Mar 31, 2018
Independent Auditor''s Report
To the members of Jost''s Engineering Company Limited
REPORT ON THE STANDALONE INDIAN ACCOUNTING STANDARD (IND AS) FINANCIAL STATEMENTS
1. We have audited the accompanying standalone Ind AS financial statements of Jost''s Engineering Company
Limited (''the Company''), 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.
MANAGEMENT''S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
2. 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 Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (''Ind AS'') specified in the Companies ( Indian Accounting Standards) Rule, 2015 (as amended) 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 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.
AUDITOR''S RESPONSIBILITY
3. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
4. 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.
5. 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 financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company''s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
7. 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:
8. 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 its profit ( including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
OTHER MATTER
9. The audited standalone financial statements for the year ended 31st March, 2017, was carried out and reported by erstwhile auditors under previously applicable Generally Accepted Accounting Principles (Previous GAAP), vide their unmodified audit report dated 15th May 201 7, whose report has been furnished to us by the management and which has been relied upon by us for the purpose of reporting adjusted previous year numbers and our audit of the standalone financial statements. Our audit report is not qualified in respect of this matter.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
10. As required by the Companies (Auditor''s Report) Order, 2016 (''the Order'') issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure A, a statement on the matters specified in the paragraphs 3 and 4 of the Order.
11. FURTHER TO OUR COMMENTS IN ANNEXURE A, 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 standalone financial statements dealt with by this report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with Ind AS specified under Section 133 of the Act;
e) On the basis of the written representations received from the directors 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 of Section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in ''Annexure B''; and
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in the standalone Ind AS financial statements as stated in Note No.31 to the standalone Ind AS financial statements.
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; and
iv. the disclosure requirements relating to holdings as well as dealings in specified bank notes were applicable for the period from 8 November 2016 to 30 December 2016 which are not relevant to these standalone financial statements. Hence, reporting under this clause is not applicable.
For Singhi & Co. |
|
Chartered Accountants |
|
Firm Registration Number: |
|
302049E |
|
Sukhendra Lodha |
|
Date: 26th May, 2018 |
Partner |
Place: Mumbai |
Membership no. 071272 |
- A To the Independent Auditor''s Report
(Referred to in paragraph 10 with the heading ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
We report that:
i. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) As explained to us, the fixed assets have been physically verified by management at reasonable intervals under a phased programme of verification. In accordance with this program, certain fixed assets have been physically verified by the management during the year and no material discrepancies have been noticed on such verification. In our opinion this periodicity of physical verification is reasonable having regard to the size of company and nature of its assets.
c) According to the information and explanations given to us and on the basis of our examination, the Company had taken land on lease, classified as operating lease. The title deed of leasehold land is registered in the name of the Company.
ii. As explained to us, the physical verification of inventories has been conducted by the management at reasonable intervals during the year. The discrepancies noticed on physical verification of inventories as compared to book records were not material and have been properly dealt with in the books of account.
iii. As informed to us, the Company has not granted any loan secured or unsecured to Companies, firm or other parties covered in the register maintained under Section 189 of the Companies Act.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provision of section 186 of the Companies Act, 2013 in respect of guarantees provided and investment made and has not granted any Loan. The Company has not granted any loan and guarantees provided under section 185 of the Companies Act, 2013.
v. According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) rules 2014 (as amended).
vi. We have broadly reviewed the books of account maintained by the Company in respect of products for which maintenance of prescribed cost record is mandated by Government of India U/S 148 (1) of the Act. We have, however, not made a detailed examination of these records with a view to determine whether they are accurate or complete.
vii. According to the information and explanations given to us and the records of the Company examined by us:
a) The Company has been generally regular in depositing amounts deducted/accrued in the books of accounts in respect of undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Investor Education and Protection Fund, Income tax, Sales tax, Service Tax, Custom Duty, Excise Duty, cess, Goods & Service Tax and other statutory dues, as applicable.
b) According to the records examined and information and explanations given to us, no undisputed amount payable in respect of Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Cess, Goods & Service Tax and other material statutory dues is outstanding as at 31st March 2018, for a period of more than six months from the date they became payable.
c) There are no dues of Income tax, sales tax, Wealth tax, Service tax, Customs duty, Excise duty and Cess, Goods & Service Tax which have not been deposited with the appropriate authorities on account of any dispute, except as mentioned below:
Name of the Statute |
Nature of Dues |
Amount (In Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise Act, 1944 |
Central Excise |
42.00 |
01.04.2008 to 26.02.2010 |
CESTAT, Mumbai. |
Central Excise Act, 1944 |
Central Excise |
60.44 |
29.04.2008 to 31.07.2008 |
CESTAT, Mumbai. |
Central Excise Act, 1944 |
Central Excise |
647.79 |
01.05.2008 to 28.02.2013 |
CESTAT, Mumbai. |
Central Excise Act, 1944 |
Central Excise |
303.11 |
27.02.2010 to 31.10.2012 |
CESTAT, Mumbai. |
Central Excise Act, 1944 |
Central Excise |
140.04 |
01.10.2011 to 31.03.2013 |
CESTAT, Mumbai. |
Central Excise Act, 1944 |
Central Excise |
42.95 |
01.12.2011 to 31.03.2013 |
CESTAT, Mumbai. |
Central Excise Act 1944 |
Central Excise |
101.09 |
01.11.2012 to 31.10.2013 |
CESTAT, Mumbai. |
Central Excise Act, 1944 |
Central Excise |
48.94 |
01.04.2013 to 31.10.2014 |
CESTAT, Mumbai. |
Central Excise Act, 1944 |
Central Excise |
50.81 |
01.11.2013 to 31.03.2014 |
CESTAT, Mumbai. |
Central Excise Act, 1944 |
Central Excise |
11.00 |
01.11.2014 to 31.07.2015 |
CESTAT, Mumbai. |
Central Excise Act, 1944 |
Central Excise |
0.62 |
08.01.2015 to 31.03.2016 |
