Auditor Report of India Glycols Ltd.
Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of India Glycols Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information. (âherein after referred to as âStandalone Ind AS Financial statementsâ)
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the relevant Rules, made thereunder and other accounting principles generally accepted in India.
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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting 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 standalone 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 standalone 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 standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Ind AS and other accounting principles generally accepted in India, of the financial position of the Company as at March 31, 2018, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements. Refer note37(A)(i),39,40,to the standalone Ind AS financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standard for material foreseeable losses, if any, on longterm contracts including derivative contracts. Refer Note No. 51(B) to the standalone Ind AS financial statements
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure - âAâ to the Independent Auditorâs Report (Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
(i) In respect of the Companyâs fixed assets:
(a) The Company has maintained proper records showing full particulars, including situation of its fixed assets.
(b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification however, the same has been properly adjusted in the books of accounts.
(c) As per the record and information and explanations given to us, we report that, the title deeds for all the immovable properties of the company are held in the name of the Company as at the balance sheet date( read with footnote of note no. 2 to the Ind AS financial statements).
(ii) As explained to us, the inventories (except stock in transit which have been verified based on subsequent receipt /reconciliation) were physically verified during the year by the Management at reasonable intervals, and the procedures of physical verification of inventory followed by the management are reasonable and adequate, no material discrepancies were noticed on physical verification of inventories.
(iii) According to the information and explanations given to us, the Company has not granted loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013. Accordingly, We are not offering any comment on the provision of Clause (iii) (a), (b) & (c) of the order.
(iv) I n our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.[This is to be read with note no. 55(iv)g]
(v) According to the information and explanations given to us, In our opinion the Company has complied with the directives issued by Reserve Bank of India and the provision of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014, as amended (to the extent applicable for carry unclaimed amount) with regard to deposit accepted from the public. According to the information and explanations given to us, No order has been passed by the Company Law Board or National Company Law Tribunal or Reseve Bank of India or any Court or other Tribunal in this regard.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Goods and Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State (IfisMHikhii) Income-tax, Sales Tax, Service Tax, Goods and Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.
(c) Details of dues of Custom duty, Service Tax Sales tax and Excise Duty which have not been deposited as at March 31, 2018 on account of disputes are given below:
|
Nature of Statute |
Nature of Dues |
Forum where Dispute is Pending |
Period to which the Amount Relates (Financial Year) |
Amount Involved (Rs. In Lakhs) |
|
Custom Act, |
Custom Duty |
Uttarakhand High court |
1992-93 |
11.42 |
|
1962 |
Custom Duty |
Assistant Commissioner Customs |
2004-05,2009-10 and 2015-16 |
196.55 |
|
Custom Duty |
Commissioner Customs(Appeal) |
2004-05,2010-11 |
763.77 |
|
|
Duty Drawback |
Joint Secretary, Department of Revenue |
2006-07 |
15.86 |
|
|
Finance Act, |
Service Tax |
Commissioner LTU-KSP |
2010-11 to 2015-16 |
177.78 |
|
1994 |
Service Tax |
Assistant Commissioner LTU-Ahmedabad |
2010-11 to 2015-16 |
2.20 |
|
Service Tax |
Assistant/Deputy Commissioner LTU-GKP |
2005-06 to 2008-09,2010-11 |
8.09 |
|
|
Service Tax |
Assistant/Deputy Commissioner LTU-Noida |
2012-13,2015-16 |
13.15 |
|
|
Central Excise |
Cenvat Credit |
Commissioner Appeal LTU-KSP |
2007-08 to 2012-13 |
11.75 |
|
Act, 1944 |
Cenvat Credit |
Additional Commissioner LTU-KSP |
2011-12 to 2013-14 and 2015-16 |
11.07 |
|
Cenvat Credit |
Commissioner LTU-GKP |
2011-12,2012-13 |
10.86 |
|
|
Cenvat Credit |
Joint Commissioner Centeral GST Dehradun |
2006-07 to 2008-09 |
66.97 |
|
|
Cenvat Credit |
Superintendent-LTU-GKP |
2016-17 |
1.24 |
|
|
Cenvat Credi |
Commissioner CCE-Meerut |
2004-05 to 2005-06 |
55.59 |
|
|
Excise Duty |
Joint Commissioner Central GST, Dehradun |
2007-08 |
69.99 |
|
|
Excise Duty |
High court Nainital |
2005-06 to 2008-09 |
51.20 |
|
|
Excise Duty |
CESTAT |
2007-08 to 2011-12 |
852.57 |
|
|
Excise Duty |
Commissioner LTU-KSP |
2010-11 |
4,183.63 |
|
|
Uttar Pradesh VAT ACT, 2008 |
Sales Tax |
Additional Commissioner |
2008-09 and 2011-12 |
8.34 |
(viii) I n our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks, government (both State and Central). The Company has not issued any debentures.
(ix) I n our opinion and according to the information and explanations given to us, money raised by way of term loans have been applied by the Company during the year for the purposes for which they were raised. The Company has not raised moneys by way of initial public offer (including debt instruments) during the year.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) I n our opinion and according to the information and explanations given to us, the Company has paid managerial remuneration in accordance with the requisite approvals mandated vide provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the note no. 55 of the standalone financial statements as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xv) I n our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or directors of its holding, subsidiary or associate company or persons connected with them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi)The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 2(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of India Glycols Limited(âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the âGuidance Noteâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 auditorâs 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
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, to the best of our information and according to the explanations given to us the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the criteria for internal financial control over financial reporting established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Control Over Financial Reporting issued by the Institute of Chartered Accountant of India.
For K.N. Gutgutia & Co.
Chartered Accountants
(Firmâs Registration No. 304153E)
B.R. GOYAL
Place: Noida Partner
Date: May 01, 2018 (Membership No. 12172)
Mar 31, 2017
TO THE MEMBERS OF INDIA GLYCOLS LIMITED
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of India Glycols Limited (âthe Companyâ), which comprise the balance sheet as at 31st March, 2017, 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 (herein after referred to as âstandalone Ind AS financial statementsâ).
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issued there under.
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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit 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 standalone 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 standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the financial position of the Company as at 31st March, 2017, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of section 143(11) of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The balance sheet, the statement of profit and loss, 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 standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with relevant rule issued there under.
(e) On the basis of the written representations received from the directors as on 31st March,2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) With respect to the other matters to be included in the 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 standalone Ind AS financial statements -Refer Note No. 38A(i), 40, 41 & 42(a)(iii) to the standalone Ind AS financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts. Refer Note No. 53(B) to the standalone Ind AS financial statements.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; and
iv. The Company has provided requisite disclosures in its standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November 2016 to 30th December 2016 and these are in accordance with the books of accounts maintained by the Company. Refer Note 60 to the standalone Ind AS financial statements.
Annexure referred to in paragraph 1 under the heading âReport on other legal and regulatory requirementsâ of our report of even date on the Standalone Ind AS Financial Statements of India Glycols Ltd. for the year ended 31st March 2017
1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets except in case of certain locations where records are in process of updating/compilation.
(b) As per information & explanation given to us, the fixed assets have been physically verified by the Management. As explained to us there is regular programme of physical verification once in every three years, in phased manner, which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets. The discrepancies noticed on such physical verification were not material.
(c) As per the records and information and explanations given to us, title deeds of immovable properties (fixed assets) are held in the name of the Company (read with footnote of note no 2).
2. The inventory of the Company (except stock in transit which have been verified based on subsequent receipt/reconciliation) has been physically verified by the management at reasonable intervals and the procedures of physical verification of inventory followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business. The company is maintaining proper records of inventory. The discrepancies noticed on such physical verification of inventory as compared to book records were not material.
3. 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 Companies Act, 2013. Accordingly, We are not offering any comment on the provisions of Clause 3(iii) (a), (b) & (c) of the Order.
4. According to the information, explanations and representations provided by the management and based upon audit procedures performed, we are of the opinion that in respect of loans, investments, -guarantees and security the Company has complied with the provisions of the Section 185 and 186 of the Companies Act, 2013. [This is to be read with note no. 58(iv)j)].
|
Nature of Statue |
Nature of Dues |
Amount (In Lacs) |
Period |
Forum |
|
Custom Act, 1962 |
Custom Duty |
11.42 |
1992-93 |
U.T High Court |
|
Custom Duty |
196.55 |
2005-06, 2009-10 |
Assistant Commissioner Customs |
|
|
Custom Duty |
763.77 |
2004-05, 2010-11 |
Commissioner Customs (Appeals) |
|
|
Duty Drawback |
15.86 |
2006-07 |
Joint Secretary, Department of Revenue |
|
|
Finance Act, 1994 |
Service Tax |
172.66 |
2010-11 to 2015-16 |
Commissioner LTU - KSP |
|
Service Tax |
2.20 |
2010-11 to 2015-16 |
Assistant Commissioner LTU - Ahmadabad |
|
|
Service Tax |
8.09 |
2005-06 to 2008-09, 2010-11 |
Assistant/Deputy Commissioner LTU - GKP |
|
|
Service Tax |
8.98 |
2012-13,2015-16 |
Assistant/Deputy Commissioner LTU - Noida |
5. I n our opinion and according to the information and explanations given to us, the Company has complied with the directives issued by the Reserve Bank of India and the provisions of Section 73 to 76 of the Act or any other relevant provisions of the Act and the rules framed there under (to the extent applicable for carry over unclaimed amount) with regard to deposits accepted from the public. According to the information and explanation given to us no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or other Tribunal in this regard.
6. We have broadly reviewed the books of account maintained by the Company pursuant to the rules specified by the Central Government for the maintenance of cost records under Section 148(1) of the Act in respect of the Companyâs products to which they said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate or complete.
7. (a) According to the records of the Company, the
Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues to the appropriate authorities to the extent applicable and there are no undisputed statutory dues payable for a period of more than six months from the date they become payable as at 31st March, 2017.
(b) According to the records and information and explanations given to us, there are no material dues in respect of Income Tax or cess that have not been deposited with the appropriate authorities to the extent applicable on account of any dispute and dues in respect of Duty of Custom, Service Tax, Duty of Excise, VAT & Sales Tax that have not been deposited with appropriate authority on account of dispute and the forum where the dispute is pending are given below:- )
8. I n our opinion, on the basis of audit procedures and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to financial institutions, banks, government (both State and Central). The company did not have any outstanding debentures during the year.
|
Nature of Statue |
Nature of Dues |
Amount (In Lacs) |
Period |
Forum |
|
Central Excise |
Cenvat Credit |
11.75 |
2007-08 to 2012-13 |
Commissioner Appeal LTU - KSP |
|
Act, 1944 |
Cenvat Credit |
11.07 |
2011-12 to 2013-14 and 2015-16 |
Additional Commissioner LTU - KSP |
|
Cenvat Credit |
17.42 |
2010-11 to 2013-14 |
Additional Commissioner LTU- GKP |
|
|
Cenvat Credit |
24.81 |
2013-14, 2014-15 and 2015-16 |
Assistant/Deputy Commissioner LTU - GKP |
|
|
Cenvat Credit |
27.55 |
2010-11 to 2012-13 |
Commissioner Appeals LTU - GKP |
|
|
Cenvat Credit |
8.97 |
2012-13 to 2013-14 |
CESTAT-Allahabad |
|
|
Cenvat Credit |
6.39 |
2010-11 to 2011-12 |
Commissioner Appeals, Allahabad |
|
|
Cenvat Credit |
10.86 |
2011-12,2012-13 |
Commissioner LTU - GKP |
|
|
Cenvat Credit |
66.97 |
2006-07 to 2008-09 |
Commissioner LTU - KSP |
|
|
Cenvat Credit |
0.22 |
2013-14 |
Superintendent - LTU- GKP |
|
|
Cenvat Credit |
55.59 |
2004-05 to 2005-06 |
Commissioner CCE- Meerut |
|
|
Excise Duty |
89.60 |
2008-09 to 2013-14 |
Additional Commissioner LTU - KSP |
|
|
Excise Duty |
852.57 |
2007-08 to 2011-12 |
CESTAT |
|
|
Excise Duty |
4,183.63 |
2010 - 2011 |
Commissioner LTU - KSP |
|
|
Excise Duty |
14.99 |
2013-14, 2014-15 and 2015-16 |
Joint/Additional Commissioner LTU - KSP |
|
|
Excise Duty |
53.07 |
2005-06 to 2008-09 |
Joint Secretary, GOI, New Delhi |
|
|
Uttar Pradesh VAT ACT, 2008 |
Sales Tax |
8.39 |
2008-09, 2009-10 and 2011-12 |
Additional Commissioner |
9. On the basis of information and explanations given to us, the Company did not raise any money by way of public offer or further public offer (including through debt instruments) during the year and term loans raised were applied for the purposes for which the loans were obtained.
10. Based on the audit procedure performed and on the basis of information and explanations provided by the management, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of the audit.
11. On the basis of records and information and explanations made available and based on the examination of the records of the Company, managerial remuneration which has been paid or provided is in accordance with the requisite approvals mandated by Section 197 read with Schedule V to the Act.
12. The Company is not a nidhi Company and therefore, the provisions of clause 3 (xii) of the said Order are not applicable to the Company.
13. As per the information and explanations and records made available by the management of the Company and audit procedure performed, for the related parties transactions entered during the year, the Company has complied with the provisions of Section 177 and 188 of the Act, where applicable. As explained, as per records and details made available to us such related parties transactions have been disclosed in the note no. 58 of standalone financial statements as required by the applicable Indian Accounting Standards.
14. According to the information and explanations given to us and based on the examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully / partly convertible debentures during the year in terms of provisions of Section 42 of the Act.
15. On the basis of records made available to us and according to information and explanations given to us and based on the examination of the records of the Company, the Company has not entered into non-cash transactions with the directors or persons connected with him. Accordingly, paragraph 3 (xv) of the order is not applicable.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934 as the provision of section is not applicable to the Company.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF INDIA GLYCOLS LIMITED
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of India Glycols Limited (âthe Companyâ) as of March 31, 2017 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the standalone Ind AS 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the Company (This is to be read with the note no. 47 of the standalone Ind-AS financial statements regarding balance confirmation process) considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For LODHA & CO.,
Chartered Accountants
Firmâs Registration No. 301051E
(N. K. Lodha)
Place: Noida Partner
Date: 16-05-2017 Membership No. 85155
Mar 31, 2015
We have audited the accompanying standalone financial statements of
INDIA GLYCOLS LIMITED ("the Company"), which comprise the Balance Sheet
as at 31st March, 2015, 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.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
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 standalone financial statements that give a true
and fair view and are free from material misstatement, whether due to
fraud or error.
Auditor''s responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company''s directors, as well as
evaluating the overall presentation of the standalone financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion on the
standalone financial statements.
Basis for Qualified Opinion
Attention is invited to:
i. Note no. 32(A)(i) & 32(A)(ii) of financial statements regarding
non-provision against investment, inter- corporate deposit and advances
in subsidiary company Shakumbari Sugar and Allied Industries Limited
(SSAIL) amounting to '' 5,427.50 Lacs (Previous Year Rs. 5,427.50 Lacs),
RS. 1,915.13 Lacs (including interest thereon) (Previous Year Rs.
1,834.83 Lacs) & RS. 8,453.81 Lacs (Previous Year Rs. 8,375.82 Lacs)
respectively, where, in the opinion of management no provision is
necessary considering the long term in nature, the intrinsic value of
assets of subsidiary company and for the reasons as stated in the said
notes and our inability to comment thereon. Further company have also
extended corporate guarantee on behalf of SSAIL against outstanding
loans amount of Financial Institution and Banks (as stated in the note
no. 27(A)(iii) & 32(A)(iii)).
ii. Note no. 32(B) regarding non provision against total exposure of
amounting RS. 14,774.64 Lacs (Previous Year RS. 14,848.04 Lacs)
(including investment in capital of RS. 125 Lacs, (Previous Year RS.
125 Lacs) in a subsidiary, IGL Finance Limited, where the management is
confident about its recoverability for the reasons as stated in said
note, and our inability to comment thereon.
iii. Note no. 32(D) regarding non provision against total exposure of
amounting to RS. 505.16Lacs (including trade receivable account of''RS.
477.75 Lacs) in a subsidiary, IGL CHEMINTT. PTE Limited, Singapore,
where the management is confident about its recoverability for the
reasons as stated in said note, and our inability to comment thereon.
Net loss for the year, investments, loans & advances and reserve &
surplus are without considering impact of the above which could not be
ascertained or otherwise for the reason stated in as above. Our opinion
was also qualified in respect of matters reported in Para (i) & (ii)
above on the financial statement for the year ended 31st March, 2014.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the possible effects of the matter
described in the "Basis for Qualified Opinion" paragraph above, the
aforesaid standalone financial statements,give the information required
by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India,
of the state of the affairs of the Company as at 31st March 2015, and
its loss and its cash flows for the year ended on that date.
Emphasis of Matter
1) We draw attention to note no. 32(C) to the financial statements for
two notices received by the Company from National Stock Exchange (NSE)
regarding reinstatement of financial statement and to suitably rectify
the financial statement as stated in said note. Pending granting of
opportunity / clarification. Company have not reinstated/rectified.
Further, attention is invited to:
2(a) Note no. 34 regarding insurance claim filed with the insurance
company for the reinstatement of machinery as well as loss incurred due
to business interruption where management is confident about full
realisibility, as stated in the said note 2(b) Note no. 37 regarding
provision made (including made in earlier years) for special discount
on account of sudden and steep fall in prices and quality issues, where
necessary approvals are pending as stated in the said note.
2(c) Note no. 27(B) regarding Advance License pending fulfilment of
export obligation, where management is confident that pending export
obligation will be fulfilled before expiry of advance license as stated
in said note.
Our opinion is not qualified in respect of these matters.
Report on other legal and the regulatory requirements:
1. As required by the Companies (Auditor''s Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us during the course of audit, we give in the Annexure a statement on
the matters specified in the paragraphs 3 and 4 of the order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) Except for the effect of the matter described in the Basis for
Qualified Opinion paragraph above, in our opinion, proper books of
account as required by law have been kept by the Company so far as it
appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) The matter described in the basis for qualified opinion 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, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(g) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note No.
27(A)(i) read with 46(a), 30, 31 & 32(A)(iii) to the Standalone
Financial Statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts. Refer Note No.
46(a), 49(C)(c) & 49(C)(d) to the Standalone Financial Statements.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure referred to in paragraph 1 under the heading "Report on Other
Legal and Regulatory Requirements" of our report of even date for the
year ended 31st March 2015-India Glycols Limited
1. (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets except in case of certain locations where records are in process
of updation / compilation.
(b) As per information & explanation given to us, certain fixed assets
have been physically verified by the management. As explained to us
there is regular programme of physical verification once in every three
years, in phased manner, which in our opinion is reasonable having
regard to the size of the company and the nature of its fixed assets.
The discrepancies noticed on such physical verification were not
material.
2. (a) The inventories of the company (except stock in transit which
have been verified based on subsequent receipt/ reconciliation) have
been physically verified by the management at reasonable intervals.
