Auditor Report of Kilburn Chemicals Ltd.
Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying Ind AS Financial Statements of KILBURN CHEMICALS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (herein after referred to as âInd AS Financial Statementsâ).
Managementâs Responsibility for the Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these Ind AS Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant rules issued thereunder.
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 Ind AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these Ind AS Financial Statements based on our audit. We have taken into account the provisions of the Act, and the rules made thereunder including the accounting standards and matters which are required to be included in the Audit Report.
We conducted our audit in accordance with the Standards on Auditing as specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncement require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS Financial Statements. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the Ind AS Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind As, of the state of affairs (financial position) of the Company as at 31st March, 2018, and its loss (financial performance including other comprehensive income) and its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matter
Note No 49 regarding non provision against other Receivables of Rs. 34.52 lakhs.
Our opinion is not modified in respect of these matters.
Other Matter
The financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 1, 2016 included in these Ind AS financial statements, are based on the previously issued statutory financial statements for the years ended March 31,2017 and March 31, 2016 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by us, on which we expressed an unmodified opinion dated May 19, 2017 and May 13, 2016 respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to the Ind AS have been audited by us.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11)of section 143 of the Act and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure- A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) we have sought and obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) the Balance Sheet, the Statement of Profit and Loss (including other comprehensive income, the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d) in our opinion, the aforesaid Ind AS Financial Statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
e) on the basis of the written representations received from the directors as on 31stMarch, 2018 and taken on record by the Board of Directors, none of the directors is disqualified as on 31stMarch, 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS Financial Statements. Refer Note37(A) to the Ind AS Financial Statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
iii. There has been no delay in transferring the amount required to be transferred to Investor Education and Protection Fund by the Company, in accordance with the relevant provisions of the Act and the Rules made there.
Annexure - A to the Independent Auditorâs Report
Referred to in paragraph-1 on Other Legal and Regulatory Requirements of our Report of even date to the members of Kilburn Chemicals Ltd. on the Ind AS Financial Statements for the year ended 31st March, 2018:
i. a) The Company has maintained proper records showing full particulars including quantitative details and situation of its Fixed Assets.
b) As explained to us, Fixed Assets have been physically verified by the management at regular intervals and as informed to us no material discrepancies were noticed on such verification. In our opinion, the frequency of verification is reasonable having regard to the size of the company and the nature of its asset.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. According to the information and explanations given to us, the inventories have been physically verified by the Management during the year at reasonable intervals and no material discrepancies were noticed on such verification.
iii. According to the information and explanations given to us, the Company has not granted any loan, secured or unsecured, during the year (excluding outstanding Unsecured Loan of Rs. 276.57 Lakhs/- as on 31.03.2018) to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act.
(a) No interest is being charged on the above loan as per terms of the agreement between the parties.
(b) There are no schedules as regards to repayment of principal amount and therefore we are not in a position to make any comments as to whether or not the Company was regular in receipt of principal amount. However, the Company has received Rs.5,00,000/- on account of principal during the year.
(c) In view of our comments in Para (b) above, we are not in a position to make any comments as to whether or not there were any overdue amounts of more than ninety days and whether any reasonable steps have been taken by the Company for recovery of the principal amount.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of sections 185 and I86 of the Act, with respect to the loans given, investments made and guarantees given.
v. According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of sections 73 to 76 of the Act and the rules framed thereunder to the extent notified.
vi. According to the information and explanations given to us by the management, the Central Government has prescribed the maintenance of cost records under Section 148(1) of the Act but since the criteria for minimum turnover is not complied with, Clause 3(vi) of the order is not applicable.
vii. a) According to the information and explanations given to us and on the basis of our examination of the records, the Company is generally regular in depositing undisputed applicable statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax, Goods and Services Tax, Cess and any other statutory dues to the appropriate authorities and there are no undisputed amount payable in respect of the same which were in arrears as on 31stMarch, 2018 for a period of more than six months from the date the same became payable.
b) According to the information and explanations given to us, the Company has not deposited the following dues on account of disputes with the appropriate authorities:
|
Name of the statue |
Nature of the dues |
Amount in Rs. |
Period to which the amount relate |
Forum where dispute is pending |
|
Income Tax Act, 1961 |
Income Tax |
500.44/- |
A.Y 2012-13 |
Commissioner of Income Tax (Appeals), Chennai |
|
Income Tax Act, 1961 |
Income Tax |
53.43/- |
Assessment Year 2013-14 |
Commissioner of Income Tax (Appeals), Kolkata |
|
Income Tax Act, 1961 |
Income Tax |
8.52/- |
Assessment Year 2014-15 |
Commissioner of Income Tax (Appeals), Kolkata |
viii. According to the information and explanations given to us, the Company has obtained term loans under consortium finance from Bank of Baroda and State Bank of India during the year. No installment is due for repayment during the year.
ix. According to the information and explanations given to us and based on our examination of the books and records, we report that the Company has not raised any money by way of initial public offer or further public offer (including debt instruments). However, term loans raised during the year have been applied for the purpose for which the same were obtained.
x. During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year nor we have been informed of such case by the management.
xi. According to the information and explanations given to us and based on our examination of the books and records, we report that the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, clause 3 (xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the books and records, transactions with the related parties are in compliance with sections 177 and 188 of the act where applicable and details of such transactions have been disclosed in the Ind AS Financial Statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the books and records, we report that the Company has made preferential allotment of 15,40,000 Equity Shares of Rs. 10 each in accordance with the provisions of section 42 of the Act and the amount raised has been utilized/to be utilized for the purpose for which it was raised.
xv. According to the information and explanations given to us and based on our examination of the books and records, the Company has not entered into any non-cash transactions with directors or persons connected with him during the year. Accordingly, Clause 3 (xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure âB to the Independent Auditorâs Report
(Referred to in paragraph-2(f) on Other Legal and Regulatory Requirements of our Report of even date to the members of Kilburn Chemicals Limited on the Ind AS Financial Statements for the year ended 31st March, 2018)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Kilburn Chemicals Limited (âthe Companyâ)as of 31stMarch, 2018 in conjunction with our audit of the Ind AS Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10)of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, 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 31stMarch, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For V. SINGHI & ASSOCIATES
Chartered Accountants
Firm Registration No. 311017E
(SUNIL SINGHI)
Four Mangoe Lane,
Partner
Membership No. 060854
Surendra Mohan Ghosh Sarani
Kolkata
Date: 30th May, 2018
Mar 31, 2016
To the Members of Kilburn Chemicals Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Kilburn Chemicals Limited(''''the Companyâ), 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. Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Actâ) with respect to the preparation and presentation of these financial statements to give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs 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 and the Rules made there under including the accounting standards and matters which are required to be included in the audit report.
