Auditor Report of Kesar Petroproducts Ltd.
Mar 31, 2018
INDEPENDENT AUDITOR''S REPORT
TO THE MEMBERS OF
KESAR PETROPRODUCTS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of KESAR PETROPRODUCTS LIMITED (''the Company''), which comprise the balance sheet as at 31 March 2018, the statement of profit and loss (including other comprehensive income), the statement of cash flows and the statement of changes in equity for the year then ended and a summary of the significant accounting policies and other explanatory information
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 including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the 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. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under and the Order issued under section 143(11) of the Act
We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the 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 Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the 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 internal financial controls over financial reporting; and
(g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us :
i. The company has no pending litigation which would impact its financial position except those disclosed in financial statements;
ii. The company did not have any long-term contract including derivative contract for which there were any material foreseeable losses;
iii. There were no amounts which were required by the company to be transferred to the Investor Education and Protection Fund, and;
2. As required by Section 143(3) of the Act, based on our audit we report that:
As required by the Companies (Auditorâs 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 B, a statement on the matters specified in the paragraph 3 and 4 of the Order.
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 March 31, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the Balance Sheet, the Statement of Profit and Loss including other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account.;
(d) in our opinion, the aforesaid financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
(e) on the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 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 A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs
(Referred to in paragraph 1(f) under ''Report on Other Legal and Regulatory Requirements'' section of our report to the Members of KESAR PETROPRODUCTS LIMITED 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")
on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for my /our audit opinion on the Companyâs internal financial controls system over financial reporting.
We have audited the internal financial controls over financial reporting of KESAR PETROPRODUCTS LIMITED ("the Company") as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standardsnot be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 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.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and
v. In our opinion and according to information and explanations given to us, the Company has not accepted deposits in terms of the provisions of section 73 to 76 of the Companies Act, 2013 and rules framed there under. Therefore, the paragraph 3(v) of the Order is not applicable to the company.
vi. We have reviewed the books of account maintained by the Company pursuant to the rules prescribed by the Central Government for maintenance of cost records u/s 148(1) of the Companies Act 2013 in relation to products manufactured and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records.
vii. a) According to the information and explanations given to us and on the basis of our examination of the books of accounts, the company has been generally regular in depositing undisputed statutory dues including provident fund, employee state insurance, income tax, service tax, value added tax, cess and other statutory dues during the year with the appropriate authorities. As on 31st March 2018, there are no undisputed statutory dues payables for period exceeding more than six month from the date they become payable.
b) According to the information and explanations given to us, there were no statutory dues pending in respect of income tax, sales tax, VAT, custom duty and cess etc. on account of any dispute.
i. a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
b) According to the information and explanations given to us, the Fixed Assets have been physically verified by the management at regular intervals and no material discrepancies were noticed on such verification
c) The title deeds of immoveable properties are held in the name of the company.
ii. The inventories, have been physically verified by the management during the year at reasonable interval. According to information & explanations given to us, the discrepancies noticed on verification between the physical stock and books record, have been properly dealt with in the Books of accounts.
iii. According to information & explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, limited liabilities partnership or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Hence, reporting under clause (a) to (c) of Para 3(iii) are not applicable.
iv. The Company has not entered into any transaction in respect of loans, investments, guarantee and securities, which attracts compliance to the provisions of the sections 185 and 186 of the Companies Act, 2013. Therefore the paragraph 3(iv) of the Order is not applicable to the company.
xiv. In our opinion and according to the information provided to us, the company had not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information provided to us, the company has not entered into any non-cash transaction with directors or the persons connected with him covered under section 192 of the Companies Act 2013. Therefore, paragraph 3(xv) of the Order is not applicable to the company.
xvi. According to the information provided to us, the company is not required to be registered under section 45IA of the Reserve Bank of India Act, 1934. Therefore, paragraph 3(xvi) of the Order is not applicable to the company.
viii. During the year the company has not defaulted in repayment of loans or borrowings to the banks. The company has not taken any loan or borrowings from any financial institution or Government. The company has not issued debentures.
ix. Money raised by way of term loan were applied for the purpose for which it was raised. The Company has not raised money by way of initial public offer or further public offer.
x. According to the information and explanation given to us by the management which have been relied by us, there were no frauds on or by the company noticed or reported during the period under audit.
xi. In our opinion, the managerial remuneration paid or provided by the company is in accordance with the provision of section 197 read with Schedule V of the Companies Act 2013..
xii. The company is not a Nidhi Company, therefore para 3(xii) of the Order is not applicable.
xiii. In our opinion and according to the information provided to use, the transaction entered with the related partied are in compliance with section 177 and 188 of the Act and are disclosed in the financial statements as required by the applicable accounting standards.
For A Sachdev & Co.
Chartered Accountants
(Firm''s Registration No. 001307C)
CA Manish Agarwal
Place: Mumbai (Partner)
Date : 30th May, 2018 (M.no. 078628)
Mar 31, 2016
To
The Members of
KESAR PETROPRODUCTS LIMITED Report on the Financial Statements
We have audited the accompanying financial statements of M/s. KESAR PETROPRODUCTS LIMITED, which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and 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 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 the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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 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 true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the 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;
a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2016,
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 Cash Flow Statement of the Cash Flows of the Company for the year ended on that date.
Report on other Legal and Regulatory Requirements
As required by the Companies (Auditors'' Report) Order, 2016 ( "the Order") issued by the Central Government of India in term of sub-section (11) of section 143 of the Companies Act, 2013. We give in the Annexure A statement on the matters specified in paragraphs 3 and 4 of the Order.
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 Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid 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 31st March, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016, from being appointed as a director in terms of Section 164(2) of the Act.
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''.
The Annexure referred to in our Independent Auditor''s Report to the members of the Company on the financial statements for the year ended 31 March 2016, we report that:
On the basis of such checks as considered appropriate and in terms of the information and explanations given to us, we state as under:-
(i) (a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The company has a regular program of physical verification of its fixed assets by which all fixed assets are verified in a phased manner. In our opinion physical verification is reasonable, having regards to the size of the company and nature of its assets. No material discrepancies were noticed on such verification.
(ii) (a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable;
(b) The procedure for physical verification of inventory followed by the management are reasonable and adequate in relation to size of the company and the nature of its business;
(c) The company is maintaining proper records of inventory. The discrepancies noticed during the physical verification of inventories as compared to book records were not material and have been dealt with in the books of account;
(iii) According to the information and explanations given to us, the company has not granted any loans secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
(iv) In my 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 for the purchase of inventory and fixed assets and for the sale of goods. During the course of our audit, no other major weaknesses have been noticed in the internal controls and there is no continuing failure for the same.