(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.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
3. The Company has not granted during the year any loan secured or
unsecured to companies, firms or other parties covered in the register
maintained under Section 189 of the Companies Act, 2013. Accordingly,
the provisions of clause 3(iii) (a) & (b) of the order are not
applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of special nature and for which suitable alternative
sources do not exist for obtaining comparable quotation or where user
department has shown specific preference, where, as explained, rates
were determined considering the quality, volume, nature of the items
and market conditions prevailing at that time in certain cases, there
is an internal control system which needs to be further strengthened to
be made the same commensurate with the size of the Company and nature
its business for the certain purchases of Inventory & fixed assets, and
for the sale of goods and services {this to be read with note no. 40 of
financial statement}. Based on the audit procedure performed and
information & explanations provided by the management,during the course
of our audit, we have not observed any continuing failure to correct
major weaknesses in internal control system.
5. In our opinion and according to the information and explanations
given to us, the Company has complied with the directive issued by the
Reserve Bank of India and the provisions of Section 73 to 76 of the Act
or any other relevant provisions of the Act and the rules framed there
under (to the extent applicable) with regard to deposit accepted from
the public. According to the information and explanation given to us no
order has been passed by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or other tribunal in
this regard.
6. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 148(1) of the Act in respect
of the Company''s products to which the said rules are made applicable
and are of the opinion that prima facie, the prescribed records have
been made and maintained. We have, however, not made a detailed
examination of the said records with a view to determine whether they
are accurate and complete.
7. (a) According to the records of the company the company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, employees'' state insurance, income- tax,
sales-tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax cess and any other material statutory dues with the
appropriate authority to the extent applicable and there are no
undisputed statutory dues payable for a period of more than six months
from the date they became payable as at 31st March 2015.
(b) According to the records and information and explanations given to
us, there are no material dues in respect of Income Tax, Wealth Tax or
Cess that have not been deposited with the appropriate authorities to
the extent applicable on account of any dispute and dues in respect of
Duty of Custom, Service Tax, Duty of Excise, VAT & Sales Tax that have
not been deposited with appropriate authority on account of dispute and
the forum where the dispute is pending are given below:-
Nature of Statue Nature of dues Amount
(RS. in lacs)
Custom Act Custom duty 11.42
Custom duty 193.05
Duty Drawback 15.86
Custom Duty 763.77
Finance Act 1994 Service Tax 36.31
Service Tax 8.09
Central Excise Act Cenvat Credit 7,438.36
Cenvat Credit 6,568.27
Cenvat Credit 1,118.53
Cenvat Credit 1,920.52
Cenvat Credit 33.86
Cenvat Credit 20.54
Cenvat Credit 15.82
Cenvat Credit 9.06
Cenvat Credit 6.41
Cenvat Credit 5.91
Cenvat Credit 2.56
Cenvat Credit 12.20
Cenvat Credit 0.23
Excise duty 4,183.63
Excise Duty 902.57
Excise duty 90.62
Excise duty 69.99
Excise duty 56.70
Excise duty 14.10
Excise duty 1.87
UP VAT Act Sales Tax 16.65
Nature of Statue Period Forum
Custom Act 1992-93 High Court - Uttaranchal
2004-05, 2009-10 Asstt. Commissioner of custom
2006-07 Joint Secretary, Department of
Revenue
2004-05, 2010-11 Commissioner Customs (Appeals)
Finance Act 1994 2004-05 to 2007-08 CESTAT
2005-09, 2010-12 Assistant Commissioner-
Haldwani
Central Excise Act 2007-08 to 2013-14 Commissioner Allahabad
2006-07 to 2013-14 Assistant Commissioner
Haldwani
2013-14 Commissioner LTU - KSP
2013-14 Commissioner LTU - GKP
2010-11 to 2013-14 Commissioner Appeal Allahabad
2005-06 to 2009-10 CESTAT
2011-12 to 2013-14 Asstt. Commissioner Gorakhpur
2010-11 to 2011-12 Commissioner Appeals,LTU - GKP
2013-14 Assistant/Deputy Commissioner
LTU - GKP
2011-12 to 2013-14 Additional Commissioner,
LTU - KSP
2013-14 Joint/Additional Commissioner
LTU - KSP
2008-09 to 2012-13 Commissioner Appeal LTU - KSP
2013-14 Superintendent - LTU- GKP
2010-11 Commissioner LTU - KSP
2007-08 to 2011-12 Asstt. Commissioner Gorakhpur
2006-07 to 2009-10 Allahabad High Court
2007-08 CESTAT
2005-06 to 2008-09, Assistant Commissioner
2012-13, 2013-14 Haldwani
2008-09 to 2012-13 Additional Commissioner
LTU - KSP
2010-11 Joint Secretary,GOI, New Delhi
UP VAT Act 2008-09, 2009-10, Additional Commissioner
2011-12 & 2013-14
(c) According to the records of the Company and information and
explanations given to us, the amount required to be transferred to
investor education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 and rules made there under has
been transferred to such fund with in time.
8. The company does not have accumulated losses as at the end of the
financial year. Further company has not incurred cash loss during the
current financial year and also not in the immediately preceding
financial year. However, considering the exceptional item (note no. 46)
company has incurred cash loss during the the current financial year,
as well as in the immediately preceding financial year.
9. Based on our audit procedures and on the information and
explanations given by the management, the Company has not defaulted in
repayment of dues to financial institution, banks or debenture holders.
10. According to the information and explanations given to us, the
Company has given corporate guarantees to banks for Loans taken by
Shakumbari Sugar & Allied Industries Limited (''SSAIL'' a Subsidiary
Company) for amounting to RS. 12,045.43 lacs as stated in note no.
27(A)(iii) of the financial statements, the terms and conditions on
which the Company has given guarantees for loans taken by SSAIL from
banks are not, prima facie,as explained, prejudicial to the interest of
the Company since the same is/are on account of commercial expediency.
As explained to us, the Company has not given any guarantee for loans
taken by others from financial institution.
11. According to the information and explanations given to us, the
term loans were applied for the purposes for which the loans were
obtained except pending utilization, have been temporarily parked in
the current assets/deposits with banks.
12. During the course of our examination of the books and records of
the company carried out in accordance with the auditing standards
generally accepted in India, we have neither come across any material
instance of fraud on or by the company, noticed neither reported during
the year nor we have been informed of such case by the management.
For Lodha & Co.,
Chartered Accountants
Firm Registration No: 301051E
(N. K. Lodha)
Date: 28th May, 2015 Partner
Place: Noida, UP M. No.: - 85155
Mar 31, 2015
We have audited the accompanying standalone financial statements of
INDIA GLYCOLS LIMITED ("the Company"), which comprise the Balance Sheet
as at 31st March, 2015, 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.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
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 standalone financial statements that give a true
and fair view and are free from material misstatement, whether due to
fraud or error.
Auditor's responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's directors, as well as
evaluating the overall presentation of the standalone financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion on the
standalone financial statements.
Basis for Qualified Opinion
Attention is invited to:
i. Note no. 32(A)(i) & 32(A)(ii) of financial statements regarding
non-provision against investment, inter- corporate deposit and advances
in subsidiary company Shakumbari Sugar and Allied Industries Limited
(SSAIL) amounting to ' 5,427.50 Lacs (Previous Year Rs. 5,427.50 Lacs),
RS. 1,915.13 Lacs (including interest thereon) (Previous Year Rs.
1,834.83 Lacs) & RS. 8,453.81 Lacs (Previous Year Rs. 8,375.82 Lacs)
respectively, where, in the opinion of management no provision is
necessary considering the long term in nature, the intrinsic value of
assets of subsidiary company and for the reasons as stated in the said
notes and our inability to comment thereon. Further company have also
extended corporate guarantee on behalf of SSAIL against outstanding
loans amount of Financial Institution and Banks (as stated in the note
no. 27(A)(iii) & 32(A)(iii)).
ii. Note no. 32(B) regarding non provision against total exposure of
amounting RS. 14,774.64 Lacs (Previous Year RS. 14,848.04 Lacs)
(including investment in capital of RS. 125 Lacs, (Previous Year RS.
125 Lacs) in a subsidiary, IGL Finance Limited, where the management is
confident about its recoverability for the reasons as stated in said
note, and our inability to comment thereon.
iii. Note no. 32(D) regarding non provision against total exposure of
amounting to RS. 505.16Lacs (including trade receivable account of'RS.
477.75 Lacs) in a subsidiary, IGL CHEMINTT. PTE Limited, Singapore,
where the management is confident about its recoverability for the
reasons as stated in said note, and our inability to comment thereon.
Net loss for the year, investments, loans & advances and reserve &
surplus are without considering impact of the above which could not be
ascertained or otherwise for the reason stated in as above. Our opinion
was also qualified in respect of matters reported in Para (i) & (ii)
above on the financial statement for the year ended 31st March, 2014.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the possible effects of the matter
described in the "Basis for Qualified Opinion" paragraph above, the
aforesaid standalone financial statements,give the information required
by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India,
of the state of the affairs of the Company as at 31st March 2015, and
its loss and its cash flows for the year ended on that date.
Emphasis of Matter
1) We draw attention to note no. 32(C) to the financial statements for
two notices received by the Company from National Stock Exchange (NSE)
regarding reinstatement of financial statement and to suitably rectify
the financial statement as stated in said note. Pending granting of
opportunity / clarification. Company have not reinstated/rectified.
Further, attention is invited to:
2(a) Note no. 34 regarding insurance claim filed with the insurance
company for the reinstatement of machinery as well as loss incurred due
to business interruption where management is confident about full
realisibility, as stated in the said note 2(b) Note no. 37 regarding
provision made (including made in earlier years) for special discount
on account of sudden and steep fall in prices and quality issues, where
necessary approvals are pending as stated in the said note.
2(c) Note no. 27(B) regarding Advance License pending fulfilment of
export obligation, where management is confident that pending export
obligation will be fulfilled before expiry of advance license as stated
in said note.
Our opinion is not qualified in respect of these matters.
Report on other legal and the regulatory requirements:
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us during the course of audit, we give in the Annexure a statement on
the matters specified in the paragraphs 3 and 4 of the order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) Except for the effect of the matter described in the Basis for
Qualified Opinion paragraph above, in our opinion, proper books of
account as required by law have been kept by the Company so far as it
appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) The matter described in the basis for qualified opinion 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, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(g) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note No.
27(A)(i) read with 46(a), 30, 31 & 32(A)(iii) to the Standalone
Financial Statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts. Refer Note No.
46(a), 49(C)(c) & 49(C)(d) to the Standalone Financial Statements.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure referred to in paragraph 1 under the heading "Report on Other
Legal and Regulatory Requirements" of our report of even date for the
year ended 31st March 2015-India Glycols Limited
1. (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets except in case of certain locations where records are in process
of updation / compilation.
(b) As per information & explanation given to us, certain fixed assets
have been physically verified by the management. As explained to us
there is regular programme of physical verification once in every three
years, in phased manner, which in our opinion is reasonable having
regard to the size of the company and the nature of its fixed assets.
The discrepancies noticed on such physical verification were not
material.
2. (a) The inventories of the company (except stock in transit which
have been verified based on subsequent receipt/ reconciliation) have
been physically verified by the management at reasonable intervals.
(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.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
3. The Company has not granted during the year any loan secured or
unsecured to companies, firms or other parties covered in the register
maintained under Section 189 of the Companies Act, 2013. Accordingly,
the provisions of clause 3(iii) (a) & (b) of the order are not
applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of special nature and for which suitable alternative
sources do not exist for obtaining comparable quotation or where user
department has shown specific preference, where, as explained, rates
were determined considering the quality, volume, nature of the items
and market conditions prevailing at that time in certain cases, there
is an internal control system which needs to be further strengthened to
be made the same commensurate with the size of the Company and nature
its business for the certain purchases of Inventory & fixed assets, and
for the sale of goods and services {this to be read with note no. 40 of
financial statement}. Based on the audit procedure performed and
information & explanations provided by the management,during the course
of our audit, we have not observed any continuing failure to correct
major weaknesses in internal control system.
5. In our opinion and according to the information and explanations
given to us, the Company has complied with the directive issued by the
Reserve Bank of India and the provisions of Section 73 to 76 of the Act
or any other relevant provisions of the Act and the rules framed there
under (to the extent applicable) with regard to deposit accepted from
the public. According to the information and explanation given to us no
order has been passed by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or other tribunal in
this regard.
6. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 148(1) of the Act in respect
of the Company's products to which the said rules are made applicable
and are of the opinion that prima facie, the prescribed records have
been made and maintained. We have, however, not made a detailed
examination of the said records with a view to determine whether they
are accurate and complete.
7. (a) According to the records of the company the company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, employees' state insurance, income- tax,
sales-tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax cess and any other material statutory dues with the
appropriate authority to the extent applicable and there are no
undisputed statutory dues payable for a period of more than six months
from the date they became payable as at 31st March 2015.
(b) According to the records and information and explanations given to
us, there are no material dues in respect of Income Tax, Wealth Tax or
Cess that have not been deposited with the appropriate authorities to
the extent applicable on account of any dispute and dues in respect of
Duty of Custom, Service Tax, Duty of Excise, VAT & Sales Tax that have
not been deposited with appropriate authority on account of dispute and
the forum where the dispute is pending are given below:-
Nature of Statue Nature of dues Amount
(RS. in lacs)
Custom Act Custom duty 11.42
Custom duty 193.05
Duty Drawback 15.86
Custom Duty 763.77
Finance Act 1994 Service Tax 36.31
Service Tax 8.09
Central Excise Act Cenvat Credit 7,438.36
Cenvat Credit 6,568.27
Cenvat Credit 1,118.53
Cenvat Credit 1,920.52
Cenvat Credit 33.86
Cenvat Credit 20.54
Cenvat Credit 15.82
Cenvat Credit 9.06
Cenvat Credit 6.41
Cenvat Credit 5.91
Cenvat Credit 2.56
Cenvat Credit 12.20
Cenvat Credit 0.23
Excise duty 4,183.63
Excise Duty 902.57
Excise duty 90.62
Excise duty 69.99
Excise duty 56.70
Excise duty 14.10
Excise duty 1.87
UP VAT Act Sales Tax 16.65
Nature of Statue Period Forum
Custom Act 1992-93 High Court - Uttaranchal
2004-05, 2009-10 Asstt. Commissioner of custom
2006-07 Joint Secretary, Department of
Revenue
2004-05, 2010-11 Commissioner Customs (Appeals)
Finance Act 1994 2004-05 to 2007-08 CESTAT
2005-09, 2010-12 Assistant Commissioner-
Haldwani
Central Excise Act 2007-08 to 2013-14 Commissioner Allahabad
2006-07 to 2013-14 Assistant Commissioner
Haldwani
2013-14 Commissioner LTU - KSP
2013-14 Commissioner LTU - GKP
2010-11 to 2013-14 Commissioner Appeal Allahabad
2005-06 to 2009-10 CESTAT
2011-12 to 2013-14 Asstt. Commissioner Gorakhpur
2010-11 to 2011-12 Commissioner Appeals,LTU - GKP
2013-14 Assistant/Deputy Commissioner
LTU - GKP
2011-12 to 2013-14 Additional Commissioner,
LTU - KSP
2013-14 Joint/Additional Commissioner
LTU - KSP
2008-09 to 2012-13 Commissioner Appeal LTU - KSP
2013-14 Superintendent - LTU- GKP
2010-11 Commissioner LTU - KSP
2007-08 to 2011-12 Asstt. Commissioner Gorakhpur
2006-07 to 2009-10 Allahabad High Court
2007-08 CESTAT
2005-06 to 2008-09, Assistant Commissioner
2012-13, 2013-14 Haldwani
2008-09 to 2012-13 Additional Commissioner
LTU - KSP
2010-11 Joint Secretary,GOI, New Delhi
UP VAT Act 2008-09, 2009-10, Additional Commissioner
2011-12 & 2013-14
(c) According to the records of the Company and information and
explanations given to us, the amount required to be transferred to
investor education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 and rules made there under has
been transferred to such fund with in time.
8. The company does not have accumulated losses as at the end of the
financial year. Further company has not incurred cash loss during the
current financial year and also not in the immediately preceding
financial year. However, considering the exceptional item (note no. 46)
company has incurred cash loss during the the current financial year,
as well as in the immediately preceding financial year.
9. Based on our audit procedures and on the information and
explanations given by the management, the Company has not defaulted in
repayment of dues to financial institution, banks or debenture holders.
10. According to the information and explanations given to us, the
Company has given corporate guarantees to banks for Loans taken by
Shakumbari Sugar & Allied Industries Limited ('SSAIL' a Subsidiary
Company) for amounting to RS. 12,045.43 lacs as stated in note no.
27(A)(iii) of the financial statements, the terms and conditions on
which the Company has given guarantees for loans taken by SSAIL from
banks are not, prima facie,as explained, prejudicial to the interest of
the Company since the same is/are on account of commercial expediency.
As explained to us, the Company has not given any guarantee for loans
taken by others from financial institution.
11. According to the information and explanations given to us, the
term loans were applied for the purposes for which the loans were
obtained except pending utilization, have been temporarily parked in
the current assets/deposits with banks.
12. During the course of our examination of the books and records of
the company carried out in accordance with the auditing standards
generally accepted in India, we have neither come across any material
instance of fraud on or by the company, noticed neither reported during
the year nor we have been informed of such case by the management.
For Lodha & Co.,
Chartered Accountants
Firm Registration No: 301051E
(N. K. Lodha)
Date: 28th May, 2015 Partner
Place: Noida, UP M. No.: - 85155
Mar 31, 2014
We have audited the accompanying financial statements of INDIA GLYCOLS
LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March 2014 and also the Statement of the Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
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 the 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 Accounting Standards notified under the Companies Act, 1956
("the Act") read with General Circular 15/2013 dated 13th September
2013, issued by the Ministry of Corporate Affairs, in respect of
Section 133 of the Companies Act, 2013. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and 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 Institute of Chartered
Accountant of India. Those standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including assessment of
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 on 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 the 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 opinion.
Basis for Qualified Opinion
Attention is invited to:
i. Note no. 34 (A) of financial statements regarding non- provision
against investment, inter-corporate deposit and advances in subsidiary
company Shakumbari Sugar and Allied Industries Limited (SSAIL)
amounting to Rs. 5,427.50 Lacs, Rs. 1,834.83 Lacs (including interest
thereon) & Rs. 8,375.82 Lacs respectively, where, in the opinion of
management no provision is necessary considering the long term in
nature, the intrinsic value of assets of subsidiary company and for the
reasons as stated in the said notes. Further company have also extended
corporate guarantee on behalf of SSAlL against outstanding amount of
Financial Institution and Banks (as stated in the note no.
27(A)(iii)).
ii. Note no 34 (B) regarding non provision against total
exposure of amounting Rs. 14,848.64 lacs including Inter-corporate
deposit in a subsidiary, IGL Finance Limited, where the management is
confident about its recoverability for the reason as stated in said
note, and our inability to comment thereon.
Net Profit for the year, investments, loans & advances and reserve &
surplus are without considering the above which cannot be ascertained
or otherwise for the reason stated in paras above.
