Mar 31, 2014
1. We have audited the accompanying financial statements of Jai Mata
Glass Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
2. Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in
respect of section 133 of the Companies Act, 2013. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
3. Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the said financial statements together with
the notes thereon and attached thereto give, in the prescribed manner,
the information required by the Act, and give a true and fair view in
conformity with the accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March31,2014;
b) in the case of the Profit and Loss Account, of the profit/ loss 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 thatdate.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order) issued by the Central
Government of India in terms of sub-section (4A) of section 227 of the
Act, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of
ouraudit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from ourexamination 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 opinon,except for the effect of the matters referred to in
Note No.33 to the financial statements in the Balance Sheet, Statement
of Profit and Loss, and Cash Flow Statement comply with the Accounting
Standards referred to in subsection (3C) of section 211 of the
Companies Act, 1956 read with the General Circular 15/2013 dated 13
September 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013;
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Jai Mata Glass Limited on the accounts of the company
for the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) Substantial part of the fixed assets has not been disposed off
during the year so as to affect the going concern but attention is
drawn to note 39 of the financial statements whereby the management
does not consider the issue of going concern and has emphasized its
commitment to provide continued financial and operational support by
utilising the existing dealer network to undertake and develop trading
operations related to its line of business.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms
orother parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(b) According to the information and explanations given to us, the
Company has taken unsecured interest free loan from three parties
listed in the register maintained under Section 301 of the Companies
Act, 1956 and the maximum amount involved during the year aggregate to
Rs. 727.23 lacs and the year-end balance amounted to Rs. 288.03 lacs.
(c) According to the information explanation given, there was no other
terms and conditions for the loan taken. (e) In respect of loan taken
by the Company, the payment towards principal amount is payable on
demand.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act does not exceeds five lacs rupees in a financial year
therefore requirement of reasonableness of transactions does not
arises.
6. According to the information and explanation given to us, the
Company has not accepted any deposits from the public covered under
section 58A and 58AA of the Companies Act, 1956 and the rules framed
there under. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
7. In our opinion and according to the information and explanations
given to us, the company has an internal audit system commensurate to
the size and nature of its business.
8. The Central Government has not prescribed maintenance of the cost
records by the Company under Section 209 (1)(d) of the Act, therefore
the provision of clause 4(viii) of the Companies (Auditor''s Report)
Order, 2003 is not applicable to the Company.
9. (a) According to the records and information and explanations given
to us, the Company has not been regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues with the appropriate authorities and there are
undisputed statutory dues payable for the year ending March 31, 2014 as
given below:
Service Tax Rs. 12,25,745
Service Tax (Payable under voluntary
deposit scheme) Rs. 15,74,013
Barrier Tax Rs. 10,36,036
Sales Tax Rs. 82,32,130
Mandi Tax Rs. 1,87,606
ESI Rs. 10,30,064
However, it is to be read together with comments in Para No. 4(b) in
the Auditor''s Report and Note No. 35 on Financial Statements.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of the dues of
Excise Duty, Sales Tax and Provident Fund, as at March 31, 2014 which
has not been deposited on account of disputes, are as follows:-
Sr.
No. Name of the
Statute Nature of the
dues From where dispute is Amount
pending (Rs. In
lacs)
1 Income Tax
Act, 1961 Income Tax Hon''ble High Court, 23.84
Himachal Pradesh
2 Employees
Provident
Fund Act.1952 Interest & Damages
Charges Employees Provident Fund 46.67
Appellate Tribunal,
New Delhi
10. The accumulated losses of the company have exceeded fifty percent
of its net worth as at the end of the year. The Company has incurred
cash losses during the financial year covered by our audit and in the
immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to bank as at the
Balance Sheet date.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security
byway of pledge of shares, debentures and othersecurities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not dealing in or trading in Shares, Mutual funds & other
Investments. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken
byothersfromabankorfinancialinstitution.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31*
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management
For B Bhushan & Co.
Chartered Accountants
FRN: 001596N
Subhash Agarwalla
Place : New Delhi (Partner)
Date : April 22, 2014 Membership No. : 533256
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying Financial Statements of JAI MATA GLASS
LIMITED, which comprise the Balance Sheet as at 31st March, 2013, the
Statement of Profit and Loss and Cash Flow Statement for the year
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. 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 perform the audit to obtain reasonable
assurance about whether the financial Statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessments,
of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the company''s
preparation and fair preparation 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 believes that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Basis for Qualified Opinion
(a). Note No.28.15 regarding Non-confirmation of balances of loans,
debtors, loans & advances and current liabilities, impact whereof
presently cannot be commented.