(v) The company has not accepted any deposits from public.
(vi) We have reviewed the books of account maintained by the Company pursuant to the rules prescribed by the Central Government for maintenance of cost records u/s 148(1) of the Companies Act, 2013 in relation to products manufactured and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however made a detailed examination of the records.
(vii) (a) According to the information and explanations given to us and the records examined by us, the company is regular in depositing with the appropriate authorities undisputed statutory dues, Employees Provident Fund and Sales Tax.
(b) According to the records of the company there are no dues of Sales Tax, Income Tax, Customs, Wealth Tax, Excise Duty Cess which have not been deposited on account of dispute.
(c) According to the information and explanations given to us the amounts which were required to be transferred to the investor education and protection fund in accordance with the relevant provisions of the Companies Act, 2013 and rules there under has been transferred to such fund within time.
(viii) The company does not have accumulated losses at the end of the financial year and has not cash losses in the current financial year and in the immediately preceding financial year.
(xi) Based on our audit procedures and the information and explanations given by the management, we are of the opinion that the Secured loans due payable by the company as at 31/03/2016 are as per the details tabulated hereunder:-
|
Name of the Institution/Purpose |
Amount in Rs |
|
Other Secured Loans |
4,11,33,106 |
(x) According to information and explanation given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions.
(xi) According to information and explanation given to us, the company during the year has not applied for any term loans.
(xii) To the best of our knowledge and belief and according to the information and explanations given to us, no material fraud on or by the company has been noticed or reported during the year
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (''the Act'')
We have audited the internal financial controls over financial reporting of Kesar Petroproducts Limited (''the Company'') as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''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 the Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the ''Guidance 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 were established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of 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 authorizations of the Management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, 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 SAYEED KHAN & ASSOCIATES
Chartered Accountants
Firm Regd. No.125227W
SAYEED KHAN
Proprietor
M.No.117114
Place: Mumbai
Date: 24th May, 2016
Mar 31, 2015
We have audited the accompanying financial statements of M/s. KESAR
PETROPRODUCTS LIMITED, which comprise the Balance Sheet as at 31st
March, 2015, the Statement of Profit and Loss and 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 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 the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the 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 internal financial control, 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
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the 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;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015; ,
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 Cash Flow Statement of the Cash Flows of the Company
for the year ended on that date.
Emphasis of matters
We draw attention to the following notes in Note 2 attached to the
financial statements. Our opinion is not qualified in respect of these
matters.
i. Notes 2 (m) regarding Secured Loans from M/s. Invent Assets
Reconstruction Company Limited and other matters as referred to
thereunder.
Report on other Legal and Regulatory Requirements
As required by the Companies (Auditors' Report) Order, 2015 ( "the
Order") issued by the Central Government of India in term of
sub-section (11) of section 143 of the Companies Act, 2013. We give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order. 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 Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid 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 31st March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
For SAYEED KHAN & ASSOCIATES
Chartered Accountants (FRN 125227W)
SAYEED KHAN
Proprietor M.No.117114
Place: Mumbai
Date : 24th July, 2015
Mar 31, 2014
We have audited the accompanying financial statements of M/s. KESAR
PETROPRODUCTS LIMITED, which comprise the Balance Sheet as at March 31,
2014, the Statement of Profit and Loss and 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 Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and
financial performance of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the 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. 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 Profit and Loss Account, of the Profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
Emphasis of matters
We draw attention to the following notes in Note 24 Part B attached to
the financial statements. Our opinion is not qualified in respect of
these matters.
i. Notes 24 A (2) regarding Company accounting for encashment of leave
salary and gratuity, on cash basisand other matters referred to
thereunder.
ii. Notes 24 B (1) regarding Company being declared out of the purview
of the Sick Company''s definition and other matters referred to
thereunder.
iii. Notes 24 B (2) regarding Secured Loans from M/s. Invent Assets
Reconstruction Company Limited and other matters as referred to
thereunder.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) order 2003, issued
by the Central Government on India in terms of section 227 (4A) of the
Companies Act, 1956 (The Act) and on the basis of such checks as we
considered appropriate and according to the informations and
explanations given to us during the course of audit, we enclose herein
the annexures a statement on the matters specified in paragraphs 4 and
5 of the said order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 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;
and;
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.
Statement referred to in paragraph 3 of the Auditors Report of even
date to the members of M/s. KESAR PETROPRODUCTS LIMITED on the accounts
for the year ended 31st March, 2014.
On the basis of such checks as considered appropriate and in terms of
the information and explanations given to us, we state as under:-
1 (a) In our opinion, the record of fixed assets maintained by the
Company has been duly updated to show full particulars and situation of
the fixed assets;
(b) We are informed that the physical verification of the fixed assets
has been duly carried out by the management of the company during the
year;
(c) During the year the company has not disposed off any substantial,
major part of its fixed assets
2 (a) We are informed that the inventories of the company has been
subjected to physical verification by the management.
(b) In our opinion and according to the information and explanations
given to us, the company has verified its inventory for identification
and valuations of its inventory.
(c) As informed to us by the management, the company is maintaining
proper records for inventory and the physical verification of stock was
duly conducted at regular intervals. Having regards to the size of the
operations of the company and the nature of the stocks held, the
discrepancies noticed on verification between physical stocks and book
records were not material and have been properly dealt with in the book
of accounts.
3. As per the information furnished, during the year the company has
not granted or taken any loans, secured or unsecured, to or from any
companies, firms, or other parties covered in the register maintained
u/s 301 of the Companies Act, 1956 hence clause 3 (b), 3 (c), 3 (d), 3
(e), 3 (f) & 3 (g) are not applicable to the company.
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 it business
with regards to the purchases of inventory and fixed assets and for the
sale of goods. During the course of our audit, no other major
weaknesses have been noticed in the internal controls and there is no
continuing failure for the same.
5. (a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that needed to be entered into the
registers maintained u/s 301 of the Companies Act, 1956 have been duly
entered.
(b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements entered in the registers maintained u/s 301 of the
Companies Act, 1956 and exceeding the value of Rupees Five Lacs in
respect of any party during the year.
6. The Company has not accepted any deposit, within the meaning of
section 58A of the Companies Act, 1956 and the rules framed there
under.
7. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government of
India for the maintenance of cost records under Section 209(1)(d) of
the Companies Act, 1956, in respect of the manufacture of chemicals and
are of the opinion that, prima facie, the prescribed records and
accounts have been made and maintained. However, we have not carried
out a detailed examination of such records with a view to determining
whether they are accurate or complete.
