Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Investment & Precision Castings Limited (âthe Companyâ) which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the 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 to give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in the equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules 2015 under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ 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 and the rules made thereunder including 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 and the Order issued under section 143(11) of the Act.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether these 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 auditorsâ 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 auditors consider internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by 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, of the state of affairs of the Company as at 31st March 2018 and of the profit (including other comprehensive income), its cash flows and 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 terms of sub-section (11) of section 143 of the Act, we give in the Annexure - A, a statement on the matters specified in clause 3 and 4 of the Order, to the extent possible.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under section 133 of the Act;
e) On the basis of written representations received from the directors as on 31st March 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2018, from being appointed as a director in terms section 164(2) of the Act;
f) With respect to the adequacy of internal financial controls over financial reporting of the Company and operating effectiveness of such controls, our separate report in annexure - B may be referred;
g) With respect to the other matters to be included in the Auditorsâ 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 explanation given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements under note no. 31;
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring the amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE - A TO THE INDEPENDENT AUDITORSâ REPORT
(Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
On the basis of such checks as we considered appropriate and in terms of information and explanations given to us, we state that:
1 In respect of fixed assets:
a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b. The fixed assets were physically verified by the management at reasonable intervals in a phased manner in accordance with a programme of physical verification. No material discrepancies were noticed on such verification.
c. The title deeds of immovable properties are held in the name of the Company.
2 The inventories were physically verified by the management at reasonable intervals during the year. No material discrepancies were noticed on such physical verification carried out by the Company.
3 The Company has granted unsecured loans to the wholly-owned subsidiary company covered in the register maintained under section 189 of the Companies Act, 2013. The terms and conditions of grant of such loans are not prima-facie prejudicial to the interest of the Company. The repayment of such loans is not overdue.
4 The Company has complied with provisions of Section 185 and 186 of the Act in respect of loans, investments, guarantees and security, to the extent applicable.
5 The Company has not accepted any deposits within the meaning of the provisions of section 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder with regard to the deposits accepted from the public. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal.
6 We have broadly reviewed the cost records maintained by the Company pursuant to Section 148(1) of the Companies Act, 2013 and are of the opinion that, prima-facie, the prescribed cost records have been maintained. We, have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
7 In respect of statutory and other dues:
a. The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax, Cess, GST and other statutory dues, to the extent applicable, with the appropriate authorities during the year. There are no undisputed statutory dues outstanding for a period of more than six months from the date they became payable.
b. There are no statutory dues, which have not been deposited on account of dispute except for the followings:
Nature of Dues |
Rs. |
Financial Year |
Forum where dispute is pending |
Income Tax |
312,000 |
2002-2003 |
Income Tax Appellate Tribunal |
Value Added Tax |
894,939 |
2002-2003 |
The Commissioner of Gujarat Commercial Tax |
8 The C ompany has not defaulted in repayment of loans or borrowing to banks. The Company has not obtained any borrowings from any financial institutions or government or by way of debentures.
9 Terms loans obtained by the Company have been applied for the purpose for which they were obtained. The Company has not raised any money, during the year, by way of public offer (including debt instruments).
10 To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company or on the Company by its officers or employees was noticed or reported during the year.
11 Managerial remuneration paid or provided by the Company during the year is in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12 Since the Company is not a Nidhi Company, the provisions of clause 3 (xii) of the Order are not applicable to the Company.
13 All transactions with the related parties are in compliance with Section 177 and 188 of the Act and the details have been disclosed in the financial statements as required by the applicable accounting standards.
14 The Company has not made any preferential allotment or private placement of equity shares or fully or partly convertible debentures during the year under the review.
15 The Company has not entered into any non-cash transactions during the year with directors or persons concerned with him.
16 The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
(Referred to in paragraph 2 (g) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
We have audited the internal financial controls over financial reporting of Investment and Precision Castings Limited (âthe Companyâ) as of 31st March, 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. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
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 auditorsâ 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 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 31st March, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For P A R K & COMPANY
Chartered Accountants
FRN: 116825W
ASHISH DAVE
Bhavnagar Partner
24th May 2018 Membership No. 170275
Mar 31, 2017
To
The Members of
INVESTMENT & PRECISION CASTINGS LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Investment & Precision Castings Limited (âthe Company") which comprise the Balance Sheet as at 31 ^ March 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the 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 and financial performance of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules. 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorsâ 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 auditors consider internal financial control relevant to the Company''s preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2017 and of the profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies {Auditorâs Report) Order, 2016 ("the Order") issued by the Central Government of India terms of sub-section (11) of section 143 of the Act. we give in the Annexure
- A, a statement on the matters specified in clause 3 and 4 of the Order, to the extent possible.