We conducted our audit in accordance with the Standards on Auditing, as specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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 auditorâs 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 accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, its profit and its cash flows for the year ended on that date.
Emphasis of Matters
1. Note No. 25 regarding non provision of gratuity liability of Rs. 21,31,807/- (including for the year Rs. 1,73,076/-).
2. Note No. 27 regarding non provision against Trade Receivables of Rs. 11,09,72,664/- in respect of Commodity Transactions and other Receivable of Rs. 1,01,33,083/Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 ("the Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure- A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) we have sought and obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d) in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) on the basis of the written representations received from the directors as on 31stMarch, 2016 and taken on record by the Board of Directors, none of the directors is disqualified as on 31stMarch, 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 Bâ, and
g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in the financial statements as referred to in Note 24 in the financial statements.
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses, and
iii. the Company has transferred Rs.2,07,136/-relating to Financial Year 2007-2008 to the Investor Education and Protection Fund with a delay of 152 days.
Annexure - A to the Independent Auditorâs Report
(Referred to in paragraph-1 on Other Legal and Regulatory Requirements of our Report of even date to the members of Kilburn Chemicals Limited on the Financial Statements of the Company for the year ended 31st March, 2016)
i. a) The Company has maintained proper records showing full particulars including quantitative details and situation of its Fixed Assets.
b) As explained to us, the Fixed Assets have been physically verified by the management at regular intervals, and as informed to us no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. The Company does not hold any Inventory. Accordingly clause 3 (ii) of the Order is not applicable.
iii. According to the information and explanations given to us, the Company has not granted any loan, secured or unsecured, during the year (excluding outstanding Unsecured Loan of Rs.2,50,01,331/-as on 31.03.2016) to companies, firms, Limited Liability Partnership or other parties covered in the register maintained under Section 189 of the Act.
a) No interest is being charged on the above loan as per terms of the agreement between the parties.
b) There are no schedules as regards to repayments of principal amount and therefore we are not in a position to make any comments as to whether or not the Company was regular in receipt of principal amount. However, the Company has received Rs 5, 00,000/- on account of principal during the year.
c) In view of our comments in para (b) above, we are not in a position to make any comments as to whether or not there were any overdue amounts of more than Ninety days and whether any reasonable steps have been taken by the Company for recovery of the principal amount.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of sections 185 and 186 of the Act in respect of the loans and investments made.
v. According to the information and explanations given to us, the Company has not accepted any deposits from the public during the year within the meaning of sections 73 to 76 of the Act and the rules framed there under to the extent notified.
vi. As per the information and explanations given to us by the management, the Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for power generated by the wind mills.
vii. a) As per records of the Company and according to the information and explanations given to us, the Company is generally regular in depositing undisputed applicable statutory dues including Income Tax, Service Tax, Cess and any other statutory dues with the appropriate authorities and there are no undisputed amount payable in respect of the same which were in arrears as on 31st March, 2016 for a period of more than six months from the date the same became payable.
b) According to the information and explanations given to us, the Company has not deposited the following dues on account of disputes with the appropriate authorities:
|
Name of the statue |
Nature of the dues |
Amount in Rs. |
Period to which the amount relate |
Forum where dispute is pending |
|
Income Tax Act, 1961 |
Income Tax |
6,25,55,590/- |
Assessment Year 2012-13 |
Commissioner of Income Tax (Appeals), Chennai |
|
Income Tax Act, 1961 |
Income Tax |
62,93,330/- |
Assessment Year 2013-14 |
Commissioner of Income Tax (Appeals), Chennai |
viii. According to the information and explanations given to us, the Company has obtained term loans under consortium finance from Bank of Baroda & State Bank of India during the year. However, no installment is due for repayment during the year.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments). However, term loans raised during the year have been applied for the purpose for which the same were raised.
x. During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year nor we have been informed of such case by the management.
xi. In our opinion and according to the information and explanations given to us the managerial remuneration paid or provided is in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, clause 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and on the basis of our examination of the records of the Company, we report that all transactions with the related parties are in compliance with sections 177 and 188 of the Act wherever applicable and the details in respect of such transactions have been disclosed in the Financial Statements as required under Accounting Standards - 18 Related Party Disclosures specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014.
xiv. During the year under review the Company has made preferential allotment of 9,40,000
Equity Shares of Rs. 10 each in accordance with provisions of Section 42 of the Act and the amount raised has been utilized/to be utilized for the purpose for which it was raised.
xv. According to the information and explanations given to us, we report that the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, clause 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure âB to the Independent Auditorâs Report
(Referred to in paragraph-2(f) on Other Legal and Regulatory Requirements of our Report of even date to the members of Kilburn Chemicals Limited on the Financial Statements of the Company for the year ended 31st March, 2016)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Kilburn Chemicals Limited ("the Companyâ) as of 31st March, 2016 in conjunction with our audit of the financial statement of the Company for the year ended on that date. Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Noteâ) and the Standards on Auditing, issued by the ICAI and deemed to be prescribed under section 143(10)of the Act, 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 auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 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 V. SINGHI & ASSOCIATES
Chartered Accountants
Firm Registration No. 311017E
(SUNIL SINGHI)
Four Mangoe Lane,
Partner
Membership No. 060854
Surendra Mohan Ghosh Sarani
Kolkata
Date: 13th May, 2016
Mar 31, 2015
We have audited the accompanying financial statements of KILBURN
CHEMICALS LIMITED ("the Company"), 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 stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these financial statements that
give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the Audit Report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing, as
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 a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015 its Profit and its cash flows for the year ended on
that date.