Qualified Opinion
In our opinion and best to our information and according to the
explanations given to us, except for the possible effects of the matter
described in the Basis for Qualified Opinion paragraph, the financial
statements, give the information required by the Act in the manner so
require 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 the affairs of
the company as at 31st March 2014,
b. in case of the Statement of the Profit and Loss, of the loss for
the year ended on that date, and
c. in case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
Emphasis Matter
Attention is invited to:
Note no. 45(b) with respect to provision made of special discount on
account of sudden and steep fall in prices and quality issues, where
necessary approvals are pending.
Report on other legal and the 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, matter specified in the 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 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 appears from our examination of
those books;
c. the Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement referred to in this report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement referred to in this report comply with the
Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with General Circular 15/2013 dated 13th September 2013,
issued by the Ministry of Corporate Affairs, in respect of Section 133
of the Companies Act, 2013;
e. On the basis of the written representations received from the
Directors and taken on records by the Board of Directors, we report
that none of the directors of the Company is disqualified as on 31st
March 2014 from being appointed as a Director of the Company in terms
of clause (g) of sub-section (1) of section 274 of the Act.
i. (a) The Company has maintained records in respect of fixed assets
showing full particulars including quantitative details and situation
of its fixed assets.
(b) As per information & explanation given to us, certain fixed assets
have been physically verified by the management. As explained to us
there is regular programme of physical verification once in every three
years, in phased manner, which in our opinion is reasonable having
regard to the size of the company and the nature of its fixed assets.
The discrepancies noticed on such physical verification were not
material.
(c) As per the records and information & explanation given to us, fixed
assets disposed off during the year were not substantial.
ii. (a) The inventory of the Company (except stock lying with the
third parties and in transit) has been physically verified by the
management at reasonable intervals.
(b) In our opinion and according to information & explanation given to
us, the procedures of physical verification of inventory followed by
the management are generally reasonable and adequate in relation to the
size of the Company and nature of its business.
(c) In our opinion and according to information & explanation given to
us, the Company is generally maintaining proper records of inventory.
The discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
iii. (a) As per the information and records made available to us, the
Company has not granted during the year any loan secured or unsecured
to companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. Accordingly the
provisions of clause 4 (iii) (b) to (d) of the order are not applicable
to the Company.
(b) The company has taken unsecured loan from seven companies covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year and the year end
balance of such loans are aggregate of Rs. 7,977.24 Lacs and Rs.
6,910.23 Lacs respectively.
(c) In our opinion and according to information and explanations given
to us, the rate of interest and other terms and conditions on which
aforesaid loan has been taken are not, prima facie, prejudicial to the
interest of the company.
(d) The company is regular in repaying the principal and interest
amounts whenever the same are stipulated.
iv. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of special nature and for which suitable alternative
sources do not exist for obtaining comparable quotation or where user
department has shown specific preference, where, as explained, rates
were determined considering the quality, volume, nature of the items
and market conditions prevailing at that time in certain cases, there
is an internal control system which needs to be further strengthened to
be made the same commensurate with the size of the Company and nature
of its business for the certain purchases of Inventory & fixed assets,
and for the sale of goods and services {this to be read with note no.
37 & 43(a) of financial statement}. Based on the audit procedure
performed and information & explanations provided by the management,
during the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control system.
v. According to the information and explanations provided by the
management and based on the audit procedure performed, we are of the
opinion that the particulars of the contracts or arrangements referred
to in section 301 of the Act have been entered in the register
maintained under that section and having regard to our comment in para
(iv) above, the transaction made in pursuance of such contracts or
arrangements (exceeding the value of Rs. 5 Lacs in respect of each
party during the financial year) have been made at prices which are
generally reasonable having regard to the prevailing market prices at
the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the directive issued by the
Reserve Bank of India and the provisions of Section 58A and 58 AA of
the Act or any other relevant provisions of the Act and the rules
framed there under with regard to deposit accepted from the public. We
have been informed that no order has been passed by the company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or other tribunal in this regard.
vii. 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 Act in
respect of the Company''s products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate and complete.
ix. (a) According to the records of the Company, the Company is
regular in depositing undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues with the
appropriate authorities to the extent applicable. According to the
information and explanations given to us, there are no undisputed
amounts payable in respect of statutory dues which have remained
outstanding as at 31st March, 2014 for a period of more than six
months.
(b) According to the records and information and explanations given to
us, there are no dues in respect of Income Tax and Wealth Tax that have
not been deposited with the appropriate authorities on account of any
dispute and dues in respect of Custom Duty, Service Tax, Excise Duty,
Sales tax and Cess that have not been deposited with appropriate
authority on account of dispute and the forum where the dispute is
pending are given below:-
Nature of Statue Nature of dues Amount Period (Rs. in lacs)
Custom Act Custom duty 11.42 1992-93
Custom duty 193.05 2004-05, 2009-10
Duty Drawback 15.86 2006-07
Custom Duty 598.17 2004-05
Finance Act 1994 Service Tax 36.31 2004-05 to 2007-08
Service Tax 3.29 2004-08
Central Excise Act Cenvat Credit 20.54 2005-06 to 2009-10
Excise duty 69.99 2007-08
Excise duty 6,646.11 1996-97, 2005-06
to 2013-14
Excise duty 4,183.63 2010-11
Excise duty 90.62 2006-07 to 2009-10
Excise duty 1.87 2009-10 to 2010-11
Excise duty 42.92 2010-11 to 2013-14
Excise duty 7,438.36 2007-08 to 2013-14
Excise duty 918.39 2007-08 to 2013-14
UP VAT Act Sales Tax 13.52 2008-09, 2009-10,
2011-11 & 2012-13
Sales Tax 10.50 2007-08
Nature of Statue Forum
High Court - Uttaranchal
Asstt. Commissioner of custom
Joint Secretary, Department of Revenue
Commissioner Customs (Appeals)
Finance Act 1994 CESTAT
Assistant Commissioner- Haldwani
Central Excise Act CESTAT
CESTAT
Asstt. Commissioner Haldwani
Asstt. Commissioner Haldwani
Allahabad High Court
Joint Secretary, GOI, New Delhi
Commissioner Appeal Allahabad
Commissioner Allahabad
Asstt. Commissioner Gorakhpur
UP VAT Act Additional Commissioner
Allahabad High Court
x. The Company does not have accumulated losses at the end of
financial year. Further company has not incurred cash loss during the
current financial year and not in the immediately preceding financial
year. However, considering the exceptional item (note no. 45) company
has incurred cash loss during the year.
xi. In our opinion, based on audit procedures and according to the
information and explanations given to us, the Company has not defaulted
in repayment of dues to financial institution, banks or debenture
holders.
xii. According to the information and explanation 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, debenture and other securities.
xiii. The Company is not a chit fund or a nidhi/ mutual benefit fund
/society and therefore, the provisions of clause 4 (xiii) of the Order
are not applicable.
xiv. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
xv. According to the information and explanations given to us, the
Company has given corporate guarantees to banks for Loans taken by
Shakumbari Sugar & Allied Industries Limited (''SSAIL'' a Subsidiary
Company whose net worth have been fully eroded) for amounting to Rs.
12,428.52 lacs as stated in note no. 27(A)(iii) of the financial
statements, the terms and conditions on which the Company has given
guarantees for loans taken by SSAIL from banks are not, prima facie, as
explained, prejudicial to the interest of the Company since the same
is/are on account of commercial expediency. As explained to us, the
Company has not given any guarantee for loans taken by others from
financial institution.
have not been deposited with the appropriate authorities on account of
any dispute and dues in respect of Custom Duty, Service Tax, Excise
Duty, Sales tax and Cess that have not been deposited with appropriate
authority on account of dispute and the forum where the dispute is
pending are given below:-
xvi. According to the information and explanations given to us, term
loans have been applied for the purposes for which they were obtained
except pending utilization, have been temporarily parked in the current
assets/ deposits with banks.
xvii. On the basis of information and explanations given to us and on
overall examination of the financial statements of the Company, funds
raised on short term basis have, prima facie not been used for long
term investments.
xviii.According to the information and explanation given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act during the year.
xix. On the basis of record made available to us and according to the
information and explanations given to us, the company does not have
outstanding debentures during the year and also at year end.
xx. The Company has not raised any money through a public issue during
the year.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with generally accepted auditing
practices in India and according to the information and explanations
provided by the management, no material fraud on or by the Company has
been noticed or reported during the course of the audit.
For Lodha& Co.,
Chartered Accountants
Firm Registration No:301051E
(N. K. Lodha)
Date : 22.05.2014 Partner
Place : Noida, UP M. No.: - 85155
Mar 31, 2013
Report on the financial statements
We have audited the accompanying financial statements of INDIA GLYCOLS
LIMITED, which comprise the balance sheet as at 31st March 2013, and
the statement of the profit and loss and the cash flow statement for
the year then ended, and a summary of the 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 the 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 accounting standards referred to in sub section (3C) of
section 211 of the Companies Act, 1956("the Act"). This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and 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 Institute of Chartered
Accountant of India. Those standards require that we comply with the
ethical requirements and plan and perform the audit to obtain the
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including assessment of
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 the 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 audit opinion.
Qualification
Attention is invited to:
Note no. 34 of financial statements regarding non- provision against
investment and loans & advances in subsidiary company Shakumbari Sugar
and Allied Industries Limited (SSAlL) amounting to Rs. 5,427.50 Lacs
and Rs. 1,713.30 Lacs (including interest accrued thereon)
respectively, where, in the opinion of management no provision is
necessary considering the long term in nature, the intrinsic value of
assets of subsidiary company and for the reasons as stated in the said
notes. Further company have also extended corporate guarantee on behalf
of SSAIL against outstanding amount of Financial Institution and Banks
(as stated in the note no. 27(A)(iii)).
Net Profit for the year, investments, loans & advances and reserve &
surplus are without considering the above which cannot be ascertained
or otherwise for the reason stated in para above.
Opinion
Subject to above, in our opinion and best to our information and
according to the explanations given to us, the financial statements
read together with other notes thereon, give the information required
by the Companies Act 1956 in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India:
a. In the case of the balance sheet, of the state of the affairs of
the company as at 31 st March 2013,
b. In case of the statement of the profit and loss, of the profit for
the year ended on that date, and
c. In case of the cash flow statement, of the cash flows for the year
ended on that date.
Report on other legal and the 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 the Annexure a
statement on the, matters specified in the 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 purposes of our
audit;
e. 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;
f. The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement referred to in this report are in agreement with the books of
account;
g. In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement referred to in this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
Companies Act, 1956;
h. On the basis of the written representations received from the
Directors and taken on records by the Board of Directors, we report
that none of the directors of the Company is disqualified as on 31st
March 2013 from being appointed as a Director of the Company in terms
of clause (g) of sub-section (1) of section 274 of the Companies Act,
1956.
Annexure to the Auditors'' Report
(Referred to in paragraph (1) of our Report of even date of INDIA
GLYCOLS LIMITED for the year ended 31 st March, 2013)
i. (a) The Company has maintained records in respect of fixed assets
showing full particulars including quantitative details and situation
of its fixed assets.
(b) As per information & explanation given to us, certain fixed assets
have been physically verified by the management. As explained to us
there is regular programme of physical verification once in every three
years, in phased manner, which in our opinion is reasonable having
regard to the size of the company and the nature of its fixed assets.
The discrepancies noticed on such physical verification were not
material.
(c) As per the records and information & explanation given to us, fixed
assets disposed off during the year were not substantial.
ii. (a) The inventory of the Company (except stock lying with the
third parties and in transit) has been physically verified by the
management at reasonable intervals.
(b) In our opinion and according to information & explanation given to
us, the procedures of physical verification of inventory followed by
the management are generally reasonable and adequate in relation to the
size of the Company and nature of its business.
(c) In our opinion and according to information & explanation given to
us, the Company is generally maintaining proper records of inventory.
The discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
iii. (a) As per the information and records made available to us, the
Company has not granted during the year any loan secured or unsecured
to companies, firms or other parties listed in the register maintained
under section 301 of the Act. Accordingly the provisions of clause 4
(iii) (b) to (d) of the order are not applicable to the Company.
(b) The company has taken unsecured loan from seven companies covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year and the year end
balance of such loans are aggregate of Rs. 12,107.00 Lacs and Rs.
8,093.74 Lacs respectively.
(c) In our opinion and according to information and explanations given
to us, the rate of interest and other terms and conditions on which
aforesaid loan has been taken are not, prima facie, prejudicial to the
interest of the company.
(d) The company is regular in repaying the principal and interest
amounts whenever the same are stipulated.
iv. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of special nature and for which suitable alternative
sources do not exist for obtaining comparable quotation or where user
department has shown specific preference, where, as explained, rates
were determined considering the quality, volume, nature of the items
and market conditions prevailing at that time in certain cases, there
is an internal control system which needs to be further strengthened to
be made the same commensurate with the size of the Company and nature
of its business for the certain purchases of Inventory & fixed assets,
and for the sale of goods and services {read with note no. 37 & 43(a)
of financial statement }. Based on the audit procedure performed and
information & explanations provided by the management, during the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal control system.
v. According to the information and explanations provided by the
management and based on the audit procedure performed, we are of the
opinion that the particulars of the contracts or arrangements referred
to in section 301 of the Act have been entered in the register
maintained under that section and having regard to our comment in para
(iv) above, the transaction made in pursuance of such contracts or
arrangements (exceeding the value of Rs. 5 Lacs in respect of each
party during the financial year) have been made at prices which are
generally reasonable having regard to the prevailing market prices at
the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the directive issued by the
Reserve Bank of India and the provisions of Section 58A and 58 AA of
the Act or any other relevant provisions of the Act and the rules
framed there under with regard to deposit accepted from the public. We
have been informed that no order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or other tribunal in this regard.
vii. 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 Act in
respect of the Company''s products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate and complete.
ix. (a) According to the records of the Company, the Company is
regular in depositing undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues with the
appropriate authorities to the extent applicable. According to the
information and explanations given to us, there are no undisputed
amounts payable in respect of statutory dues which have remained
outstanding as at 31st March, 2013 for a period of more than six
months.
(b) According to the records and information and explanations given to
us, there are no dues in respect of Income Tax and Wealth Tax that have
not been deposited with the appropriate authorities on account of any
dispute and dues in respect of Custom Duty, Service Tax, Excise Duty,
Sales tax and Cess that have not been deposited with appropriate
authority on account of dispute and the forum where the dispute is
pending are given below:-
Nature of Statue Nature of dues Amount Period
(Rs. in
lacs)
Custom Act Custom duty 11.42 1992-93
Custom duty 193.05 2004-05, 2009-10
Duty Drawback 15.86 2006-07
Finance Act 1994 Service Tax 5.85 2005-09
Service Tax 36.31 2004-08
Central Excise Act CENVAT Cedit 0.94 1996-97
Excise duty 69.99 2007-08
Excise duty 66.23 2005-06 to 2012-13
Excise duty 4,183.63 2010-11
Excise duty 14.09 2005-06 to 2010-11
Excise duty 6.45 2009-10 to 2010-11
Excise duty 17.77 2010-11 to 2011-12
Excise duty 5,951.69 2007-08 to 2012-13
Excise duty 455.53 2007-08 to 2012-13
UP VAT Act Sales Tax 10.28 2008-09 to 2009-10
Sales Tax 10.50 2009-10
Nature of Statute Forum
Custom Act High Court - Uttaranchal
Asstt. Commissioner of custom
Joint Secretary , Department of Revenue
Finance Act 1994 CESTAT
Commissioner (Appeals)
Central Excise Act CESTAT
CESTAT
Asstt. Commissioner Haldwani
Asstt. Commissioner Haldwani
CESTAT
CESTAT
Commissioner Appeal Allahabad
Commissioner Allahabad
Asstt. Commissioner Gorakhpur
U P VAT Act Additional Commissioner
Allahabad High Court
x. The Company does not have accumulated losses at the end of
financial year and has not incurred cash losses during the current
financial year and in the immediately preceding financial year.
xi. In our opinion, based on audit procedures and according to the
information and explanations given to us, the Company has not defaulted
in repayment of dues to financial institution, banks or debenture
holders.
xii. According to the information and explanation 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, debenture and other securities.
xiii. The Company is not a chit fund or a nidhi/ mutual benefit fund
/society and therefore, the provisions of clause 4 (xiii) of the Order
are not applicable.
xiv. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
xv. According to the information and explanations given to us, the
Company has given corporate guarantees to banks for Loans taken by
Shakumbari Sugar & Allied Industries Limited (''SSAIL'' a Subsidiary
Company whose net worth have been fully eroded) amounting to Rs.
12,665.42 lacs as stated in note no. 27(A)(iii) of the financial
statements, the terms and conditions on which the Company has given
guarantees for loans taken by SSAIL from banks are not, prima facie, as
explained, prejudicial to the interest of the Company since the same
is/are on account of commercial expediency. As explained to us, the
Company has not given any guarantee for loans taken by others from
financial institution.
xvi. According to the information and explanations given to us, term
loans have been applied for the purposes for which they were obtained.
xvii. On the basis of information and explanations given to us and on
overall examination of the financial statements of the Company, funds
raised on short- term basis have, prima facie not been used for long-
term investments.
xviii.According to the information and explanation given to us, the
company has made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act and the price at which shares have been issued is not prejudicial
to the interest of the Company.
xix. On the basis of record made available to us and according to the
information and explanations given to us, The Company does not have
outstanding debentures during the year and also at year end.
xx. The Company has not raised any money through a public issue during
the year.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with generally accepted auditing
practices in India and according to the information and explanations
provided by the management, no material fraud on or by the Company has
been noticed or reported during the course of the audit.
For Lodha & Co.,
Chartered Accountants
Firm Registration No:301051E
(N. K. Lodha)
Date : 30th May, 2013 Partner
Place : Noida, UP M. No.: - 85155
Mar 31, 2013
Report on the financial statements
We have audited the accompanying financial statements of INDIA GLYCOLS
LIMITED, which comprise the balance sheet as at 31st March 2013, and
the statement of the profit and loss and the cash flow statement for
the year then ended, and a summary of the 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 the 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 accounting standards referred to in sub section (3C) of
section 211 of the Companies Act, 1956("the Act"). This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and 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 Institute of Chartered
Accountant of India. Those standards require that we comply with the
ethical requirements and plan and perform the audit to obtain the
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including assessment of
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 the 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 audit opinion.
Qualification
Attention is invited to:
Note no. 34 of financial statements regarding non- provision against
investment and loans & advances in subsidiary company Shakumbari Sugar
and Allied Industries Limited (SSAlL) amounting to Rs. 5,427.50 Lacs
and Rs. 1,713.30 Lacs (including interest accrued thereon)
respectively, where, in the opinion of management no provision is
necessary considering the long term in nature, the intrinsic value of
assets of subsidiary company and for the reasons as stated in the said
notes. Further company have also extended corporate guarantee on behalf
of SSAIL against outstanding amount of Financial Institution and Banks
(as stated in the note no. 27(A)(iii)).
Net Profit for the year, investments, loans & advances and reserve &
surplus are without considering the above which cannot be ascertained
or otherwise for the reason stated in para above.
Opinion
Subject to above, in our opinion and best to our information and
according to the explanations given to us, the financial statements
read together with other notes thereon, give the information required
by the Companies Act 1956 in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India:
a. In the case of the balance sheet, of the state of the affairs of
the company as at 31 st March 2013,
b. In case of the statement of the profit and loss, of the profit for
the year ended on that date, and
c. In case of the cash flow statement, of the cash flows for the year
ended on that date.