9. (a) According to the information and explanations given to us and
the records examined by us, the company is regular in depositing with
the appropriate authorities undisputed statutory dues, Employees
Provident Fund and Sales Tax.
(b) According to the records of the company there are no dues of Sales
Tax, Income Tax, Customs, Wealth Tax, Excise Duty Cess which have not
been deposited on account of dispute except the company had been served
with an order u/s 271 (1) (c) & subsequent demand u/s 156 under the
Income Tax Act, 1961 for the periods; AY 2002-03 for Rs. 4,42,098/-, AY
2003-04 for Rs. 3,79,195/-, AY 2007-08 for Rs. 1,92,07,921/-. The total
amount of outstanding demand with the Income Tax Department totals to
Rs2,00,29,214/-. The company has preferred an appeal with the Income
Tax Appellate Tribunal for AY 2002-03 and 2003-04 and appeal is pending
with Commissioner of Income Tax (Appeals) for AY 2007-08.
10. The accumulated losses as at the end of the year do not exceed
fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year.
11. Based on our audit procedures and the information and explanations
given by the management, we are of the opinion that the Secured loans
due payable by the company as at 31/03/2014which pertains to the
erstwhile management prior to the takeover by the new management, are
as per the details tabulated hereunder:-
Name of the Institution/Purpose Amount in Rs.
Secured Loans For Fixed Assets 1,45,00,000
Other Secured Loans 2,46,04,037
Canara Bank* 14,15,000
TOTAL AMOUNT 4,05,19,037
* Canara Bank has transferred the assets to an Assets Reconstruction
Company at Zero value. The company remains committed to settle the
issue amicably.
12. Based on our examination of the record and the information and
explanations given to us, the Company has not granted any loans and/or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. Clause (xiii) of the Order is not applicable to the company as the
company is not a Chit Fund Company or Nidhi or Mutual Benefit Fund or
Society.
14. During the year the company has no transactions in respect of
dealing in shares, securities, debentures and other investments. All
shares, debentures and other securities have been held by the company
in its own name.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, no Term
Loans were raised during the year.
17. Based on our examination of the Balance Sheet of the company as at
31st March, 2014, we find that the company has not used funds raised on
short term basis for long term investments.
18. The company has not made any preferential allotment of shares
during the year.
19. During the year covered by our audit report the company has not
issued any secured debentures.
20. The company has not raised money by public issues during the year
covered by our audit.
21. As per the information and explanations given to us, no fraud on or
by the company has been noticed or reported during the year.
For Sayeed Khan & Associates
Chartered Accountants
Place : Mumbai Sayeed Khan
Date : 8th September, 2014 Proprietor
Mar 31, 2012
1. We have audited the attached Balance Sheet of KESAR PETROPRODUCTS
LIMITED' as at 31" March' 2012 and also the Profit & Loss Account and
Cash Flow of the Company for the year ended on the date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining' on a test basis' evidence supporting the amount and
disclosures in the financial statements. An audit also includes
assessing the accounting principle used and significant estimates made
by the management' as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) order 2003' issued
by the Central Government on India in terms of section 227 (4A) of the
Companies Act' 1956 (The Act) and on the basis of such checks as we
considered appropriate and according to the informations and
explanations given to us during the course of audit' we enclose herein
the annexures a statement on the matters specified in paragraphs 4 and
5 of the said order.
4. Without qualifying our opinion' we draw attention to the following
notes to the financial statements;
i. The company has not provided for any interest payable and/or
exchange gain/loss and any revision in the waivers and the outstanding
balances thereby remaining payable on External Commercial Borrowings'
Financial Institutions and losses on account of provisions for doubtful
and irrecoverable Advances and Receivables. Due to this' the loans and
losses remain understated by amounts of such interests' exchange
loss/gain' provisions of doubtful & irrecoverable advances and
receivables. (Refer Note: B-1'2 & 3 of Note 24).
ii. The company has not translated the External Commercial Borrowings
at the rates prevailing as at 31 st March' 2012 as per the provisions
of AS-11 "Accounting for Effects of changes in Foreign Exchange Rates"
issued by the Institute of Chartered Accountants of India. The company
has not quantified the amount for the same. (Refer Note:
B-1'2&3ofNote24).
iii. No provisions have been made by the company for liability towards
Gratuity and Leave Encashments payable to employees on retirement since
the same are accounted for on cash basis. The same is not in consonance
with the provisions of AS-15 "Accounting for Retirement Benefits in
Financial Statements" issued by the Institute of Chartered Accountants
of India.
iv. The company has not obtained any confirmations for the balances for
Secured Loans from Financial Institutions' Banks' Unsecured Loans'
Sundry Debtors' Sundry Creditors' Advances Recoverable' Loans &
Advances. All the balances therefore are as per the books of accounts
and the same remain subject to reconciliations and confirmations if
any. (Refer Note: B-1'2'3 & 4 of Note 24)
v. The company has not provided for any losses on account of
devaluation' expiration' obsolescence and damages in the stocks. The
inventories have been valued and ascertained as certified by the
management.
vi. The company has not provided for the payment of deferred Sales tax
due for payment in the accounts during the year under consideration. In
our opinion the short term liabilities and the losses for the year
remain understated by the amount of such pro-rata installment due on
account of the repayment of the Deferred Sales Tax benefit availed by
the company in the earlier years.
5. Further to our comments in the annexure referred to 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 purpose of our
audit subject to the fact that the earlier years' no proper takeover of
accounts or operations of the company could be effected upon and as per
the managements explanations due to sabotage and personnel
irresponsibility and menace' the books of accounts for all the easier
periods ie prior to January 2008 have been lost. Hence detailed
examination of the accounts and the records of the earlier periods
could not be undertaken by us and the audit has been conducted based
upon the available records on hand which was presented by the
management before us. (Refer Note: B-1'2' & 3 of Note 24).
b. In our opinion' except for the non provision of interest payable
and/or exchange gain/loss and any revision in the waivers and
the-outstanding balances thereby remaining payable on External
Commercial Borrowings' Financial Institutions and losses on account of
provisions for doubtful and irrecoverable Advances and Receivables the
Company has kept proper books of account as required by Law' so far as
appearfrom our examination of the books. (Refer Note: B-1'2' & 3 of
Note 24).
c. The Balance Sheet and Profit & Loss Account dealt with by this
Report are in agreement with the books of account.
d. In our opinion' except for non compliance with provisions of AS 15
(Refer clause g (ii) below) the Balance Sheet and Profit & Loss Account
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards prescribed Under Section 211 (3C) of the Companies
Act' 1956.
e. On the basis of the 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 Directors is disqualified as on
31 st March' 2012 from being appointed as a Director in terms of Clause
(g) of Sub-Section (1) of Section 274 of the CompaniesAct' 1956.
f. In our opinion' and to the best our information and according to
the explanation given to us' the said accounts give the information
required by the Companies Act' 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the case of Balance Sheet of the state of affairs of the Company
as on 31 st March' 2012.
b) In the case of the Profit & Loss Account of the Loss for the year
ended on that date.