2. As required by section 143(3) of the Act. we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors as on 31s'' March 2017, and 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 section 164(2) of the Act;
f) With respect to the adequacy of internal financial controls over financial reporting of the Company and operating effectiveness of such controls, our separate report in annexure -B may be referred;
e) With respect to the other matters to be included in the Auditorsâ 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 explanation given to us:
i. The Company does not have any pending litigations which would impact its financial position except those stated under note no. 30 - Contingent Liabilities;
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring the amounts required to be transferred to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in the financial statements as to holdings as well as dealings in Specified Bank Notes (SBNs) during the period from 8,n November 2016 to 301â1 December 2016. In absence of any external evidences, based on audit procedures and relying on the management representation, we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the management, (refer note no. 34)
(Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirements'' section of our report of even date)
On the basis of such checks as we considered appropriate and in terms of information and explanations given to us, we state that:
1. In respect of fixed assets:
a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b. The fixed assets were physically verified by the management at reasonable intervals in a phased manner in accordance with a programme of physical verification. No discrepancies were noticed on such verification.
c. The title deeds of immovable properties are held in the name of the Company.
2. The inventories were physically verified by the management at reasonable intervals during the year. No material discrepancies were noticed on such physical verification carried out by the Company.
3. The Company has granted unsecured loans to the wholly-owned subsidiary company covered in the register maintained under section 189 of the Companies Act, 2013. Since no terms and conditions of these loans are stipulated, we cannot offer any comments as to the repayment of principal amount or overdue amounts, if any. No interest is charged on these loans.
4. The Company has complied with provisions of Section 185 and 186 of the Act in respect of loans, investments, guarantees and security, to the extent applicable.
5. The Company has not accepted any deposits within the meaning of the provisions of section 73 to 76 or any other relevant provisions of the Act and the rules framed there under with regard to the deposits accepted from the public. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal.
6. We have broadly reviewed the cost records maintained by the Company pursuant to Section 148(1) of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
7. In respect of statutory and other dues:
a. The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax. Cess and other statutory dues, to the extent applicable, with the appropriate authorities during the year. There are no undisputed statutory dues outstanding for a period of more than six months from the date they became payable except for municipal tax Rs. 50,000.
b. There are no amounts outstanding, which have not been deposited on account of dispute except for the followings:
Nature of Payment |
Financial Year |
Forum where dispute is pending |
|
Income Tax |
2002-2003 |
312.000 |
Income Tax Appellate Tribunal |
Value Added Tax |
2002-2003 |
894,939 |
The Commissioner of Gujarat Commercial Tax |
Central Sales Tax |
2012-2013 |
659,381 |
The Commissioner of Gujarat Commercial Tax |
8. The Company has not defaulted in repayment of loans or borrowing to banks. The Company has not obtained any borrowings from any financial institutions or government or by way of debentures.
9. Terms loans obtained by the Company have been applied for the purpose for which they were obtained. The Company has not raised any money, during the year, by way of public offer (including debt instruments).
10. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company or on the Company by its officers or employees was noticed or reported during the year.
11. Managerial remuneration paid or provided by the Company during the year is in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12. Since the Company is not a Nidhi Company, the provisions of clause 3 (xii) of the Order are not applicable to the Company.
13. All transactions with the related parties are in compliance with Section 177 and 188 of the Act and the details have been disclosed in the financial statements as required by the applicable accounting standards.
14. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
15. The Company has not entered into any non-cash transactions during the year with directors or persons concerned with him.
16. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
(Referred to in paragraph 2 (f) under âReport on Other Legal and Regulatory Requirements'' section of our report of even date)
We have audited the internal financial controls over financial reporting of Investment & Precision Castings Limited ("the Company") as of 31st March, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Noteâ) and the Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
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 auditors'' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained Is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles A companyâs internal financial control over financial reporting includes those policies and procedures that â
(1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has. in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017. based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For SANGHAVI & COMPANY
Chartered Accountants
FRN: 109099W
Bhavnagar MANOJ GANATRA
May 23. 2017 Partner
Membership No. 043485
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Investment & Precision Castings Limited ("the Company") which
comprise the Balance Sheet as at 31 March 2015, the Statement of Profit
and Loss, the cash flow statement for the year then ended, and a
summary of the significant accounting policies and other explanatory
information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act")
with respect to the preparation of these standalone financial
statements that give a true and fair view of the financial position and
financial performance of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account
the provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made 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 auditors'' judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal financial control relevant
to the Company''s preparation of the financial statements that give 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
control 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March 2015 and of the profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditor''s Report) Order, 2015 ("the
Order") issued by the Central Government of India terms of sub-section
(11) of section 143 of the Act, we give in the Annexure a statement on
the matters specified in clause 3 and 4 of the Order, to the extent
possible.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors
as on 31 March 2015, and 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 section 164(2) of the Act;
f) With respect to the other matters to be included in the Auditors''
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 explanation given to us:
i. The Company does not have any pending litigations which would impact
its financial position except for those stated under note no. 31 -
Contingent Liabilities;
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses;
iii. There has been no delay in transferring the amounts, required to
be transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO AUDITORS'' REPORT (Referred to in paragraph 1 under
''Report on Other Legal and Regulatory Requirements'' section of our
report of even date)
On the basis of such checks as we considered appropriate and in terms
of information and explanations given to us, we state that:
1. In respect of fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. The fixed assets were physically verified by the management at
reasonable intervals in a phased manner in accordance with a programme
of physical verification. No discrepancies were noticed on such
verification.
2. In respect of inventories:
a. The inventories were physically verified by the management at
reasonable intervals during the year.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. The Company has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification carried
out by the management of the Company.
3. The Company has granted unsecured loans to the companies, firms or
other parties in the register maintained under section 189 of the
Companies Act, 2013. Since no terms and conditions of these loans
granted to the subsidiaries are stipulated, we cannot offer any
comments as to the repayment of principal amount or overdue amounts, if
any.
4. There are adequate internal control procedures commensurate with the
size of the Company and the nature of its business with regard to
purchase of inventory and fixed assets and for the sale of goods and
services except for certain functional areas where internal control
procedures need to be strengthened. During the course of our audit, no
major weakness has been noticed in the internal controls.
5. The company has not accepted any deposits within the meaning of
section 73 to 76 of the Companies Act, 2013 and the rules framed
thereunder.
6. We have broadly reviewed the cost records maintained by the Company
pursuant to Section 148(1) of the Companies Act, 2013 and are of the
opinion that, prima facie, the prescribed cost records have been
maintained. We have, however, not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
7. In respect of statutory and other dues:
a. The Company has been regular in depositing undisputed statutory
dues, including Provident Fund, Employees State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Value
Added Tax, Cess and other statutory dues, to the extent applicable,
with the appropriate authorities during the year. There are no
undisputed statutory dues outstanding for a period of more than six
months from the date they became payable.
b. There are no amounts outstanding, which have not been deposited on
account of dispute except for the followings:
Nature of Payment Financial Year Rs. Forum where dispute
is pending
Income Tax 2002-2003 312,000 Income Tax Appellate
Tribunal
Sales Tax 2002-2003 894,939 The Commissioner of
Gujarat Commercial Tax
c. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
8. The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred cash losses during the
current as well as in the immediately preceding financial year.
9. The Company has not defaulted in repayment of dues to banks. The
company has not obtained any borrowings from any financial institutions
or by way of debentures.
10. The Company has not given any guarantees for loans taken by others
from banks and financial institutions.
11. Terms loans obtained by the Company have been applied for the
purpose for which they were obtained.
12. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For SANGHAVI & COMPANY
Chartered Accountants
FRN: 109099W
Bhavnagar MANOJ GANATRA
May 30, 2015 Partner
Membership No. 043485
Mar 31, 2014
We have audited the accompanying financial statements of Investment &
Precision Castings Limited ("the Company"), which comprise the Balance
Sheet as at 31st March 2014 and the statement of Profit & Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the recognition and measurement principles laid down in the Companies
(Accounting Standards) Rules, 2006 [which continue to be applicable in
respect of section 133 of the Companies Act, 2013 in terms of general
circular 15/2013 dated 13th September 2013 of the Ministry of Corporate
Affairs] as per Section 211(3C) of the Companies Act, 1956 ("the Act").
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsiblity
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors'' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditors
consider internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
b) In the case of the Profit and Loss Statement, of the profit for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India terms of sub-section
(4A) of section 227 of the Act, we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 [which
continue to be applicable in respect of section 133 of the Companies
Act, 2013 in terms of general circular 15/2013 dated 13th September
2013 of the Ministry of Corporate Affairs];
e) On the basis of written representations received from the directors
as on 31st March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any rules under the said section,
prescribing the manner in which such cess to be paid, no cess is due
and payable by the Company.
ANNEXURE TO AUDITORS'' REPORT
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date
On the basis of such checks as we considered appropriate and in terms
of information and explanations given to us, we state that:
1. In respect of fixed assets:
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. Fixed assets are physically verified by the management at reasonable
intervals in a phased manner in accordance with a programme of physical
verification. No material discrepancies were noticed on physical
verification.
c. There was no substantial disposal of fixed assets during the year.
2. In respect of Inventories:
a. The inventories were physically verified by the management at
reasonable intervals during the year.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c. The company has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification.
3. In respect of loans granted or taken to/from companies, firms or
other parties in the register maintained under section 301 of the
Companies Act, 1956:
a. The company has granted unsecured loans to the companies, firms or
other parties covered in the register maintained under section 301 of
the companies Act, 1956. The number of companies to which loans are
granted is one (a wholly-owned subsidiary company) and the amount
involved in the transactions and the year-end balance is Rs. 300,000
and Rs. 5,190,566 respectively.
b. The rate of interest and other terms and conditions of loans given
by the company, are prima facie not prejudicial to the interest of the
company except that no interest is charged on such loans being a
wholly-owned subsidiary company.
c. Since no terms and conditions of the loans grated are stipulated, we
cannot offer any comments as to the repayment of principal amount or
overdue amounts, if any.
d. The company has not taken any loans, secured or unsecured, from the
parties covered in the register maintained under section 301 of the
companies Act, 1956.
4. There are adequate internal control procedures commensurate with the
size of the company and the nature of its business with regard to
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal controls.
5. In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act 1956:
a. Based on the audit procedures applied by us and according to the
information and explanations given to us, the particulars of contracts
or arrangements referred to in section 301 of the Act have been entered
in the register maintained under that section.
b. According to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements have
been made at the prices which are prima facie reasonable having regard
to the prevailing market prices at the relevant time, wherever such
comparison is
6. The company has not accepted any deposits within the meaning of
section 58A and 58AA of the Companies Act 1956 and the rules framed
thereunder.
7. The company has an internal audit system commensurate with its size
and the nature of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1 )(d) of the
Companies Act, 1956 and are of the opinion that, prima facie, the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. In respect of statutory and other dues:
a. The company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education &
Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
statutory dues, to the extent applicable, with the appropriate
authorities during the year. There are no undisputed statutory dues
outstanding for a period of more than six months from the date they
became payable except for value added tax Rs. 22,838.
b. There are no statutory dues as prescribed under the clause, which
have not been deposited on account of any dispute except for the
followings:
Nature of Financial Rs. in lacs Forum where dispute is pending
Payment Year
Income Tax 2002-2003 312,000 Income Tax Appellate tribunal
Sales Tax 2002-2003 894,939 The Commissioner of Gujarat
10 The company does not have any accumulated losses as at the end of
the financial year. The company has not incurred cash losses during the
current or the immediately preceding financial year.
11 Based on our audit procedures and the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks. The company has not obtained any borrowings from any financial
institutions or by way of debentures.
12 The company has not granted loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13 In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) are
not applicable to the company.
14 The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly the provisions of clause
4(xiv) of the Order are not applicable to the company.
15 According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
banks and financial institutions.