Report on other legal and the 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 the Annexure a
statement on the, matters specified in the 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 purposes of our
audit;
e. 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;
f. The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement referred to in this report are in agreement with the books of
account;
g. In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement referred to in this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
Companies Act, 1956;
h. On the basis of the written representations received from the
Directors and taken on records by the Board of Directors, we report
that none of the directors of the Company is disqualified as on 31st
March 2013 from being appointed as a Director of the Company in terms
of clause (g) of sub-section (1) of section 274 of the Companies Act,
1956.
Annexure to the Auditors'' Report
(Referred to in paragraph (1) of our Report of even date of INDIA
GLYCOLS LIMITED for the year ended 31 st March, 2013)
i. (a) The Company has maintained records in respect of fixed assets
showing full particulars including quantitative details and situation
of its fixed assets.
(b) As per information & explanation given to us, certain fixed assets
have been physically verified by the management. As explained to us
there is regular programme of physical verification once in every three
years, in phased manner, which in our opinion is reasonable having
regard to the size of the company and the nature of its fixed assets.
The discrepancies noticed on such physical verification were not
material.
(c) As per the records and information & explanation given to us, fixed
assets disposed off during the year were not substantial.
ii. (a) The inventory of the Company (except stock lying with the
third parties and in transit) has been physically verified by the
management at reasonable intervals.
(b) In our opinion and according to information & explanation given to
us, the procedures of physical verification of inventory followed by
the management are generally reasonable and adequate in relation to the
size of the Company and nature of its business.
(c) In our opinion and according to information & explanation given to
us, the Company is generally maintaining proper records of inventory.
The discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
iii. (a) As per the information and records made available to us, the
Company has not granted during the year any loan secured or unsecured
to companies, firms or other parties listed in the register maintained
under section 301 of the Act. Accordingly the provisions of clause 4
(iii) (b) to (d) of the order are not applicable to the Company.
(b) The company has taken unsecured loan from seven companies covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year and the year end
balance of such loans are aggregate of Rs. 12,107.00 Lacs and Rs.
8,093.74 Lacs respectively.
(c) In our opinion and according to information and explanations given
to us, the rate of interest and other terms and conditions on which
aforesaid loan has been taken are not, prima facie, prejudicial to the
interest of the company.
(d) The company is regular in repaying the principal and interest
amounts whenever the same are stipulated.
iv. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of special nature and for which suitable alternative
sources do not exist for obtaining comparable quotation or where user
department has shown specific preference, where, as explained, rates
were determined considering the quality, volume, nature of the items
and market conditions prevailing at that time in certain cases, there
is an internal control system which needs to be further strengthened to
be made the same commensurate with the size of the Company and nature
of its business for the certain purchases of Inventory & fixed assets,
and for the sale of goods and services {read with note no. 37 & 43(a)
of financial statement }. Based on the audit procedure performed and
information & explanations provided by the management, during the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal control system.
v. According to the information and explanations provided by the
management and based on the audit procedure performed, we are of the
opinion that the particulars of the contracts or arrangements referred
to in section 301 of the Act have been entered in the register
maintained under that section and having regard to our comment in para
(iv) above, the transaction made in pursuance of such contracts or
arrangements (exceeding the value of Rs. 5 Lacs in respect of each
party during the financial year) have been made at prices which are
generally reasonable having regard to the prevailing market prices at
the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the directive issued by the
Reserve Bank of India and the provisions of Section 58A and 58 AA of
the Act or any other relevant provisions of the Act and the rules
framed there under with regard to deposit accepted from the public. We
have been informed that no order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or other tribunal in this regard.
vii. 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 Act in
respect of the Company''s products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate and complete.
ix. (a) According to the records of the Company, the Company is
regular in depositing undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues with the
appropriate authorities to the extent applicable. According to the
information and explanations given to us, there are no undisputed
amounts payable in respect of statutory dues which have remained
outstanding as at 31st March, 2013 for a period of more than six
months.
(b) According to the records and information and explanations given to
us, there are no dues in respect of Income Tax and Wealth Tax that have
not been deposited with the appropriate authorities on account of any
dispute and dues in respect of Custom Duty, Service Tax, Excise Duty,
Sales tax and Cess that have not been deposited with appropriate
authority on account of dispute and the forum where the dispute is
pending are given below:-
Nature of Statue Nature of dues Amount Period
(Rs. in
lacs)
Custom Act Custom duty 11.42 1992-93
Custom duty 193.05 2004-05, 2009-10
Duty Drawback 15.86 2006-07
Finance Act 1994 Service Tax 5.85 2005-09
Service Tax 36.31 2004-08
Central Excise Act CENVAT Cedit 0.94 1996-97
Excise duty 69.99 2007-08
Excise duty 66.23 2005-06 to 2012-13
Excise duty 4,183.63 2010-11
Excise duty 14.09 2005-06 to 2010-11
Excise duty 6.45 2009-10 to 2010-11
Excise duty 17.77 2010-11 to 2011-12
Excise duty 5,951.69 2007-08 to 2012-13
Excise duty 455.53 2007-08 to 2012-13
UP VAT Act Sales Tax 10.28 2008-09 to 2009-10
Sales Tax 10.50 2009-10
Nature of Statute Forum
Custom Act High Court - Uttaranchal
Asstt. Commissioner of custom
Joint Secretary , Department of Revenue
Finance Act 1994 CESTAT
Commissioner (Appeals)
Central Excise Act CESTAT
CESTAT
Asstt. Commissioner Haldwani
Asstt. Commissioner Haldwani
CESTAT
CESTAT
Commissioner Appeal Allahabad
Commissioner Allahabad
Asstt. Commissioner Gorakhpur
U P VAT Act Additional Commissioner
Allahabad High Court
x. The Company does not have accumulated losses at the end of
financial year and has not incurred cash losses during the current
financial year and in the immediately preceding financial year.
xi. In our opinion, based on audit procedures and according to the
information and explanations given to us, the Company has not defaulted
in repayment of dues to financial institution, banks or debenture
holders.
xii. According to the information and explanation 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, debenture and other securities.
xiii. The Company is not a chit fund or a nidhi/ mutual benefit fund
/society and therefore, the provisions of clause 4 (xiii) of the Order
are not applicable.
xiv. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
xv. According to the information and explanations given to us, the
Company has given corporate guarantees to banks for Loans taken by
Shakumbari Sugar & Allied Industries Limited (''SSAIL'' a Subsidiary
Company whose net worth have been fully eroded) amounting to Rs.
12,665.42 lacs as stated in note no. 27(A)(iii) of the financial
statements, the terms and conditions on which the Company has given
guarantees for loans taken by SSAIL from banks are not, prima facie, as
explained, prejudicial to the interest of the Company since the same
is/are on account of commercial expediency. As explained to us, the
Company has not given any guarantee for loans taken by others from
financial institution.
xvi. According to the information and explanations given to us, term
loans have been applied for the purposes for which they were obtained.
xvii. On the basis of information and explanations given to us and on
overall examination of the financial statements of the Company, funds
raised on short- term basis have, prima facie not been used for long-
term investments.
xviii.According to the information and explanation given to us, the
company has made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act and the price at which shares have been issued is not prejudicial
to the interest of the Company.
xix. On the basis of record made available to us and according to the
information and explanations given to us, The Company does not have
outstanding debentures during the year and also at year end.
xx. The Company has not raised any money through a public issue during
the year.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with generally accepted auditing
practices in India and according to the information and explanations
provided by the management, no material fraud on or by the Company has
been noticed or reported during the course of the audit.
For Lodha & Co.,
Chartered Accountants
Firm Registration No:301051E
(N. K. Lodha)
Date : 30th May, 2013 Partner
Place : Noida, UP M. No.: - 85155
Mar 31, 2012
We have audited the attached Balance Sheet of INDIA GLYCOLS LIMITED as
at 31st March 2012, the statement of Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the auditing standards generally accepted in India. 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003 ("The Order") as amended by the Companies (Auditor's Report) Order, 2004 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956 ("The Act"), we enclose in the Annexure a statement on the matters specified in the paragraphs 4 & 5 of the said Order.
2. Further to our comments in the Annexure referred to in paragraph 1 above, we report that:
a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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 appears from our examination of those books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub section (3C) of Section 211 of the Companies Act, 1956 to the extent applicable.
e) As per explanations and information given to us, none of the directors of the Company is disqualified from being appointed as director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.
f) Attention is invited to:
Note no. 34(i) & (iii) of financial statements regarding non-provision against investment in a subsidiary company Shakumbari Sugar and Allied Industries Limited (SSAIL) amounting to Rs.5,427.50 lacs and against loans of amounting to Rs. 1,546.67 lacs (including interest accrued thereon) where in the opinion of management no provision is presently necessary considering the long term in nature and the intrinsic value of assets of stated subsidiary company as stated in the said note and Company has also provided corporate guarantee for loan sanctioned/drawn by SSAIL (Note no.27 (iv)) where management is confident about recoverability / reliability and our inability to comment thereon.
Net profit for the year, investments, loans & advances and reserves & surplus are without considering the above which cannot be ascertained or otherwise for the reason stated in para above.
Subject to above, in our opinion and to the best of our information and according to the explanations given to us, they said statements of account read together with note no 46 and other notes thereon, give the information as required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of Balance Sheet, of the State of Affairs of the Company as at 31st March, 2012;
(ii) in the case of statement of Profit and Loss, of the profit of the Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.
i. (a) The Company has maintained records in respect of fixed assets showing full particulars including quantitative details and situation of its fixed assets.
(b) As per information & explanation given to us, certain fixed assets have been physically verified by the management. As explained to us there is regular programme of physical verification once in every three years, in phased manner, which in our opinion is reasonable having regard to the size of the company and the nature of its fixed assets. The discrepancies noticed on such physical verification were not material.
(c) As per the records and information & explanation given to us, fixed assets disposed off during the year were not substantial.
ii. (a) The inventory of the Company (except stock lying with the third parties and in transit) has been physically verified by the management at reasonable intervals.
(b) In our opinion and according to information & explanation given to us, the procedures of physical verification of inventory followed by the management are generally reasonable and adequate in relation to the size of the Company and nature of its business.
(c) In our opinion and according to information & explanation given to us, the Company is generally maintaining proper records of inventory. The discrepancies noticed on such physical verification of inventory as compared to book records were not material.
iii. (a) The Company has granted unsecured loan to one body corporate covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year and the year end balance of such loan is Rs. 54 lacs and Nil respectively
(b) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions on which aforesaid loan has been granted are not, prima facie, prejudicial to the interest of the Company
(c) In respect of aforesaid loan, the recovery of principal as well as interest is regular as stipulated.
(d) According to the information and explanations given to us, the year end balance is not overdue for payment.
(e) The company has taken unsecured loan from seven companies covered in the register maintained under section 301 of the Companies Act,1956. The maximum amount involved during the year and the yearend balance of such loans are aggregate of Rs. 12,040 lacs and Rs. 12,000 lacs respectively
(f) In our opinion and according to information and explanations given to us, the rate of interest and other terms and conditions on which aforesaid loan has been taken are not, prima facie, prejudicial to the interest of the company.
(g) The company is regular in repaying the principal and interest amounts whenever the same are stipulated.
iv. In our opinion and according to the information and explanations given to us, having regard to the explanation that some of the items purchased are of special nature and for which suitable alternative sources do not exist for obtaining comparable quotation or where user department has shown specific preference, where, as explained, rates were determined considering the quality, volume, nature of the items and market conditions prevailing at that time in certain cases, there is an internal control system which needs to be further strengthened to be made the same commensurate with the size of the Company and nature of its business for the certain purchases of Inventory & fixed assets, and for the sale of goods and services {read with note no. 37 & 43(a) of financial statements}. Based on the audit procedure performed and information & explanations provided by the management, during the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.
v. According to the information and explanations provided by the management and based on the audit procedure performed, we are of the opinion that the particulars of the contracts or arrangements referred to in section 301 of the Act have been entered in the register maintained under that section and having regard to our comment in para (iv) above, the transaction made in pursuance of such contracts or arrangements (exceeding the value of Rs. 5 Lacs in respect of each party during the financial year) have been made at prices which are generally reasonable having regard to the prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations given to us, the Company has complied with the directive issued by the Reserve Bank of India and the provisions of Section 58A and 58 AA of the Act or any other relevant provisions of the Act and the rules framed there under with regard to deposit accepted from the public. We have been informed that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or other tribunal in this regard.
vii. 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 Act in respect of the Company's products to which they said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate and complete.
ix. (a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues with the appropriate authorities to the extent applicable. According to the information and explanations given to us, generally there are no undisputed amounts payable in respect of statutory dues which have remained outstanding as at 31st March, 2012 for a period of more than six months.
(b) According to the records and information and explanations given to us, there are no dues in respect of Income Tax and Wealth Tax that have not been deposited with the appropriate authorities on account of any dispute and dues in respect of Custom Duty, Service Tax, Excise Duty, Sales tax and Cess that have not been deposited with appropriate authority on account of dispute and the forum where the dispute is pending are given below:-
Nature of Statue Nature of dues Amour: Period Foum (Rs. in lacs)
Custom Act Custom duty 11.42 1992-93 High Court - Uttaranchal
Custom duty 193.05 2004-05, 2009-10 Asstt. Commis sioner of custom
Duty Drawback 15.86 2006-07 Joint Secre tary, Depar tment Of Revenue
Finance Act 1994 Service Tax 7.93 2005-2009 CESTAT
Service Tax 111.18 2004-05, 2005-06 Commissioner
Service Tax 36.31 2004-08 Commissioner (Appeals)
Central Excise Act CENVAT Cedit 0.94 1996-97 CESTAT
Excise duty 69.99 2007-08 CESTAT
Excise duty 61.26 2005-06 to 2011-12 Asstt. Com missioner Haldwani
Excise duty 4,183.63 2010-2011 Asstt. Com missioner Haldwani
Excise duty 59.40 2005-06 to 2010-11 CESTAT
Excise duty 6.45 2009-10 to 2010-11 CESTAT
Excise duty 9.06 2010-11 to 2011-12 Joint Com missioner Allahabad
Excise duty 3.19 2010-11 to 2011-12 Asstt. Com missioner Gorakhpur
UP VAT Act Sales Tax 12.29 2008-09 to 2009-10 Additional Commissioner
Sales Tax 10.50 2009-10 Allahabad High Court
This is to be read with note no.27 (A) (i) of the financial statements
x. The Company does not have accumulated losses at the end of financial year and has not incurred cash losses during the current financial year and in the immediately preceding financial year.
xi. In our opinion, based on audit procedures and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institution, banks or debenture holders.
xii. According to the information and explanation 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, debenture and other securities.
xiii. The Company is not a chit fund or a nidhi/ mutual benefit fund /society and therefore, the provisions of clause 4 (xiii) of the Order are not applicable.
xiv. According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.
xv. According to the information and explanations given to us, the Company has given corporate guarantees to banks for Loans taken by Shakumbari Sugar & Allied Industries Limited ('SSAIL' a Subsidiary Company whose net worth have been fully eroded) amounting to Rs. 19,663.93 lacs as stated in note no. 27 (A) (iv) of the financial statements, the terms and conditions on which the Company has given guarantees for loans taken by SSAIL from banks are not, prima facie, as explained, prejudicial to the interest of the Company since the same is/are on account of commercial expediency As explained to us, the Company has not given any guarantee for loans taken by others from financial institution.
xvi. According to the information and explanations given to us, term loans have been applied for the purposes for which they were obtained.
xvii. On the basis of information and explanations given to us and on overall examination of the financial statements of the Company, funds raised on short- term basis have, prima facie not been used for long- term investments.
xviii. According to the information and explanation given to us, the Company has not made any preferential allotment of shares to any parties or companies covered in the register maintained under section 301 of the Act.
xix. On the basis of record made available to us and according to the information and explanations given to us, the Company does not have outstanding debentures during the year and also at year end.
xx. The Company has not raised any money through a public issue during the year.
xxi. During the course of our examination of the books and records of the Company, carried out in accordance with generally accepted auditing practices in India and according to the information and explanations provided by the management, no material fraud on or by the Company has been noticed or reported during the course of the audit.
For Lodha & Co.,
Chartered Accountants
Firm Registration No:301051E
(N. K. Lodha)
Date : 14th May, 2012 Partner
Place: New Delhi M. No.: - 85155
Mar 31, 2012
We have audited the attached Balance Sheet of INDIA GLYCOLS LIMITED as
at 31st March 2012, the statement of Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003 ("The
Order") as amended by the Companies (Auditor's Report) Order, 2004
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956 ("The Act"), we enclose in the Annexure
a statement on the matters specified in the paragraphs 4 & 5 of the
said Order.
2. Further to our comments in the Annexure referred to in paragraph 1
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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 appears from our examination of those
books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub section (3C) of Section 211 of the
Companies Act, 1956 to the extent applicable.
e) As per explanations and information given to us, none of the
directors of the Company is disqualified from being appointed as
director in terms of clause (g) of sub-section (1) of section 274 of
the Companies Act, 1956.
f) Attention is invited to:
Note no. 34(i) & (iii) of financial statements regarding non-provision
against investment in a subsidiary company Shakumbari Sugar and Allied
Industries Limited (SSAIL) amounting to Rs.5,427.50 lacs and against
loans of amounting to Rs. 1,546.67 lacs (including interest accrued
thereon) where in the opinion of management no provision is presently
necessary considering the long term in nature and the intrinsic value
of assets of stated subsidiary company as stated in the said note and
Company has also provided corporate guarantee for loan sanctioned/drawn
by SSAIL (Note no.27 (iv)) where management is confident about
recoverability / reliability and our inability to comment thereon.
Net profit for the year, investments, loans & advances and reserves &
surplus are without considering the above which cannot be ascertained
or otherwise for the reason stated in para above.
Subject to above, in our opinion and to the best of our information and
according to the explanations given to us, they said statements of
account read together with note no 46 and other notes thereon, give the
information as required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2012;
(ii) in the case of statement of Profit and Loss, of the profit of the
Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the Cash Flows for the
year ended on that date.
i. (a) The Company has maintained records in respect of fixed assets
showing full particulars including quantitative details and situation
of its fixed assets.
(b) As per information & explanation given to us, certain fixed assets
have been physically verified by the management. As explained to us
there is regular programme of physical verification once in every three
years, in phased manner, which in our opinion is reasonable having
regard to the size of the company and the nature of its fixed assets.
The discrepancies noticed on such physical verification were not
material.
(c) As per the records and information & explanation given to us, fixed
assets disposed off during the year were not substantial.
ii. (a) The inventory of the Company (except stock lying with the
third parties and in transit) has been physically verified by the
management at reasonable intervals.
(b) In our opinion and according to information & explanation given to
us, the procedures of physical verification of inventory followed by
the management are generally reasonable and adequate in relation to the
size of the Company and nature of its business.
(c) In our opinion and according to information & explanation given to
us, the Company is generally maintaining proper records of inventory.
The discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
iii. (a) The Company has granted unsecured loan to one body corporate
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year and the year end
balance of such loan is Rs. 54 lacs and Nil respectively
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which aforesaid loan has been granted are not, prima facie, prejudicial
to the interest of the Company
(c) In respect of aforesaid loan, the recovery of principal as well as
interest is regular as stipulated.
(d) According to the information and explanations given to us, the year
end balance is not overdue for payment.
(e) The company has taken unsecured loan from seven companies covered
in the register maintained under section 301 of the Companies Act,1956.
The maximum amount involved during the year and the yearend balance of
such loans are aggregate of Rs. 12,040 lacs and Rs. 12,000 lacs
respectively
(f) In our opinion and according to information and explanations given
to us, the rate of interest and other terms and conditions on which
aforesaid loan has been taken are not, prima facie, prejudicial to the
interest of the company.
(g) The company is regular in repaying the principal and interest
amounts whenever the same are stipulated.
iv. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of special nature and for which suitable alternative
sources do not exist for obtaining comparable quotation or where user
department has shown specific preference, where, as explained, rates
were determined considering the quality, volume, nature of the items
and market conditions prevailing at that time in certain cases, there
is an internal control system which needs to be further strengthened to
be made the same commensurate with the size of the Company and nature
of its business for the certain purchases of Inventory & fixed assets,
and for the sale of goods and services {read with note no. 37 & 43(a)
of financial statements}. Based on the audit procedure performed and
information & explanations provided by the management, during the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal control system.
v. According to the information and explanations provided by the
management and based on the audit procedure performed, we are of the
opinion that the particulars of the contracts or arrangements referred
to in section 301 of the Act have been entered in the register
maintained under that section and having regard to our comment in para
(iv) above, the transaction made in pursuance of such contracts or
arrangements (exceeding the value of Rs. 5 Lacs in respect of each party
during the financial year) have been made at prices which are generally
reasonable having regard to the prevailing market prices at the
relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the directive issued by the
Reserve Bank of India and the provisions of Section 58A and 58 AA of
the Act or any other relevant provisions of the Act and the rules
framed there under with regard to deposit accepted from the public. We
have been informed that no order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or other tribunal in this regard.
vii. 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 Act in respect of the Company's products to which they said
rules are made applicable and are of the opinion that prima facie, the
prescribed records have been made and maintained. We have, however, not
made a detailed examination of the said records with a view to
determine whether they are accurate and complete.
ix. (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other material statutory dues with
the appropriate authorities to the extent applicable. According to the
information and explanations given to us, generally there are no
undisputed amounts payable in respect of statutory dues which have
remained outstanding as at 31st March, 2012 for a period of more than
six months.
(b) According to the records and information and explanations given to
us, there are no dues in respect of Income Tax and Wealth Tax that have
not been deposited with the appropriate authorities on account of any
dispute and dues in respect of Custom Duty, Service Tax, Excise Duty,
Sales tax and Cess that have not been deposited with appropriate
authority on account of dispute and the forum where the dispute is
pending are given below:-
Nature of Statue Nature of dues Amour: Period Foum
(Rs. in lacs)
Custom Act Custom duty 11.42 1992-93 High Court
- Uttaranchal
Custom duty 193.05 2004-05,
2009-10
Asstt. Commis
sioner of
custom
Duty Drawback 15.86 2006-07 Joint Secre
tary, Depar
tment Of
Revenue
Finance Act 1994 Service Tax 7.93 2005-2009 CESTAT
Service Tax 111.18 2004-05,
2005-06 Commissioner
Service Tax 36.31 2004-08 Commissioner
(Appeals)
Central Excise Act CENVAT Cedit 0.94 1996-97 CESTAT
Excise duty 69.99 2007-08 CESTAT
Excise duty 61.26 2005-06
to 2011-12 Asstt. Com
missioner
Haldwani
Excise duty 4,183.63 2010-2011 Asstt. Com
missioner
Haldwani
Excise duty 59.40 2005-06
to 2010-11 CESTAT
Excise duty 6.45 2009-10
to 2010-11 CESTAT
Excise duty 9.06 2010-11
to 2011-12 Joint Com
missioner
Allahabad
Excise duty 3.19 2010-11
to 2011-12 Asstt. Com
missioner
Gorakhpur
UP VAT Act Sales Tax 12.29 2008-09
to 2009-10 Additional
Commissioner
Sales Tax 10.50 2009-10 Allahabad
High Court
This is to be read with note no.27 (A) (i) of the financial statements
x. The Company does not have accumulated losses at the end of
financial year and has not incurred cash losses during the current
financial year and in the immediately preceding financial year.
xi. In our opinion, based on audit procedures and according to the
information and explanations given to us, the Company has not defaulted
in repayment of dues to financial institution, banks or debenture
holders.
xii. According to the information and explanation 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, debenture and other securities.
xiii. The Company is not a chit fund or a nidhi/ mutual benefit fund
/society and therefore, the provisions of clause 4 (xiii) of the Order
are not applicable.
xiv. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
xv. According to the information and explanations given to us, the
Company has given corporate guarantees to banks for Loans taken by
Shakumbari Sugar & Allied Industries Limited ('SSAIL' a Subsidiary
Company whose net worth have been fully eroded) amounting to Rs.
19,663.93 lacs as stated in note no. 27 (A) (iv) of the financial
statements, the terms and conditions on which the Company has given
guarantees for loans taken by SSAIL from banks are not, prima facie, as
explained, prejudicial to the interest of the Company since the same
is/are on account of commercial expediency As explained to us, the
Company has not given any guarantee for loans taken by others from
financial institution.
xvi. According to the information and explanations given to us, term
loans have been applied for the purposes for which they were obtained.
xvii. On the basis of information and explanations given to us and on
overall examination of the financial statements of the Company, funds
raised on short- term basis have, prima facie not been used for long-
term investments.
xviii. According to the information and explanation given to us, the
Company has not made any preferential allotment of shares to any
parties or companies covered in the register maintained under section
301 of the Act.
xix. On the basis of record made available to us and according to the
information and explanations given to us, the Company does not have
outstanding debentures during the year and also at year end.
xx. The Company has not raised any money through a public issue during
the year.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with generally accepted auditing
practices in India and according to the information and explanations
provided by the management, no material fraud on or by the Company has
been noticed or reported during the course of the audit.
For Lodha & Co.,
Chartered Accountants
Firm Registration No:301051E
(N. K. Lodha)
Date : 14th May, 2012 Partner
Place: New Delhi M. No.: - 85155
Mar 31, 2011
We have audited the attached Balance Sheet of INDIA GLYCOLS LIMITED as
at 31st March 2011, the Profit and Loss Account and the also Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of Company's management.
Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with the auditing standards generally accepted in India. 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003 ("The Order") as amended by the Companies (Auditor's Report) Order, 2004 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956 ("The Act"), we enclose in the Annexure a statement on the matters specified in the paragraphs 4 & 5 of the said Order.
2. Further to our comments in the Annexure referred to in paragraph 1 above, we report that:
a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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 appears from our examination of those books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in subsection (3C) of Section 211 of the Companies Act, 1956 to the extent applicable.
e) As per explanations and information given to us, none of the directors of the Company is disqualified from being appointed as director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.
f) Without qualifying attention is invited to:
(i) Note no. 1 (B) of schedule `L' regarding pending export obligation against custom duty saved on raw material consumed imported under advance licenses as stated in the said note. In the opinion of the management considering the Going Concern Concept and past export performance at this stage there is no need to make provision against duty saved.
(ii) Note no. 8 (i) & (ii) of schedule `L regarding investment in subsidiaries amounting to Rs. 5454.91 Lacs where in the opinion of management no provision for diminution is necessary considering the long term in nature and the intrinsic value of assets of subsidiary companies as stated in the said note and note no. 8 (iii) regarding loans to a subsidiary amounting to Rs. 463.39 Lacs (including interest accrued thereon) where management is confident about recoverability/ realisability
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 notes thereon, give the information as required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of Balance Sheet, of the State of Affairs of the Company as at 31st March, 2011;
(ii) in the case of Profit and Loss Account, of the profit of the Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.
Annexure to the Auditors' Report
(Referred to in paragraph (1) of our Report of even date of INDIA GLYCOLS LIMITED for the year ended 31st March, 2011)
i. (a) The Company has maintained records in respect of fixed assets showing full particulars including quantitative details and situation of its fixed assets.
(b) As per information & explanation given to us, certain fixed assets have been physically verified by the management. As explained to us there is regular programme of physical verification once in every three years, in phased manner, which in our opinion is reasonable having regard to the size of the company and the nature of its fixed assets. The discrepancies noticed on such physical verification were not material.
(c) As per the records and information & explanation given to us, fixed assets disposed off during the year were not substantial.
ii. (a) The inventory of the Company (except stock lying with the third parties and in transit) has been physically verified by the management at reasonable intervals.
(b) In our opinion and according to information & explanation given to us, the procedures of physical verification of inventory followed by the management are generally reasonable and adequate in relation to the size of the Company and nature of its business.
(c) In our opinion and according to information & explanation given to us, the Company is generally maintaining proper records of inventory. The discrepancies noticed on such physical verification of inventory as compared to book records were not material.
iii. (a) According to the information and explanations given to us, the Company has not granted during the year any loans, secured or unsecured to companies, firms or other parties listed in the register maintained under section 301 of the Act. Accordingly, the provisions of clause 4 (iii) (b) to (d) of the Order are not applicable to the Company.
(b) The Company has taken unsecured loan from three Companies covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year and the year end balance of such loans are aggregate of Rs.1597 Lacs and Rs.1583 Lacs respectively.
(c) In our opinion and according to information and explanations given to us, the rate of interest and other terms and conditions on which aforesaid loan has been taken are not, prima facie, prejudicial to the interest of the Company.
(d) The company is regular in repaying the principal and interest amounts whenever the same are stipulated.
iv In our opinion and according to the information and explanations given to us, having regard to the explanation that some of the items purchased are of special nature and for which suitable alternative sources do not exist for obtaining comparable quotation or where user department has shown specific preference, where, as explained, rates were determined considering the quality, volume, nature of the items and market conditions prevailing at that time in certain cases, there is an adequate internal control system which needs to be further strengthened to be made the same commensurate with the size of the Company and nature of its business for the certain purchases of Inventory & fixed assets, and for the sale of goods and services (read with note no.12 & 19 (a) of schedule L). Based on the audit procedure performed and information & explanations provided by the management, during the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.
v. According to the information and explanations provided by the management and based on the audit procedure performed, we are of the opinion that the particulars of the contracts or arrangements referred to in section 301 of the Act have been entered in the register maintained under that section and having regard to our comment in para (iv) above, the transaction made in pursuance of such contracts or arrangements (exceeding the value of Rs. 5 Lacs in respect of each party during the financial year) have been made at prices which are generally reasonable having regard to the prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations given to us, the Company has complied with the directive issued by the Reserve Bank of India and the provisions of Section 58A and 58 AA of the Act or any other relevant provisions of the Act and the rules framed there under with regard to deposit accepted from the public. We have been informed that no order has been passed by the company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or other tribunal in this regard.
vii. The Company has an internal audit system commensurate with the size of the company and nature of its business. However, scope and coverage of balance confirmation as stated in note no. 19 (a) of schedule L needs to be further strengthened.
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 Act in respect of the Company's products to which the said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate and complete.
ix. (a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues with the appropriate authorities to the extent applicable. According to the information and explanations given to us, generally there are no undisputed amounts payable in respect of statutory dues which have remained outstanding as at 31st March, 2011 for a period of more than six months.
(b) According to the records and information and explanations given to us, there are no dues in respect of Income Tax, Sales Tax and Wealth Tax that have not been deposited with the appropriate authorities on account of any dispute and dues in respect of Custom Duty, Service Tax, Excise Duty and Cess that have not been deposited with appropriate authority on account of dispute and the forum where the dispute is pending are given below:-
Name of the Nature of Amount Period Forum where dispute Statue (Rs.in. is pending Lacs) Custom Act Custom 11.42 1992-93 High Court- duty 193.05 2004-05 Uttaranchal 2009-10 Asstt.Commissioner of Custom
Central Excise 0.94 1996-97, CESTAT Excise Duty 69.99 2007-2008 CESTAT Act 56.54 2005-06 Asstt.Commissioner 4,183.63 to Haldwani 59.40 2010-11 Asst.Commissioner 11.97 2006-07 Haldwani 3.59 to Additional 2010-11 Commissioner 2009-10 Joint Commissioner to Asst.Commissioner 2010-11 Allahabad 2009-10 to 2010-11
State Export 993.25 2007-2011 High Court Excise Fees Nainital Act
Finance Service 7.93 2005-2009 CESTAT Act Tax 36.31 2004-2008 Commissioner 1994 111.18 2004- 05 (Appeal) 6.39 2005- 06 Commissioner 2005- 06 Asstt.Commissioner
This is to be read with note no.1 (A) (i) of schedule L
x. The Company does not have accumulated losses at the end of financial year and has not incurred cash losses during the current financial year and in the immediately preceding financial year.
xi. Inouropinion, based on audit procedures and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institution, banks or debenture holders.
xii. According to the information and explanation 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, debenture and other securities.
xiii. The Company is not a chit fund or a nidhi/ mutual benefit fund /society and therefore, the provisions of clause 4 (xiii) of the Order are not applicable.
xiv According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.
xv. According to the information and explanations given to us, the Company has given corporate guarantees to banks for Loans taken by Shakumbari Sugar & Allied Industries Limited (`SSAIL a Subsidiary Company) amounting to Rs.22,633.13 lacs as stated in note no.1(A)(iv) of schedule `L, the terms and conditions on which the Company has given guarantees for loans taken by SSAIL from banks are not, prima facie, prejudicial to the interest of the Company since the is/are on account of commercial expediency. As explained to us, the Company has not given any guarantee for loans taken by others from financial institution.
xvi. According to the information and explanations given to us, term loans have been applied for the purposes for which they were obtained.
xvii. On the basis of information and explanations given to us and on overall examination of the financial statements of the Company, funds raised on short- term basis have, prima facie not been used for long- term investments.
xviii.According to the information and explanation given to us, the Company has not made any preferential allotment of shares to any parties or companies covered in the register maintained under section 301 of the Act.
xix. On the basis of record made available to us and according to the information and explanations given to us, the Company does not have outstanding debentures during the year and also at year end.
xx. The Company has not raised any money through a public issue during the year.
xxi. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations provided by the management, no material fraud on or by the Company has been noticed or reported during the course of the audit.
For Lodha& Co. Chartered Accountants Firm Registration No: 301051E
(N. K. Lodha) Partner M. No.: - 85155
Place : Noida Date : 20th May, 2011
Mar 31, 2011
We have audited the attached Balance Sheet of INDIA GLYCOLS LIMITED as
at 31st March 2011, the Profit and Loss Account and the also Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of Company's management.
Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (AuditorÃs Report) Order, 2003 (ÃThe
OrderÃ) as amended by the Companies (AuditorÃs Report) Order, 2004
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956 (ÃThe ActÃ), we enclose in the Annexure a
statement on the matters specified in the paragraphs 4 & 5 of the said
Order.
2. Further to our comments in the Annexure referred to in paragraph 1
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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 appears from our examination of those
books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in subsection (3C) of Section 211 of the
Companies Act, 1956 to the extent applicable.
e) As per explanations and information given to us, none of the
directors of the Company is disqualified from being appointed as
director in terms of clause (g) of sub-section (1) of section 274 of
the Companies Act, 1956.
f) Without qualifying attention is invited to:
(i) Note no. 1 (B) of schedule ÃLÃ regarding pending export obligation
against custom duty saved on raw material consumed imported under
advance licenses as stated in the said note. In the opinion of the
management considering the Going Concern Concept and past export
performance at this stage there is no need to make provision against
duty saved.
(ii) Note no. 8 (i) & (ii) of schedule ÃL regarding investment in
subsidiaries amounting to Rs. 5454.91 Lacs where in the opinion of
management no provision for diminution is necessary considering the
long term in nature and the intrinsic value of assets of subsidiary
companies as stated in the said note and note no. 8 (iii) regarding
loans to a subsidiary amounting to Rs. 463.39 Lacs (including interest
accrued thereon) where management is confident about recoverability/
realisability
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 notes thereon, give the information as required by the Companies
Act, 1956 in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
(i) in the case of Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2011;
(ii) in the case of Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Annexure to the Auditors' Report
(Referred to in paragraph (1) of our Report of even date of INDIA
GLYCOLS LIMITED for the year ended 31st March, 2011)
i. (a) The Company has maintained records in respect of fixed assets
showing full particulars including quantitative details and situation
of its fixed assets.
(b) As per information & explanation given to us, certain fixed assets
have been physically verified by the management. As explained to us
there is regular programme of physical verification once in every three
years, in phased manner, which in our opinion is reasonable having
regard to the size of the company and the nature of its fixed assets.
The discrepancies noticed on such physical verification were not
material.
(c) As per the records and information & explanation given to us, fixed
assets disposed off during the year were not substantial.
ii. (a) The inventory of the Company (except stock lying with the third
parties and in transit) has been physically verified by the management
at reasonable intervals.
(b) In our opinion and according to information & explanation given to
us, the procedures of physical verification of inventory followed by
the management are generally reasonable and adequate in relation to the
size of the Company and nature of its business.
(c) In our opinion and according to information & explanation given to
us, the Company is generally maintaining proper records of inventory.
The discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
iii. (a) According to the information and explanations given to us, the
Company has not granted during the year any loans, secured or unsecured
to companies, firms or other parties listed in the register maintained
under section 301 of the Act. Accordingly, the provisions of clause 4
(iii) (b) to (d) of the Order are not applicable to the Company.
(b) The Company has taken unsecured loan from three Companies covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year and the year end
balance of such loans are aggregate of Rs.1597 Lacs and Rs.1583 Lacs
respectively.
(c) In our opinion and according to information and explanations given
to us, the rate of interest and other terms and conditions on which
aforesaid loan has been taken are not, prima facie, prejudicial to the
interest of the Company.
(d) The company is regular in repaying the principal and interest
amounts whenever the same are stipulated.
iv In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are
of special nature and for which suitable alternative sources do not
exist for obtaining comparable quotation or where user department has
shown specific preference, where, as explained, rates were determined
considering the quality, volume, nature of the items and market
conditions prevailing at that time in certain cases, there is an
adequate internal control system which needs to be further strengthened
to be made the same commensurate with the size of the Company and
nature of its business for the certain purchases of Inventory & fixed
assets, and for the sale of goods and services (read with note no.12 &
19 (a) of schedule L). Based on the audit procedure performed and
information & explanations provided by the management, during the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal control system.
v. According to the information and explanations provided by the
management and based on the audit procedure performed, we are of the
opinion that the particulars of the contracts or arrangements referred
to in section 301 of the Act have been entered in the register
maintained under that section and having regard to our comment in para
(iv) above, the transaction made in pursuance of such contracts or
arrangements (exceeding the value of Rs. 5 Lacs in respect of each
party during the financial year) have been made at prices which are
generally reasonable having regard to the prevailing market prices at
the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the directive issued by the
Reserve Bank of India and the provisions of Section 58A and 58 AA of
the Act or any other relevant provisions of the Act and the rules
framed there under with regard to deposit accepted from the public. We
have been informed that no order has been passed by the company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or other tribunal in this regard.
vii. The Company has an internal audit system commensurate with the
size of the company and nature of its business. However, scope and
coverage of balance confirmation as stated in note no. 19 (a) of
schedule L needs to be further strengthened.
