipal Tax under UttarparaKotrang Municipality |
120.74 |
April 2012 - March, 2017 |
April, 2013 to April, 2017 |
Not paid |
(b) According to the information and explanations given to us, the following dues of sales tax, value added tax, duty of custom and duty of excise have not been deposited by the Company on account of any dispute:
Nature of the Statute |
Nature of dues |
Amount (Rs.in lacs) |
Period to which amount relates |
Forum where dispute is pending |
The Central Excise Act, 1944 |
Dispute on Account of Classification, Cenvat Credit. Assessable Value, Differential Excise Duty, Input Service Tax Credit, Excise duty on PDI |
4145.45 |
1984-2015 |
High Court, CESTAT, Commissioner (Appeals)/Commissioner/Additional Commissioner/Joint Commissioner Assistant Commissioner of Central Excise. |
The Central Sales Tax Act, 1956 |
Stock Transfer, Non-submission of C/D Forms etc. |
987.44 |
1995-2012 |
High Court/ W.B. Commercial Taxes Appellate and Revisional Board/ Additional Commissioner-Appeal/ Joint Commissioner- Appeal |
Tamil Nadu Sales Tax Act, 1959 |
Additional Sales tax etc Additional Sales tax etc |
2.52 |
1989-1996 |
Assistant Commissioner |
West Bengal Sales Tax Act, 1994 |
Non Receipt of Sales tax form, Interest, Penalty, Post Return Adjustment etc. |
0.37 |
2003-2004 |
WB Commercial taxes Appellate & Revision board |
West Bengal Value Added Tax Act, 2003 |
Provisional Assessment, Enhancement of turnover with wrong calculation and taxed |
6005.80 |
2007-2015 |
Taxation Tribunal of West Bengal/West Bengal Commercial tax Appellate & Revision Board/Additional Commissioner |
The Customs Act, 1956 |
Dispute on account of Classification, Duty on inclusion of Technical Knowhow fees on imported goods, import of Engines, Short Levy etc. |
0.04 |
1990-2006 |
Commissioner/ Assistant Commissioner Appeals/ Tribunal |
M.P. Commercial Tax Act, 1994 |
Exemption Notification denied by Commissioner Appeal |
12.25 |
1997-2004 |
Appellate Board, Bhopal |
M.P. VAT Act, 2002 |
Ex-party Assessment Order |
26.64 |
2011-2012 |
Commercial Tax Officer |
W.B. Commercial Tax Act |
Entry Tax |
149.09 |
2012-2014 |
High Court |
(viii) Based on our audit procedures and as per the information and explanations given to us by the management, the Company has overdrawn cash credit borrowings from Bank of Baroda during the year amounting to Rs. 1.78 lakhs and Rs.133.39 lakhs from UCO Bank with an overall delay of more than 90 days. However, there is no overdrawn balance as on the balance sheet date.
(ix) According to the information and explanations given to us, the Company has not raised money by way of initial public offer or further public offer including debt instruments and term loan during the year. Accordingly, clause
(ix) of paragraph 3 of the aforesaid Order is not applicable to the Company.
(x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations given to us, no managerial remuneration is paid during the year by the Company. Accordingly, clause (xi) of paragraph 3 of the aforesaid Order is not applicable to the Company.
(xii) The Company is not a Nidhi Company. Accordingly, clause (xii) of paragraph 3 of the aforesaid Order is not applicable to the Company.
(xiii) On the basis of our examination of the books of account of the Company and according to the information and explanations given to us, the transactions entered into with the related parties are in compliance with section 177 and 188 of the Act and the same hasbeen disclosed in the Notes to the Ind AS financial statements as required by the applicable Accounting Standards (Ind AS).
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
(xv) On the basis of our examination of the records of the Company and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure A referred to in paragraph 3(g) under the heading âReport on Other Legal and Regulatory Requirementsâ of our report of even date:-
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Hindustan Motors Limited ("the Company") as of 31st March, 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India ("ICAI"). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act..
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles including the Indian Accounting Standards (Ind AS). 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 the financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
For RAY & RAY
Chartered Accountants
(Firm''s Registration No. : 301072E)
Asish Kumar Mukhopadhyay
Place : Kolkata Partner
Date : 25th May, 2018 Membership No. : 056359
Mar 31, 2016
INDEPENDENT AUDITORâS REPORT
To the Members of HINDUSTAN MOTORS LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Hindustan Motors LimitedC''ffe Company"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement and a summary of the significant accounting policies and other explanatory information for the year then ended.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section134(5)of the Companies Act,2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
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 auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
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 affairs of the Company as at 31st March, 2016, and its loss and its cash flows for the year ended on that date.
Emphasis of Matters
We draw attention to the following Note to the financial statements:
Note 43 to the financial statements which indicates that the net worth of the Company is fully eroded as at 31st March 2016,leading to a material uncertainty about the companyâs ability to continue as a going concern. However, the financial statements of the Company have been prepared on a going concern basis for the reasons stated in the said Note.