(b). Note No.28.24 regarding to the position stated in the said Note,
the Financial Statements have been prepared on the basis that the
Company is a "Going Concern" although losses exceed aggregate of
its paid up capital and reserves. We are unable to express our opinion
on its ability to continue as a "going concern ".
We further report that the loss for the year, balance in statement of
profit and loss, assets and liabilities are without considering the
impact of the items in para (a) & (b) above.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, the financial
statements give the information required by the Act 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 Statement of Profit and Loss, of
The Loss 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 Requirement
1. As required by the Companies (Auditor''s Report) order, 2013
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraph 4 and 5 of the order.
2. Asrequiredbysection227(3)of the Act, we report that:
(a) We have obtained all the information and explanation 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) Except of the effect of the matter described in the Basis for
Qualified Opinion paragraph, in our opinion, the Balance Sheet,
Statement of Profit and Loss, Cash Flow Statement comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Act;
(e) On the basis of written representation received from the directors
as on March 31,2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
In our opinion, and in so far as we have been able to ascertain from
the records produced, information furnished and the explanation given
to us by the Company
1. The Company has generally maintained proper records showing full
particulars including quantitative details and situation of fixed
assets including discarded/scrap building and plant & machinery. .
2. The fixed assets have been physically verified by the management
during the year which in our opinion is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
3. As per information and explanations given by the management during
the year, the Company has not disposed off a major part of fixed assets
during the year.
4. The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
5. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size
ofthe Company and nature of its business.
6. The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
7. a) According to the information and explanation given to us, the
Company has taken unsecured interest free loan
from one company listed in the register maintained under Section 301 of
the Act and the maximum amount involved during the year aggregated to
Rs. 526.27 lacs and the year-end balance amounted to Rs. 523.77 lacs.
b) According to the information and explanation given, there was no
other terms and conditions for the loan taken,
c) As explained to us, the payment of principal amount is payable on
demand.
d) In respect of loan taken by the Company, this is payable on demand
and therefore the question of overdue amount does not arise and the
provisions of sub-clause (d) of clause 4(iii) of the order are not
applicable to the Company.
8. The Company has not granted any loan, secured or unsecured, to
companies, firms and other parties as listed in the Register maintained
under section 301 of the Companies Act, 1956.
9. 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, fixed assets and with
regard to sale of goods. During the course of our audit, no major
weakness has been noticed in internal controls.
10. According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
Register maintained u/s 301 of the Act, have been so entered.
11. In our opinion and according to the information and explanations
given to us, the Company has not entered into contracts or arrangements
exceeding Rs. 5.00 lacs in value with companies in which Directors are
interested as listed in the Register maintained under Section 301 of
the Act.
12. In our opinion and according to the information and explanation
given to us, the Company has not accepted any deposit from the public
within the meaning of Sections 58A& 58AAof the Act and the rules framed
there under.
13. In our opinion, the Company has an internal audit system
commensurate to the size and nature of its business.
14. The Central Govt, has not prescribed maintenance of the cost
records by the Company under Section 209 (1 )(d) of the Act, therefore
the provision of clause 4(viii) often Companies (Auditor''s Report)
Order, 2003 is not applicable to the Company.
15. According to the records and information & explanations given to
us, the Company has not been regular in depositing undisputed statutory
dues including Provident Fund, Employees State Insurance, Income Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other material
statutory dues with the appropriate authorities and there are
undisputed statutory dues payable for a period of more than six months
from the date they became payable for the year ending 31st March, 2013
as given below:
Nature of Dues Amount (Rs.)
Service Tax 33949848
Barrier Tax 1036036
Sales Tax 17336164
MandiTax 187606
However, it is to be read together with comments in Para No. 4 in the
Auditor''s Report and Note No. 28.28 (b) on Financial Statements.