Emphasis of Matters
We draw attention to the following matters in the notes to the
financial statements:-
1. Note 21 regarding non provision of gratuity at the year end.
2. Note 24 (ii) regarding non provision of Trade Receivables of
Rs.11,09,72,664/- in respect of Commodity transactions.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) we have sought and obtained all the information and explanations
which, to the best of our knowledge and belief, were necessary for the
purpose of our audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d) in our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e) on the basis of the written representations received from the
directors as on 31st March, 2015 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. the Company has disclosed the impact of pending litigation on its
financial position in the financial statements as referred to in Note
20 to the financial statements.
ii. the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. The Company has transferred Rs.6, 31,462/- relating to Financial
Year 2006-2007 to the Investor Education and Protection Fund with a
delay of 58 days.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph-1 on Other Legal and Regulatory Requirements
of our Report of even date to the members of Kilburn Chemicals Limited
on the financial statements of the Company for the year ended 31st
March, 2015)
On the basis of such checks, as we considered appropriate during the
course of our audit, we report that:
i. a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of its Fixed Assets. b) As
explained to us, Fixed Assets have been physically verified by the
management at regular intervals, and as informed to us no material
discrepancies were noticed on such verification.
ii. The Company does not hold any inventory. Accordingly, clause 3
(ii) (a), (b) & (c) of the Order are not applicable.
iii. According to the information and explanations given to us, the
Company has not granted any loan, secured or unsecured, during the year
(excluding outstanding unsecured loan of Rs. 2,55,01,331/- as on
31.03.2015) to companies, firms or other parties covered in the
register maintained under Section 189 of the Act.
a) No interest is being charged on the above loan as per terms of the
agreement between the parties. There are no schedules as regards to
repayments of Principal amount and therefore we are not in a position
to make any comments as to whether or not the Company was regular in
receipt of principal amount.
b) In view of our comments in Para (a) above, we are not in a position
to make any comment as to whether or not there were any overdue amounts
of more than Rupees One Lakh and whether any reasonable steps have been
taken by the Company for recovery of the principal amount.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchase of fixed assets and for the sale of wind power. Further on the
basis of our examination of the books and records of the Company and
according to the information and explanations given to us, we have
neither come across nor have been informed of, any continuing failure
to correct major weakness in the aforesaid internal control system.
v. The Company has not accepted any deposits from the public during
the year within the meaning of sections 73 to 76 of the Act and the
rules framed there under to the extent notified..
vi. As per the information and explanations given to us by the
management, the Central Government has not prescribed the maintenance
of cost records under section 148(1) of the Act, for power generated by
the wind mills.
vii. a) As per records of the Company and according to the information
and explanations given to us, the Company is generally regular in
depositing undisputed applicable statutory dues including Income Tax,
Service Tax, Cess and any other statutory dues with the appropriate
authorities and there are no undisputed amount payable in respect of the
same which were in arrears as on 31st March, 2015 for a period of more
than six months from the date the same became payable. b) According to
the information and explanations given to us, the Company has not
deposited the following dues on account of disputes with the appropriate
authorities:
Name of Nature of Amount in Period to Forum
the statue the dues Rs. which the where
amount dispute is
relate pending
Income Income 6,25,55,590/- Assessment Commissioner
Tax Act, Tax Year of Income
1961 2012-13 Tax (Appeals),
Chennai
c) The amount required to be transferred to Investor Education and
Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder, has been
transferred with a delay of 58 days.
viii. The Company has no accumulated losses as at end of the financial
year and has not incurred any cash losses in the financial year covered
by our audit and in the immediately preceding financial year.
ix. According to the information and explanations given to us, the
Company has neither taken any loan from financial institutions and
banks nor issued any debentures. Accordingly, clause 3(ix) of the Order
is not applicable.
x. 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 during the
year.
xi. According to the information and
explanations given to us and on an overall examination of the Balance
Sheet, we report that no term loan was obtained by the Company during
the year.
xii. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the Company, noticed or reported during the year nor we have been
informed of such case by the management.
For V. SINGHI & ASSOCIATES
Chartered Accountants
Firm Registration No. 311017E
SUNIL SINGHI
Four Mangoe Lane Partner
Kolkata - 700 001 Membership No. 060854
Dated : 29th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Kilburn
Chemicals Ltd. ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act,1956(the Act)
read with the General Circular 15/2013 dated 13th September,2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act,2013 and in accordance with the accounting principles
generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Basis for Qualified Opinion Attention is drawn to the following notes
in the financial statements:
1. Notes 11(i) and 11(ii) in Note 20 regarding Loans given to a Body
Corporate (related party) and non charging of interest there on.
2. Note 3 (c) in Note 20 regarding outstanding Trades Receivables of
Rs. 11,14,08,910/- in respect of Commodity transactions and the
management being confident of recovering such dues over a period of
time in view of the facts stated there under.
3. Note 3(b) in Note 20 regarding non-availability for Auditors
verification and checking of certain purchase and sales invoices and
warehouse receipts for the stocks of Commodities as on 31.03.2014, due
to reasons explained thereunder.
4. Note 2 in Note 20 regarding no provisions having been made for
possible short recoveries, against outstandings and receivables as
mentioned under sub notes 2(a) to 2(d), though considered good and
fully recoverable by the management.