1. As required by the Companies (Auditorâs Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the said Order, to the extent applicable.
2 As required by Section 143 (3) of the Act, we report, to the extent applicable, 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 read with Note 46.
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) The going concern matter described in sub-paragraph (a) under the Emphasis of Matters paragraph above, in our opinion, may have an adverse effect on the functioning of the Company.
f) On the basis of the written representations received from the directors as on 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.
g) With respect to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer our separate Report in "Annexure A".
h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us :
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 30 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. The instances of delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company are indicated in Note 10 to the financial statements.
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of such verification in a phased manner to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In respect of fixed assets lying with third parties, the management has a process of obtaining periodic confirmations. No material discrepancies were noticed on such verification/confirmations during the period.
(c) The title deed of immoveable properties are held in the name of the Company
(ii) The management has not conducted any physical verification of inventory during the year and as a result, material discrepancies, if any, were not ascertained and dealt with in the books of account.
(iii) According to the information and explanation given to us, the company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, provisions of clauses (iii) (a), (b) and (c) of paragraph 3 of the aforesaid Order are not applicable to the Company.
(iv) According to the information and explanation given to us, during the year the Company has not given loans, made investments, given guarantees and provided securities covered by provisions of section 185 and 186 of the Act.
(v) According to the information and explanations given to us, the Company has not accepted any deposits during the year.
(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 as specified under Sub-Section (1) of Section 148 of the Companies Act, 2013, related to the manufacture of Vehicles, Spare Parts of Vehicles, Steel Products and Components and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
(vii) (a) According to the information and explanations given to us and on the basis of checking the records of the Company, we are of the opinion that the Company is generally regular in depositing undisputed statutory dues including provident fund, employeesâ 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 though there has been delays in respect of sales-tax, value added tax and municipal tax. The extent of arrears of outstanding statutory dues as on the last day of the financial year concerned for a period of more than six months from the date they became payable, are as mentioned below:
Nature of the Statute |
Nature of dues |
Amount (Rs. in lacs) |
Period to which amount relates |
Due date |
Date of Payment |
The Central Sales Tax Act, 1956 |
CST |
417.22 |
April, 2013 to June, 2014 |
May, 2013 to July, 2014 |
Not paid |
West Bengal Value Added Tax Act, 2003 |
VAT |
1,034.46 |
April, 2013 to June, 2014 |
May, 2013 to July, 2014 |
Not paid |
The Central Sales Tax Act, 1956 |
Sales Tax Deferral credit |
878.62 |
June, 2012 to June, 2014 |
July, 2012 to July, 2014 |
Not paid |
West Bengal Sales Tax Act, 1994 |
Sales Tax Deferral credit |
1,681.44 |
June, 2012 to March, 2014 |
July, 2012 to April, 2014 |
Not paid |
West Bengal Value Added Tax Act, 2003 |
Sales Tax Deferral credit |
42.60 |
April, 2014 to June, 2014 |
July, 2014 |
Not paid |
The West Bengal Municipal Act, 1993 |
Municipal Tax under Uttarpara Kotrung Municipality |
72.42 |
April, 2012 to March, 2015 |
May, 2012 to April, 2015 |
Not paid |
(b) According to the information and explanations given to us, the following dues of sales-tax, value added tax, duty of custom and duty of excise have not been deposited by the Company on account of any dispute :
Nature of the Statute |
Nature of dues |
Amount Rs. in lacs) |
Period to which amount relates |
Forum where dispute is pending |
The Central Excise Act, 1944 |
Dispute on Account of Classification, Cenvat Credit. Assessable Value, Differential Excise Duty, Input Service Tax Credit, Excise duty on PDI |
6,737.25 |
1984-2015 |
CESTAT, High Court/ Commissioner (Appeals)/ Commissioner/Assistant/ Commissioner of Central Excise/ CESTAT, Joint Commissioner |
The Central Sales Tax Act, 1956 |
Stock Transfer, Non-submission of C/D Forms etc. |
913.71 |
1995-2012 |
Additional Commissioner of Commercial Taxes/High Court/W.B. Commercial Tax appellate & revision Board/ Deputy Commissioner |
Tamil Nadu Sales Tax Act, 1959 |
Additional Sales tax etc. |
2.52 |
1989-1996 |
Assistant Commissioner |
West Bengal Sales Tax Act, 1994 |
Non Receipt of Sales tax form, Interest, Penalty, Post Return Adjustment etc. |
0.37 |
2003-2004 |
WB Commercial tax appellate & revision board |
West Bengal Value Added Tax Act, 2003 |
Disallowance of VAT Credit, enhancement of turnover with wrong calculation and taxed |
5,908.33 |
2007-2013 |
Taxation Tribunal of West Bengal/West Bengal Commercial tax Appellate & Revision Board/Additional Commissioner |
The Customs Act, 1956 |
Dispute on account of Classification, Duty on inclusion of Technical Know-how fees on imported goods, import of Engines, Short Levy etc. |