For Sayeed Khan & Associates
Chartered Accountants
Place: Mumbai Sayeed Khan
Date : 10* September' 2012 Proprietor
Statement referred to in paragraph 3 of the Auditors Report of even
date to the members of M/s. KESAR PETROPRODUCTS LIMITED on the accounts
for the year ended 31" March' 2012.
On the basis of such checks as considered appropriate and in terms of
the information and explanations given to us' we state as under:-
1 (a) In our opinion' the record of fixed assets maintained by the
Company has been duly updated to show full particulars and situation of
the fixed assets;
(b) We are informed that the physical verification of the fixed assets
has been duly carried out by the management of the company during the
year;
(c) During the yearthe company has not disposed off any substantial'
major part of its fixed assets
2 (a) We are informed that the inventories of the company has been
subjected to physical verification by the management. (b) In our
opinion and according to the information and explanations given to us'
the company has verified its inventory for identification and
valuations of its inventory however the management has not provided for
any losses on account of devaluation' expiration' obsolescence and
damages in the stocks.
(c) As informed to us by the management' the company is maintaining
proper records for inventory and the physical verification of stock was
however the management has not provided for any losses on account of
devaluation' expiration' obsolescence and damages in the stocks.
3 (a) As per the information furnished' during the year the company has
not granted or taken any loans'
secured or unsecured' to or from any companies' firms' or other parties
covered in the register maintained u/s 301 of the Companies Act' 1956
hence clause 3 (b)' 3 (c)' 3 (d)' 3 (e)' 3 (f) &3 (g)are not applicable
to the company.
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 it business
with regards to the purchases of inventory and fixed assets and for the
sale of goods. During the course of our audit' no other major
weaknesses have been noticed in the internal controls and there is no
continuing failure for the same.
5 (a) Based on the audit procedures applied by us and according to the
information and explanations
provided by the management' we are of the opinion that the transactions
that needed to be entered into the registers maintained u/s 301 of the
Companies Act' 1956 have been duly entered. (b) In our opinion and
according to the information and explanations given to us' there are no
transactions made in pursuance of contracts or arrangements entered in
the registers maintained u/s 301 of the Companies Act' 1956 and
exceeding the value of Rupees Five Lacs in respect of any party during
the year.
6. The company has during the year accepted interest free loans from
Shareholders. Subject to the same we report that the company has
complied with the provisions of section 58Aof the Companies Act' 1956
and the rules framed there under.
7. The company did not have and internal audit system during the year
8. The company has not appointed a Cost auditor pursuant to the order
made by the Central government for the maintenance of cost records u/s
209 (1) (d) of the Companies Act' 1956 is respect of the company's
products.
9. (a) According to the information and explanations given to us and
the records examined by us' the
company is regular in depositing with the appropriate authorities
undisputed statutory dues' Employees Provident Fund and Sales Tax. (b)
According to the records of the company there are no dues of Sales Tax'
Income Tax' Customs' Wealth Tax' Excise Duty Cess which have not been
deposited on account of dispute except pending cases against the
company for the period 1998-2002 under the Finance Act' 1994 (Chapter-
V Service Tax Act) pending before the CESTAT involving a demand of Rs.
83'43'444/-. Also duringthe year the company has been served with an
order u/s 271 (1) (c) & subsequent demand u/s 156 under the Income Tax
Act' 1961 forthe aforementioned periods; AY 2002-03 forRs. 48'54'045/-'
AY 2003-04 for Rs. 9'09'236/-' AY 2004-05 forRs. 32'73'733/-' AY
2007-08 for Rs. 1'92'07'921/-. The total amount of outstanding demand
with the Income Tax Department totals to Rs. 2'82'44'935/-. The company
has preferred an appeal with the Commissioner of Income Tax (Appeals)
challenging the above penal levies.
10. The accumulated losses as at the end of the year do not exceed
fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year
11. Based on our audit procedures and the information and explanations
given by the management' we are of the opinion that the Secured loans
due payable by the company as at 31/03/2012 upon giving due effect to
the BIFR Order of Restructuring dated 17/08/2007 are as per the details
tabulated hereunder:-
Name of the Institution/Purpose Amount in Rs
Secured Loans For Fixed
Assets 1'45'00'000
Other Secured Loans 246'04'037
Canara Bank * 14'15'000
TOTAL AMOUNT 4'05'19'037
* Canara Bank has refuted the jurisdiction of the BIFR and has disputed
the awarded rebate in claims as sanctioned by the BIFR in its order
dated 17* A ugust 2007. The company has preferred a plea with the High
Court of Mumbai for the same and the above disputed amounts have not
been considered by the management in the preparation of the accounts.
12. Based on our examination of the record and the information and
explanations given to us' the Company has not granted any loans and/or
advances on the basis of security by way of pledge of shares'
debentures and other securities.
13. Clause (xiii) of the Order is not applicable to the company as the
company is not a Chit Fund Company or Nidhi or Mutual Benefit Fund or
Society.
14. During the year the company has no transactions in respect of
dealing in shares' securities' debentures and other investments. All
shares' debentures and other securities have been held by the company
in its own name.
15. According to the information and explanations given to us' the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us' no Term
Loans were raised during the year.
17. Based on our examination of the Balance Sheet of the company as at
31" March' 2012' we find that the company has not used funds raised on
short term basis for long term investments.
18. The company has not made any preferential allotment of shares
during the year.
19. During the year covered by our audit report the company has not
issued any secured debentures.
20. The company has not raised money by public issues during the year
covered by our audit.
21. As per the information and explanations given to us' no fraud on
or by the company has been noticed or reported during the year.