16 Terms loans obtained by the company have been applied for the
purpose for which they were obtained.
17 According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, funds raised
on short-term basis, prima facie, have not been used during the year
for long-term investment.
18 The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act 1956 except for allotment of 40,000 equity
shares to a director against conversion of warrants issued to them on
preferential basis in accordance with the guidelines issued by the
Securities and Exchange Board of India in this regard.
19 The company did not have any outstanding debentures 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 and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year.
For SANGHAVI & COMPANY
Chartered Accountants
FRN: 109099W
Bhavnagar MANOJ GANATRA
30th May 2014 Partner
Membership No. 043485
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Investment &
Precision Castings Limited ("the Company"), which comprise the Balance
Sheet as at 31st March 2013 and the statement of Profit & Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors'' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditors
consider internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2013;
b) In the case of the Profit and Loss Statement, of the profit for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central
Government of India terms of sub-section (4A) of section 227 of the
Act, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on 31st March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any rules under the said section,
prescribing the manner in which such cess to be paid, no cess is due
and payable by the Company.
Annexure referred to in paragraph 1 of the report of even date of the
Auditors to the members of INVESTMENT & PRECISION CASTINGS LIMITED
("the Company") on the accounts for the year ended 31st March 2013.
On the basis of such checks as we considered appropriate and in terms
of information and explanations given to us, we state that:
1. In respect of fixed assets:
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. As explained to us, fixed assets are physically verified by the
management at reasonable intervals in a phased manner in accordance
with a programme of physical verification. No material discrepancies
were noticed on physical verification.
c. There was no substantial disposal of fixed assets during the year.
2. In respect of inventories:
a. The inventories were physically verified by the management at
reasonable intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c. The company has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification.
3. In respect of loans granted or taken to/from companies, firms or
other parties in the register maintained under section 301 of the
Companies Act, 1956:
a. The company has granted unsecured loans to the companies, firms or
other parties covered in the register maintained under section 301 of
the companies Act, 1956. The number of companies to which loans are
granted is one (a wholly-owned subsidiary company) and the amount
involved in the transactions and the year-end balance is Rs. 2,211,540
and Rs. 4,890,566 respectively.
b. The rate of interest and other terms and conditions of loans given
by the company, are prima facie not prejudicial to the interest of the
company except that no interest is charged on such loans being a
wholly-owned subsidiary company.
c. Since no terms and conditions of the loans grated are stipulated,
we cannot offer any comments as to the repayment of principal amount or
overdue amounts, if any.
d. The company has not taken any loans, secured or unsecured, from the
parties covered in the register maintained under section 301 of the
companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods and services. During the course of our audit, no
major weakness has been noticed in the internal controls.
5. In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act 1956:
a. Based on the audit procedures applied by us and according to the
information and explanations given to us, the particulars of contracts
or arrangements referred to in section 301 of the Act have been entered
in the register maintained under that section.
b. According to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements have
been made at the prices which are prima facie reasonable having regard
to the prevailing market prices at the relevant time, wherever such
comparison is possible.
6. The company has not accepted any deposits within the meaning of
section 58A and 58AA of the Companies Act 1956 and the rules framed
there under.
7. In our opinion, the company has an internal audit system
commensurate with its size and the nature of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that, prima facie, the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. In respect of statutory and other dues:
a. The company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education &
Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
statutory dues, to the extent applicable, with the appropriate
authorities during the year except for a few instances of service tax
where payments are made beyond due dates. There are no undisputed
statutory dues outstanding for a period of more than six months from
the date they became payable
10 The company does not have any accumulated losses as at the end of
the financial year. The company has not incurred cash losses during the
current or the immediately preceding financial year.
11 Based on our audit procedures and the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks. The company has not obtained any borrowings from any financial
institutions or by way of debentures.
12 The company has not granted loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13 In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) are
not applicable to the company.
14 The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly the provisions of clause
4(xiv) of the Order are not applicable to the Company.
15 According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
banks and financial institutions.
16 Terms loans obtained by the company have been applied for the
purpose for which they were obtained.
17 According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, funds raised
on short-term basis, prima facie, have not been used during the year
for long-term investment.
18 The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act 1956.
19 The company did not have any outstanding debentures 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 and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year.