49.89 |
1990-2006 |
Commissioner/Assistant Commissioner Appeals/ Tribunal |
Nature of the Statute |
Nature of dues |
Amount Rs. in lacs) |
Period to which amount relates |
Forum where dispute is pending |
M.P. Commercial Tax Act, 1994 |
Exemption Notification denied by Commissioner Appeal |
12.25 |
1997-2004 |
Appellate Board, Bhopal |
M.P. VAT Act, 2002 |
Ex-party Assessment Order |
26.64 |
2011-12 |
Commercial Tax Officer |
M.P. Commercial Tax Act, 1995 |
Entry Tax |
90.25 |
2012-13 |
High Court |
The Central Sales Tax Act, 1956 |
Ex-party Assessment Order |
42.30 |
2011-12 |
Commercial Tax Officer |
(viii) Based on our audit procedures and as per the information and explanations given to us by the management, the Company has overdrawn cash credit borrowings from United Commercial Bank during the year amounting to Rs.4.95 lacs with an overall delay of less than 90 days and Rs.148.13 lacs with an overall delay of more than 90 days. There were no overdrawn cash credit borrowings as on the Balance Sheet date. The Company has outstanding debentures as on the Balance Sheet date. The Company has defaulted in repayment of dues to debenture holders which includes overdue principal amount of Rs. 346.27 lacs and interest amount of Rs. 120.53 lacs respectively, due since September 29, 2015.
(ix) According to the information and explanations given to us, the Company has not raised money by way of initial public offer or further public offer including debt instruments and term loan during the year. Accordingly, clause (ix) of paragraph 3 of the aforesaid Order is not applicable to the Company.
(x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) On the basis of our examination of the records of the Company, the managerial remuneration has been paid /provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) The Company is not a Nidhi Company. Accordingly, clause (xii) of paragraph 3 of the aforesaid Order is not applicable to the Company.
(xiii) On the basis of our examination of the books of account of the Company and according to the information and explanations given to us, the transactions entered into with the related parties are in compliance with section 177 and 188 of the Act and the same has been disclosed in the Financial Statements as required by the applicable Accounting Standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
(xv) On the basis of our examination of the records of the Company and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For RAY & RAY
Chartered Accountants
(Firmâs Registration No.301072E)
Nabanita Ghosh
Place : Kolkata Partner
Date : 25th May, 2016 Membership No.: 58477
Mar 31, 2014
We have audited the accompanying financial statements of Hindustan
Motors 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 six month period then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
accounting principles generally accepted in India, including the
Accounting Standards notified under the Companies Act, 1956, read with
General Circular 8/2014 dated 4 April 2014 issued by the Ministry of
Corporate Affairs. 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 Companies Act, 1956 ("the Act") in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the loss for
the six month period ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
six month period ended on that date.
Emphasis of Matters
We draw attention to following notes to the financial statements;
a) Note 46 regarding preparation of the accounts on a going concern
basis. The Company has been incurring losses and its net worth stands
fully eroded and also, its current liabilities exceed its current
assets. Also, the Company has sold its Chennai Plant and has suspended
operations in its Uttarpara plant. These conditions indicate the
existence of a material uncertainty that may cast significant doubt
about the Company''s ability to continue as a going concern, which is
dependent on the Company establishing profitable operations.
b) Note 31 (e) regarding the demand of Government of West Bengal (GoWB)
for payment of Rs 19447 lacs along with interest thereon in relation to
excess realization of the said sum from the sale of land at Hindmotor,
West Bengal, in earlier years. As stated in the said Note, the Company
is of the view that it has not committed any default of the said
Government Order and based on the legal advice obtained by the Company,
no provision is considered necessary by the management against the said
claim of GoWB.
Our opinion is not qualified in respect of above matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion proper books of account as required by law, have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act, 1956, read with General Circular
8/2014 dated 4 April 2014 issued by the Ministry of Corporate Affairs;
(e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
Annexure to the Auditor''s Report
(REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF HINDUSTAN
MOTORS LIMITED AS AT AND FOR SIX MONTH PERIOD ENDED MARCH 31, 2014)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details
and situation of fixed assets.
(b) All fixed assets have not been physically verified by the
management during the period but there is a regular programme of such
verification in a phased manner to cover all the items over a period of
three years which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. In respect of fixed
assets lying with third parties, the management has a process of
obtaining periodic confirmations. No material discrepancies were
noticed on such verification/ confirmations during the period.
(c) The Company has sold substantial part of its fixed assets
representing the Chennai Plant during the period covered by our report.