16. According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
Excise Duty and Sales Tax, as at 31 st March, 2013 which have not been
deposited on account of dispute, are as follows:-
Sr. Name ofthe Nature ofthe From where Amount
No. Statute Dues dispute is
Pending (Rs. in lacs)
I. Central
Excise Excise Duty Appellate
Tribunal, 24.76
Act, 1944 Delhi
II. Income Tax
Act, Income Tax Hon''ble High
Court
1961 Himachal Pradesh 23.84
Total 48.60
17. The accumulated losses of the Company are more than fifty per cent
of its net worth. The Company has incurred cash losses during the
financial year covered by our audit, and in the immediately preceding
financial year no cash loss was incurred.
18. The Company has no dues to financial Institutions or banks as at
the Balance Sheet date.
19. According to the information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
20. The Company is not a Chit Fund or a Nidhi/ mutual benefit
fund/society. Therefore, the provision of clause 4 (xiii) of the
Companies (Auditor''s Report) Order, 2003(hereafter referred to as the
said Order ) are not applicable to the Company.
21. The Company is not dealing in or trading in shares, securities,
debentures & other investments. Accordingly, the provisions of clause
(xiv) of the said Order are not applicable to the Company.
22. According to the information and explanation given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
23. According to the information and explanation given to us, the
Company has not received any term loan during the year.
24. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year under report.
25. The Company did not have any outstanding debentures during the
year.
26. The Company has not raised any money through a public issue during
the year.
27. Based on examination of documents and records made available and
on the basis of information and explanations given to us, the Company
has not used funds raised on short basis for long term investments and
vice versa.
28. 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 P.K. MAHESHWARI & CO.
CHARTERED ACCOUNTANTS
FRN. 000977N
(P. K. MAHESHWARI)
Place : New Delhi PARTNER
Date : June03,2013. M. No. 7850
Mar 31, 2012
1. We have audited the attached Balance Sheet of Jai Mata Glass
Limited, as at 31st March, 2012, the Statement of Profit and Loss and
also the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for ouropinion.
3. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Attention is invited to Note No.28.21 (b) on Financial Statements
regarding non-provision of interest & other levies on statutory dues &
the consequential effect on the loss. The amount is unascertainable.
5. Subject to our comments in the Annexure referred to in paragraph 3
& 4, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In ouropinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(iii) 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;
(iv) In ouropinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
(v) On the basis of the written representations received from the
directors, as at 31st March, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as at
31st March, 2012 from being appointed as a director in terms of clause
(g) of sub- section (1) of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Companies Act, 1956, 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 6f affairs of the
Company as at 31st March, 2012;
(b) In the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF JAI MATA GLASS LIMITED ON THE FINANCIAL STATEMENTS AS AT AND
FOR THE YEAR ENDED 31 st MARCH 2012.
1. The Company has generally maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
2. The fixed assets have been physically verified by the management
during the year according to a regular programme of periodic
verification in a phased manner which in our opinion is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies were noticed on such verification.
3. No substantial part of fixed assets has been disposed off during
the year, which has bearing on the going concern status of the Company.
4. The inventory (except in transit) has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
5. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
6. The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
7. a) According to the information and explanation given to us, the
Company has taken unsecured loans from two companies listed in the
register maintained under Section 301 of the Act and the maximum amount
involved during the year aggregated to Rs. 592.55 lacs and the year-end
balance amounted to Rs. 322.48 lacs.
b) According to the information and explanation given, the rate of
interest charged is prima facie not prejudicial to the interest of the
Company. There are no other terms and conditions for the loan taken.
c) As explained to us, the payment of principal amount is payable on
demand and payment of interest is regular.
d) In respect of loan taken by the Company, this is payable on demand
and therefore the question of overdue amount does not arise and the
provisions of sub-clause (d) of clause 4(iii) of the order are not
applicable to the Company.
8. The Company has not granted any loan, secured or unsecured, to
companies, firms and other parties as listed in the Register maintained
undersection 301 of the Companies Act, 1956.
9. 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, fixed assets and with
regard to sale of goods. During the course of our audit, no major
weakness has been noticed in internal controls.
10. According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
Register maintained u/s 301 of the Companies Act, 1956 have been so
entered.
11. In our opinion and according to the information and explanations
given to us, the Company has not entered into contracts or arrangements
exceeding ' 5.00 lacs in value with companies in which Directors are
interested as listed in the Register maintained under Section 301 of
the Companies Act, 1956.