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 Act in
respect of the CompanyÃs products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate and complete.
ix. (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident
Fund, Investor Education and Protection Fund, Employeesà State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues with the
appropriate authorities to the extent applicable. According to the
information and explanations given to us, generally there are no
undisputed amounts payable in respect of statutory dues which have
remained outstanding as at 31st March, 2011 for a period of more than
six months.
(b) According to the records and information and explanations given to
us, there are no dues in respect of Income Tax, Sales Tax and Wealth
Tax that have not been deposited with the appropriate authorities on
account of any dispute and dues in respect of Custom Duty, Service Tax,
Excise Duty and Cess that have not been deposited with appropriate
authority on account of dispute and the forum where the dispute is
pending are given below:-
Name of the Nature of Amount Period Forum where dispute
Statue (Rs.in. is pending
Lacs)
Custom Act Custom 11.42 1992-93 High Court-
duty 193.05 2004-05 Uttaranchal
2009-10 Asstt.Commissioner
of Custom
Central Excise 0.94 1996-97, CESTAT
Excise Duty 69.99 2007-2008 CESTAT
Act 56.54 2005-06 Asstt.Commissioner
4,183.63 to Haldwani
59.40 2010-11 Asst.Commissioner
11.97 2006-07 Haldwani
3.59 to Additional
2010-11 Commissioner
2009-10 Joint Commissioner
to Asst.Commissioner
2010-11 Allahabad
2009-10
to
2010-11
State Export 993.25 2007-2011 High Court
Excise Fees Nainital
Act
Finance Service 7.93 2005-2009 CESTAT
Act Tax 36.31 2004-2008 Commissioner
1994 111.18 2004- 05 (Appeal)
6.39 2005- 06 Commissioner
2005- 06 Asstt.Commissioner
This is to be read with note no.1 (A) (i) of schedule L
x. The Company does not have accumulated losses at the end of financial
year and has not incurred cash losses during the current financial year
and in the immediately preceding financial year.
xi. Inouropinion, based on audit procedures and according to the
information and explanations given to us, the Company has not defaulted
in repayment of dues to financial institution, banks or debenture
holders.
xii. According to the information and explanation 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, debenture and other securities.
xiii. The Company is not a chit fund or a nidhi/ mutual benefit fund
/society and therefore, the provisions of clause 4 (xiii) of the Order
are not applicable.
xiv According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
xv. According to the information and explanations given to us, the
Company has given corporate guarantees to banks for Loans taken by
Shakumbari Sugar & Allied Industries Limited (ÃSSAIL a Subsidiary
Company) amounting to Rs.22,633.13 lacs as stated in note no.1(A)(iv)
of schedule ÃL, the terms and conditions on which the Company has given
guarantees for loans taken by SSAIL from banks are not, prima facie,
prejudicial to the interest of the Company since the is/are on account
of commercial expediency. As explained to us, the Company has not given
any guarantee for loans taken by others from financial institution.
xvi. According to the information and explanations given to us, term
loans have been applied for the purposes for which they were obtained.
xvii. On the basis of information and explanations given to us and on
overall examination of the financial statements of the Company, funds
raised on short- term basis have, prima facie not been used for long-
term investments.
xviii.According to the information and explanation given to us, the
Company has not made any preferential allotment of shares to any
parties or companies covered in the register maintained under section
301 of the Act.
xix. On the basis of record made available to us and according to the
information and explanations given to us, the Company does not have
outstanding debentures during the year and also at year end.
xx. The Company has not raised any money through a public issue during
the year.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations provided by the management, no material fraud on or by the
Company has been noticed or reported during the course of the audit.
For Lodha& Co.
Chartered Accountants
Firm Registration No: 301051E
(N. K. Lodha)
Partner
M. No.: - 85155
Place : Noida
Date : 20th May, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of INDIA GLYCOLS LIMITED as
at 31st March, 2010, the Profit and Loss Account and the also Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of Companys management.
Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 ("The
Order") as amended by the Companies (Auditors Report) Order, 2004
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956 ("The Act"), we enclose in the Annexure a
statement on the matters specified in the paragraphs 4 & 5 of the said
Order.
2. Further to our comments in the Annexure referred to in paragraph 1
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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 appears from our examination of those
books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards
referred to in sub section (3C) of Section 211 of the Companies Act,
1956 to the extent applicable.
e) As per explanations and information given to us, none of the
directors of the Company is disqualified from being appointed as
director in terms of clause (g) of sub-section (1) of section 274 of
the Companies Act, 1956.
f) Attention is invited to;
(i) Note no. 9 of schedule L regarding investment made in
subsidiaries amounting to Rs.3854.91 lacs, where in the opinion of
management no provision for diminution is necessary considering the
long term nature and the intrinsic value of the assets of subsidiary
companies as stated in the said note.
(ii) Note no. 1 (B) of schedule L regarding pending export obligation
against custom duty saved on raw material consumed, under advance
license as stated in the said note.
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 notes thereon, give the information as required by the Companies
Act, 1956 in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
(i) in the case of Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2010;
(ii) in the case of Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Annexure to the Auditors Report
(Referred to in paragraph (1) of our Report of even date of INDIA
GLYCOLS LIMITED for the year ended 31st March, 2010)
i. (a) The Company has maintained records in respect of fixed assets
showing full particulars including quantitative details and situation
of its fixed assets.
(b) As per information & explanation given to us, certain fixed assets
have been physically verified by the management according to the
regular programme of physical verification once in every three years,
in phased manner, which in our opinion is reasonable having regard to
the size of the company and the nature of its fixed assets. The
discrepancies noticed on such physical verification were not material.
(c) As per the records and information & explanation given to us, fixed
assets disposed off during the year were not substantial.
ii. (a) The inventory of the Company (except stock lying with the third
parties and in transit) has been physically verified by the management
at reasonable intervals.
(b) In our opinion and according to information & explanation given to
us, the procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) In our opinion and according to information & explanation given to
us, the Company has been maintaining proper records of inventory except
in certain cases where records for receipts and issue of inventory are,
as explained, in process of compilation /updation. The discrepancies
noticed on such physical verification of inventory as compared to book
records were not material.
iii. The Company has neither granted nor taken during the year any
loans, secured or unsecured to and from companies, firms or other
parties listed in the register maintained under section 301 of the Act.
Accordingly, the provisions of clause 4 (iii) (b) to (d) and (f) & (g)
of the Order are not applicable to the Company.
iv. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of special nature and suitable alternative sources do not
exist for obtaining comparable quotation or where user department has
shown specific preference, where, as explained, rates were determined
considering the quality, volume, nature of the items and market
conditions prevailing at that time in certain cases, there is an
adequate internal control system which needs to be further strengthened
commensurate with the size of the Company and nature of its business
for the certain purchases of Inventory & fixed assets, and for the sale
of goods and services (read with note no. 13 of schedule L). Based on
the audit procedure performed and information & explanations provided
by the
management, during the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
v. According to the information and explanations provided by the
management and based on the audit procedure performed, we are of the
opinion that the particulars of the contracts or arrangements referred
to in section 301 of the Act have been entered in the register
maintained under that section and having regard to our comment in para
(iv) above, the transaction made in pursuance of such contracts or
arrangements (exceeding the value of Rs. 5 Lacs in respect of each
party during the financial year) have been made at prices which are
generally reasonable having regard to the prevailing market prices at
the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the directive issued by the
Reserve Bank of India and the provisions of Section 58A and 58 AA of
the Act or any other relevant provisions of the Act and the rules
framed there under with regard to deposit accepted from the public. We
have been informed that no order has been passed by the company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or other tribunal in this regard.
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 Act in
respect of the Companys products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate and complete.
ix. (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax (except
some delay), Customs Duty, Excise Duty, Cess and other material
statutory dues with the appropriate authorities to the extent
applicable. According to the information and explanations given to us,
there are no undisputed amounts payable in respect of statutory dues
which have remained outstanding as at 31s1 March, 2010 for a period of
more than six months except Service Tax amounting to Rs.4,48,392/- and
TDS Rs1,0507- (since paid).
(b) According to the records and information and explanations given to
us, there are no dues in respect of Income Tax, Service Tax, Custom
Duty and Wealth Tax, that have not been deposited with the appropriate
authorities on account of any dispute and dues in respect of Sales Tax,
Excise Duty and Cess that have not been deposited with appropriate
authority on account of dispute and the forum where the dispute is
pending are given below:-
Name of
the Statue Nature of
Dues Amount Period Forum where dispute is
(Rs.In Lacs) pending
Custom Act Custom
duty 11.42 1992-93 High Court - Uttaranchal
221.93 2004-05, Commissioner of Custom
2009-10
Central
Excise
Act Excise
Duty 0.94 1996-97, CESTAT
79.07 2007-2008 CESTAT
42.73 2006-07 CESTAT
91.93 2006-10 Commissioner of custom.
Finance
Act 1994 Service Tax 10.18 2005-08 Asstt. Commissioner
3.60 2009-10 Commissioner (Appeal)
72.60 2004-07 Additional Director,
Delhi
Zone, Directorate,
Director
General of Central
Excise
of Intelligence
x. The Company does not have accumulated losses at the end of financial
year and in the current financial year Company has not incurred cash
losses, however Company had incurred cash loss in the immediate
preceding financial year.
xi. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of dues to financial institution, banks or
debenture holders.
xii. According to the information and explanation 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, debenture and other securities.
xiii. The Company is not a chit fund or a nidhi/ mutual benefit fund
/society and therefore, the provisions of clause 4 (xiii) of the Order
are not applicable.
xiv. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
xv. According to the information and explanations given to us, the
Company has given corporate guarantees to banks for Loans taken by
Shakumbari Sugar & Allied Industries Limited (a Subsidiary Company)
amounting to Rs.22,513 lacs as stated in note no.1
(iii) of schedule L. The terms and conditions on which the Company
has given guarantees for loans taken by others from banks are not,
prima facie, prejudicial to the interest of the Company. As explained
to us, the Company has not given any guarantee for loans taken by
others from financial institution.
xvi. According to the information and explanations given to us, term
loans have been applied for the purposes for which they were obtained.
xvii. On the basis of information and explanations given to us and on
overall examination of the financial statements of the Company, funds
raised on short- term basis have, prima facie not been used for long-
term investments as at close of the year.
xviii. According to the information and explanation given to us, the
Company has not made any preferential allotment of shares to any
parties or companies covered in the register maintained under section
301 of the Act.
xix. On the basis of record made available to us and according to the
information and explanations given to us, The Company does not have
debentures during the year.
xx. The Company has not raised any money through a public issue during
the year.
xxi. As per information and explanations provided by the management, no
material fraud on or by the Company has been noticed or reported during
the course of the audit.
For Lodha & Co.,
Chartered Accountants
(N. K. Lodha)
Partner
Date : 04.05.2010 M. No.: - 85155
Camp: Noida, UP Firm Registration No: 301051E
Mar 31, 2010
We have audited the attached Balance Sheet of INDIA GLYCOLS LIMITED as
at 31st March, 2010, the Profit and Loss Account and the also Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of Companys management.
Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with the auditing standards generally accepted in India. 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 ("The Order") as amended by the Companies (Auditors Report) Order, 2004 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956 ("The Act"), we enclose in the Annexure a statement on the matters specified in the paragraphs 4 & 5 of the said Order.
2. Further to our comments in the Annexure referred to in paragraph 1 above, we report that:
a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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 appears from our examination of those books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards
referred to in sub section (3C) of Section 211 of the Companies Act, 1956 to the extent applicable.
e) As per explanations and information given to us, none of the directors of the Company is disqualified from being appointed as director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.
f) Attention is invited to;
(i) Note no. 9 of schedule L regarding investment made in subsidiaries amounting to Rs.3854.91 lacs, where in the opinion of management no provision for diminution is necessary considering the long term nature and the intrinsic value of the assets of subsidiary companies as stated in the said note.
(ii) Note no. 1 (B) of schedule L regarding pending export obligation against custom duty saved on raw material consumed, under advance license as stated in the said note.
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 notes thereon, give the information as required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of Balance Sheet, of the State of Affairs of the Company as at 31st March, 2010;
(ii) in the case of Profit and Loss Account, of the profit of the Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.
Annexure to the Auditors Report (Referred to in paragraph (1) of our Report of even date of INDIA GLYCOLS LIMITED for the year ended 31st March, 2010)
i. (a) The Company has maintained records in respect of fixed assets showing full particulars including quantitative details and situation of its fixed assets.
(b) As per information & explanation given to us, certain fixed assets have been physically verified by the management according to the regular programme of physical verification once in every three years, in phased manner, which in our opinion is reasonable having regard to the size of the company and the nature of its fixed assets. The discrepancies noticed on such physical verification were not material.
(c) As per the records and information & explanation given to us, fixed assets disposed off during the year were not substantial.
ii. (a) The inventory of the Company (except stock lying with the third parties and in transit) has been physically verified by the management at reasonable intervals.
(b) In our opinion and according to information & explanation given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.
(c) In our opinion and according to information & explanation given to us, the Company has been maintaining proper records of inventory except in certain cases where records for receipts and issue of inventory are, as explained, in process of compilation /updation. The discrepancies noticed on such physical verification of inventory as compared to book records were not material.
iii. The Company has neither granted nor taken during the year any loans, secured or unsecured to and from companies, firms or other parties listed in the register maintained under section 301 of the Act. Accordingly, the provisions of clause 4 (iii) (b) to (d) and (f) & (g) of the Order are not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, having regard to the explanation that some of the items purchased are of special nature and suitable alternative sources do not exist for obtaining comparable quotation or where user department has shown specific preference, where, as explained, rates were determined considering the quality, volume, nature of the items and market conditions prevailing at that time in certain cases, there is an adequate internal control system which needs to be further strengthened commensurate with the size of the Company and nature of its business for the certain purchases of Inventory & fixed assets, and for the sale of goods and services (read with note no. 13 of schedule L). Based on the audit procedure performed and information & explanations provided by the
management, during the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.
v. According to the information and explanations provided by the management and based on the audit procedure performed, we are of the opinion that the particulars of the contracts or arrangements referred to in section 301 of the Act have been entered in the register maintained under that section and having regard to our comment in para (iv) above, the transaction made in pursuance of such contracts or arrangements (exceeding the value of Rs. 5 Lacs in respect of each party during the financial year) have been made at prices which are generally reasonable having regard to the prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations given to us, the Company has complied with the directive issued by the Reserve Bank of India and the provisions of Section 58A and 58 AA of the Act or any other relevant provisions of the Act and the rules framed there under with regard to deposit accepted from the public. We have been informed that no order has been passed by the company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or other tribunal in this regard.
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 Act in respect of the Companys products to which the said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate and complete.
ix. (a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax (except some delay), Customs Duty, Excise Duty, Cess and other material statutory dues with the appropriate authorities to the extent applicable. According to the information and explanations given to us, there are no undisputed amounts payable in respect of statutory dues which have remained outstanding as at 31s1 March, 2010 for a period of more than six months except Service Tax amounting to Rs.4,48,392/- and TDS Rs1,0507- (since paid).
(b) According to the records and information and explanations given to us, there are no dues in respect of Income Tax, Service Tax, Custom Duty and Wealth Tax, that have not been deposited with the appropriate authorities on account of any dispute and dues in respect of Sales Tax, Excise Duty and Cess that have not been deposited with appropriate authority on account of dispute and the forum where the dispute is pending are given below:-
Name of the Statue Nature of Dues Amount Period Forum where dispute is (Rs.In Lacs) pending
Custom Act Custom duty 11.42 1992-93 High Court - Uttaranchal 221.93 2004-05, Commissioner of Custom 2009-10
Central Excise Act Excise Duty 0.94 1996-97, CESTAT 79.07 2007-2008 CESTAT 42.73 2006-07 CESTAT 91.93 2006-10 Commissioner of custom.
Finance Act 1994 Service Tax 10.18 2005-08 Asstt. Commissioner 3.60 2009-10 Commissioner (Appeal) 72.60 2004-07 Additional Director, Delhi Zone, Directorate, Director General of Central Excise of Intelligence
x. The Company does not have accumulated losses at the end of financial year and in the current financial year Company has not incurred cash losses, however Company had incurred cash loss in the immediate preceding financial year.
xi. In our opinion, on the basis of audit procedures and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institution, banks or debenture holders.
xii. According to the information and explanation 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, debenture and other securities.
xiii. The Company is not a chit fund or a nidhi/ mutual benefit fund /society and therefore, the provisions of clause 4 (xiii) of the Order are not applicable.
xiv. According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.
xv. According to the information and explanations given to us, the Company has given corporate guarantees to banks for Loans taken by Shakumbari Sugar & Allied Industries Limited (a Subsidiary Company) amounting to Rs.22,513 lacs as stated in note no.1
(iii) of schedule L. The terms and conditions on which the Company has given guarantees for loans taken by others from banks are not, prima facie, prejudicial to the interest of the Company. As explained to us, the Company has not given any guarantee for loans taken by others from financial institution.
xvi. According to the information and explanations given to us, term loans have been applied for the purposes for which they were obtained.
xvii. On the basis of information and explanations given to us and on overall examination of the financial statements of the Company, funds raised on short- term basis have, prima facie not been used for long- term investments as at close of the year.
xviii. According to the information and explanation given to us, the Company has not made any preferential allotment of shares to any parties or companies covered in the register maintained under section 301 of the Act.
xix. On the basis of record made available to us and according to the information and explanations given to us, The Company does not have debentures during the year.
xx. The Company has not raised any money through a public issue during the year.
xxi. As per information and explanations provided by the management, no material fraud on or by the Company has been noticed or reported during the course of the audit.
For Lodha & Co., Chartered Accountants
(N. K. Lodha)
Partner
Date : 04.05.2010 M. No.: - 85155
Camp: Noida, UP Firm Registration No: 301051E
Mar 31, 2009
We have audited the attached Balance Sheet of INDIA GLYCOLS LIMITED as
at 31st March 2009, the Profit and Loss Account and the also Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of Companys management.
Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with the auditing standards generally accepted in India. 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 ("The Order") as amended by the Companies (Auditors Report) order,2004 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956 ("The Act"), we enclosed in the Annexure a statement on the matters specified in the paragraphs 4 & 5 of the said Order.
2. Further to our comments in the Annexure referred to in paragraph 1 above, we report that:
a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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 appears from our examination of those books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub section (3C) of Section 211 of the Companies Act, 1956 to the extent applicable.
e) As per explanations and information given to us, none of the directors of the company is disqualified from being appointed as director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.
f) Regarding investment made in subsidiaries amounting to Rs.1029.91 lacs, where in the opinion of management no provision for diminution is necessary considering the long term nature and the intrinsic value of the assets of subsidiary companies as stated in the said note where Attention is invited (note no. 9 (ii) of schedule L)
In our opinion and to the best of our information and according to the explanations given to us, the said statement of accounts read together with notes thereon, give the information as required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of Balance Sheet, of the State of Affairs of the Company as at 31 st March, 2009;
(ii) in the case of Profit and Loss Account, of the loss of the Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.