There exists a doubt that the Company will be able to continue as a
going concern in the foreseeable future. However, the accounts are
continued to be prepared on a going concern basis. The financial
statements and notes thereto disclose this fact and a matter of
emphasis is added in our report.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the period.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business. In respect of the materials
lying with third parties, the management has a process of periodic
confirmation and reconciliation with the third parties.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured, to
Companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, the
provisions of Clauses 4 (iii)(a) to (d) of the Order are not applicable
to the Company and hence, not commented upon.
(e) The Company has taken loans from Companies covered in the register
maintained under Section 301 of the Companies Act, 1956. The maximum
amount involved during the period was Rs. 1500 lacs and the period-end
balance of loans taken from such parties was Rs. Nil.
(f) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
Company.
(g) The loans taken are re-payable on demand. As informed to us, the
principal amount was repaid on demand and there has been no default on
the part of the Company. The payment of interest has been regular
considering the extended period for payment in some cases.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that substantial
portion of the items purchased are of a special nature and alternate
sources do not exist for obtaining comparative quotations thereof,
there is an adequate internal control system commensurate with the size
of the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
During the course of our audit, we have not observed any major weakness
or continuing failure to correct any major weakness in the internal
control system of the Company in respect of these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under Section 301 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us and having regard to the explanation that purchases of
certain items of inventories and fixed assets are of proprietary nature
for which alternative sources are not available to obtain comparable
quotations, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five lacs have been
entered into during the period at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company 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 the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956, related to the manufacture of Vehicles, Spare Parts of
Vehicles, Steel Products and Components and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
sales tax, wealth tax, service tax, customs duty, excise duty, cess and
other material statutory dues have generally been regularly deposited
with the appropriate authorities though there has been a slight delay
in a few cases, except for sales tax, excise duty and municipal tax
where there have been serious delays in large number of cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the period-end,
for a period of more than six months from the date they became payable,
except for sales tax and municipal tax due as mentioned below :
Nature of the Nature of dues Amount Period to which
Statute (Rs. in lacs) amount relates
The Central CST 166.83 April 2013 -
Sales Tax August 2013 September 2013
Act,1956
West Bengal VAT 376.31 April 2013 -
Value Added August 2013
Tax Act, 2003
The Central Sales Tax
Deferral credit 411.10 July 2012 to
Sales Tax July 2013
Act,1956
West Bengal Sales Tax
Deferral credit 806.18 July2012to
Sales Tax Act, July 2013
1994
The West Municipal Tax
Bengal under Uttarpara 24.14 April2012-
Kotrung March 2013
Municipal Act, Municipality
1993
Nature of the Due date Date of
Statute Payment
The Central May 2013 to Not paid
Sales Tax
Act,1956
West Bengal May 2013 to Not paid
Value Added September 2013
Tax Act, 2003
The Central July 2012 to Not paid
Sales Tax July 2013
Act,1956
West Bengal July2012to Not paid
Sales Tax Act, July 2013
1994
The West
Bengal April2013 Not paid
March 2013
Municipal Act,
1993
(c) According to the records of the Company, the dues outstanding of
income-tax, sales tax, wealth tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows :
Nature of the Nature of dues Amount Period to
Statute (Rs.in lacs) which amount
relates
The Central Dispute on Account of 3987.15 1984-2013
Excise Act, Classification, Cenvat
1944 Credit,Assessable Value,
Differential Excise
Duty, Input Service Tax
Credit, Excise duty on
PDI
The Central Stock Transfer, Non-
submission of 744.91 1995-2011
Sales Tax C/D Forms etc.
Act,1956
Tamil Nadu Additional Sales tax etc. 5.52 1989-1996
Sales Tax Act,
1959
West Bengal Non Receipt of Sales tax 0.37 2003-2004
form, Interest, Penalty,
Post Return revision board
Sales Tax Act, Adjustment etc.
1994
West Bengal Disallowance of VAT Credit, 2459.16 2007-2011
Value Added enhancement of turnover
Tax Act, 2003 with wrong calculation and
taxed
West Bengal Provisional assessment 4437.98 Jan 2013-
for non- June 2013
Value Added filing of returns and non-
2003 payment Tax - of tax under
section 45
The Customs Dispute on account of 28.42 1990-2006
Classification,Duty on
inclusion of Technical
Act,1956 Know- how fees on imported
goods, import of Engines,
Short Levy, etc.