For SAYEED KHAN & ASSOCIATES
Chartered Accountants
Place: Mumbai SayeedKhan
Date: 10TH September' 2012 Proprietor
Mar 31, 2011
1. We have audited the attached Balance Sheet of KESAR PETROPRODUCTS
LIMITED, as at 31st March, 2011 and also the Profit & Loss Account and
Cash Flow of the Company for the year ended on the date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amount and
disclosures in the financial statements. An audit also includes
assessing the accounting principle used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) order 2003, issued
by the Central Government on India in terms of section 227 (4A) of the
Companies Act, 1956 (The Act) and on the basis of such checks as we
considered appropriate and according to the information and
explanations given to us during the course of audit, we enclose herein
the annexure a statement on the matters specified in paragraphs 4 and
5 of the said order.
4. Further to our comments in the annexure referred to above, we
report that:
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 subject to the fact that the earlier years, no proper takeover of
accounts or operations of the company could be effected upon and as per
the managements explanations due to sabotage and personnel
irresponsibility and menace, the books of accounts for all the earlier
periods i.e. prior to January 2008 have been lost. Hence detailed
examination of the accounts and the records of the earlier periods
could not be undertaken by us and the audit has been conducted based
upon the available records on hand which was presented by the
management before us. (Refer Note: B-1,2,3&4 of Schedule Q).
b. In our opinion, except for the non provision of interest payable
and/or exchange gain/loss and any revision in the waivers and the
outstanding balances thereby remaining payable on External Commercial
Borrowings, Financial Institutions and losses on account of provisions
for doubtful and irrecoverable Advances and Receivables the Company has
kept proper books of account as required by Law, so far as appear from
our examination of the books. (Refer Note: B-1,2,3&4 of Schedule Q).
c. The Balance Sheet and Profit & Loss Account dealt with by this
Report are in agreement with the books of account.
d. In our opinion, except for non compliance with provisions of AS 15
(Refer clause g (ii) below) the Balance Sheet and Profit & Loss Account
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards prescribed Under Section 211 (3C) of the Companies
Act, 1956.
e. On the basis of the 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 Directors is 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. -During the year the company has undertaken trading business. The
company had been restructured under a scheme sanctioned by the BIFR and
the company has given full effect to the said order and the company has
also made a reference to the BIFR for a discharge under the said
Rehabilitation charge and declaration of financial solvency & viability
has been sought by the management in its application to the Board.
(Refer Note: B-1 & 2 of Schedule Q).
g. (I) The currant has not provided for any interest payable and/or
exchange gain/loss and any revision. in the waivers and the
outstanding balances thereby remaining payable on External Commercial
Borrowings, Financial Institutions and losses on account of provisions
for doubtful and irrecoverable Advances and Receivables. Due to this,
the loans and losses remain understated. by amounts of such interests,
exchange loss/gain, provisions of doubtful & irrecoverable advances and
receivables. (Refer Note: B-1,2,3 & 4 of Schedule Q).
(ii) The company has not translated the External Commercial Borrowings
at the rates prevailing as at 31st March, 2011 as per the provisions of
AS-11 "Accounting for Effects of changes in Foreign Exchange Rates"
issued by the Institute of Chartered Accountants of India. The company
has not quantified the amount for the same. (Refer Note: B-1,2,3&4of
Schedule Q). .
(iii) No provisions have been made by the company for liability towards
Gratuity and Leave Encashment payable to employees on retirement since
the same are accounted for on cash basis. The same is not in consonance
with the provisions of AS-15 "Accounting for Retirement Benefits in
Financial Statements" issued by the Institute of Chartered Accountants
of India.
(iv) The company, has not obtained any confirmations for the balances
for Secured Loans from Financial Institutions, Banks, Unsecured Loans,
Sundry Debtors, Sundry Creditors, Advances Recoverable, Loans &
Advances. All the balances therefore are as per the books of accounts
and the same remain subject to reconciliations and confirmations if
any. (Refer Note: B-1,2,3 & 4 of Schedule Q)
(v) The company has not provided for any losses on account of
devaluation, expiration, obsolescence and damages in the stocks. The
inventories have been valued and ascertained as certified by the
management.
(VI) The company has not appointed a full time secretary as required
u/s 383A of the Companies Act, 1956.
h. In our opinion, and to the best our information and according to
the explanation given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the case of Balance Sheet of the state of affairs of the Company
as on 31st March, 2011.
b) In the case of the Profit & Loss Account of the Loss for the year
ended on that date.
Statement referred to in paragraph 3 of the Auditors Report of even
date to the members of M/s. KESAR PETROPRODUCTS LIMITED on the accounts
for the year ended 31st March, 2011.
On the basis of such checks as considered appropriate and in terms of
the information and explanations given to us, we state as under:-
1 (a) In our opinion, the record of fixed assets maintained by the
Company has been duly updated to show full particulars and situation of
the fixed assets;
(b) We are informed that the physical verification of the fixed assets
has been duly carried out by the management of the company during the
year;
(c) During the year the company has not disposed off any substantial,
major part of its fixed assets
2 (a) We are informed that the inventories of the company has been
subjected to physical verification by the management.
(b) In our opinion and according to the information and explanations
given to us, the company has verified its inventory for identification
and valuations of its inventory however the management has not provided
for any losses on account of devaluation, expiration, obsolescence and
damages in the stocks.
(c) As informed to us by the management, the company is maintaining
proper records for inventory and the physical verification of stock was
however the management has not provided for any losses on account of
devaluation, expiration, obsolescence and damages in the stocks.
3 (a) As per the information furnished, during the year the company has
not granted or taken any loans, secured or unsecured, to or from any
companies, firms, or other parties covered in the register maintained
u/s 301 of the Companies Act, 1956 hence clause 3 (b), 3 (c), 3 (d), 3
(e), 3 (f) & 3 (g) are not applicable to the company.
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 it business
with regards to the purchases of inventory and fixed assets and for the
sale of goods. During the course of our audit, no other major
weaknesses have been noticed in the internal controls and there is no
continuing failure for the same.
5 (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the transactions that needed to be entered into the
registers maintained u/s 301 of the Companies Act, 1956 have been duly
entered. (b) In our opinion and according to the information and
explanations given to us, there are no transactions made in pursuance
of contracts or arrangements entered in the registers maintained u/s
301 of the Companies Act, 1956 and exceeding the value of Rupees Five
Lacs in respect of any party during the year.
6. The company has during the year accepted interest free loans from
Shareholders. Subject to the same we report that the company has
complied with the provisions of section 58A of the Companies Act, 1956
and the rules framed there under.
7. The company did not have and internal audit system during the year
8. According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records u/s
209 (1) (d) of the Companies Act, 1956 is respect of the company's
products.