The aggregate impact of our observations in paragraphs 1 to 4 above on
the results for the year ended 31.03.2014 and the net assets position
as at that date cannot be readily ascertained.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the possible effects of the
matters stated in the Basis of Qualified Opinion paragraph, the
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014.
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
We draw attention to the following notes in Note 20 attached to the
financial statements. Our opinion is not qualified in respect of these
matters:
1. Notes 1(viii),1(ix),1(xii) and 2, regarding recognition of certain
revenue and expenditure on the basis stated thereunder, certain Long
and Short term loans and advances, Trade receivables and other current
assets having been considered good by the management and not provided
for, and other matters as referred to thereunder
2. Note 11(iii) regarding remuneration paid/ provided to Managing
Director of the Company in earlier year, being in excess of the limits
prescribed under law, for which the approval of the Shareholders was
obtained in the Annual General Meeting held on 19.08.2013, subject to
obtaining the approval of the concerned authorities. In view of the
Managing Director having agreed to refund to the Company such excess
remuneration, the company is not seeking the approval of the concerned
authorities.
In respect of above observations the previous year''s audit report was
similarly modified.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227(4A) of the Act, and on the basis of such checks as we considered
appropriate and according to the information and explanations given to
us and the books and records as produced and examined by us in the
normal course of audit and to the best of our knowledge and belief, we
give in the attached Annexure 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. Except for our comments in Basis of Qualified Opinion paragraph, we
have obtained all the information and explanations which to the best of
our knowledge and belief were necessary for the purpose of our audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account, as submitted to us;
d. Except for our comments in Basis of Qualified Opinion paragraph, and
read with note 1(viii) in Note 20, in our opinion, the Balance Sheet,
Statement of Profit and Loss and Cash Flow Statement comply with
Accounting Standards notified under the Act read with the General
Circular 15/2013 dated 13th September,2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013.
e. On the basis of written representations received from the Directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the Directors is disqualified as on March 31, 2014, from being
appointed as a Director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
(Referred to in Paragraph (1) on Report on Other Legal and Regulatory
Requirements of our Report of even date of KILBuRn CHEMICALS LTD. as at
and for the year ended 31st March, 2014)
i. (a) The Company has, in our opinion,
maintained proper records in computer, to show full particulars
including quantitative details and situation of fixed assets.
(b) The fixed assets, as informed were physically verified by the
management during the year ended 31.03.2014 and no material
discrepancies were noticed on such physical verification.
(c) In our opinion, substantial part of fixed assets have not been
disposed off by the company during the year.
ii. (a) The Company had no inventories either as
on 31.03.2013 or as on 31.03.2014
(b) In view of our remarks under Para (a) above, the clauses (b) and
(c) of the aforesaid order are not applicable to the company for the
current year.
iii. (a) According to the records of the company,
the company has not during the year granted Loans, unsecured or secured
(excluding unsecured loans of Rs 2,75,01,331/- outstanding as on
01.04.2012 and 01.04.2013) to companies, firms or other parties covered
in the register maintained u/s 301 of the Act.
(b) No interest is being charged on loans as referred to in Para (a)
above, on loans of Rs. 2,75,01,331/- outstanding as on
31.03.2013 and 31.03.2014 as the same is intended to be accounted for
on Cash basis (refer Note 1(viii)(h) in Note 20 attached to the
financial statements).Any other terms and conditions on which the above
loans were granted having not been mentioned, we are not in a position
to comment as to whether or not the other terms and conditions of the
loans granted by the company are prima facie prejudicial to the
interest of the company.
(c) In respect of loans as referred to in Para(a) above granted, there
were no Schedules as regards to repayments of principal amount and
therefore we are not in a position to make any comments as to whether
or not the company was regular in receipt of the principal amount.
(d) In view of our comments in Para (c) above, we are not in a position
to make any
comment as to whether or not there were any overdue amounts of more
than Rs One Lakh and whether any reasonable steps have been taken by
the company for recovery of the principal amount (also refer Para (b)
above ).
(e) According to the records of the Company, the Company has not taken
any Loans, secured or unsecured during the year from companies, firms
or other parties covered in the register maintained under section 301
of the Act.
(f) In view of our comment in paragraph (e) above, clauses (f) and (g)
of the aforesaid order, are, in our opinion, not applicable to the
Company for the current year.
iv. In our opinion and on the basis of test checks carried out by us,
and considering the explanations given by the management that
alternative sources not being available for certain purchases and
payments, it appears that there are adequate internal control system
commensurate with the size of the Company and the nature of its
business with respect to major purchases of fixed assets. There were no
purchases of inventory and sale of goods during the year. Further,
during the course of our audit we have neither come across nor have we
been informed by the management or the internal auditors of any
instance of major weaknesses in the aforesaid internal control system.
v. (a) According to the information and
explanations given to us and on the basis of our examination of the
books of accounts, we are of the opinion that the contracts or
arrangements that need to be entered in the register maintained in
pursuance of section 301 of the Companies Act 1956 have been entered in
the said register.
(b) According to the information and
explanation given to us, the Company has not entered into any
transactions exceeding the value of five lacs rupees in respect of any
party during the year that need to be entered in the register in
pursuance of section 301 of the Companies Act, 1956 and therefore,
clause v(b) of paragraph 4 of the aforesaid order, is in our opinion,
not applicable to the Company for the current year.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public
during the year under the provisions of section 58A, 58AA or any other
relevant provisions of the Act.
vii. In our opinion, the internal audit system so as to be commensurate
with the size of the Company and nature of its business needs to be
improved upon as to scope and reporting.
viii. We are informed by the company that maintenance of cost records
have not been prescribed under clause (d) of sub-section (i) of Section
209 of the Act.
ix. (a) According to the records of the Company,
the Company has been generally regular in depositing during the year
undisputed statutory dues (to the extent applicable) including
Provident Fund, Investor Education and Protection Fund (except as
stated in Note 6(v) in Note 20 attached to the financial statements),
Employee''s State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other statutory dues with the
appropriate authorities, though there has been some delays in
depositing of tax deducted at source and service tax. According to the
records of the Company, there were no arrears of outstanding statutory
dues which have remained outstanding as at 31.03.2014 for a period of
more than six months from the date they become payable.