M.P. Exemption Notification 10.46 2002-2003
Commercial denied by Commissioner Appeal
Tax Act, 1994
Nature of the Forum where dispute is pending
Statute
The Central CESTAT, High Court/
Excise Act, Commissioner (Appeals) /
1944 Commissioner/Assistant /
Commissioner of Central Excise/
CESTAT, Joint Commissioner
The Central Additional Commissioner of
Sales Tax Commercial Taxes /High Court /
Act,1956 W.B. Commercial tax appellate &
revision Board /
Deputy Commissioner
Tamil Nadu Assistant Commissioner
Sales Tax Act,
1959
West Bengal WB Commercial tax appellate &
Sales Tax Act,
1994
West Bengal Taxation Tribunal of West Bengal/
Value Added West Bengal Commercial tax
Tax Act, 2003 Appellate & Revision Board/
Additional Commissioner
West Bengal Additional Commissioner of Sales
Value Added Appeal Tax Act,
2003
The Customs Commissioner/ Assistant
Commissioner Appeals/ Tribunal
Act,1956
M.P. Appellate Board,Bhopal
Commercial
Tax Act, 1994
(x) The Company''s accumulated losses at the end of the financial year
are more than fifty percent of its net worth. The Company has not
incurred cash loss during the period. In the immediately preceding
financial year, the Company has incurred cash loss.
(xi) Based on our audit procedures and as per the information and
explanations given to us by the management, the Company has overdrawn
cash credit borrowings from bank during the period amounting to Rs.
2065.38 lacs with an overall delay of less than 90 days and Rs. 392.27
lacs with an overall delay of more than 90 days. There were no
overdrawn cash credit borrowings as on the balance sheet date. The
Company has delayed in repayment of dues to financial institutions and
banks during the period to the extent of Rs. 879.33 lacs for less than
90 days and Rs. 439.61 lacs of such dues were in arrears as on the
balance sheet date (since paid). The Company did not have any
outstanding debentures during the period.
(xii) According to the information and explanations given to us and
based on the documents and records produced before us, the Company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in 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) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that the Company has used short term funds amounting to Rs. 6539.97
lacs (previous year Rs. 12863.22 lacs)for long term investment
representing financing of the operating losses of the Company.
(xviii) The Company has not made any preferential allotment of shares
to parties or Companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
period.
(xx) The Company has not raised any money through a public issue during
the period.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the period.
For S.R. BATLIBOI & CO. LLP
Chartered Accountants
ICAI Firm Registration Number : 301003E
Per Raj Agrawal
Place : Kolkata Partner
Date : August 05, 2014 Membership No.: 82028
Sep 30, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Hindustan
Motors Limited ("the Company"), which comprise the Balance Sheet as at
September 30, 2013, the Statement of Profit and Loss and Cash Flow
Statement for eighteen month period then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
accounting principles generally accepted in India, including the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956 (read with the General Circular 15/2013 dated
13/09/2013 issued by the Ministry of Corporate Affairs) ("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. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India :
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at September 30, 2013;
(b) in the case of the Statement of Profit and Loss, of the loss for
eighteen month period ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for
eighteen month period ended on that date. Emphasis of Matter
We draw attention to following notes to the financial statements:
(a) Note 32 (e) regarding the demand for right of recompense by the
Lenders under Corporate Debt Restructuring
Scheme. As stated in the said Note, in view of the Company''s request
for reduction in the amount of recompense of interest which the Lenders
have agreed to consider, no provision against the balance amount of
recompense payable (net of Rs. 1500 lacs already paid to the Lenders), if
any, is considered necessary by the management.
(b) Note 32 (f) regarding the demand of Government of West Bengal
(GoWB) for payment of Rs. 19447 lacs along with interest thereon in
relation to excess realization of the said sum from the sale of land at
Hindmotor, West Bengal, in earlier years. As stated in the said Note,
the Company is of the view that it has not committed any default of the
said Government Order and based on the legal advice obtained by the
Company, no provision is considered necessary by the management against
the said claim of GoWB.
(c) Note 46 regarding preparation of these accounts on a going concern
basis, although the entire net worth of the Company stands eroded.
Management of the Company has initiated various measures to make the
operations of the Company viable. These mitigating factors have been
more fully discussed in above referred note, in view of which, the
accounts have been continued to be prepared under the going concern
assumption.
Our opinion is not qualified in respect of above matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956 (read with
the General Circular 15/2013 dated 13/09/2013 issued by the Ministry of
Corporate Affairs);
(e) On the basis of written representations received from the directors
as on September 30, 2013, and taken on record by the Board of
Directors, none of the directors is disqualified as on September 30,
2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
Annexure to the Auditor''s Report
(Referred to in our Report of even date to the members of Hindustan
Motors Limited as at and for eighteen month period ended September 30,
2013)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the period but there is a regular programme of such
verification in a phased manner to cover all the items over a period of
three years which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. In respect of fixed
assets lying with third parties, the management has a process of
obtaining periodic confirmations. No material discrepancies were
noticed on such verification / confirmations during the period.
(c) There was no disposal of a substantial part of fixed assets during
the period.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the period.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business. In respect of the material
lying with third parties, the management has a process of periodic
confirmation and reconciliation with the third parties.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured, to
Companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, the
provisions of Clauses 4 (iii)(a) to (d) of the Order are not applicable
to the Company and hence, not commented upon.
(e) The Company has taken loans from Companies covered in the register
maintained under Section 301 of the Companies Act, 1956. The maximum
amount involved during the period was Rs. 4,650 lacs and the period-end
balance of loans taken from such parties was Rs. 1,300 lacs.