Annexure to the Auditors Report
(Referred to in paragraph (1) of our Report of even date of INDIA GLYCOLS LIMITED for the year ended 31st March 2009)
i. (a) The Company has maintained records in respect of fixed assets showing full particulars including quantitative details and situation of fixed assets.
(b) As per information & explanation given to us, certain fixed assets have been physically verified by the management according to the regular programme of physical verification once in every three years, in phased manner, which in our opinion is reasonable having regard to the size of the company and the nature of its fixed assets. The discrepancies noticed on such physical verification were not material.
(c) As per the records and information & explanation given to us, fixed assets disposed off during the year were not substantial.
ii. (a) The inventory of the Company (except stock lying with the third parties and in transit) has been physically verified by the management at reasonable intervals.
(b) In our opinion and according to information & explanation given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.
(c) In our opinion and according to information & explanation given to us, the company has maintaining proper records of inventory. The discrepancies noticed on such physical verification of inventory as compared to book records were not material.
iii. The Company has neither granted nor taken during the year any loans, secured or unsecured to and from companies, firms or other parties listed in the register maintained under section 301 of the Act. Accordingly, the provisions of clause 4 (iii) (b) to (d) and (f) & (g) of the Order are not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, having regard to the explanation that some of the items purchased are of special nature and suitable alternative sources do not exist for obtaining comparable quotation or where user department has shown specific preference, there is an adequate internal control system commensurate with the size of the company and nature of its business for the purchases of Inventory & fixed assets and for the sale of goods and services which needs to be further strengthened. Based on the audit procedure performed and information & explanations provided by the management, during the course of our audit,
we have not observed any continuing failure to correct major weaknesses in internal control system.
v. According to the information and explanations provided by the management and based on the audit procedure performed, we are of the opinion that the particulars of the contracts or arrangements referred to in section 301 of the Act have been entered in the register maintained under that section; and, having regard to our comment in para 4 above, the transaction made in pursuance of such contracts or arrangements (exceeding the value of Rs. 5 Lacs in respect of each party during the financial year) have been made at prices which are generally reasonable having regard to the prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations given to us, the Company has complied with the directive issued by the Reserve Bank of India and the provisions of Section 58A and 58 AA of the Act or any other relevant provisions of the Act and the rules framed there under with regard to deposit accepted from the public. We have been informed that no order has been passed by the company Law Board or national company law tribunal or Reserve bank of India or any Court or other tribunal in this regard.
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 accounts 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 Act in respect of the companys products to which the said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate and complete.
ix. (a) According to the records of the company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty (paid on time with some payment delay), Excise Duty, Cess and other material statutory dues with the appropriate authorities to the extent applicable and there are no undisputed statutory dues payable. Custom duty amounting to Rs.331.35 lacs and interest thereon amounting to Rs. 173.86 lacs outstanding for a period of more than six months from the date they become payable as at 31st March 2009.
(b) According to the records and information and explanations given to us, there are no dues in respect of Income Tax, Service Tax, Custom Duty and Wealth Tax, that have not been deposited with the appropriate authorities on account of any dispute and dues in respect of Sales Tax, Excise Duty and Cess that have not been deposited with appropriate authority on account of dispute and the forum where the dispute is pending given below:-
Name of the Statue Nature of Dues
Custom Act Custom duty
Income Tax Act Income Tax
Central Excise Act Excise Duty
Finance Act 1994 Service Tax
Amount Period Forum where dispute is (Rs. In Lacs) pending
11.42 1992-93 High Court - Uttaranchal
38.57 2004-05 CIT (A)
1.55 1996-97, CESTAT
2005-2009
124.31 2006-2008 Commissioner (A)
12.51 2007-2008 Assisst. Commissoner
155.51 2001-03,
2004-2008 Commissioner (A)
This is to be read with note no.1 of schedule L
x. The Company does not have accumulated losses at the end of financial year and in the current financial year company has incurred cash losses, however Company did not incur any loss in the immediate preceding financial year.
xi. In our opinion, on the basis of audit procedures and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institution, banks or debenture holders.
xii. According to the information and explanation 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, debenture and other securities.
xiii. The Company is not a chit fund or a nidhi / mutual benefit fund / society and therefore, the provisions of clause 4 (xiii) of the Order are not applicable.
xiv. According to the information and explanation given to us, the Company is not dealing or trading in shares, securities, debenture and other investments.
xv. According to the information and explanation given to us, the Company has given corporate guarantee to bank for Loans taken by Shakumbari Sugar & Allied Industries Limited (the subsidiary Company) amounting to Fis.31878 lacs as stated in note no. 1 (iii) of schedule L. The terms and condition on which the Company has given guarantee for loan taken by others from bank are not prima facie prejudicial to the interest of the Company. As explained to us, the Company has not given any guarantee for loans taken by others from financial institution.
xvi. According to the information and explanation given to us, term loans have been applied for the purposes for which they were obtained.
xvii.On the basis of information and explanations given to us and on overall examination of the financial statements of the Company, funds raised on short- term basis have, prima facie not been used for long- term investments.
xviii. According to the information and explanation given to us, the company has not made any preferential allotment of shares to any parties or companies covered in the register maintained under section 301 of the Act.
xix. On the basis of record made available to us and according to the information and explanations given to us, The Company does not have debentures during the year.
xx. The Company has not raised any money through a public issue during the year.
xxi. As per information and explanations provided by the management, no material fraud on or by the Company has been noticed or reported during the course of the audit.
For Lodha & Co., Chartered Accountants
(N. K. Lodha) Place: New Delhi Partner Date: 20th June, 2009 M. No.: 85155
Mar 31, 2008
We have audited the attached Balance Sheet of INDIA GLYCOLS LIMITED as
at 31 st March 2008, the Profit and loss Account and also Cash Flow
Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 ("The Order") as amended by the Companies (Auditors Report) order,2004 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956 ("The Act"), we enclosed in the Annexure a statement on the matters specified in the paragraphs 4 & 5 of the said Order.
2. Further to our comments in the Annexure referred to in paragraph 1 above, we report that:
a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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 appears from our examination of those books.
c) The Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance sheet. Profit & 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 to the extent applicable.
e) As per explanations and information given to us, none of the directors of the company is disqualified from being appointed as director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.
In our opinion and to the best of our information and according to the explanations given to us, the said statement of accounts read together with notes thereon, give the information as required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
i) in the case of Balance sheet, of the state of affairs of the company as at 31st March, 2008:
ii) in the case of Profit and loss account, of the profit of the company for the year ended on that date: and
iii) in the case of Cash Flow Statement, of the cash flows for the year ended on that date.
Annexure to the Auditors Report
(Referred to in paragraph (1) of our Report of even date on INDIA GLYCOLS LIMITED for the year ended 31st March 2008)
i. a) The Company has maintained records in respect of fixed assets showing full particulars including quantitative details and situation of fixed assets except in respect of certain fixed assets, which are in process of updation.
b) As per information & explanation given to us, certain fixed assets have been physically verified by the management according to the regular programme of physical verification once in every three years, in phased manner, which in our opinion is reasonable having regard to the size of the company and the nature of its Fixed assets. The discrepancies noticed on such. physical verification were not material.
c) As per the records and information and explanation given to us, fixed assets disposed off during the year were not substantial.
ii. a) The inventories of the company (except stock lying with the third parties and in transit) have been physically verified by the management at reasonable intervals.
b) In our opinion and according to information & explanation given to us, the procedures of physical verification of inventries followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.
c) In our opinion and according to information & explanation given to us, the company has maintaining proper records of inventries. The discrepancies noticed on such physical verification of inventries as compared to book records were not material.
iii. During the year, the Company has neither granted nor taken any loans, secured or unsecured to or from companies, firms or other parties listed in the register maintained under section 301 of the Act. Accordingly, the provisions of clause 4 (iii) (b) to (d) and (f) & (g) of the Order are not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, having regards to the explanation that some of the items purchased are of specialised nature, taking into consideration the quality, usage and such other factors, comparative sources/ quotations are not available. The Company has internal control system commensurate with the size of the company and nature of its business for the purchase of inventories & fixed assets and for the sale of goods and services (read with note nos. 11,18 and 22H of schedule L). Based on the audit procedure performed and information & explanation provided by the management, during the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.
v. According to the information and explanations provided by the management and based on the audit procedure performed, we are of the opinion that the particulars of the contracts or arrangements referred to in section 301 of the Act have been entered in the register maintained under that section and having regard to our comment in para (iv) above, the transactions made in pursuance of such contracts or arrangements (exceeding the value of Fis. 5 Lacs in respect of each party during the financial year) have been made at prices which are generally reasonable having regard to the prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations given to us, the Company has complied with the directive issued by the Reserve Bank of India and the provisions of Section 58A and 58 AA of the Act and other relevant provisions of the Act and the rules framed there under with regard to deposit accepted from the public. We have been informed that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or other Tribunal in this regard.
vii. In our opinion, the company has an adequate internal audit system commensurate with the size of the company and nature of its business.
viii. We have broadly reviewed the books of accounts 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 Act in respect of the companys products to which the said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate and complete.
ix. a) According to the records of the company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues with the appropriate authorities to the extent applicable and there are no undisputed statutory dues payable for a period of more than six months from the date they become payable as at 31st March 2008.
b) According to the information and explanations given to us, and the records of the Company, as at the year end, the following are the particulars of disputed dues on account of Income Tax, Service Tax, Custom Duty,
x. The Company does not have accumulated losses at the end of financial year and has not incurred cash losses in the current financial year and in the immediately preceding financial year.
xi. In our opinion, on the basis of audit procedures and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institution, banks or debenture holders.
xii. According to the information and explanation 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. The Company is not a chit fund or a nidhi / mutual benefit fund / society and therefore, the provisions of clause 4 (xiii) of the Order are not applicable.
xiv. According to the information and explanation given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.
xv. According to the information and explanations given to us, the Company has given corporate guarantees to banks against agricultural loans given to certain sugarcane suppliers amounting to Rs. 2500.00 lacs and for Rs. 5500.00 lacs against loan taken by Shakumbari Sugar & Allied Industries Limited (a Subsidiary Company), as stated in note no.1 (iv) of Schedule L. The terms and conditions on which the Company has given guarantees against loans taken by others from banks are not prima facie prejudicial to the interests of the Company. As explained to us, the Company has not given any guarantee for loans taken by others from financial institutions.
xvi. According to the information and explanations given to us, term loans have been applied for the purposes for which they were obtained.
xvii. On the basis of information and explanations given to us and on overall examination of the financial statements of the Company, funds raised on short-term basis have, prima facie not been used for long-term investment.
xviii. According to the information and explanations given to us, the company has not made any preferential allotment of shares to any parties or companies covered in the register maintained under section 301 of the Act.
xix. On the basis of record made available to us and according to the information and explanations given to us, the Company has created security or charge in respect of debentures repaid during the year.
xx. The Company has not raised any money through a public issue during the year.
xxi. To the best of our knowledge and belief, based on the audit procedure performed and on the basis of information and explanations provided by the management, no material fraud on or by the Company has been noticed or reported during the course of the audit.
For Lodha & Co. Chartered Accountants N. K. Lodha Place: New Delhi Partner Date: 23rd May 2008 Membership. No.: 85155
Mar 31, 2007
We have audited the attached Balance Sheet of INDIA GLY- COLS LIMITED ,
as at 31st March 2007, the Profit and Loss Account and also the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our re- sponsibility is to express an opinion on these
financial state- ments based on our audit.
We conducted our audit in accordance with the auditing stan- dards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable as- surance about whether the financial statements are free of material misstatements. 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 fi- nancial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 (as amended) (The Order) issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956 (The Act), we enclose in the An- nexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to in Paragraph 1 above, we report that:
(a) We have obtained all the information and explana- tions, 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 appears from our examination of those books;
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agree- ment with the books of account;
(d) In our opinion, the Balance Sheet, Profit & Loss Ac- count and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956;
(e) As per the information and explanations given to us, none of the directors of the Company is disqualified from being appointed as a director under Clause (g) of sub section (1) of section 274 of the companies act, 1956;
In our opinion and to the best of our information and accord- ing to the explanations given to us, the said accounts read together with notes thereon, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
i) In the case of Balance Sheet, of the state of af- fairs of the Company as at 31st March 2007; ii) In the case of the Profit & Loss Account, of the
Profit for the year ended on that date; and iii) In the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph (1) of our Report of even date of INDIA GLYCOLS LIMITED for the year ended 31s1 March 2007.)
1. (a) The Company has maintained proper records in
respect of fixed assets showing full particulars including quantitative details and situation of fixed assets except in respect of certain fixed assets which are in process of updation.
(b) As per information & explanation given to us, certain fixed assets have been physically verified by the Management according to the regular programme of physical verification once in every three years, in phased manner, which in our opinion is reasonable having regard to the size of the Company and the nature of its Fixed Assets. The discrepancies noticed on such physical verification were not material.
(c) As per the records and information and explanations given to us, fixed assets disposed off during the year were not substantial.
2. (a) The inventory of the company (except stock lying
with the third parties and in transit) has been physically verified by the management at reasonable intervals.
(b) In our opinion and according to information & explanation given to us, the procedures of physical verification of inventory followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business.
(c) In our opinion and according to information & explanations given to us, the Company has maintaining proper records of inventory. The discrepancies noticed on such physical verification of inventory as compared to book records were not material.
3. The Company has neither granted nor taken during the year any loans, secured or unsecured to and from companies, firms or other parties as covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, the provisions of clause 4 (iii) (b) to (d), (f) & (g) of the Order are not applicable.
4. In our opinion and according to the information and explanations given to us, having regard to the explanation that some of the items purchased are of special nature and suitable alternative sources do not exist for obtaining comparable quotations or where user department has shown specific preference, 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 (read with note no. 17 & 21 (H) of Schedule L). Based on the audit procedure performed and on the basis of information and explanations provided by the management, during the course of our audit we have not observed any continuing failure to correct major weaknesses in internal control system.
5. According to the information and explanations provided by the management and based upon audit procedures performed, we are of the opinion that the particular of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that section; and, having regard to
our comments in para 4 above, the transactions made in pursuance of such contracts or arrangements (exceeding the value of Rs. 5/- lacs in respect of each party during the financial year) have been made at prices which are generally reasonable having regard to prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations given to us, the Company has complied with the directives issued by the Reserve Bank of India and the provisions of section 58A and 58AA of the Act or any other provisions of the Act and the rules framed thereunder with regard to deposits accepted from the public. We have been informed that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or other Tribunal in this regard.
7. In our opinion, the Company has an adequate internal audit system commensurate with the size of the Company and nature of its business.
8. 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 Act in respect of the Companys products to which the said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate or complete.
9. (a)According to the records of the Company, the
Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues with the appropriate authorities to the extent applicable and there are no undisputed statutory dues payable for a period of more than six months from the date they become payable as at 31st March 2007. (b)According to the records and information & explanations given to us, there are no dues in respect of income tax, service tax, custom duty and wealth tax that have not been deposited with the appropriate authorities on account of any dispute and the dues in respect of sales tax, excise duty and cess that have not been deposited with the appropriate authority on account of dispute and the forum where the dispute is pending are given below: -
Nature of statute Nature Amount of dues (Rs. in lacs)
Customs Act Custom 11.42 duty Income Tax Act. Income 38.57 Tax Central Excise Excise 0.64 Act duty 0.94
Period Forum where dispute is pending
1992-93 High Court- Uttaranchal
2004-05 CIT (A)
1994-95 CESTAT
1996-97 High Court
10. The company does not have accumulated losses at the end of financial year and has not incurred cash losses during the current financial year and in the immediately preceding financial year.
11. In our opinion, on the basis of audit procedures and according to the information and explanations given to us, the company has not defaulted in repayment of dues to financial institutions and banks and debenture holders.
12. According to the information and explanations given to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit fund /society, therefore, the provisions of clause 4 (xiii) of the said Order are not applicable to the company.
14. According to the information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures and other investments.
15. According to the information and explanations given to us, the company has given corporate guarantee to banks for agricultural loan given to certain sugarcane suppliers amounting to Rs.3000.00 lacs as stated in note no.2 (IV) of schedule L. In our opinion, the terms and conditions on which the Company has given guarantees for loans taken by others from bank are not prima facie prejudicial to the interest of the Company. As explained to us, the company has not given any guarantee for loans taken by others from financial institutions
16. On the basis of information and explanations given to us, the term loans have been applied for the purposes for which they were obtained.
17. On the basis of information and explanations given to us and on an overall examination of the financial statements of the company, funds raised on short-term basis have, prima- facie, not been used for long-term investment.
18. According to the information and explanations given to us, the Company has not made any preferential allotment of shares during the year to any parties or companies covered in the register maintained under section 301 of the Act.
19. On the basis of records made available to us and according to information and explanations given to us, the company has created security or charge in respect of debentures issued/ outstanding during the year
20. The company has not raised any money through a public issue during the year.
21. To the best of our knowledge and belief, based on the audit procedure performed and on the basis of information and explanations provided by the management, no material fraud on or by the company has been noticed or reported during the course of the audit.
For LODHA & CO. Chartered Accountants
N. K. LODHA New Delhi Partner Date : 23rd June, 2007 Membership No.: - 85155
Mar 31, 2006
We have audited the attached Balance Sheet of India Glycols Limited as
at 31M March 2006 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 Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. 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.
1. As required by the Companies (Auditors' Report) Order, 2003 (as Amended) ("The Order") issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 (The Act), we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to in Paragraph 1 above, we report that:
(a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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 appears from our examination of those books;
(c) The accounts of CDS International for the period 01.04.03 to 31.03.06 have been incorporated in these accounts as stated in note no 6 of schedule L and considered for our report thereon, as audited by M/s Narayanan, Patil and Ramesh, Chartered Accountants, the auditors of erstwhile CDS International Ltd ("CDS").
(d) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;
(e) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956;
(f) On the basis of written representations received from all the directors of the company and taken on record by the board of directors, we report that none of the directors is disqualified as on 31st March 2006 from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the companies act, 1956;
(g) Attention is drawn to note no 2(iv) of Schedule L regarding custom duty saved on raw material consumed under advance license, pending, fulfillment of export obligation as stated in said note.
(h) In our opinion, and to the best of our information and according to the explanations given to us, the said accounts read together with Notes thereon, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;
i) In the case of Balance Sheet, of the state of affairs of the Company as at 31st March 2006;
ii) In the case of the Profit & Loss Account, of the Profit for the year ended on that date; and
iii) In the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.
For LODHA & CO. Chartered Accountants
N. K. LODHA Partner Membership No. : - 85155
New Delhi Date : 27.5.2006
ANNEXURE TO THE AUDITORS'REPORT
(Referred to in paragraph (1) of our Report of even date of INDIA GLYCOLS LIMITED for the year ended 31st March 2006).
1. (a) The Company has maintained proper records in respect of its fixed assets showing full particulars including quantitative details and situation of fixed assets except in respect of certain fixed assets which are in the process of updation.
(b) As per information and explanations given to us, certain fixed assets have been physically verified by the Management according to the regular programme of physical verification once in every three years, in phased manner, which in our opinion, is reasonable having regard to the size of the Company and the nature of its fixed assets. The discrepancies noticed on such physical verification were not material.