CESTAT, Mumbai. |
Name of the Statute |
Nature of Dues |
Amount (In Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Service tax under Finance Act, 1994 |
Service Tax |
4.27 |
01.01.1999 to 31.03.2002 |
Assistant Commissioner of Service Tax, Mulund Division, Mumbai-lll. |
Service tax under Finance Act, 1994 |
Service Tax |
0.39 |
01.04.2002 to 31.03.2003 |
Assistant Commissioner of Service Tax, Mulund Division, Mumbai-lll. |
Service tax under Finance Act, 1994 |
Service Tax |
0.78 |
01.04.2005 to 30.09.2005 |
Assistant Commissioner of Service Tax, Division VI, Mumbai. |
MVAT Act, 2002 |
MVAT |
0.62 |
A.Y. 2009-10 |
Deputy Commissioner of Sales Tax, Mumbai |
The Central Sales Tax Act, 1956 |
Central Sales Tax |
10.43 |
A.Y. 2009-10 |
Deputy Commissioner of Sales Tax, Mumbai. |
The Central Sales Tax Act, 1956 |
Central Sales Tax |
3.09 |
A.Y. 2010-11 |
Assistant Commissioner of Sales Tax, Mumbai |
The Central Sales Tax Act, 1956 |
Central Sales Tax |
76.03 |
A.Y. 2011-12 |
Joint Commissioner of Sales Tax, Mazgaon. |
The Central Sales Tax Act, 1956 |
Central Sales Tax |
1.26 |
A.Y. 2012-13 |
Sales Tax Officer, Mumbai. |
viii. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not defaulted in repayment of loans or borrowings to any financial institution, bank or Government. The Company had neither any outstanding debenture at the beginning of the year nor has it issued any debenture during the year.
ix. According to the information and explanations given to us and based on our examination of the records of the Company, the Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. The term loans were applied for purpose for which they were raised.
x. To the best of our knowledge and according to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 1 97 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the Ind AS Financial Statements as required by the applicable Indian accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable.
For Singhi & Co. |
|
Chartered Accountants |
|
Firm Registration Number: |
|
302049E |
|
Sukhendra Lodha |
|
Date: 26th May, 2018 |
Partner |
Place: Mumbai |
Membership no. 071272 |
Annexure - B To the Independent Auditor''s Report
(Referred to in paragraph 11 (f) with the heading ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (''the Act'')
1. We have audited the internal financial controls over financial reporting of Jost''s Engineering Company Limited (''the Company'') 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.
MANAGEMENT''S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
2. The Company''s management is responsible for establishing and maintaining internal financial controls
based on the internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
AUDITOR''S RESPONSIBILITY
3. Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the ''Guidance Note'') and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the 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.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
6. Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations 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
7. 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
8. 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 Singhi & Co. |
|
Chartered Accountants |
|
Firm Registration Number: 302049E |
|
Sukhendra Lodha |
|
Date: 26th May, 2018 |
Partner |
Place: Mumbai |
Membership no. 071272 |
Mar 31, 2017
Report on the Financial Statements
We have audited the accompanying standalone financial statements of JOST''S ENGINEERING COMPANY LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of 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 financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the 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 financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 its loss 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, 2017 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, Read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 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 of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure II".
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 27 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in the financial statements as regards its holdings and dealings in Specified Bank Notes as defined in the Notification S.O. 3407 (E) dated the 8th November, 2016 of the Ministry of Finance, during the period from 8th November 2016 to 30th December 2016. Based on audit procedures and relying on the management representation, we report that such disclosures are in accordance with the books of account maintained by the Company and as produced to us by the Management - Refer Note 48 to the financial statements.
Referred to in Paragraph 1 under the heading "Report on other legal and regulatory requirements" of our Independent Auditor''s Report of even date,
(i) (a) The Company has generally maintained proper records showing full particulars, including quantitative details and situation of its fixed assets.
(b) All the assets have not been physically verified by the management during the year but there is a regular programme of verification, which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. We are informed that no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties as disclosed in fixed assets to the financial statements, are held in the name of the Company.
(ii) As explained to us, physical verification of inventory has been conducted at reasonable intervals by the management and the discrepancies noticed on verification between the physical stocks and the book records were not material having regard to the size of the Company, and the same have been properly dealt with in the books of account.
(iii) The Company has not granted secured / unsecured loans to Companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Consequently, requirements of clause (iii) of paragraph 3 of the Order are not applicable.
(iv) The Company has not advanced any loan or given any guarantee or provided any security or made any investment covered under Sections 185 and 186 of the Act. Consequently, requirements of clause (iv) of paragraph 3 of the Order are not applicable.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of Sections 73 to 76 or any other relevant provisions of the Act and rules framed there under. 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.
(vi) According to the information and explanations given to us, the Company is required to maintain cost records for certain products manufactured by the Company under Section 148(1) of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Amendment Rules, 2014. We are of the opinion that prima facie, the prescribed records have been made and maintained. We have not, however, made a detailed examination of these records.
ANNEXURE I TO THE INDEPENDENT AUDITOR''S REPORT (contd.) Referred to in paragraph 1 of our Report of even date.
(vii) a. The Company is generally 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 any other material statutory dues with the appropriate authorities. According to the information and explanations given to us, there are no outstanding statutory dues as at the last day of the financial year which were outstanding for a period of more than six months from the date they became payable.
b. According to the records of the Company as at 31st March 2017, the following are the particulars of disputed dues on account of Income Tax, Sales Tax, Service Tax, Custom Duty and Excise Duty matters which have not been deposited.