(b) According to the records of the Company, and as per the information
and explanations given to us, there were no dues outstanding of sales
tax/ weath tax/service tax/custom duty/excise duty/cess/Income Tax
which have not been deposited on account of any dispute.
x. The Company has no accumulated losses as at 31st March 2014 and has
not incurred cash losses in the financial year ended on that date and
in the immediately preceding financial year.
xi. The Company has not taken any loans from a financial institution or
bank or debenture holders during the year.
xii. According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities during the
year.
xiii. In our opinion, the provisions of any Special Statute applicable
to Chit Fund/Nidhi/Mutual Benefit Fund/Societies are not applicable to
the Company.
xiv. The Company is not dealing or trading in shares, securities,
debentures and other investments.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions during the year.
xvi. According to the records of the company, no term loans were taken
by the company during the year.
xvii. On the basis of the review of utilization of funds on overall
basis as on 31.03.2014, related information, explanations and
statements as made available to us and as represented to us by the
Management, funds available as Short Term during the year have not been
used for Long Term application.
xviii. During the year the company has made preferential allotment of
equity shares at the price of share which is not prejudicial to the
interest of the Company to parties covered in the register maintained
under section 301 of the Companies Act 1956.
xix. The Company has not issued any Debentures during the year.
xx. The Company has not raised any money by way of public issue during
the year.
xxi. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India, we have not come across any
instance of material fraud on or by the Company, noticed or reported
during the year, nor have we been informed of such case by the
management or the internal auditors of the Company.
For G. P. KEJRIWAL & ASSOCIATES
Chartered Accountants
Firm Registration No. 302201E
5, Clive Row K. K. SINGHAL
Kolkata-700001. Partner
Dated : 29th May, 2014 M.No.50140
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Kilburn
Chemicals Ltd. ("the Company"), which comprise the Balance Sheet as at
March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. 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 read together with
the NOTES in NOTE 24 and the NOTES and OBSERVATIONS thereon and
attached thereto, 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 31,2013.
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
We draw attention to the following notes in Note 24 attached to the
financial statements. Our opinion is not qualified in respect of these
matters:
i. Notes 1(vii),1(viii) and 1(xi) regarding recognition of certain
revenue and expenditure on the basis stated thereunder, provisions /
adjustments for certain Long and Short term loans and advances, Trade
receivables and other current assets to be made as and when such
amounts are found to be irrecoverable and or amounts are determined and
other matters as referred to thereunder.
ii. Note 15 regarding legal opinion for applicability of the provisions
of section 295 and 372A (3) of the Companies Act, 1956 still to be
obtained.
iii. Note 16 regarding remuneration paid/provided to the Managing
Director of the Company, being in excess of the limits prescribed under
law, for which steps are being taken either to recover or obtain the
approval/consent of the concerned authorities.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227(4A) of the Act, and on the basis of such checks as we considered
appropriate and according to the information and explanations given to
us and the books and records as produced and examined by us in the
normal course of audit and to the best of our knowledge and belief, we
give in the attached Annexure 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account, as submitted to us;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement read with Notes 1(vii),1(viii),1(xi) and 16 in Note
24 attached to the financial statements comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act,1956.
e. On the basis of written representations received from the Directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITOR''S REPORT
(Referred to in Paragraph (1) on Report on Other Legal and Regulatory
Requirements of our Report of even date of KILBURN CHEMICALS LTD. as at
and for the year ended 31st March, 2013)
i. (a) The Company has, in our opinion, maintained proper records in
computer, to show full particulars including quantitative details and
situation of fixed assets.
(b) In accordance with a programme, of verifying, the fixed assets,
once in three years, the fixed assets, as informed were physically
verified by the management during the year ended 31.03.2011 and the
discrepancies noticed on such physical verification, which in our
opinion, were not material, in relation to the operations of the
Company, had been properly dealt with in the books of accounts.
(c) In our opinion, substantial part of fixed assets have not been
disposed off by the Company during the year.
ii. (a) The Company had no inventories either as on 31.03.2012 or as on
31.03.2013.
(b) In view of our remarks under Para (a) above, the clauses (b) and
(c) of the aforesaid order are not applicable to the Company for the
current year.
iii. (a) According to the records of the Company, the Company has
during the year granted Unsecured Loans of Rs. 75 Lacs (excluding
opening balance of Rs. 275.01 lacs outstanding as on 01.04.2012) to a
Company covered in the register maintained u/s 301 of the Act.
(b) The rate of interest charged on loans as referred to in Para (a)
above, granted during the year is, in our opinion, prima facie, not
prejudicial to the interest of the Company. Interest for the year
receivable on loans of Rs. 275.01 lacs outstanding as on 31.03.2013 is
intended to be accounted for as and when the same is received (refer
Note 1(vii)(j) in Note 24 attached to the financial statements). Any
other terms and conditions on which the above loans were granted having
not been mentioned, we are not in a position to comment as to whether
or not the other terms and conditions of the loans granted by the
Company are prima facie prejudicial to the interest of the Company.
(c) In respect of loans as referred to in Para(a) above granted, there
were no Schedules as regards to repayments of principal amount and
therefore we are not in a position to make any comments as to whether
or not the Company was regular in receipt of the principal amount.
(d) In view of our comments in Para (c) above, we are not in a position
to make any comment as to whether or not there were any overdue amounts
of more than Rs. One Lakh and whether any reasonable steps have been
taken by the Company for recovery of the principal amount (also refer
Para (b) above ).
(e) According to the records of the Company, the Company has not taken
any Loans, secured or unsecured during the year from companies, firms
or other parties covered in the register maintained under section 301
of the Act.