(c) As per the records and information and explanations given to us, no substantial part of fixed assets has been disposed off during the year.
2. (a) The inventories of the company (except stocks lying with the third parties and in transit) have been physically verified by the management at reasonable intervals.
(b) In our opinion and according to the Information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable in relation to the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of inventory. The discrepancies noticed on such physical verification of inventory as compared to book records were not material.
3. The Company has neither granted nor taken any loans, secured/unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, the provisions of clause 4(iii) (b) to (d) and (f) & (g) of the Order are not applicable to the Company.
4. In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items purchased are of special nature and suitable alternative sources do not exist for obtaining comparable quotations or where user department has shown specific preference, 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 continuing failure to correct major weaknesses in internal control system.
5. (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 have been entered in the register required to be maintained under that section.
(b) In our opinion, having regard to our comments in para 4 above and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements and exceeding the value of five lacs rupees in respect of each party during the year, have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations given to us, the company has complied with the directives issued by the Reserve Bank of India and the provisions of section 58A and 58AA and the rules framed there under and any other relevant provisions of the Act with regard to deposits accepted from the public. As informed, no order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal in this regard.
7. In our opinion, the Company has an adequate internal audit system commensurate with the size of the Company and nature of its business.
8. We have broadly reviewed the books of account and records 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 Act in respect of the Company's products to which the said records are made applicable and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate and complete.
9.(a) According to the records of the company, the company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Sales Tax, Wealth Tax, Income Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues with the appropriate authorities and there are no undisputed statutory dues payable for a period of more then six months from the date they become payable as at 31st March 2006.
(b) According to the records and information and explanation given to us, there are no dues in respect of sales tax, wealth tax, service tax and cess that have not been deposited with the appropriate authorities on account of any dispute and the dues in respect of custom duty, excise duty, and income tax that have not been deposited with the appropriate authority on account of dispute and the forum where the dispute is pending are given below :-
Nature of statute Nature Amount Period Forum where of dues (Rs.in lacs) dispute is pending
Customs Act Custom 11.42 1992-93 High Court- duty Uttaranchal Central Excise Act Excise 2.57 1994-95 CESTAT duty 0.94 1996-97 1.46 2004-05 Income Tax Act Income 119.35 2002-03 CIT tax (Appeals)
10. The company has no accumulated losses and has not incurred cash losses during the current financial year and in the immediately preceding financial year.
11. In our opinion, on the basis of audit procedures and according to the information and explanations given to us, the company has not defaulted in repayment of any dues to banks, financial institutions and debenture holders.
12. According to the information and explanations given to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi/mutual benefit fund/society, therefore, the provisions of clause 4 (xiii) of the said Order are not applicable to the company.
14. According to the information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures and other investments.
15. According to the information arid explanations given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions.
16. In our opinion and on the basis of information and explanations given to us, the term loans were applied for the purposes for which they were obtained.
17. According to information and explanations given to us and on an overall examination of the financial statements of the company, funds raised on short-term basis have, prima-facie, not been used for long-term investment.
18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.
19. On the basis of records made available to us and according to information and explanations given to us, the company has created security or charge in respect of debentures issued/outstanding during the year.
20. The company has not raised any money through a public issue during the year.
21. To the best of our knowledge and belief, based on the audit procedure performed and on the basis of information and explanations provided by the management, no fraud on or by the company has been noticed or reported during the course of our audit.
For LODHA & CO. Chartered Accountants
N. K. LODHA Place : New Delhi Partner Date : 27.5.2006 Membership No.: - 85155
Mar 31, 2005
We have audited the attached Balance Sheet of India Glycols Limited, as
at 31st March 2005 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 Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. 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.
1. As required by the Companies (Auditors' Report) Order (As Amendment), 2003 (The Order) issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 (The Act), we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to in Paragraph 1 above, we report that:
(a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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 appears from our examination of those books;
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956;
(e) On the basis of written representations received from all the directors of the company and taken on record by the board of directors, we report that none of the directors is disqualified as on 31a March 2005 from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the companies act, 1956;
(f) Attention is invited to:
(i) Note No. 6 of Schedule L regarding non-provision (amount unascertainable) against diminution in the value of investment and loans and advances to a subsidiary company, pending approval of the Hon'ble High Court of Karnataka as stated in the said note.
We further report that the profit for the year, reserves, investments, loans and advances are without considering the impact of item mentioned in Para f(i) above, the effect of which could not be determined.
(g) Subject to the foregoing, in our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with Notes thereon, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;
i) In the case of Balance Sheet, of the state of affairs of the Company as at 31st March 2005;
ii) In the case of the Profit & Loss Account, of the Profit for the year ended on that date; and
iii) In the case of Cash Flow Statement, of the Cash Flows for the year ended on that date
For LODHA & CO. Chartered Accountants N. K. LODHA New Delhi Partner Date : 22nd June, 2005 Membership No.: - 85155
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph (1) of our Report of even date of INDIA GLYCOLS LIMITED for the year ended 31st March 2005.)
1. (a) The Company has maintained proper records in respect of its fixed assets showing full particulars including quantitative details and situation of fixed assets.
(b) As per information and explanations given to us, certain fixed assets have been physically verified by the Management according to the regular programme of physical verification once in every three years in phased manner, which in our opinion, is.reasonable having regard to the size of the Company and the nature of its Fixed Assets. The discrepancies noticed on such physical verification were not material.
(c) As per the records and information and explanations given to us, no substantial part of fixed assets has been disposed off during the year.
2.(a) The inventories of the company (except stocks lying with the third parties, at port and in transit) have been physically verified by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of inventory. The discrepancies noticed on such physical verification of inventory as compared to book records were not material.
3. The Company has not granted nor taken any loans, secured/unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, the provisions of clause 4-(iii) (b) to (d) and (f) & (g) of the Order are not applicable to the Company.
4. In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items purchased are of special nature and suitable alternative sources do not exist for obtaining comparable quotations or where user department has shown specific preference, there is 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 continuing failure to correct major weaknesses in internal control system.
5. According to the information and explanations provided by the management and based upon audit procedures performed, we report that the particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that section and there are no transactions made in pursuance of such contracts or arrangements exceeding the value of five lacs rupees in respect of each party during the year, accordingly, the provisions of clause 4 (v)(b) of the Order are not applicable.
6. In our opinion and according to the information and explanations given to us, the company has complied with the directives issued by the Reserve Bank of India and the provisions of section 58A and 58AA and the rules framed there under and any other relevant provisions of the Act with regard to deposits accepted from the public. As informed, no order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal in this regard.
7. The Company has an adequate internal audit system commensurate with the size of the Company and nature of its business.
8. We have broadly reviewed the books of account and records 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 Act in respect of the Company's products to which the said records are made applicable and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate and complete.
9.(a) According to the records of the company, the company is generally regular in depositing undisputed statutory dues including Providend Fund, Investor Education and Protection Fund, Employees' State Insurance, Sales Tax, Wealth Tax, Income Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues with the appropriate authorities and there are no undisputed statutory dues payable for a period of more then six months from the date they become payable as at 31st March 2005. However this is to be read with note no. 15 of Schedule L.
(b) According to the records and information and explanation given to us, there are no dues in respect of sales tax, wealth tax and cess that have not been deposited with the appropriate authorities on account of any dispute and the dues in respect of custom duty, excise duty, service tax and income tax that have not been deposited with the appropriate authority on account of dispute and the forum where the dispute is pending are given below :-
Nature of Nature Amount Forum where statute of dues (Rs. in lacs) dispute is pending
Customs Act Custom duty 11.42 Appellate authority Central Excise Excise duty 16.52 Additional Act commissioner, CE 5.06 CESTAT 0.94 Commissioner (Appeals) Service Tax Service Tax 3.20 Deputy Commissioner, CE Income Tax Act Income tax 80.71 Appellate authority
10. The company has no accumulated losses and has not incurred cash losses during the current financial year and in the immediately preceding financial year.
11. In our opinion, on the basis of audit procedures and according to the information and explanations given to us, the company has not defaulted in repayment of any dues to banks, financial institutions and debenture holders.
12. According to the information and explanations given to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi/mutual benefit fund/society, therefore, the provisions of clause 4 (xiii) of the said Order are not applicable to the company
14. According to the information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures and other investments.
15. According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions.
16. In our opinion and on the basis of information and explanations given to us, the term loans were applied for the purposes for which they were obtained.
17. According to information and explanations given to us and on an overall examination of the financial statements of the company, funds raised on short-term basis have, prima-facie, not been used for long-term investment.
18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.
19. On the basis of records made available to us and according to information and explanations given to us, the company has created security or charge in respect of debentures issued/outstanding during the year.
20. The company has not raised any money through a public issue during the year.
21. To the best of our knowledge and belief, based on the audit procedure performed and on the basis of information and explanations provided by the management, no material fraud on or by the company has been noticed or reported during the course of our audit.
For LODHA & CO. Chartered Accountants
N K LODHA New Delhi Partner Date : 22nd June, 2005 Membership No. : - 85155
Mar 31, 2003
We have audited the attached Balance Sheet of India Glycols Limited as
at 31st March 2003 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 Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles 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.
We report that:
1) 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.
2) 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.
3) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.
4) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.
5) On the basis of the written representations received from all the Directors and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2003 from being appointed as a Director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.
6) Attention is invited to:
i) Note no.6 regarding transfer of an equivalent amount of Rs. 1179.11 lacs on account of provision for doubtful advances/loans from General Reserves to Profit & Loss Account resulting in lower charge to the Profit &' Loss Account.
ii) Note no.11 regarding change in the method of depreciation on certain assets as stated in said note and transfer of an amount of Rs. 1718.51 lacs from General Reserves to Profit and Loss Account resulting in lower charge to Profit for the year.
iii) Note no.7 regarding non-provision (amount unascertainable) against diminution in the value iff Investment and loans to subsidiary company as stated in the said note.
We, further report that without considering item mentioned in para 6(iii) above, the effect of which could not be determined and had the observation made by us in para 6 (i) & 6(ii) above been considered, the profit for the year would liave been Rs.900.09 lacs (as against reported figures of Rs.3628.44 Incs), reserve and surplus would have been Rs. 12131.80 lacs (as against reported figures of Rs.10244.02 lacs) and Net Block of Fixed Assets would have been Rs.26195.89 lacs (as against reported figures ofRs.24308.11 lacs).
7) Subject to the foregoing, in our opinion and to the best of our information and according to the explanations given to us, the said accounts read with significant accounting policies the notes thereon give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of the-Balance Sheet, of the state of affairs of the Company as at 31 st March, 2003;
(ii) in the case of Profit and Loss Account, of the Profit for the year ended on that date and,
(iii) in the case of Cash Flow Statement, of the cash flows for the year ended on the date.
8) As required by the Manufacturing and other Companies
(Auditor's Report) Order, 1988 issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956, we further report:
(i) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. As per information and explanations given to us, the Company has a regular programme of physical verification of fixed assets once in every three years and in accordance with this programme, the management has carried out a physical verification of certain fixed assets of the Company. In our opinion, the frequency of verification of fixed assets by the management is reasonable, having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such physical verification.
(ii) None of the fixed assets have been revalued during the year.
(iii) The stocks of finished goods, stores, spare parts and raw material, excluding materials in-transit and materials lying with third parties, have been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.
(iv) In our opinion and according to the information and explanations given to us, the procedures of physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
(v) The discrepancies noticed on verification between the physical stocks and book records were not material.
(vi) In our opinion and on the basis of our examination, the valuation of stocks is fair and proper in accordance with normally accepted accounting principles and is on the same basis as in the previous year.
(vii) The company has not taken any loans from companies, firms or other parties listed in the Register maintained under Section 301.
(viii) The company has not granted any loans to companies, firms or other parties listed in the Register maintained under Section 301.
(ix) Interest free loan Rs. 143 lacs given to a subsidiary Company are repayable on demand [refer note no. 7] and Interest free advance against subscription of equity share of Rs. 145 lacs [refer note no. 5 (b)], in respect of which there is no recovery. Adequate steps have been / are being taken for the recovery of such outstanding. In respect of interest free/bearing loans and advances in the nature of loan given to employees and others, the same arc being received generally regularly except in cases where there arc no stipulation as to repayment.
(x) In our opinion and according to the information and explanations given to us during the course of the audit, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of stores, raw material, including components, plant and machinery, equipment and other assets and with regard to the sale of goods.
(xi) According to the information and explanations given to us, the transactions of purchase of goods and materials, and sale of goods, materials and services, made in pursuance of contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956 and aggregating during the year to Rs.50,000/- or more in respect of each party, have been made at prices which, in our opinion, are reasonable having regard to prevailing market prices for such goods, materials and services or the prices at which similar transactions have been made with other parties in accordance with the Company's business needs and exigencies.
(xii) As explained to us, the Company has a regular procedure for the determination of unserviceable or damaged stores, raw material and finished goods. Adequate provisions have been made in the accounts for the loss arising on the items so determined.
(xiii) In our opinion and according to the information and explanations given to us, the Company has complied With the provisions of Section 58 A of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to deposits accepted from the public.
(xiv) In our opinion reasonable records have been maintained by the Company for sale and disposal of realisable by-products and scrap.
(xv) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.
(xvi) 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 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We. have not, however, made a detailed examination of the records.
(xvii) According to the records of the Company, Provident Fund and Employees State Insurance dues have been regularly deposited during the year with the appropriate authorities.
(xviii) According to the information and explanations given to us, there are no undisputed amounts payable in respect of Income-tax, Wealth-Tax, Sales Tax, Custom Duty and Excise Duty outstanding for a period of more than six months as at 31st March, 2003 from the date they became payable.
(xix) According to the information and explanations given to us, no personal expenses of employees or directors have been charged to revenue account, other than, those payable under contractual obligation or in accordance with generally accepted business practice.
(xx) The Company is not a sick industrial company within the meaning of clause (o) of Sub-Section. (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985.
For Lodha & Co. Chartered Accountants
Place : New Delhi (N.K.LODHA) Date : June 13, 2003 Partner
Mar 31, 2002
We have audited the attached Balance Sheet of India Glycols Limited as
at 31st March 2002 and also the Profit and Loss Account for the year
ended on that date annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with 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.
We report that:
1. 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.
2. In our opinion proper books of account as required by law have been kept by the Company, so far as appears from our examination of the books.
3. The Balance Sheet and the Profit and Loss Account referred to in this report are in agreement with the books of account.
4. In our opinion, the profit and loss account and balance sheet comply with the accounting standards referred to in sub-section (30 of Section 211 of the Companies Act, 1956.
5. On the basis of information and explanations given to us and representation received from all the Directors of the company and taken on record by the Board of the Directors, we report that none of the Director is disqualified from being appointed as Director under clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.
6. Attention is invited to:
1) Note no. 6 regarding accounting of interest income of Rs. 502.41.lacs (including Rs 188.36 lacs for current year) on receipt basis as stated in the said note.
2) Note no. 7 regarding non provision (amount unascertainable) for diminution in the value of Investment and loans to subsidiary company as stated in the said note.
We, further report that without considering item mentioned in para 6(2) above the effect of which could not be determined and had the observation made by us in para 6 (1) above been considered, the profit for the year would have been Rs. 1538.48 lacs (as against reported figures of Rs. 1036.07 lacs), reserve and surplus would have been Rs. 10015.61 lacs (as against reported figures of Rs. 9513.20 lacs) and loans and advances would have been Rs. 5180.58 lacs (as against reported figures of Rs. 4678.17 lacs).
7. Subject to the foregoing, in our opinion and to the best of our information and according to the explanations given to us the said accounts read together with the notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in so far as it relates to the Balance Sheet, of the state of affairs of the Company as at 31st March, 2002 and
(ii) in so far as it relates to the Profit and Loss Account, of the Profit of the Company for the year ended on that date.
8. As required by the Manufacturing and other Companies (Auditors Report) Order, 1988 issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956, we further report:
(i) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. As per information and explanations given to us, the Company has a regular programme of physical verification of fixed assets once in every three years and in accordance with this programme, the management has carried out a physical verification of certain fixed assets of the Company. In our opinion, the frequency of verification of fixed assets by the management is reasonable, having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such physical verification.
(ii) None of the fixed assets have been revalued during the year.
(iii) The stocks of finished goods, stores, spare parts and raw material, excluding materials in-transit and materials lying with third parties, have been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.
(iv) In our opinion and according to the information and explanations given to us, the procedures of physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
(v) The discrepancies noticed on verification between the physical stocks and book records were not material.
(vi) In our opinion and on the basis of our examination, the valuation of stocks is fair and proper in accordance with normally accepted accounting principles and is on the same basis as in the previous year.
(vii) In our opinion the rate of interest and other terms and conditions on which unsecured loans have been taken from companies listed in the register maintained under Section 301 of the Act are not prima facie, prejudicial to the interest of the company.
(viii) The company has not granted any loans to companies, firms or other parties listed in the Register maintained under Section 301.
(ix) Inter Corporate Deposit of Rs. 1146.79 lacs (including Rs. 369 lacs of a subsidiary Company) are repayable on demand, accrued interest amounting to Rs. 401.32 lacs, upto 31.03.1999 (refer note No. 6 & 7) and Rs. 27.14 lacs is due from bodies corporate in respect of which there is no recovery. Adequate steps have been/are being taken for the recovery of such outstanding. In respect of interest free loans and advances in the nature of loan given to employees and others the same are being received generally regularly except in cases where there are no stipulation as to repayment.
(x) In our opinion and according to the information and explanations given to us during the course of the audit, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of stores, raw material, including components, plant and machinery, equipment and other assets and with regard to the sale of goods.
(xi) According to the information and explanations given to us, the transactions of purchase of goods and materials, and sale of goods, materials and services, made in pursuance of contracts or arrangements entered in the Register, maintained under Section 301 of the Companies Act, 1956 and aggregating during the year to Rs. 50,000/- or more in respect of each party, have been made at prices which, in our opinion, are reasonable having regard to prevailing market prices for such goods, materials and services or the prices at which similar transactions have been made with other parties and the Companys business needs and exigencies.
(xii) As explained to us, the Company has a regular procedure for the determination of unserviceable or damaged stores, raw material and finished goods. Adequate provisions have been made in the accounts for the loss arising on the items so determined.
(xiii) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 58 A of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to deposits accepted from the public.
(xiv) In our opinion reasonable records have been maintained by the Company for sale and disposal of realisable by-products and scrap.
(xv) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.
(xvi) 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 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records.
(xvii) According to the records of the Company, Provident Fund and Employees State Insurance dues have been regularly deposited during the year with the appropriate authorities.
(xviii) According to the information and explanations given to us, there are no undisputed amounts payable in respect of Income-tax, Wealth-Tax, Sales Tax, Custom Duty and Excise Duty outstanding for a period of more than six months as at 31st March, 2002 from the date they became payable.
(xix) According to the information and explanations given to us, no personal expenses of employees or directors have been charged to revenue account, other than those payable under contractual obligation or in accordance with generally accepted business practice.
(xx) The Company is not a sick industrial company within the meaning of clause (o) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985.
For Lodha & Co. Chartered Accountants
Place: New Delhi, (N. K. Lodha) Date : 30th June, 2002 Partner
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