Name of the Statute |
Nature of Dues |
Amount (Rs. in Lakhs) |
Period to which matter relates |
Forum where dispute is pending |
The Central Sales Tax Act, 1956 and Bombay Sales Tax Act, 1956 |
Sales Tax |
0.33 |
A.Y. 2005-06 |
Deputy Commissioner of Sales Tax, Mazgaon, Mumbai. |
MVAT Act, 2002 |
Sales Tax |
3.05 |
A.Y. 2008-09 |
Asst. Commissioner of Sales Tax Business Audit I Mumbai. |
MVAT Act, 2002 / The Central Sales Tax Act, 1956 |
Sales Tax |
930.46 |
A.Y. 2009-10 |
Deputy Commissioner of Sales Tax, Mazgaon Mumbai. |
The Central Sales Tax Act, 1956 |
Sales Tax |
324.86 |
A.Y. 2010-11 |
Joint Commissioner of Sales Tax, Mumbai. |
The Central Sales Tax Act, 1956 |
Sales Tax |
3.08 |
A.Y. 2010-11 |
Assistant Commissioner of Sales Tax, Mumbai. |
The Central Sales Tax Act, 1956 |
Sales Tax |
1.26 |
A.Y. 2012-13 |
Sales Tax Officer, Mumbai. |
Central Excise Act |
Central Excise |
42.00 |
1.4.2008 to 26.2.2010 |
CESTAT, Mumbai. |
Central Excise Act |
Central Excise |
60.44 |
29.4.2008 to 31.7.2008 |
CESTAT, Mumbai. |
Central Excise Act |
Central Excise |
101.09 |
1.11.2012 to 31.10.2013 |
CESTAT, Mumbai. |
Central Excise Act |
Central Excise |
289.86 |
27.2.2010 to 31.10.2012 |
CESTAT, Mumbai. |
Central Excise Act |
Central Excise |
660.29 |
1.5.2008 to 31.3.2013 |
CESTAT, Mumbai. |
Central Excise Act |
Central Excise |
137.69 |
1.10.2011 to 31.3.2013 |
CESTAT, Mumbai. |
Central Excise Act |
Central Excise |
37.46 |
1.12.2011 to 31.3.2013 |
Additional Commissioner of Central Excise, Pune III Commissionerate. |
Central Excise Act |
Central Excise |
50.81 |
1.11.2013 to 31.3.2014 |
Additional Commissioner of Central Excise, Mumbai III Commissionerate. |
Central Excise Act |
Central Excise |
48.94 |
1.4.2013 to 31.10.2014 |
CESTAT, Mumbai. |
Central Excise Act |
Central Excise |
11.00 |
1.11.2014 to 31.7.2015 |
CESTAT, Mumbai. |
Finance Act |
Service Tax |
4.27 |
1.1.1999 to 31.3.2002 |
Assistant Commissioner of Service Tax, Mulund Division, Mumbai - III. |
Finance Act |
Service Tax |
0.39 |
1.4.2002 to 31.3.2003 |
Assistant Commissioner of Service Tax, Mulund Division, Mumbai - III. |
Finance Act |
Service Tax |
0.78 |
1.4.2005 to 30.9.2005 |
Assistant Commissioner of Service Tax Division VI, Mumbai. |
Finance Act |
Service Tax |
5.09 |
1.7.2000 to 31.3.2003 |
CESTAT, Mumbai. |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions and banks.
(ix) To the best of our knowledge and belief and according to the information and explanations given to us, the Company has not raised money by way of initial public offer or further public offer (including debt instruments). The term loan received by the Company from a Bank was applied for the purpose for which it was received.
(x) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) To the best of our knowledge and belief and according to the information and explanations given to us, no managerial remuneration except fees paid to Directors for attending Board meetings and Committee meetings has been paid/provided during the year. Consequently, requirements of clause (xi) of paragraph 3 of the Order are not applicable.
(xii) The Company is not a Nidhi Company. Consequently, requirements of clause (xii) of paragraph 3 of the Order are not applicable.
(xiii) To the best of our knowledge and belief and according to the information and explanations given to us, all transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards.
(xiv) To the best of our knowledge and belief and according to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Consequently, requirements of clause (xiv) of paragraph 3 of the Order are not applicable.
(xv) To the best of our knowledge and belief and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) According to the nature of the business, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For Sorab S. Engineer & Co.
Chartered Accountants
Firm Registration No. 110417W
CA. N. D. Anklesaria
Partner
Mumbai: 15th May, 2017. Membership No. 10250
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Jost's Engineering Company Limited ("the Company"), which
comprise the Balance Sheet as at March 31, 2015, 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.
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, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies, making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operation
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's 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 its 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 in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
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 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 March 31,2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2015, from being
appointed as a director in terms of section 164(2) of the Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us;
i) The Company has disclosed the impact of pending litigation on its
financial position in its financial statements - Refer Note 26 to the
financial statements.
ii) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITORS' REPORT Referred to in paragraph 1 of our
Report of even date.
i. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of its Fixed
Assets.
b. All the assets have not been physically verified by the management
during the year but there is a regular programme of verification, which
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. We are informed that no material
discrepancies were noticed on such verification.
ii. a. As explained to us, the inventory has been physically verified
by the management during the year. In our opinion, the frequency of verification is reasonable.
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 nature of its business.
c. On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material, having regard
to the size of the company and the same have been properly dealt with.
iii. The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013. Accordingly, the clauses
(iii) (a) and (iii) (b) of paragraph 3 of the Order are not applicable.
iv. 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 purchases of inventory and fixed assets and for
the sale of goods and services. During the course of our audit we have
not observed any continuing failure to correct major weaknesses in the
internal controls.
v. The Company has not accepted any deposits from the public to which
the provisions of Section 73 to 76 or any other relevant provisions of
the Companies Act, 2013 and rules framed thereunder and directions
issued by R.B.I. would apply.
vi. According to the information and explanations given to us, the
Company is required to maintain cost records for certain products
manufactured by the Company under Section 148(1) of the Companies Act,
2013 read with the Companies (Cost Records and Audit) Amendment Rules,
2014. We are of the opinion that prima facie, the prescribed records
have been made and maintained. We have not, however, made a detailed
examination of these records.
vii. a. The Company is generally regular in depositing undisputed
statutory dues, including Provident Fund, Employees' State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Valued Added Tax, Cess and any other material statutory dues with
the appropriate authorities. According to the information and
explanations given to us, there are no outstanding statutory dues as at
the last day of the financial year which were outstanding for a period
of more than six months from the date they became payable.
b. According to the records of the Company as at 31st March 2015, the
following are the particulars of disputed dues on account of Income Tax,
Sales Tax, Service Tax, Custom Duty and Excise Duty matters which have not
been deposited.