(f) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
Company.
(g) The loans taken are re-payable on demand. As informed to us, the
principal amount was repaid on demand and there has been no default on
the part of the Company. The payment of interest has been regular
considering the extended period for payment in some cases.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that substantial
portion of the items purchased are of a special nature and alternate
sources do not exist for obtaining comparative quotations thereof,
there is an adequate internal control system commensurate with the size
of the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
During the course of our audit, we have not observed any major weakness
or continuing failure to correct any major weakness in the internal
control system of the Company in respect of these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under Section 301 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us and having regard to the explanation that purchases of
certain items of inventories and fixed assets are of proprietary nature
for which alternative sources are not available to obtain comparable
quotations, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five lacs have been
entered into during the financial year at prices are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company 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 the
maintenance of cost records under Section 209(l)(d) of the Companies
Act, 1956, related to the manufacture of Vehicles, Spare Parts of
Vehicles, Steel Products and Components and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained.
(ix) Undisputed statutory dues including provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
sales tax, wealth tax, service tax, customs duty, excise duty, cess and
other material statutory dues have generally been regularly deposited
with the appropriate authorities though there has been a slight delay
in a few cases, except for sales tax, excise duty and land revenue
where there have been delays for longer durations.
(x) The Company''s accumulated losses at the end of the financial year
are more than fifty percent of its net worth. The Companyhasincurred
cashloss in the current and immediately preceding financialyear.
(xi) Based on our audit procedures and as per the information and
explanations given to by the management, the Company has overdrawn cash
credit borrowings from bank during the period amounting to 4626.14
lacs which were regularised over a period of time with an overall delay
of less than 90 days and out of which Rs. 661 lacs of such overdrawn cash
credit borrowings were in arrears as on the balance sheet date. The
Company has not defaulted in repayment of dues to financial institution
and has no outstanding dues in respect of debentures.
(xii) According to the information and explanations given to us and
based on the documents and records produced before us, the Company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of Clause
4(xiii) of the Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in 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) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial inititutions.
(xvi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that the Company has used short term funds amounting to Rs. 12863.22 lacs
(previous year Rs. 14300 lacs) for long term investment representing
acquisition of fixed assets and for financing the operating losses of
the Company.
(xviii) The Company has not made any preferential allotment of shares
to parties or Companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
period.
(xx) The Company has not raised any money through a public issue during
the period.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the period.
For S.R.BATLIBOI & CO.LLP
Chartered Accountants
ICAI Firm Registration
Number : 301003E
Per Raj Agrawal
Place: New Delhi Partner
Date : November 18, 2013 Membership No, 82028
Mar 31, 2012
1. We have audited the attached Balance Sheet of Hindustan Motors
Limited ('the Company') as at March 31, 2012 and also the Statement of
Profit and Loss and the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956 (the Order),
we enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. Without qualifying our opinion, attention is drawn to:
(a) Note 32 (f) to the financial statements regarding the demand for
right of recompense by the Lenders under Corporate Debt Restructuring
scheme. As stated in the said Note, in view of the Company's request
for reduction in the amount of recompense of interest which the Lenders
have agreed to consider, no provision against the balance amount of
recompense payable (net of Rs 1500 lacs already paid to the Lenders), if
any, is considered necessary by the management.
(b) Note 48 to the financial statements regarding preparation of these
accounts on a going concern basis, although a substantial portion of
the Company's net-worth stands eroded. Management of the Company has
initiated various measures to make the operations of the Company
viable. These mitigating factors have been more fully discussed in
above referred note, in view of which, the accounts have been continued
to be prepared under the going concern assumption.
5. Further to our comments in the Annexure referred to above, we
report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
ii. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of such
books. The Balance Sheet, the Statement of Profit and Loss and Cash
Flow Statement referred to in this report are in agreement with the
books of account as submitted to us.
iii. In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956.
iv. On the basis of the written representations received from the
directors, as on March 31, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
v. In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
b) in the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors' Report
(Referred to in our Report of even date to the members of Hindustan
Motors Limited as at and for the year ended March 31, 2012)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details
and situation of fixed assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of such
verification in a phased manner to cover all the items over a period of
three years which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. In respect of fixed
assets lying with third parties, the management has a process of
obtaining periodic confirmations. As informed, no material
discrepancies were noticed on such verification during the year.
(c) There was no substantial disposal of fixed assets during the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business. In respect of the material
lying with third parties, the management has a process of periodic
confirmation and reconciliation with the third parties.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans,
secured or unsecured to companies, firms or other parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
Therefore, the provisions of clauses 4 (iii)(a) to (d) of the Companies
(Auditors' Report) Order, 2003 (as amended) are not applicable to the
Company and hence not commented upon.