9. (a) According to the information and explanations given to us and
the records examined by us, the company is regular In depositing with
the appropriate authorities undisputed statutory dues, Employees
Provident Fund and Sales Tax. (b) According to the records of the
company there are no dues of Sales Tax, Income Tax, Customs, Wealth
Tax, Excise Duty Cess which have not been deposited on account of
dispute except pending cases against the company for the period
1998-2002 under the Finance Act, 1994 (Chapter- V Service Tax Act)
pending before the CESTAT involving a demand of Rs. 83,43,444/-
10.. The accumulated losses as at the end of the year do not exceed
fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year
11. Based on our audit procedures and the information and explanations
given by the management, we are of the opinion that the Secured loans
due payable by the company as at 31/03/2011 upon giving due effect to -
the BIFR Order of Restructuring dated 17/08/2007 are as per the details
tabulated hereunder:-
Name of the Institution/Purpose Amount in Rs
Secured Loans For Fixed Assets 1,45,00,000
Other Secured Loans 2,46,04,037
Canara Bank 14,15,000
TOTAL AMOUNT 4,05,19,037
* Canara Bank has refuted the jurisdiction of the BIFR and have
disputed the awarded rebate in claims as sanctioned by the BIFR in its
order dated 1T August 2007. The company has preferred a plea with the
High Court of Mumbai for the same and the above disputed amounts have
not been considered by the management the Reparation of the
accounts.
12. Based on our examination of the record and the information and
explanations given to us, the Company has not granted any loans and/or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. Clause (xiii) of the Order is not applicable to the company as the
company is not a Chit Fund Company or Nidhi or Mutual Benefit Fund or
Society.
14. During the year the company has no transactions in respect of
dealing in shares, securities, debentures and other investments. All
shares, debentures and other securities have been held by the company
in its own name.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, no Term
Loans were raised during the year.
17. Based on our examination of the Balance Sheet of the company as at
31st March, 2011, we find that the company has not used funds raised on
short term basis for long term investments.
18. The company has not made any preferential allotment of shares
during the year.
19. During the year covered by our audit report the company has not
issued any secured debentures.
20. The company has not raised money by public issues during the year
covered by our audit.
21. As per the information and explanations given to us, no fraud on
or by the company has been noticed or reported during the year.
For Sayeed Khan & Associates
Chartered Accountants
Place: Mumbai Sayeed Khan
Date :6th February, 2012 Proprietor
Mar 31, 2010
1. We have audited the attached Balance Sheet of KESAR PETROPRODUCTS
LIMITED, as at 31st March, 2010 and also the Profit & Loss Account and
Cash Flow of the Company for the year ended on the date annexed
thereto. These financial statements are the responsibility of the
Companys management.. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable" assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amount and
disclosures in the financial statements. An audit also includes
assessing the accounting principle used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) order 2003, issued
by the Central Government on India in terms of section 227 (4A) of the
Companies Act, 1956 (The Act) and on the basis of such checks as we
considered appropriate and according to the informations and
explanations given to us during the course of * audit, we enclose
herein the annexures a statement on the matters specified in paragraphs
4 and 5 of the said order.
4. Further to our comments in the annexure referred to above, we
report that:
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 subject to the fact that during the take over of the Company
under the BIFR scheme in January, 2008 the previous management has not
given the old records of the Company. Thus any balances outstanding
prior to Januray, 2008 are subject to verification. (Refer Note:
B-1,2,3 &4of Schedule Q).
b. In our opinion, except for the non provision of interest payable
and/or exchange gain/loss and any revision in the waivers and the
outstanding balances thereby remaining payable on External Commercial
Borrowings, Financial Institutions and losses on account of provisions
for doubtful and irrecoverable Advances and Receivables the Company has
kept proper books of account as required by Law, so far as appear from
our examination of the books. (Refer Note: B-1,2,3 & 4 of Schedule Q).
c. The Balance Sheet and Profit & Loss Account dealt with by this
Report are in agreement with the books ofaccount.
d. In our Opinion, except for non compliance with provisions of AS 15
(Refer clause g (ii) below) the Balance Sheet and Profit & Loss Account
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards prescribed Under Section 211 (3C) of the Companies
Act, 1956.
e. On the basis of the written representations received from the
Directors as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none ofthe Directors is 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. During the year the company has initiated and has undertaken
production however production on full scale is anticipated in the next
financial year. The company has been duly restructured under a scheme
sanctioned by the BIFR and the company has given full effect to the
said order and resultantly the Net worth of the company has become
positive and the accumulated losses of the company has been duly
covered up and the company has also made a reference to the BIFR for a
discharge under the said Rehabilitation charge and declaration of
financial solvency & viability has been sought by the
i management in its application to the Board. (ReferNote: B-1 & 2 of
Schedule Q).
g. (i) The company has not provided for any interest payable and/or
exchange gain/loss and any revision in the waivers and the outstanding
balances thereby remaining payable on External Commercial Borrowings,
Financial Institutions and losses on account of provisions for doubtful
and irrecoverable Advances and Receivables. Due to this, the loans and
losses remain understated by amounts of such interests, exchange
loss/gain, provisions of doubtful & irrecoverable advances and
receivables. (Refer Note: B-1,2,3 & 4 of Schedule Q).
(ii) No provisions have been made by the company for liability towards
Gratuity and Leave Encashment payable to employees on retirement since
the same are accounted for on cash basis. The same is not in consonance
with the provisions of AS-15 "Accounting for Retirement Benefits in
Financial Statements" issued by the Institute of Chartered Accountants
of India.
(iii) The company has not obtained any confirmations for the balances
for Secured Loans from Financial Institutions, Banks, Unsecured Loans,
Sundry Debtors, Sundry Creditors, Advances Recoverable, and Loans &
Advances. All the balances therefore are as per the books of accounts
and the same remain subject to reconciliations and confirmations if
any. (Refer Note: B-1,2,3 & 4 of Schedule Q)
(iv) The inventories have been valued at after due recognition of
losses due to obsolescence and damages therein, being duly valued and
certified by the management;
(v) The company has not appointed a full time secretary as required u/s
383A of the Companies Act, 1956.
h. In our opinion, and.to the best our information and according to
the explanation given to us, the said
accounts 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 principlesgenerally accepted in India:
a) In the case of Balance Sheet of the state of affairs of the Company
as on 31st March, 2010.
b) In the case of the Profit & Loss Account of the Loss for the year
ended on that date.
Statement referred to in paragraph 3 of the Auditors Report of even
date to the members of M/s. KESAR PETROPRODUCTS LIMITED on the accounts
for the year ended 31st March, 2010.