Name of Nature of Amount Period to which
the Statute Dues (Rs. in Lakhs) matter relates
The Andhra
Pradesh General Works 19.78
Sales Tax Act, 1956 Contract Tax
The Central Sales Sales Tax 0.33 A.Y2005-2006
Tax Act, 1956
and Bombay Sales
Tax Act, 1956
The Central Sales Sales Tax 155.96 A.Y. 2002-2003
Tax Act, 1956
The Central Sales Sales Tax 138.66 A.Y. 2003-2004
Tax Act, 1956
The Bombay Sales Sales Tax 211.78 A.Y. 2003-2004
Tax Act, 1956
The Central Sales Sales Tax 19.18 A. Y 2008-2009
Tax Act, 1956
MVATAct, 2002 Sales Tax 3.25 A.Y. 2008-2009
Central Excise Act Central Excise 42.55 1.4.2008 to
26.2.2010
Central Excise Act Central Excise 61.24 29.4.2008 to
31.7.2008
Central Excise Act Central Excise 101.09 1.11.2012 to
31.10.2013
Central Excise Act Central Excise 303.11 27.2.2010 to
31.10.2012
Central Excise Act Central Excise 647.79 1.5.2008 to
31.3.2013
Central Excise Act Central Excise 51.86 1.10.2011 to
31.3.2013
Central Excise Act Central Excise 19.78 1.12.2011 to
31.3.2013
Central Excise Act Central Excise 26.74 1.11.2013 to
31.3.2014
Central Excise Act Central Excise 25.76 1.4.2013 to
31.10.2014
Finance Act Service Tax 4.27 1.1.1999 to
31.3.2002
Finance Act Service Tax 0.39 1.4.2002 to
31.3.2003
Finance Act Service Tax 0.78 1.4.2005 to
20.9.2005
Finance Act Service Tax 1.58 29.9.2001 to
29.1.2002
Finance Act Service Tax 5.09 1.7.2000 to
31.3.2003
The Income Tax Income Tax 6.99 A.Y. 2009-2010
Act, 1961
The Income Tax Income Tax 47.71 A.Y. 2011-2012
Act. 1961
Name of the Statute Forum where dispute is pending
The Andhra Pradesh General Asst. Commissioner Of Sales Tax
Sales Tax Act, 1956 (Appeals), Kanchipuram.
The Central Sales Tax Deputy Commissioner of Sales Tax,
Act, 1956 and Bombay Mazgaon Mumbai.
Sales Tax Act, 1956
The Central Sales Jt. Commissioner Of Sales Tax
Tax Act, 1956 (Appeals) Mumbai.
The Central Sales Jt. Commissioner Of Sales Tax
Tax Act, 1956 (Appeals) Mumbai.
The Bombay Sales Jt. Commissioner Of Sales Tax
Tax Act, 1956 (Appeals) Mumbai,
The Central Sales Asst. Commissioner of Sales Tax
Tax Act, 1956 Business Audit I Mumbai
MVATAct, 2002 Asst. Commissioner of Sales Tax Business
Audit I Mumbai
Central Excise Act Commissioner of Central Excise (Appeals)
Mumbai - III, Belapur.
Central Excise Act Commissioner of Central Excise (Appeals)
Mumbai III, Belapur.
Central Excise Act CESTAT Mumbai.
Central Excise Act CESTAT, Mumbai.
Central Excise Act CESTAT, Mumbai.
Central Excise Act Additional Commissioner of Central
Excise, Mumbai III Commissionerate.
Central Excise Act Additional Commissioner of Central
Excise, Pune III Commissionerate.
Central Excise Act Additional Commissioner of Central
Excise, Mumbai III Commissionerate.
Central Excise Act Additional Commissioner of Central
Excise, Mumbai III Commissionerate.
Finance Act Assistant Commissioner of Service Tax,
Mulund Division, Mumbai - III.
Finance Act Assistant Commissioner of Service Tax,
Mulund Division, Mumbai - III.
Finance Act Assistant Commissioner of Service Tax,
Division VI, Mumbai.
Finance Act CESTAT Mumbai.
Finance Act CESTAT Mumbai.
The Income Tax
Act, 1961 CIT (A) - 5
The Income Tax
Act. 1961 CIT (A) - 5
c. The Company has transferred the amounts which are required to be
transferred to Investor Education and Protection Fund in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made there under within time.
viii. The Company has no accumulated losses as at 31st March, 2015 and
it has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
ix. In our opinion and according to the information and explanations
given by the Management, during the year there is no default in the
repayment of dues to any financial institutions or banks.
x. In our opinion and according to the information and explanations
given by the Management, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
xi. On the basis of the records examined by us, and relying on the
information compiled by the Company for co-relating the funds raised to
the end-use of term loans, we state that the Company has, prima facie,
applied the term loans for the purpose for which they were obtained.
xii. Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For Sorab S. Engineer & Co.
Chartered Accountants
Firm Registration No. 110417W
CA. N. D. Anklesaria
Partner
Mumbai: 27th May, 2015. Membership No. 10250
Mar 31, 2014
We have audited the accompanying financial statements of Jost''s
Engineering Company 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.
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 notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th 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.