(e) The Company has taken loans from five companies covered in the
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs 4350 lacs and the
year-end balance of loans taken from such parties was Rs 3950 lacs.
(f) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
Company.
(g) The loans taken are re-payable on demand. As informed, the lenders
have not demanded repayment of any such loans during the year and thus,
there has been no default on the part of the Company. The payment of
interest has been regular.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that substantial
portion of the items purchased are of a special nature and alternate
sources do not exist for obtaining quotations thereof, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business, for the purchase of inventory
and fixed assets and for the sale of goods and services. During the
course of our audit, we have not observed any major weakness or
continuing failure to correct any major weakness in the internal
control system of the Company in respect of these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion
that the particulars of contracts or arrangements referred to in
Section 301 of the Act that need to be entered into the register
maintained under Section 301 have been so entered.
(b) In respect of transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rs five lacs entered into during
the financial year, because of the unique and specialized nature of the
items involved, no comparison of prices paid can be made with
prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(l)(d) of the Companies
Act, 1956, and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees' state insurance, service tax,
cess, income-tax, wealth-tax, customs duty and other material statutory
dues have generally been regularly deposited with the appropriate
authorities except for sales tax and excise duty where there have been
delays.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable,
except for service tax of Rs 1.50 lacs (since paid).
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Nature of the Nature of
dues Amount Period
to which Forum where
dispute
is pending
Statute (Rs in lacs) amount relates
The Central Dispute on
Account of 3182.09 1984-2006 CESTAT,
High Court/
Excise Act, Classifi
cation,
Cenvat Credit, Commissioner
(Appeals)/
1944 Assessable
Value,
Differential
Excise Commissioner
/Assistant /
Duty, Input
Service Tax
Credit Commissioner
of Central
Excise/
CESTAT,Joint
Commissioner
The Central Stock Transfer
Non-submission
of 687.44 1995-2008 Additional
Commissioner
of
Sales
Tax Act, C/D Forms etc. Commercial
Taxes /
High Court /
1956 W.B.
Commercial
Tax Appellate
& Revision
Board /Deputy
Commissioner
Tamil Nadu Additional
Sales tax
etc. 1.05 1989-1999 Deputy
Commissioner
(Appeals)
Sales Tax,
1959 Tribunal
West Bengal Non Receipt
of Sales
tax form 0.37 2003-2004 W.B.
Commercial
Tax Appellate
Sales
Tax Act, Interest,
Penalty,
Post Return & Revision
Board
1994 Adjustment
etc.
West Bengal Disallowance
of VAT Credit 57.24 2007-2008 Additional
Commissioner
Value Added
Tax Act, 2003
TheCustoms Dispute on
account of
Classifi
cation, 17.79 1990-2006 Commissioner
/Assistant
Act, 1956 Duty on
inclusion of
Technical Commissioner
Appeals /
Tribunal
Know-how fees
on imported
goods,
import of
Engines, Short
Levy, etc.
M.P. Exemption
Notification
denied by 22.43 2002-2003 Commissioner
Appeal of
Commercial Commissioner
Appeal Commercial Tax
Tax Act, 1994
(x) The Company's accumulated losses at the end of the financial year
are more than fifty percent of its net worth. The Company has incurred
cash loss in the current financial year whereas in previous financial
year, the Company has not incurred cash loss.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, the
Company has overdrawn cash credit borrowings and delayed in repayment
of a short term loan from a bank during the year, the details
where of are as follows :
Period of Delay Amount (Rs in lacs)
Less than 30 days 2806.75
30 to 90 days 1349.46
The Company has not defaulted in repayment of dues to financial
institution and has no outstanding dues in respect of debentures.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Order are not applicable.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(xvii) According to the information and explanations given to us and on
overall examination of the Balance Sheet of the Company, we report that
the Company has used short term funds amounting to Rs 14300 lacs
approximately as at the close of the year (previous year Rs 11600
lacs) for financing the operating losses of the Company.
(xviii) The Company has made preferential allotment of shares and
warrants to companies covered in the register maintained under Section
301 of the Companies Act, 1956. In our opinion, the price at which
shares have been issued is not prejudicial to the interest of the
Company.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For S.R. BATLIBOI & CO.
Registration Number : 301003E
Chartered Accountants
Per Raj Agrawal
Place : New Delhi Partner
Date : April 30, 2012 Membership No.: 82028
Mar 31, 2010
1. We have audited the attached Balance Sheet of Hindustan Motors
Limited (the Company) as at March 31, 2010 and also the Profit and
Loss Account and the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of such
books and proper returns adequate for the purposes of our audit have
been received from the Companys overseas branch not visited by us;
iii. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account
as submitted to us;
iv. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
v. On the basis of the written representations received from the
directors, as on March 31, 2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said statements of account, read
together with the Notes appearing on Schedule 22, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010;
b) in the case of the Profit and Loss Account, of the loss for the year
ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors Report (Referred to in our Report of even
date to the members of Hindustan Motors Limited as at and for the year
ended March 31, 2010)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of such
verification in a phased manner to cover all the items over a period of
three years which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. In respect of fixed
assets lying with third parties, the management has a process of
obtaining periodic confirmations. As informed, no material
discrepancies were noticed on such verification during the year.