(f) In view of our comment in paragraph (e) above, clauses (f) and (g)
of the aforesaid order, are, in our opinion, not applicable to the
Company for the current year.
iv. In our opinion and on the basis of test checks carried out by us,
and considering the explanations given by the management that
alternative sources not being available for certain purchases, it
appears that there are adequate internal control system commensurate
with the size of the Company and the nature of its business with
respect to major purchases of fixed assets. There were no purchases of
inventory and sale of goods during the year. Further, during the course
of our audit we have neither come across nor have we been informed by
the management or the internal auditors of any instance of major
weaknesses in the aforesaid internal control system.
v. (a) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the books of
accounts, there were no contracts or arrangements that need to be
entered in the register maintained in pursuance of Section 301 of the
Companies Act, 1956.
(b) In view of our comments in Para (a) above, clause (b) of the
aforesaid order is not applicable to the Company for the year.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public
during the year under the provisions of section 58A, 58AA or any other
relevant provisions of the Act.
vii. In our opinion, the internal audit system is by and large
commensurate with the size of the Company and nature of its business.
viii. We are informed by the Company that maintenance of cost records
have not been prescribed under clause (d) of sub-section (i) of Section
209 of the Act.
ix. (a) According to the records of the Company, the Company has been
generally regular in depositing during the year undisputed statutory
dues (to the extent applicable) including Provident Fund, Investor
Education and Protection Fund (except as stated in Note 8(v) in Note 24
attached to the financial statements), Employee''s State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess and other statutory dues with the appropriate authorities.
According to the records of the Company, there were no arrears of
outstanding statutory dues which have remained outstanding as at
31.03.2013 for a period of more than six months from the date they
become payable.
(b) According to the records of the Company and as per the information
and explanations given to us, there were no dues outstanding of sales
tax/ weath tax/ service tax/custom duty/excise duty/cess/ Income Tax
which have not been deposited on account of any dispute.
x. The Company has no accumulated losses as at 31st March 2013 and has
not incurred cash losses in the financial year ended on that date and
in the immediately preceding financial year.
xi. The Company has not taken any loans from a financial institution or
bank or debenture holders during the year.
xii. According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities during the
year.
xiii. In our opinion, the provisions of any Special Statute applicable
to Chit Fund/Nidhi/Mutual Benefit Fund/Societies are not applicable to
the Company.
xiv. The Company is not dealing or trading in shares, securities,
debentures and other investments.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions during the year.
xvi. According to the records of the Company, no term loans were taken
by the Company during the year.
xvii. On the basis of the review of utilization of funds on overall
basis as on 31.03.2013, related information, explanations and
statements as made available to us and as represented to us by the
Management, funds of Rs. 1145.81 Lacs available as Short Term during
the year have been used for Long Term application.
xviii.The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Act during the year.
xix. The Company has not issued any Debentures during the year.
xx. The Company has not raised any money by way of public issue during
the year.
xxi. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India, we have not come across any
instance of material fraud on or by the Company, noticed or reported
during the year, nor have we been informed of such case by the
management or the internal auditors of the Company.
For G. P. KEJRIWAL & ASSOCIATES
Chartered Accountants
Firm Registration No. 302201E
5, Clive Row K. K. SINGHAL
Kolkata-700001. Partner
Dated : 30th May, 2013 M. No. 50140
Mar 31, 2012
1. We have audited the attached Balance Sheet of Kilburn Chemicals
Limited (The Company), as at 31st March,2012 and also the statement of
Profit and Loss and the cash flow statement for the year ended on that
date annexed thereto. These financial statements are the
responsibility of the Company's Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies ( Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together the "Order") issued by the Central Government of India in
terms of Section 227 (4A) of the Companies Act, 1956, and on the basis
of such checks as we considered appropriate and according to the
information and explanations given to us and the books and records as
produced and examined by us in the normal course of audit and to the
best of our knowledge and belief, we give in the attached 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 in Paragraph 3
above:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the
Company so far as appears from our examination of the books;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account as submitted to us;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in Sub-Section (3C) of Section 211 of
the Companies Act, 1956.
e) On the basis of written representations received from the Directors
of the Company, as on 31st March,2012, and taken on record by the Board
of Directors of the Company, none of the directors is disqualified as
on 31st March, 2012 from being appointed as a Director in terms of
clause (g) of sub-section (1) of section 274 of the Companies Act,
1956.
f) In our opinion and to the best our information and according to the
explanations given to us the annexed accounts, subject to and read
together with Note 26 and the Notes and Observations thereon and
attached thereto, give the information required by the Companies Act,
1956, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India.
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
ii) In the case of the Statement of Profit and Loss , of the Profit for
the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the Cash Flow for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in Paragraph (3) of our Report of even date of KILBURN
CHEMICALS LIMITED as at and for the year ended 31st March, 2012).
(i) (a) The Company has, in our opinion
maintained proper records in computer, to show full particulars
including quantitative details and situation of fixed assets.
(b) In accordance with a programme, of verifying, the fixed assets,
once in three years, the fixed assets, as informed were physically
verified by the management during the year ended 31.3.2011 and the
discrepancies noticed on such physical verification, which in our
opinion, were not material, in relation to the operations of the
company, had been properly dealt with in the books of accounts. In our
opinion, the frequency of physical verification is reasonable having
regard to the size of the company and the nature of its assets.
(c) The company has disposed off its Chemical Division at Tuticorin,
Tamil Nadu on a slump sale basis. The accounts have been prepared on
the concept that company will continue as going concern.
(ii) (a) The inventories lying with the
Company, as informed, have been physically verified by the management
during the year. There was no inventory at the end of the year.
(b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the company and nature of its business.
(c) In our opinion, the Company is maintaining proper records of
inventories and according to the records of the Company, the
discrepancies noticed on physical verification of stocks as compared to
book records, which in our opinion, were not material, in relation to
the operations of the Company, have been properly dealt with in the
books of accounts.