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 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
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 March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us;
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 and with the returns received from the branches not visited by
us;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards notified
under the Companies Act, 1956 ("the Act") read with the General
Circular 15/2013 dated 13th 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.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in paragraph 1 of our Report of even date.
i. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of its Fixed
Assets.
b. All the assets have not been physically verified by the management
during the year but there is a regular programme of verification, which
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. We are informed that no material
discrepancies were noticed on such verification.
c. According to the information and explanations given to us, the
Company has not disposed off substantial part of its fixed assets
during the year.
ii. a. The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
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 nature of its business.
c. On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
iii. a. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the clauses 4 (iii) (b) to (g) of the Order are not
applicable.
iv. 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 purchases of inventory and fixed assets and for
the sale of goods and services. During the course of our audit we have
not observed any continuing failure to correct major weaknesses in the
internal controls.
v. a. In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements that need to
be entered into the register maintained under section 301 of the
Companies Act, 1956 have been so entered.
b. In respect of transactions in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 in respect of any party, the same have been made at prices
which are reasonable having regard to the prevailing market prices or
at prices for which similar transactions have been made with other
parties, except for transactions of special nature where comparable
alternative quotations were not available or where a comparison of
prices could not be made since there were no similar transactions with
other parties.
vi. The Company has not accepted any deposits from the public to which
the provisions of section 58A, 58AA or any other relevant provisions of
Companies Act, 1956 and the rules framed there under would apply.
vii. In our opinion and according to the information and explanations
given to us, the Company has an internal audit system commensurate with
its size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 in respect of products manufactured by the Company. We are of
the opinion that prima facie the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of these records.
ix. a. The Company is generally regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other
material statutory dues with the appropriate authorities. There are no
outstanding statutory dues as at the last day of the financial year
which were outstanding for a period of more than six months from the
date they became payable.
b. According to the records of the Company as at 31st March 2014, the
following are the particulars of disputed dues on account of Income
Tax, Sales Tax, Service Tax, Custom Duty and Excise Duty matters which
have not been deposited.
Name of the Statute Nature of Dues Amount Forum where dispute
is pending
(Rs. in
Lakhs)
The Andhra Pradesh Works Contract 19.78 Assistant
Commissioner of Sales
Tax
General Sales Tax
Act, 1956 Tax (Appeals) Kanchipuram
The Tamil Nadu
General Sales Tax 120.73 Deputy Commissioner
(CT) Sales Tax
Sales Tax, 1959. Appellate Tribunal,
Chennai.
The Central Sales
Tax Act, 1956 Sales Tax 0.33 Deputy Commissioner
of Sales Tax,
& Bombay Sales
Tax Act, 1956 2005-06 Mazgaon, Mumbai.
The Central Sales Sales Tax Asst. 155.96 Jt. Commissioner of
Sales Tax
Tax Act, 1956 Year 2002-03 (Appeals)
The Central Sales
Tax Sales Tax Asst. 138.66 Jt. Commissioner of
Sales Tax
Act, 1956 Year 2003-04 (Appeals)
The Bombay Sales Sales Tax Asst. 211.78 Jt. Commissioner of
Sales Tax
Tax Act, 1956 Year 2003-04 (Appeals)
The Central Sales
Tax Sales Tax Asst. 19.18 Asst. Commissioner of
Sales Tax
Act 1956 Year 2008-09 Business Audit
Mumbai
MVAT Act, 2002 Sales Tax Asst. 3.25 Asst. Commissioner
of Sales Tax
Year 2008-09 Business Audit
Mumbai
Central Excise Act Central Excise 22.10 Additional
Commissioner of
Central Excise,
Mulund Division
Central Excise Act Central Excise 14.54 Additional
Commissioner of
Central Excise,
Mulund Division
Central Excise Act Central Excise 31.81 Additional
Commissioner of
Central Excise,
Mulund Division
Central Excise Act Central Excise 303.11 CESTAT, Mumbai
Central Excise Act Central Excise 108.21 Commissioner of
Central Excise,
Mulund Division
Central Excise Act Central Excise 743.54 CESTAT, Mumbai
Central Excise Act Central Excise 38.20 Additional
Commissioner of
Central Excise,
Mulund Division
Central Excise Act Service Tax 4.27 Assistant
Commissioner of
Service Tax,
Mulund
Central Excise Act Service Tax 0.39 Assistant
Commissioner of
Service Tax,
Mulund
Central Excise Act Service Tax 0.78 Assistant
Commissioner of
Service Tax,
Division VI,
Mumbai
Central Excise Act Service Tax 1.58 CESTAT, Mumbai
Central Excise Act Service Tax 5.09 CESTAT, Mumbai
The Income Tax
Act, 1961 Income Tax 7.00 CIT (A)-5
The Income Tax Act,
1961 Income Tax 47.71 CIT (A)-5
x. The Company has no accumulated losses as at 31st March, 2014 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given by the Management, during the year there is no default in the
repayment of dues to any financial institutions or banks.
xii. In our opinion and according to the information and explanations
given by the Management, the Company has not granted any loans and
advances on the basis of security by way of pledge of Shares,
Debentures or any other security.
xiii. In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause 4
(xiii) of the Order are not applicable.
xiv. In our opinion, the Company is not dealing or trading in shares,
securities, Debentures and any other investments. Therefore, the
provisions of clause 4(xiv) of the Order are not applicable.
xv. In our opinion and according to the information and explanations
given by the management, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
xvi. On the basis of the records examined by us, and relying on the
information compiled by the Company for co-relating the funds raised to
the end-use of term loans, we state that the Company has, prima facie,
applied the term loans for the purpose for which they were obtained.
xvii. According to the information and explanations given to us, and on
an overall examination of the financial statements and after placing
reliance on the reasonable assumptions made by the Company for
classification of Short term and Long term usage of the funds, we are
of the opinion that, prima facie, no funds raised on short term basis
have been utilized for long term investment.
xviii. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956.
xix. According to the information and explanations given to us the
Company has not issued any debentures during the year
xx. The Company has not made any public issues during the year.
xxi. Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For Sorab S. Engineer & Co.