12. In our opinion and according to the information and explanation
given to us, the Company has not accepted any deposit from the public
within the meaning of Sections 58A & 58AA of the Companies Act, 1956
and the rules framed there under.
13. In our opinion, the Company has an internal audit system
commensurate to the size and nature of its business.
14. The Central Govt, has not prescribed maintenance of the cost
records by the Company under Section 209 (1)(d) of the Companies Act,
1956, therefore the provision of clause 4(viii) of the Companies
(Auditor's Report) Order, 2003 is not applicable to the Company.
15. According to the records and information & explanations given to
us, the Company has not been regular in depositing undisputed statutory
dues including Provident Fund, Employees State Insurance, Income Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other material
statutory dues with the appropriate authorities and there are
undisputed statutory dues payable for a period of more than six months
from the date they became payable for the year ending 31 st March, 2012
as given below:
Nature of Dues Amount (Rs.)
Service Tax 3277850
Barrier Tax 1036036
Sales Tax 13031401
Mandi Tax 187606
However, it is to be read together with comments in Para No. 4 in the
Auditor's Report and Note No. 29.26
(b) on Financial Statements.
16. According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
Excise Duty and Sales Tax, as at 31st March, 2012 which have not been
deposited on account of dispute, areasfollows:-
Sr. Name of the Nature of the From where Amount
No. Statute Dues dispute is Pending (Rs. in
lacs)
Pending
I. Central Excise Excise Duty Appellate Tribunal,
Act, 1944 Delhi. 24.76
II. Income Tax Act, Income Tax Hon'ble High Court
1961 Himachal Pradesh 23.84
Total 48.60
17. The accumulated losses of the Company are more than fifty per cent
of its net worth. The Company has not incurred any cash losses during
the financial year covered by our audit, and in the immediately
preceding financial year.
18. The Company has no dues to financial Institutions or banks as at
the Balance Sheet date.
19. According to the information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
20. The Company is not a Chit Fund or a Nidhi/ mutual benefit
fund/society. Therefore, the provision of clause 4 (xiii) of the
Companies (Auditor's Report) Order, 2003(hereafter referred to as the
said Order) are not applicable to the Company.
21. The Company is not dealing in or trading in shares, securities,
debentures & other investments. Accordingly, the provisions of clause
(xiv) of the said Order are not applicable to the Company.
22. According to the information and explanation given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
23. According to the information and explanation given to us, the
Company has not received any term loan during the year.
24. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year under report.
25. The Company did not have any outstanding debenture during the
year.
26. The Company has not raised any money through a public issue during
the year.
27. Based on examination of documents and records made available and
on the basis of information and explanations given to us, the Company
has not used funds raised on short basis for long term investments and
vice versa.
28. 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 P. K. Maheshwari & Co.
Chartered Accountants
FRN.000977N
P. K. Maheshwari
Place . New Delhi (Partner)
Date. June 06,2012. Membership No. 7850
Mar 31, 2010
1. We have audited the attached Balance Sheet of Jai Mata Glass
Limited, as at 31st March, 2010, the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Attention is invited to note no. 20 (b) regarding non provision of
interest & other levies on statutory dues & the consequential effect on
the profit. The amount is unascertainable.
5. Subject to our comments in the Annexure referred to in paragraph 3
& 4 , we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
(v) On the basis of the written representations received from the
directors, as at 31st March, 2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as at
31st March, 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and other notes 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 31 st March, 2010;
(b) In the case of the Profit and 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 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF JAI MATA GLASS LIMITED ON THE ACCOUNTS AS AT AND FOR THE
YEAR ENDED 31st MARCH 2010.
1. The Company has generally maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
2. The fixed assets have been physically verified by the management
during the year according to a regular programme of periodic
verification in a phased manner which in our opinion is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies were noticed on such verification.
3. No substantial part of fixed assets has been disposed off during
the year, which has bearing on the going concern status of the Company.
4. The inventory (except in transit) has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
5. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
6. The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
7. a) According to the information and explanation given to us, the
Company has taken unsecured loans from two companies listed in the
register maintained under Section 301 of the Act and the maximum amount
involved during the year aggregated to Rs.794.10 lacs and the year-end
balance amounted to Rs.684.35 lacs.
b) According to the information and explanation given, the rate of
interest charged is prima facie not prejudicial to the interest of the
Company. There are no other terms and conditions for the loan taken.
c) As explained to us, the payment of principal amount is payable on
demand and payment of interest is regular.
d) In respect of loan taken by the Company, this is payable on demand
and therefore the question of overdue amount does not arise and the
provisions of sub-clause (d) of clause 4(iii) of the order are not
applicable to the Company.