(iii) (a) According to the records of the
Company, the Company has neither granted nor taken any loans, secured
or unsecured, during the year to and from the Companies, firms, or
other parties covered in the register maintained under Section 301 of
the Act. Loan given in earlier years to One such Company is
outstanding{year end balance(maximum during the year)
Rs.2,75,01,331/-}.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest on which loans have been granted, are
prima facie not prejudicial to the interest of the company.
(c) In absence of any stipulations and other terms and conditions for
repayments of loans, we are unable to comment on the other matters
stated in Para (b) and Paras (c) and
(d) of clause (iii) of the aforesaid order.
(d) According to the records of the Company, the Company has not taken
any Loans, secured or unsecured during the year from companies, firms
or other parties covered in the register maintained under section 301
of the Act.
(e) In view of our comment in paragraph
(iii) (d) above, clauses (iii) (f) and (g) of the aforesaid order, are,
in our opinion, not applicable to the Company for the current year.
(iv) In our opinion and on the basis of test checks carried out by us,
and considering the explanations given by the management that
alternative sources not being available for certain purchases/services,
it appears that
there are adequate internal control system commensurate with the size
of the Company and the nature of its business with respect to major
purchases of inventory and fixed assets and for the sale of goods and
services. Further, during the course of our audit we have neither come
across nor have we been informed by the management of any instance of
major weaknesses in the aforesaid internal control system.
(v) (a) In our opinion and according to the
information and explanations given to us and on the basis of our
examination of the books of accounts, we are of the opinion that the
contracts or arrangements that need to be entered in the register
maintained in pursuance of Section 301 of the Companies Act, 1956 have
bean entered in the said register.
(b) In our opinion and according to the information and explanations
given to us and considering the explanations given by the management
that market prices not being available for transactions exceeding the
value of five lakh rupees in respect of each party during the year, we
are unable to comment as to whether or not such transaction have been
made at prices which are reasonable having regard to the prevailing
market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public
during the year under the provisions of Sections 58A, 58AA or any other
relevant provisions of the Act.
(vii) In our opinion, the internal audit system is by and large
commensurate with the size of the company and nature of its business.
(viii) On the basis of the records produced, we are of the opinion
that, prima facie, the cost accounts and records as prescribed by the
Central Government under clause (d) of sub section (1) of section 209
of the Act, have been made and maintained. However, we
have not carried out a detailed examination of the said accounts and
records.
(ix) (a) According to the records of the
Company, the Company has been generally regular in depositing during
the year undisputed statutory dues (to the extent applicable) including
Provident Fund, Investor Education and Protection Fund (subject to Note
7), Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues
with the appropriate authorities.
According to the records of the Company, there were no arrears of
outstanding statutory dues which have remained outstanding as at
31.03.2012 for a period of more than six months from the date they
became payable.
(b) According to the records of the Company and as per the information
and explanations given to us, there were no dues outstanding of sales
tax / wealth tax/ service tax / custom duty / excise duty / cess /
Income Tax which have not been deposited on account of any dispute.
(x) The Company has no accumulated losses as at 31s' March 2012 and
has not incurred cash losses in the financial year ended on that date
and in the immediately preceding financial year.
(xi) According to the records of the Company and as per the information
and explanations given to us, there have been some delays(ranging from
three days to thirty one days) in repayment of Rs. 1,56,42,858/- in
term loans and interest to banks, relating to the months April' 2011
and July' 2011 and there were no outstanding over dues as on
31.03.2012.
(xii) According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares,
debentures and other securities during the year.
(xiii) In our opinion, the provisions of any Special Statute applicable
to Chit Fund/Nidhi/Mutual Benefit Fund/Societies are not applicable to
the Company.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) According to the information and explanations given to us the
Company has not given any guarantee for loans taken by others from bank
or financial institutions during the year.
(xvi) According to the records of the company, no fresh term loans were
taken by the company during the year.
(xvii) On the basis of review of utilization of funds on overall basis
as on 31.03.2012, related information, explanations and statements as
made available to us and as represented to us by the Management, funds
available as Short Term during the year have not been used for Long
Term application.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the Register maintained under
Section 301 of the Act during the year.
(xix) The Company has not issued any Debentures during the year.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India, we have not come across any
instance of material fraud on or by the Company, noticed or reported
during the year, nor have we been informed of such case by the
management or the internal auditors of the Company.
For G. P. KEJRIWAL & ASSOCIATES
Chartered Accountants
Firm Registration No. 302201E
5, Clive Row K. K. SINGHAL
Kolkata-700001. Partner
Dated : 12th July, 2012 M. No. 50140
Mar 31, 2010
We have audited the attached Balance Sheet of Kilburn Chemicals Ltd, as
at 31 st March, 2010 and also the profit and loss account and the cash
flow statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003, as amended
by the Companies (Auditors Report)(Amendment) Order, 2004 (together
the "Order") issued by the Central Government of India in terms of
Section 227 (4A) of the Companies Act, 1956, and on the basis of such
checks as we considered appropriate and according to the information
and explanations given to us and the books and records as produced and
examined by us in the normal course of audit and to the best of our
knowledge and belief, we give in the attached Annexure a Statement on
the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to in Paragraph 3
above:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of the
books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this Report are in agreement with the books of account as
submitted to us;
(d) In our opinion, the Balance Sheet, Profit & Lose Account and Cash
Flow statement dealt with by this report comply with the accounting
standards referred to in Sub-Section (3d) of Section 211 of the
Companies Act, 1956.
(e) On the basis of written representations received from the Directors
of the Company, as on 31 st March, 2010, and taken on record by the
Board of Directors of the Company, none of the Directors of the Company
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) In our opinion and to the best of our information and according to
the explanations given to us the annexed accounts, subject to and read
together with the Notes in Schedule 26 and the Notes and Observations
thereon and attached thereto, give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India.