For SANGHAVI & COMPANY
Chartered Accountants
FRN: 109099W
Bhavnagar MANOJ GANATRA
May 9, 2013 Partner
Membership No. 043485
Mar 31, 2012
We have audited the attached Balance Sheet of Investment & Precision
Castings Limited as at 31st March 2012 and also the Profit & Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the 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 (Auditors' Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
2. Further to our comments in the annexure referred to in paragraph
(1) above, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion, proper books of accounts as required by the law
have been kept by the company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
(iv) In our opinion, the Balance Sheet, Profit & Loss account and Cash
Flow Statements 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;
(v) Based on the written representations made by the directors of the
company and according to the information and explanations given to us,
no director is disqualified as on 31st March 2012 from being appointed
as director under clause (g) of sub-section (1) of section 274 of the
Companies Act 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with all 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:
(a) In the case of the Balance Sheet, of the State of affairs of the
company as at 31st March 2012;
(b) In the case of the Profit & Loss Account, of the PROFIT for the
year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT
Annexure referred to in paragraph 1 of the report of even date of the
Auditors to the members of INVESTMENT & PRECISION CASTINGS LIMITED on
the accounts for the year ended 31st March 2012.
On the basis of such checks as we considered appropriate and in terms
of information and explanations given to us, we state that:
1 In respect of fixed assets:
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. As explained to us, fixed assets are physically verified by the
management at reasonable intervals in a phased manner in accordance
with a programme of physical verification. No material discrepancies
were noticed on physical verification.
c. There was no substantial disposal of fixed assets during the year.
2 In respect of inventories:
a. The inventories were physically verified by the management at
reasonable intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification.
3 In respect of loans granted or taken to/from companies, firms or
other parties in the register maintained under section 301 of the
Companies Act, 1956:
a. The Company has granted unsecured loans to the companies covered in
the register maintained under section 301 of the companies Act, 1956.
The numbers of companies to which loans are granted, is one (a wholly
owned subsidiary company) and the amount involved in the transactions
and the year-end balance is Rs. Nil and Rs. 26.79 Lacs respectively.
b. The rate of interest and other terms and conditions of loans given
by the company, are prima facie not prejudicial to the interest of the
company except that no interest is charged on such loans being a
wholly-owned subsidiary.
c. Since no terms and conditions of the loan granted are stipulated,
we can not offer any comments as to the repayment of principal amount
or overdue amounts, if any.
d. The Company has not taken any loans, secured or unsecured, from the
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
4 In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods and services. During the course of our audit, no
major weakness has been noticed in the internal controls.
5 In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act 1956:
a. Based on the audit procedures applied by us and according to the
information and explanations given to us, the particulars of contracts
or arrangements referred to in section 301 of the Act have been entered
in the register maintained under that section.
b. According to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements have
been made at the prices which are prima facie reasonable having regard
to the prevailing market prices at the relevant time, wherever such
comparison is possible.
6 The company has not accepted any deposits within the meaning of
section 58A and 58AA of the Companies Act 1956 and the rules framed
there under.
7 In our opinion, the company has an internal audit system commensurate
with its size and the nature of its business.
8 The Companies (Cost Accounting Records) Rules 2011 have been
applicable to the Company w.e.f. the financial year 2011-2012. The
company has appointed a Cost Accountant and is in the process of
compliance with the said rules.,
9 In respect of statutory and other dues:
a. The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education &
Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
statutory dues, to the extent applicable, with the appropriate
authorities during the year.
b. The following are the amounts which are not deposited on account of
dispute:
Nature of Rs. Forum where dispute is pending
Payment
Income Tax 10,694,000 Commissioner of Income Tax (Appeals);
AY 2009-10
Income Tax 4,856,000 Commissioner of Income Tax (Appeals);
AY 2005-06
Income Tax 312,000 Income Tax Appellate Tribunal; AY 2003-04
Sales Tax 894,939 Commissioner of Sales Tax; FY 2002-03
10 The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred cash losses during the
current or the immediately preceding financial year.
11 Based on our audit procedures and the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks. The Company has not obtained any borrowings from any financial
institutions or by way of debentures.