On the basis of such checks as considered appropriate and in terms of
the information and explanations given to us, we state as under:-
1 (a) In our opinion, the record of fixed assets maintained by the
Company has been duly updated to show
full particulars and situation of the fixed assets; ,
(b) We are informed that the physical verification of the fixed assets
has been duly carried out by the management of the company during the
year;
(c) During the year the company has not disposed off any substantial,
major part of its fixed assets
2 (a) We are informed that the inventories of the company has been
subjected to physical verification by the
management.
(b) In our opinion and according to the information and explanations
given to us, the company has verified its inventory for identification
and valuations of its inventory due account for losses due to
obsolescence and damages therein.
(c) As informed to us by the management, the company is maintaining
proper records for inventory and the physical verification of stock was
undertaken and losses due to obsolescence and damages have been duly
accounted for.
3 (a) As per the information furnished, during the year the company has
not granted or taken any loans,
secured or unsecured, to or from any companies, firms, or other parties
covered in the register maintained u/s 301 of the Companies Act, 1956
hence clause 3 (b), 3 (c), 3 (d), 3 (e), 3 (f) & 3 (g) are not
applicable to the company.
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
natur with regards to the purchases of inventory and fixed assets and
for the sale of goods, fruring the course of our audit, no other major
weaknesses have been noticed in the internal controls and there is no
conting failure for the same.
5 (a) Based on the audit procedures applied by- us and according to the
information and explanations
provided by the management, we are of the opinion that the transactions
that needed to be entered into the registers maintained u/s 301 of the
Companies Act, 1956 have been duly entered. (b) In our opinion and
according to the information and explanations given to us, there are no
transactions made in pursuance of contracts or arrangements entered in
the registers maintained u/s 301 of the Companies Act, 1956 and
exceeding the value of Rupees Five Lacs in respect of any party during
the year.
6. The company has during the year accepted interest free loans from
Shareholders, Subject to the same we report that the company has
complied with the provisions of section 58A of the Companies Act, 1956
and the rules framed there under.
7. The company did not have and internal audit system during the year
8. According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records u/s
209 (1) (d) of the Companies Act, 1956 is respect of the companys
products.
9. (a) According to the information and explanations given to us and
the records examined by us, the
company is regular in depositing with the appropriate authorities
undisputed statutory dues, Employees Provident Fund and Sales Tax. (b)
According to the records of the company there are no dues of Sales Tax,
Income Tax, Customs, Wealth Tax, Excise Duty Cess which have not been
deposited on account of dispute except pending cases against the
company for the period 1998-2002 under the Finance Act, 1994 (Chapter-
V Service Tax Act) pending before the CESTAT involving a demand of Rs.
83,43,444/-
10. The accumulated losses as at the end of the year do not exceed
fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year
11. Based on our audit procedures and the information and explanations
given by the management, we are of the opinion that the Secured loans
due payable by the company as at 31 /03/2010 upon giving due effect to
the BIFR Order of Restructuring dated 17/08/2007 are as per the details
tabulated hereunder:-
Name of the Institution/Purpose Amount in Rs
Secured Loans For Fixed Assets 1,45,00,000
Other Secured Loans (being first charge over
the assets taken by 2,46,04,037
way of assignments)
Canara Bank (second charge over the assets) 14,15,000
TOTAL AMOUNT 4,05,19,037
However some creditors have refuted the jurisdiction of the BIFR and
have disputed the awarded rebate in æ claims as sanctioned by the BIFR
in its order dated 17* August 2007. The above disputed amounts have not
been considered by the management in the preparation of the accounts.
The cases instituted by these creditors are going on invarious Courts.
12. Based on our examination of the record and the information and
explanations given to us, the Company has not granted any loans and/or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. Clause (xili) of the Order is not applicable to the company as the
company is not a Chit Fund Company or Nidhi or Mutual Benefit Fund or
Society.
14. During the year the company has no transactions in respect of
dealinginshares.securities.debenturesand other investments. All shares,
debentures and other securities have been held by the company in its
own name.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, no Term
Loans were raised during the year,
17. Based on our examination of the Balance Sheet of the company as at
31st March, 2010, we find that the company has not used funds raised on
short term basis for long term investments.
18. The company has made preferential allotment of shares during the
year to parties covered in the Register maintained under section 301 of
the Act, however according to the information and explanations given to
us the price at which shares have been issued are not prima facie
prejudicial to the interest of the company.
19. During the year covered by our audit report the company has not
issued any secured debentures.
20. The company has not raised money by public issues during the year
covered by our audit.
21. As per the information and explanations given to us, no fraud on
or by the company has been noticed or reported during the year.
For Sayeed Khan & Associates
Chartered Accountants
Place: Mumbai Sayeed Khan
Date : 30th November, 2010 Proprietor
Mar 31, 2009
1. We have audited the attached Balance Sheet of KESAR PETROPRODUCTS
LIMITED, as at 31st March, 2009 and also the Profit & Loss Account and
Cash Flow of the Company for the year ended on the date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit,
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amount and
disclosures in the financial statements. An audit also includes
assessing the accounting principle used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) order 2003, issued
by the Central Government on India in terms of section 227 (4A) of the
Companies Act, 1956 (The Act) and on the basis of such checks as we
considered appropriate and according to the informations and
explanations given to us during the course of audit, we enclose herein
the annexures a statement on the matters specified in paragraphs 4 and
5 of the said order.
4. Further to our comments in the annexure referred to above we report
that:
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 subject to the fact that during the year, no proper takeover of
accounts or operations of the company could be effected upon and as per
the managements explanations due to sabotage and personnel
irresponsibility and menace the books of accounts for all the earlier
periods ie prior to January 2008 have been lost. Hence detailed
examination of the accounts and the records of the earlier periods
could not be undertaken by us and the audit has been conducted based
upon the available records on hand which was presented by the
management before us. (Refer Note: B-1,2,3 &4of Schedule Q).
b. In our opinion, except for the non provision of interest payable
and/or exchange gain/loss and any revision in the waivers and the
outstanding balances thereby remaining payable on External Commercial
Borrowings, Financial Institutions and losses on account of provisions
for doubtful and irrecoverable Advances and Receivables the Company has
kept proper books of account as required by Law, so far as appear from
our examination of the books. (ReferNote: B-1,2,3&4 of Schedule Q).
c. The Balance Sheet and Profit & Loss Account dealt with by this
Report are in agreement with the books of account.