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2010;
(ii) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the Cash Flow for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in Paragraph (3) of our
Report of even date of KILBURN CHEMICALS LIMITED as at and for the year
ended 31st March, 2010).
(i) (a) The Company is, in our opinion, maintaining proper records in
computer, to show full particulars including quantitative details and
situation of fixed assets.
(b) In accordance with a programme, decided during the previous year,
of verifying, the fixed assets, once in three years, the fixed assets
as informed are to be physically verified by the management during the
year ended 31- 03-2011. The periodicity of physical verification, in
our opinion, is reasonable having regard to the size of the company and
the nature of its assets.
(c) In our opinion, and according to the information and explanations
given to us, the fixed assets disposed off during the year were not
substantial part of fixed assets so as to affect the going concern
status of the company.
(ii) (a) The inventories lying with the Company have been physically
verified by the management during the year/year end.
(b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion, the Company is maintaining proper records of
inventories and according to the records of the Company, the
discrepancies noticed on physical verification of stocks as compared to
book records, which in our opinion, were not material, in relation to
the operations of the Company, have been properly dealt with in the
books of accounts.
(iii) (a) According to the records of the Company, the Company has
neither granted nor taken any loans, secured or unsecured to and from
the Companies, firms or other parties covered in the register
maintained under Section 301 of the Act.
(b) In view of our comments in paragraph (iii) (a) above, clauses (iii)
(b) to (g) of Paragraph 4 of the aforesaid order, are, in our opinion,
not applicable to the Company for the current year.
(iv) In our opinion and on the basis of test checks carried out by us,
and considering the explanations given by the management that
alternative sources not being available for certain purchases/services,
it appears that there are adequate internal control system commensurate
with the size of the Company and the nature of its business with
respect to major purchases of inventory and fixed assets and for the
sale of goods and services. Further, during the course of our audit we
have neither come across nor have we been informed by the management or
the internal auditors of the Company, of any instance of major
weaknesses in the aforesaid internal control system.
(v) (a) In our opinion and according to the information and
explanations given to us and on the basis of our examination of the
books of accounts, we are of the opinion that the contracts or
arrangements that need to be entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956 have been entered
in the said register.
(b) In our opinion and according to the information and explanations
given to us, the Company has not entered into any transactions
exceeding the value of five lakh rupees in respect of any party during
the year that need to be entered in the register in pursuance of
Section 301 of the Companies Act, 1956 and therefore, Clause v(b) of
Paragraph 4 of the aforesaid order, is in our opinion, not applicable
to the Company for the current year.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public
during the year under the provisions of Sections 58A, 58AA or any other
relevant provisions of the Act.
(vii) In our opinion, the internal audit system is by and large
commensurate with the size of the Company and nature of its business.
(viii) On the basis of the records produced, we are of the opinion
that, prima facie, the cost accounts and records as prescribed by the
Central Government under Clause(d) of Sub- section(1) of Section 209 of
the Act have been made and maintained. However, we have not carried out
a detailed examination of the said accounts and records.
(ix) (a) According to the records of the Company, the Company has been
generally regular in depositing during the year undisputed statutory
dues (to the extent applicable) including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other statutory dues with the appropriate authorities. According to
the records of the Company there were no arrears of outstanding
statutory dues which have remained outstanding as at 31.3.2010 for a
period of more than six months from the date they became payable.
(b) According to the records of the Company and as per the information
and explanations given to us, the dues outstanding of sales tax /
wealth tax/ service tax / custom duty / excise duty / cess / Income Tax
which have not been deposited on account of any dispute are as follows:
Name of Nature of Amount Period to Forum where
Statue Dues (Rs) which it dispute is
relates to pending
Central Service 9.66 January, The commissioner
Excise Tax Lacs 2005 of Central Excise
Act to March, (Appeals),
2008 Madurai
Income Income 92.97 Year The commissioner
Tax Tax Lacs ended of Income Tax
Act,1961 31-03-2007 (Appeals),
Chennai
We have been informed that except as stated above there are no other
amounts which have not been deposited on account of disputes.
(x) The Company has no accumulated losses as at 31st March, 2010 and
has not incurred cash losses in the financial year ended on that date
and in the immediately preceding financial year.
(xi) According to the records of the Company and as per the information
and explanations given to us, there has been delays in repayment of
dues (Term Loans) of Rs. 497.10 Lacs relating to the period from
May,2009 to March,2010 to Banks during the year and there were
outstanding overdues of Rs 31.85 Lacs as on 31-03-2010 (Since paid)
(xii) According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities during the
year.
(xiii) In our opinion, the provisions of any Special Statute applicable
to Chit Fund/Nidhi/Mutual Benefit Fund/ Societies are not applicable to
the Company.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) According to the information and explanations given to us the
Company has not given any guarantee for loans taken by others from bank
or financial institutions during the year.
(xvi) On the basis of review of utilisation of funds pertaining to term
loans on overall basis as on 31.03.2010 and related information,
explanations as made available to us and as represented to us by the
management, the term loans taken by the Company during the year were
applied during the year for the purpose for which the loans were
obtained.
(xvii) On the basis of review of utilisation of funds on overall basis
as on 31.3.2010, related information, explanations and statements as
made available to us and as represented to us by the Management, funds
available as Short Term during the year have not been used for Long
Term application.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the Register maintained under
Section 301 of the Act during the year.
(xix) The Company has not issued any Debentures during the year.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India, we have not come across any
instance of material fraud on or by the Company, noticed or reported
during the year, nor have we been informed pf such case by the
management or the internal auditors of the Company.
For G. P. KEJRIWAL & ASSOCIATES
Chartered Accountants
Firm Registration No. 302201E
5, Clive Row K. K. SINGHAL
Kolkata-700001. Partner
Dated :6th August, 2010 M. No. 50140
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