Chartered Accountants
Firm Registration No. 110417W
C.A. N. D. Anklesaria
Partner
Mumbai: 21st May, 2014. Membership No. 10250
Mar 31, 2012
We have audited the attached Balance Sheet of JOST'S ENGINEERING
COMPANY LIMITED, as at 31st March, 2012, Statement of Profit and Loss
and also the Cash Flow statement of the Company for the year ended on
that date both 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1) As required by the Companies (Auditor's Report) Order, 2003 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.
2) Further to our comments in the Annexure referred to in paragraph 1
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us.
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
applicable 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, 2012 and taken on record by the Board of Directors,
we report that none of the said directors are disqualified as on 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.
f) Subject to our comments in Annexure referred to in paragraph 1
above, in our opinion and to the best of our information and according
to the explanations given to us, the said accounts read together with
notes thereon give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012
ii. In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT Referred to in paragraph 1 of our
Report of even date.
i. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of its Fixed
Assets.
b. All the assets have not been physically verified by the management
during the year but there is a regular programme of verification, which
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. We are informed that no material
discrepancies were noticed on such verification.
c. According to the information and explanations given to us, the
Company has not disposed off substantial part of its fixed assets
during the year.
ii. a. The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
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 nature of its business.
c. On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
iii. a. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the clauses 4 (iii) (b) to (g) of the Order are not
applicable.
iv. 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 we have
not observed any continuing failure to correct major weaknesses in the
internal controls Attention is invited to the matters stated in Note
no. 44.
v. a. In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements that need to
be entered into the register maintained under section 301 of the
Companies Act, 1956 have been so entered.
b. In respect of transactions in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 in respect of any party, the same have been made at prices
which are reasonable having regard to the prevailing market prices or
at prices for which similar transactions have been made with other
parties, except for transactions of special nature where comparable
alternative quotations were not available or where a comparison of
prices could not be made since there were no similar transactions with
other parties.
vi. The Company has not accepted any deposits from the public to which
the provisions of section 58A, 58AA or any other relevant provisions of
Companies Act 1956 and the rules framed there under would apply.
vii. In our opinion and according to the information and explanations
given to us, the Company has an internal audit system commensurate with
its size and nature of its business.
viii. From the current year, rules for maintaining cost records
prescribed by the Central Government under Section 209 (1)(d) of the
Companies Act, 1956, have become applicable for the products
manufactured , by the company. The company is in the process of
compiling the cost records.
ix. a. The Company is generally regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education and
Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other
material statutory dues with the appropriate authorities. The following
is the outstanding statutory due as at the last day of the financial
year which was outstanding for a period of more than six months from
the date it has become payable.
Particulars Amount (Rs. in Lakhs)
Service Tax 15.36
b. According to the records of the Company as at 31st March 2012, the
following are the particulars of disputed dues on account of Income
Tax, Sales Tax, Service Tax, Custom Duty and Excise Duty matters which
have not been deposited.
Name of the
Statute Nature of Dues Amount Forum where dispute is
pending.
(Rs. in Lakhs)
The Andhra
Pradesh Works Contract 19.78 Assistant Commissioner
of Sales Tax
General
Sales Tax
Act, Tax (Appeals) Kanchipuram
1956
The Tamil
Nadu
General Sales Tax 120.73 Deputy Commissioner
(CT) Sales Tax
Sales
Tax, 1959. Appellate Tribunal,
Chennai.
The Central
Sales Tax Sales Tax 0.33 Deputy Commissioner of
Sales Tax,
Act, 1956
& Bombay 2005-06 Mazgaon, Mumbai.
Sales Tax
Act, 1956
The Central
Sales Sales Tax Asst. 155.96 Jt. Commissioner of
Sales Tax
Tax Act,
1956 Year 2002-03 (Appeals)
The Central
Sales Tax Sales Tax Asst. 138.66 Jt. Commissioner of
Sales Tax
Act, 1956 Year 2003-04 (Appeals)
The Bombay
Sales Sales Tax Asst. 211.78 Jt. Commissioner of
Sales Tax
Tax Act,
1956 Year 2003-04 (Appeals)
Central
Excise Act Service Tax 5.52 Deputy Commissioner
& Asst. Commissioner
of Central Excise
Central
Excise Act Central Excise 345.28 Commissioner & Asst.
Comm. of Central Excise
x. The Company has no accumulated losses as at 31st March, 2012 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given by the Management, during the year there is no default in the
repayment of dues to any financial institutions or banks. '
xii. In our opinion and according to the information and explanations
given by the Management, the Company has not granted any loans and
advances on the basis of security by way of pledge of Shares,
Debentures or any other security. .
xiii. In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause 4
(xiii) of the Order are not applicable.
xiv. In our opinion, the Company is not dealing or trading in shares,
securities, Debentures and any other investments. Therefore, the
provisions of clause 4(xiv) of the Order are not applicable.
xv. In our opinion and according to the information and explanations
given by the management, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
xvi. No term loans have been taken by the company. Therefore, the
provisions of clause 4(xvi) of the Order are not applicable.
xvii. According to the information and explanations given to us, and
on an overall examination of the financial statements and after placing
reliance on the reasonable assumptions made by the Company for
classification of Short term and Long term usage of the funds, we are
of the opinion that, prima facie, no funds raised on short term basis
have been utilised for long term investment.
xviii. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956.
xix. According to the information and explanations given to us, the
Company has not issued any debentures during the year
xx. The Company has not made any public issues during the year.
xxi. Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For Sorab S. Engineer & Co.