d. In our opinion, except for non compliance with provisions of AS 15
(Refer clause g (ii) below) the Balance Sheet and Profit & Loss Account
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards prescribed Under Section 211 (3C) of the Companies
Act, 1956.
e. On the basis of the written representations received from the
Directors as on 31st March, 2009 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31" March, 2009 from being appointed as a Director in terms of Clause
(g) of Sub-Section (1) of Section 274 of the Companies Act, 1956.
f. The companys production process is inoperative since 18th August,
2004 and the plant is under closure since 18th November, 2004. The
company has been restructured under a scheme sanctioned by the BIFR and
during the year the company has given full effect to the said order and
resultantly the Net worth of the company has become positive and the
accumulated losses of the company has been duly covered up and the
company has also made a reference to the BIFR for a discharge under the
said Rehabilitation charge and declaration of financial solvency &
viability has been sought by the management in its application to the
Board. (ReferNote: B-1 & 2 of Schedule Q)
g. (I) The company has not provided for any interest payable and/or
exchange gain/loss and any revision in the waivers and the outstanding
balances thereby remaining payable on External Commercial Borrowings,
Financial Institutions and losses on account of provisions for doubtful
and irrecoverable Advances and Receivables. Due to this, the loans and
losses remain understated by amounts of such interests, exchange
loss/gain, provisions of doubtful & irrecoverable advances and
receivables. (Refer Note: B-1,2,3 & 4 of Schedule Q).
(ii) The company has not translated the External Commercial Borrowings
at the rates prevailing as at 31" March, 2009 as per the provisions of
AS-11 "Accounting for Effects of changes in Foreign Exchange Rates"
issued by the Institute of Chartered Accountants of India. The company
has not quantified the amount for the same. (Refer Note: B-1,2,3 &
4ofSchedule Q).
(m) No provisions have been made by the company for liability towards
Gratuity and Leave Encashments payable to employees on retirement since
the same are accounted for on cash basis. The same is not in consonance
with the provisions of AS-15 "Accounting for Retirement Benefits in
Financial Statements" issued by the Institute of Chartered Accountants
of India.
(iv) The company has not obtained any confirmations for the balances
for Secured Loans from Financial Institutions, Banks, Unsecured Loans,
Sundry Debtors, Sundry Creditors, Advances Recoverable, Loans &
Advances. All the balances therefore are as per the books of accounts
and the same remain subject to reconciliations and confirmations if
any. (ReferNote: B-1,2,3 & 4 of Schedule Q)
(v) The inventories have been valued at after due recognition of losses
due to obsolescence and damages therein, being duly valued and
certified by the management and as sanctioned by the BIFR Order.
(vi) The company has not appointed a full time secretary as required
u/s 383A of the Companies Act, 1956.
h. In our opinion, and to the best our information and according to
the explanation given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the case of Balance Sheet of the state of affairs of the Company
as on 31* March, 2009.
b) In the case of the Profits Loss Account of the Loss for the year
ended on that date. physical verification of stock was undertaken and
losses due to obsolescence and damages have been duly accounted for.
3 (a) As per the information furnished, during the year the company has
not granted or taken any loans, secured or unsecured, to or from any
companies, firms, or other parties covered in the register maintained
u/s 301 of the CompaniesAct, 1956 hence clause 3 (b), 3 (c), 3 (d), 3
(e), 3 (f) & 3 (g) are not applicable to the company.
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 it business
with regards to the purchases of inventory and fixed assets and for the
sale of goods. During the course of our audit, no other major
weaknesses have been noticed in the internal controls and there is no
continuing failure for the same.
5 (a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that needed to be entered into the
registers maintained u/s 301 of the Companies Act, 1956 have been duly
entered. (b) In our opinion and according to the information and
explanations given to us, there are no transactions made in pursuance
of contracts or arrangements entered in the registers maintained u/s
301 of the Companies Act, 1956 and exceeding the value of Rupees Five
Lacs in respect of any party during the year.
6. The company has during the year accepted interest free loans from
Shareholders, Subject to the same we report that the company has
complied with the provisions of section 58A of the Companies Act, 1956
and the rules framed thereunder.
7. The company did not have and internal audit system during the year
8. According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records u/s
209 (1) (d) of the Companies Act, 1956 is respect of the companys
products.
9. (a) According to the information and explanations given to us and
the records examined by us, the company is regular in depositing with
the appropriate authorities undisputed statutory dues, Employees
Provident Fund and Sales Tax. (b) According to the records of the
company there are no dues of Sales Tax, Income Tax, Customs, Wealth
Tax, Excise Duty Cess which have not been deposited on account of
dispute except pending cases against the company for the period
1998-2002 under the Finance Act, 1994 (Chapter- V Service Tax Act)
pending before the CESTATinvolving a demand Of Rs. 83,43,444/-
10. The company had accumulated losses exceeding 50% of its net worth,
however during the year, upon giving due effect to the restructuring
order issued by the BIFR dated 17/08/2007 the companies net worth has
been valued at Rs. 805.33 Lacs and the earlier years accumulated losses
have been duly restructured under the scheme of restructuring as
provided in the said order. (ReferNote:B-1 & 2 of Schedule Q)
11. Based on our audit procedures and the information and explanations
given by the management, we are of the opinion that the Secured loans
due payable by the company as at 31 /03/2009 upon giving due effect to
the BIFR Order of Restructuring dated 17/08/2007 areas per the details
tabulated hereunder:-
Name of the Institution Amount in Rs
Canara Bank: 14,15,000
TOTAL AMOUNT 14,15,000
12. Based on our examination of the record and the information and
explanations given to us, the Company has not granted any loans and/or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. Clause (xiii) of the Order is not applicable to the company as the
company is not a Chit Fund Company or Nidhi or Mutual Benefit Fund or
Society.
14. During the year the company has no transactions in respect of
dealing in shares, securities, debentures and other investments. All
shares, debentures and other securities have been held by the company
in its own name.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by othersfrom banks
or financial institutions.
16. According to the information and explanations given to us, no Term
Loans were raised during the year.
17. Based on our examination of the Balance Sheet of the company as at
31st March, 2009, we find that the company has not used funds raised on
short term basis for long term investments.
18. The company has not made any preferential allotment of shares
during the year.
19. During the year covered by our audit report the company has not
issued any secured debentures.
20. The company has not raised money by public issues during the year
covered by our audit.
21. As per the information and explanations given to us, no fraud on
or by the company has been noticed or reported during the year.
For SAYEED KHAN & ASSOCIATES
Chartered Accountants
Place: Mumbai SayeedKhan
Date: 25.03.2010 Proprietor
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