12 The Company has not granted loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13 In our opinion, the company is not a chit fund or a nidhilmu.uabenefit fund/society. Therefore, the provisions of clause 4 (xiii) are
not applicable to the company.
14 The Company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly the provisions of clause
4(xiv) of the Order are not applicable to the Company.
15 According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks and financial institutions.
16 Terms loans obtained have been applied for the purpose for which
they were obtained.
17 According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, funds raised
on short-term basis, prima facie, have not been used during the year
for long-term investment.
18 The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act 1956.
19 The Company did not have any outstanding debentures 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 and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For SANGHAVI & COMPANY
Chartered Accountants
FRN: 109099W
Bhavnagar MANOJ GANATRA
May 29, 2012 Partner
Membership No. 043485
Mar 31, 2011
We have audited the attached Balance Sheet of Investment & Precision
Castings Limited as at 31st March 2011 and also the Profit & Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the 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 (Auditors' Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
2. Further to our comments in the annexure referred to in paragraph
(1) above, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion, proper books of accounts as required by the law
have been kept by the company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
(iv) In our opinion, the Balance Sheet, Profit & Loss account and Cash
Flow Statements 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;
(v) Based on the written representations made by the directors of the
company and according to the information and explanations given to us,
no director is disqualified as on 31st March 2011 from being appointed
as director under clause (g) of sub-section (1) of section 274 of the
Companies Act 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with all 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:
(a) In the case of the Balance Sheet, of the State of affairs of the
company as at 31st March 2011;
(b) In the case of the Profit & Loss Account, of the PROFIT for the
year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT
Annexure referred to in paragraph 1 of the report of even date of the
Auditors to the members of INVESTMENT & PRECISION CASTINGS LIMITED on
the accounts for the year ended 31st March 2011.
On the basis of such checks as we considered appropriate and in terms
of information and explanations given to us, we state that:
1 In respect of fixed assets:
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. As explained to us, fixed assets are physically verified by the
management at reasonable intervals in a phased manner in accordance
with a programme of physical verification. No material discrepancies
were noticed on physical verification.
c. There was no substantial disposal of fixed assets during the year.
2 In respect of inventories:
a. The inventories were physically verified by the management at
reasonable intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification.
3 In respect of loans granted or taken to/from companies, firms or
other parties in the register maintained under section 301 of the
Companies Act, 1956:
a. The Company has granted unsecured loans to the companies covered in
the register maintained under section 301 of the companies Act, 1956.
The numbers of companies to which loans are granted, is one (a wholly
owned subsidiary company) and the amount involved in the transactions
and the year-end balance is 32.67 lacs.
b. The rate of interest and other terms and conditions of loans given
by the company, are prima facie not prejudicial to the interest of the
company except that no interest is charged on such loans.
c. Since no terms and conditions of the loan granted are stipulated,
we can not offer any comments as to the repayment of principal amount
or overdue amounts, if any.
d. The Company has not taken any loans, secured or unsecured, from the
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
4 In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods and services. During the course of our audit, no
major weakness has been noticed in the internal controls.
5 In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act 1956:
a. Based on the audit procedures applied by us and according to the
information and explanations given to us, the particulars of contracts
or arrangements referred to in section 301 of the Act have been entered
in the register maintained under that section.
b. According to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements have
been made at the prices which are prima facie reasonable having regard
to the prevailing market prices at the relevant time, wherever such
comparison is possible.
6 The company has not accepted any deposits within the meaning of
section 58A and 58AA of the Companies Act 1956 and the rules framed
thereunder.
7 In our opinion, the company has an internal audit system commensurate
with its size and the nature of its business.
8 As informed to us, the Central Government has not prescribed
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956.
9 In respect of statutory and other dues:
a. The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education &
Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
statutory dues, to the extent applicable, with the appropriate
authorities during the year.
b. The following are the amounts which are not deposited on account of
dispute:
Nature of Payment Rs. Forum where dispute is pending
Value Added Tax 2,886,053 The Dy Commissioner (Appeals) -
Commercial Tax
10 The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred cash losses during the
current or the immediately preceding financial year.
11 Based on our audit procedures and the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks. The Company has not obtained any borrowings from any financial
institutions or by way of debentures.
12 The Company has not granted loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13 In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) are
not applicable to the company.