8. The Company has not granted any loan, secured or unsecured, to
companies, firms and other parties as listed in the Register maintained
under section 301 of the Companies Act, 1956.
9. 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, fixed assets and with
regard to sale of goods. During the course of our audit, no major
weakness has been noticed in internal controls.
10. According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
Register maintained u/s 301 of the Companies Act, 1956 have been so
entered.
11. In our opinion and according to the information and explanations
given to us, the Company has not entered into contracts or arrangements
exceeding Rs. 5.00 lacs in value with companies in which Directors are
interested as listed in the Register maintained under Section 301 of
the Companies Act, 1956.
12. In our opinion and according to the information and explanation
given to us, the Company has not accepted any deposit from the public
within the meaning of Sections 58A & 58AA of the Companies Act, 1956
and the rules framed there under.
13. In our opinion, the Company has an internal audit system
commensurate to the size and nature of its business.
14. The Central Govt, has not prescribed maintenance of the cost
records by the Company under Section 209 (1)(d) of the Companies Act,
1956, therefore the provision of clause 4(viii) of the Companies
(Auditors Report) Order, 2003 is not applicable to the Company.
15. According to the records and information & explanations given to
us, the Company has not been regular in depositing undisputed statutory
dues including Provident Fund, Employees State Insurance, Income Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other material
statutory dues with the appropriate authorities and there are
undisputed statutory dues payable for a period of more than six months
from the date they became payable for the year ending 31st March, 2010
as given below:
Nature of Dues (Amount (Rs.)
Provident Fund (since deposited Rs. 2793221/-) 6023815
Service Tax 1731261
Barrier Tax 1036036
Sales Tax 5964779
Mandi Tax 187606
However, it is to be read together with comments in Para No. 4 in the
Auditors Report and Note No. 20.
16. According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
Excise Duty and Sales Tax, as at 31st March, 2010 which have not been
deposited on account of dispute, are as follows :-
Sr. Name of the Nature of the From where Amount
No. Statute Dues dispute is
Pending (Rs. in lacs)
I. Central Excise Excise Duty Appellate
Tribunal, 24.76
Act, 1944 Delhi.
II. Haryana General Sales tax Sales Tax
Tribunal, 0.65
Sales Tax Act Haryana
III.Income Tax Act, Income Tax Honble High
Court
1961 Himachal
Pradesh 23.84
Total 49.25
17. The accumulated losses of the Company are more than fifty per cent
of its net worth. The Company has not incurred any cash losses during
the financial year covered by our audit, and in the immediately
preceding financial year.
18. The Company has no dues to financial Institutions or banks as at
the Balance Sheet date.
19. According to the information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
20. The Company is not a Chit Fund or a Nidhi/ mutual benefit
fund/society. Therefore, the provision of clause 4 (xiii) of the
Companies (Auditors Report) Order, 2003 (hereafter referred to as the
said Order) are not applicable to the Company.
21. The Company is not dealing in or trading in shares, securities,
debentures & other investments. Accordingly, the provisions of clause
(xiv) of the said Order are not applicable to the Company.
22. According to the information and explanation given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
23. According to the information and explanation given to us, the
Company has not received any term loan during the year.
24. According to the information and explanations given to us, the
Company has made the preferential allotment of 70,00,000 Equity Shares
of nominal value Re. 1/- per share to a company covered in the register
maintained under section 301 of the Companies Act, 1956 during the
year, in terms of the Rehabilitation Scheme sanctioned by the Honble
BIFR, vide its order dated April 10, 2006.
25. The Company did not have any outstanding debentures during the
year.
26. The Company has not raised any money through a public issue during
the year.
27. Based on examination of documents and records made available and
on the basis of information and explanations given to us, the Company
has not used funds raised on short basis for long term investments and
vice versa.
28. 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 P.K. Maheshwari & Co.
Chartered Accountants
FRN. 000977N
Place : New Delhi P. K. Maheshwari
Date : July 21, 2010 (Partner)
Membership No. 7850
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