Chartered Accountants
Firm Registration No. 110417W
C. A. N. D. Anklesaria
Partner
Mumbai: 8th May, 2012. Membership No. 10250
Mar 31, 2011
We have audited the attached Balance Sheet of JOSTS ENGINEERING
COMPANY LIMITED, as at 31st March, 2011, the Profit and Loss account
and also the Cash Flow statement for the year ended on that date both
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 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 and 5 of the said
Order.
2) Further to our comments in the Annexure referred to in paragraph 1
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us.
c) The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the mandatory
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, 2011 and taken on record by the Board of Directors,
we report that none of the said directors are disqualified as on 31st
March, 2011 from being appointed as a director in terms of clause (g)
of sub-section (1) of section 274 of the Companies Act, 1956;
f) Subject to our comments in Annexure referred to in paragraph 1
above, in our opinion and to the best of our information and according
to the explanations given to us, the said accounts read together with
notes thereon give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
i. In the case of the balance sheet, of the state of affairs of the
Company as at 31st March, 2011
ii. In the case of the profit & loss account, of the profit for the
year ended on that date; and
iii. In the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT Referred to in paragraph 1 of our
Report of even date.
1) a. The Company has maintained proper records showing full
particulars including quantitative details and situation of its Fixed
Assets.
b. All the assets have not been physically verified by the management
during the year but there is a regular programme of verification, 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.
c. According to the information and explanations given to us, the
Company has not disposed off substantial part of its fixed assets
during the year.
2) a. The inventory has been physically verified by the management
during the year other than inventory lying with certain third parties
in respect of which confirmations have been obtained. In our opinion,
the frequency of verification is reasonable.
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 nature of its business.
c. On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
3) a. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, the clauses
4 (iii) (b) to (d) of the Order are not applicable.
e. During the year, the Company had taken an unsecured loan, from a
Company, covered in the register maintained under section 301 of the
Companies Act, 1956 amounting to Rs 50 lacs which has been repaid
during the year. In respect of the said loan, the maximum balance
outstanding during the year was Rs. 50 Lacs.
f. In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which the loan has been taken from the Company referred to in paragraph
4(iii)(e) above, is not, prima facie, prejudicial to the interest of
the Company.
g. According to the information and explanations given to us, the
Company has been regular in repayment of principal amount as stipulated
and has been regular in payment of interest.
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 we have
not observed any continuing failure to correct major weaknesses in the
internal controls. Attention is invited to the matters stated in Note
No. 24, Schedule 14.
5) a. In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements that need to
be entered into the register maintained under section 301 of the
Companies Act, 1956 have been so entered.
b. In respect of transactions in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 in respect of any party, the same have been made at prices
which are reasonable having regard to the prevailing market prices or
at prices for which similar transactions have been made with other
parties, except for transactions of special nature where comparable
alternative quotations were not available or where a comparison of
prices could not be made since there were no similar transactions with
other parties.
6) The Company has not accepted any deposits from the public to which
the provisions of section 58A, 58AA or any other relevant provisions of
Companies Act, 1956 and the rules framed there under would apply.
7) In our opinion and according to the information and explanations
given to us, the Company has an internal audit system commensurate with
its size and nature of its business.
8) We are informed that the Central Government has not prescribed
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 for any products manufactured by the Company.
9) a. The Company is generally regular in depositing undisputed
statutory dues, including the Provident Fund, Investor Education and
Protection Fund, Employees State insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other
material statutory dues with the appropriate authorities. The following
are the outstanding statutory dues as at the last day of the financial
year which were outstanding for a period of more than six months from
the date they became payable.
Particulars Amount (Rs. in Lakhs)
Service Tax 2.20
Professional Tax 0.67
b. According to the records of the Company as at 31st March 2011, the
following are the particulars of disputed dues on account of Income
Tax, Sales Tax, Service Tax, Custom Duty and Excise Duty matters which
have not been deposited.
Name of the Statute Nature of Dues Amount Forum where
(Rs. in Lakhs) dispute is
pending.
The Andhra Pradesh Works Contract 19.78 Assistant
Commissioner
of Sales
Tax
General Sales
Tax Act, Tax (Appeals)
Kanchipuram
1956
TheTamil Nadu
General Sales Tax 120.73 Deputy
Commissioner
(CT) Sales
Tax
Sales Tax, 1959. Appellate
Tribunal,
Chennai.
The Central
Sales Tax Sales Tax 0.33 Deputy
Commissioner
of
Sales Tax,
Act, 1956 &
Bombay 2005-06 Mazgaon,
Mumbai.
Sales Tax
Act, 1956
The Central
Sales Sales Tax Asst. 155.96 Jt. Commissioner
of Sales Tax
Tax Act, 1956 Year 2002-03 (Appeal)
The Central
Sales Tax Sales Tax Asst. 138.66 Jt. Commissioner
of Sales
Tax
Act, 1956 Year 2003-04 (Appeal)
The Bombay
Sales Sales Tax Asst. 211.78 Jt. Commissioner
of Sales Tax
Tax Act, 1956 Year 2003-04 (Appeal)
Central Excise Act Service Tax 5.52 Deputy
Commissioner
& Asst.
Commissioner of
Central Excise
Central Excise Act Central Excise 170.98 Commissioner &
Asst. Comm.
of Central Excise
10) The Company has no accumulated losses as at 31st March, 2011 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11) In our opinion and according to the information and explanations
given by the Management, during the year there is no default in the
repayment of dues to any financial institutions or banks.
12) In our opinion and according to the information and explanations
given by the Management, the Company has not granted any loans and
advances on the basis of security by way of pledge of Shares,
Debentures or any other security.
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) of
the Order are not applicable.
14) In our opinion, the Company is not dealing or trading in "shares,
securities, debentures and any other investments. Therefore, the
provisions of clause 4(xiv) of the Order are not applicable.
15) In our opinion and according to the information and explanations
given by the management, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
16) On the basis of the records examined by us, and relying on the
information compiled by the Company for co-relating the funds raised to
the end use of the Term Loan, we state that the Company has, prima
facie, applied the Term Loan for the purpose for which it was obtained.