14 The Company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly the provisions of clause
4(xiv) of the Order are not applicable to the Company.
15 According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks and financial institutions.
16 Term loans obtained have been applied for the purpose for which they
were obtained.
17 According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, funds raised
on short-term basis, prima facie, have not been used during the year
for long-term investment.
18 The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act 1956.
19 The Company did not have any outstanding debentures 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 and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For SANGHAVI & COMPANY
Chartered Accountants
FRN: 109099W
MANOJ GANATRA
Partner
Membership No. 043485
Bhavnagar
May 23, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of Investment & Precision
Castings Limited as at 31st March 2010 and also the Profit & Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. 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 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
2. Further to our comments in the annexure referred to in paragraph
(1) above, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion, proper books of accounts as required by the law
have been kept by the company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
(iv) In our opinion, the Balance Sheet, Profit & Loss account and Cash
Flow Statements 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;
(v) Based on the written representations made by the directors of the
company and according to the information and explanations given to us,
no director is disqualified as on 31s< March 2010 from being appointed
as director under clause (g) of sub-section (1) of section 274 of the
Companies Act 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with all 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:
(a) In the case of the Balance Sheet, of the State of affairs of the
company as at 31st March 2010;
(b) In the case of the Profit & Loss Account, of the PROFIT for the
year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure referred to in paragraph 1 of the report of even date of the
Auditors to the members of INVESTMENT & PRECISION CASTINGS LIMITED on
the accounts for the year ended 31s March 2010._
On the basis of such checks as we considered appropriate and in terms
of information and explanations given to us, we state that:
1 In respect of fixed assets:
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. As explained to us, fixed assets are physically verified by the
management at reasonable intervals in a phased manner in accordance
with a programme of physical verification. No material discrepancies
were noticed on physical verification.
c. There was no substantial disposal of fixed assets during the year.
2 In respect of inventories:
a. The inventories were physically verified by the management at
reasonable intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification.
3 The Company has not granted or taken any loans, secured or unsecured,
to or from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
4 In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods and services. During the course of our audit, no
major weakness has been noticed in the internal controls.
5 In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act 1956:
a. Based on the audit procedures applied by us and according to the
information and explanations given to us, the particulars of contracts
or arrangements referred to in section 301 of the Act have been entered
in the register maintained under that section.
b. According to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements have
been made at the prices which are prima facie reasonable having regard
to the prevailing market prices at the relevant time, wherever such
comparison is possible.
6 The company has not accepted any deposits within the meaning of
section 58A and 58AA of the Companies Act 1956 and the rules framed
thereunder.
7 In our opinion, the company has an internal audit system commensurate
with its size and the nature of its business.
8 As informed to us, the Central Government has not prescribed
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956.
9 In respect of statutory and other dues:
a. The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education &
Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
statutory dues, to the extent applicable, with the appropriate
authorities during the year.
b. The following are the amounts which are not deposited on account of
dispute:
Nature of Payment Rs. Forum where dispute is pending
Sales Tax 1,194,660 Jt. Commissioner (Appeals) -
Commercial Tax
Income Tax 8,268,153 Income Tax Appellate Tribunal
Refer note no. 9 (iv) (a)
Income Tax 2,468,530 Commissioner of Income Tax (Appeals);
Refer note no.9 (iv) (b)
10 The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred cash losses during the
current or the immediately preceding financial year.
11 Based on our audit procedures and the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks. The Company has not obtained any borrowings from any financial
institutions or by way of debentures.
12 The Company has not granted loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13 In our opinion, the company is not a chit fund or a nidhilmutuabenefit fund/society. Therefore, the provisions of clause 4 (xiii) are
not applicable to the company.
14 The Company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly the provisions of clause
4(xiv) of the Order are not applicable to the Company.
15 According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks and financial institutions.
16 Terms loans obtained have been applied for the purpose for which
they were obtained.
17 According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, funds raised
on short-term basis, prima facie, have not been used during the year
for long-term investment.
18 The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act 1956.
19 The Company did not have any outstanding debentures 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 and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For SANGHAVI & COMPANY
Chartered Accountants
MANOJ GANATRA
Partner
Bhavnagar Membership No. 043485
April 30, 2010 FRN: 109099W
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