(c) There was no substantial disposal of fixed assets during the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business. In respect of the material
lying with third parties, the management has a process of periodic
confirmation and reconciliation with the third parties.
(c) The Company is maintaining proper records of inventory and no
discrepancies were noticed on physical verification.
(iii) (a) As informed, the Company has not granted any loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Therefore, the provisions of Clauses 4 (iii)(a) to (d) of the Companies
(Auditors Report) Order, 2003 (as amended) are not applicable.
(e) The Company has taken loan from one company covered in the register
maintained under Section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 200 lacs and the year-end
balance of loan taken from such party was Rs. 150 lacs.
(f) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loan are not prima facie prejudicial to the interest of the
Company.
(g) The loan taken is re-payable on demand. As informed, the lender has
not demanded repayment of any such loan during the year and thus, there
has been no default on the part of the Company. The payment of interest
has been regular.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that most of the
items purchased are of a special nature and alternate sources do not
exist for obtaining quotations thereof, there is an adequate internal
control system commensurate with the size of the Company and the nature
of its business, for the purchase of inventory and fixed assets and for
the sale of goods and services. During the course of our audit, no
major weakness has been noticed in the internal control system in
respect of these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Act that need to be
entered into the register maintained under Section 301 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 value of Rupees five lakhs have been entered
into during the financial year at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) As informed, the Company has not accepted any deposits from the
public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(l)(d) of the Companies
Act, 1956, and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees state insurance, service tax,
cess, income-tax, wealth-tax, customs duty and other material statutory
dues have generally been regularly deposited with the appropriate
authorities except for sales tax and excise duty where there have been
delays.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(b) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of the Nature of dues Amount
statute (Rs in lacs)
The Central Disputes on account of: 2492.79
Excise Act, Classification, CENVAT Credit,
1944 Assessable value, Differential Excise
Duty, Input Service Tax Credit etc.
The Central Disallowance of Waiver on turnover 6431.44
Sales Tax
Act, availed on car sales due to non-
1956 achievement of Bench- Mark, Stock
Transfer, Non-submission of C/D
Forms, etc.
Tamil Nadu Disallowance of Waiver on turnover 1168.00
Sales Tax
Act, availed on car sales due to non-
1959 achievement of Bench-Mark,
Additional Sales Tax, etc.
West Bengal Non-Receipt of Sales Tax Form, 0.37
Sales Tax
Act, Interest, Penalty, Post Return
1994 Adjustment etc.
West Bengal Disallowance of VAT Credit 622.84
Value Added
Tax Act, 2003
The Customs Disputes on account of: 17.75
Act, 1956 Classification, Duty on inclusion of
technical know-how fees on
imported goods, import of Engines,
Short Levy, etc.
Name of the Period to which Forum where dispute is pending
Statue amount relates
The Central
Excise Act,
1944 1984-2006 Assistant/Deputy/Additional
Commissioner, Commissioner,
Commissioner (Appeals) and
Appellate Tribunal
The Central
Sales Tax Act,
1956 1989-2007 Deputy/Additional
Commissioner, Appellate Deputy
Commissioner, Tribunal Benches
and Supreme Court
Tamil Nadu
Sales Tax Act,
1959 1993-2003 Tribunal Bench and Supreme
Court
West Bengal
Sales Tax Act,
1994 2003-2004 West Bengal Commercial Tax
Appellate & Revision Board,
Additional Commissioner
West Bengal
Value Added
Tax Act, 2003 2006-2007 Additional Commissioner of
Commercial Taxes
The Customs
Act, 1956 1990-2006 Assistant/Deputy Commissioner,
Commissioner Appeals &
Appellate Tribunal
(x) The Companys accumulated losses at the end of the financial year
are more than fifty percent of its net worth. The Company has incurred
cash losses in the current and the immediately preceding financial
year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, the Company has overdrawn cash
credit borrowings from banks during the year, the details whereof are
as follows:
Period of Default Amount (Rs. in lacs>
Less than 30 days 1408.10
30 to 90 days 1238.44
The Company has not defaulted in repayment of dues to a financial
institution and has no outstanding dues in respect of debentures.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of Order are not applicable.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xvi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(xvii) According to the information and explanations given to us and on
overall examination of the balance sheet of the Company, we report that
the Company has used short term funds amounting to Rs. 8400 lacs
approximately for financing the losses of the Company.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
ForS.R.BATLIBOI&CO.
Regn.No,301003E
Chartered Accountants
Per Raj Agrawal
Place: New Delhi Partner
Date: May 1, 2010 Membership No.: 82028
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