17) According to the information and explanations given to us, and on
an overall examination of the financial statements and after placing
reliance on the reasonable assumptions made by the Company for
classification of Short term and Long term usage of the funds, we are
of the opinion that, prima facie, no funds raised on short term basis
have been utilized for long term investment.
18) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956.
19) According to the information and explanations given to us, the
Company has not issued any debentures during the year
20) The Company has not made any public issues during the year.
21) Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For Sorab S. Engineer & Co.
Chartered Accountants
Firm Registration No. 110417W
C. A. N. D. Anklesaria
Partner
Membership No. 10250
Mumbai: 6th May, 2011.
Mar 31, 2010
We have audited the attached Balance Sheet of JOSTS ENGINEERING
COMPANY LIMITED as at 31st March 2010, the Profit and Loss Account and
also the Cash Flow statement for the year ended on that date both
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 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 and 5 of the said
Order.
2) Further to our comments in the Annexure referred to in paragraph 1)
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us;
(c) The Balance Sheet, Profit and Loss Account and Cash flow statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
flow statement dealt with by this report comply with the mandatory
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, 2010 and taken on record by the Board of Directors,
we report that none of the said Directors are disqualified as on 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;
(f) Subject to our comments in Annexure referred to in Paragraph 1
above, in our opinion and to the best of our information and according
to the explanations given to us, the said accounts read together with
the notes thereon give the information required by the Companies Act,
1956 in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India
:-
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(ii) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
(iii) in the case of Cash Flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT Referred to in paragraph 1 of our
Report of even date.
i. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its Fixed
Assets.
b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification, 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.
c) According to the information and explanations given to us, the
Company has not disposed off substantial part of its fixed assets
during the year.
ii. a) The inventory has been physically verified by the management
during the year other than inventory lying with certain third parties
in respect of which confirmations have been obtained. In our opinion,
the frequency of verification is reasonable.
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 nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
iii. a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, the clauses
4(iii) (b) to (d) of the Order are not applicable.
e) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, the clauses
4(iii) (f) and (g) of the Order are not applicable.
iv. 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 we have
not observed any continuing failure to correct major weaknesses in the
internal controls. Attention is invited to the matters stated in Note
No.24, Schedule 14.
v. a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements that need to
be entered into the register maintained under section 301 of the
Companies Act, 1956 have been so entered.
b) In respect of transactions in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 in respect of any party, the same have been made at prices
which are reasonable having regard to the prevailing market prices or
at prices for which similar transactions have been made with other
parties, except for transactions of special nature where comparable
alternative quotations were not available or where a comparison of
prices could not be made since there were no similar transactions with
other parties.
vi. The Company has not accepted any deposits from the public to which
the provisions of section 58A, 58AA or any other relevant provisions of
Companies Act, 1956 and the rules framed there under would apply.
vii. In our opinion and according to the information and explanations
given to us, the company has an internal audit system commensurate with
its size and nature of its business.
viii. We are informed that the Central Government has not prescribed
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 for any products manufactured by the company.
ix. a) The Company is regular in depositing undisputed statutory dues,
including the Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and any other material statutory
dues with the appropriate authorities and there are no arrears of
outstanding statutory dues as at the last day of the financial year for
a period of more than six months from the date they became payable.
b) According to the records of the Company as at 31st March 2010, the
following are the particulars of disputed dues on account of Income
Tax, Sales Tax, Service Tax, Custom Duty and Excise Duty matters which
have not been deposited:
Name of the Statute Nature of Dues Amount Forum where
(Rs. in Lakhs) dispute is
pending.
The Andhra Pradesh Works Contract 19.78 Assistant Commiss
-ioner of Sales Tax
General Sales Tax, Tax (Appeals) Kanchi
-puram
1956
Maharashtra Sales
Tax Sales Tax 0.33 Jt. Commissioner of
Sales Tax
(MST) (Appeals), Maharashtra.
Service Tax Service Tax 5.52 Deputy Commissioner
& Assistant Commissi
-oner of Central Excise
Central Excise Central Excise 170.98 Commissioner & Assis
-tant Commissioner of
Central Excise.
TheTamil Nadu
General Sales Tax 120.73 Deputy Commissioner
(CT) Sales Tax
Sales Tax, 1959. Appellate Tribunal,
Chennai.
x. The company has no accumulated losses as at 31st March, 2010 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given by the Management, during the year there is ne default in the
repayment of dues to any financial institutions or banks.
xii. In our opinion and according to the information and explanations
given by the Management, the company has not granted any loans and
advances on the basis of security by way of pledge of Shares,
Debentures or any other security.
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of Clause 4 (xiii) of
the Order are not applicable.
xiv. In our opinion, the Company is not dealing or trading in shares,
securities, Debentures and any other investments. Therefore, the
provisions of Clause 4(xiv) of the Order are not applicable.
xv. In our opinion and according to the information and explanations
given by the management, the company has not given any guarantee for
loans taken by others from banks or financial institutions.
xvi. On the basis of the records examined by us, and relying on the
information compiled by the company for co-relating the funds raised to
the end use of the Term Loan, we state that the Company has, prima
facie, applied the Term Loan for the purpose for which it was obtained.
xvii. According to the information and explanations given to us, and on
an overall examination of the financial statements and after placing
reliance on the reasonable assumptions made by the Company for
classification of Short-term and Long-term usage of the funds, we are
of the opinion that, prima facie, no funds raised on short-term basis
have been utilized for long-term investment.
xviii. According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956.
xix. According to the information and explanations given to us, the
company has not issued any debentures during the year.
xx. The company has not made any public issues during the year.
xxi. Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the year.
For Sorab S. Engineer & Co.
Chartered Accountants
C. A. N. D. Anklesaria
Partner
Membership No. 10250
Mumbai: 4th May, 2010. Firm Registration No.110417W
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