Mar 31, 2015
We have audited the accompanying financial statements of KORE FOODS
LIMITED (Formerly known as PHIL CORPORATION LIMITED) ("the Company"),
which comprise the Balance Sheet as at March 31,2015, 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
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its Statement of profit and loss 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:
(a) Note 22(1)(ii) to the financial statements which, describes the
uncertainty related to the outcome of the lawsuit filed against the
Company.
(b) Note 22(2) in the financial statement which indicates that the
Company has accumulated losses and its net worth has been fully eroded,
the Company has incurred a net loss during the year and cash loss
during the current and previous year and, the Company's current
liabilities exceeded its current assets as at the Balance sheet date.
These conditions, along with other matters set forth in Note 22,
indicate the existence of a material uncertainty that may cast
significant doubt about the Company's ability to continue as a going
concern. However, the financial statements of the Company have been
prepared on a going concern basis for the reasons stated in the said
Note and consequently no adjustments have been made to carrying values
or classification of Balance sheet accounts.
c) Note no 22(3) in the financial statement regarding non provisioning
of demand of Rs. 1,91,24,546/- including interest of Rs. 1,21,36,564/-
raised by commercial tax Department of Government of Karnataka on
reversal of decision of Karnataka High Court by Supreme Court of India
on applicability of commercial tax on photographic development activity
by photo processing Labs.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) It is informed by the Company that it does not have any Branch
office required to be audited under section 143(8) of the Act,.
(d) 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.
(e) 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.
(f) The going concern matter described in sub- paragraph (b) under the
Emphasis of Matters paragraph above, in our opinion, may have an
adverse effect on the functioning of the Company.
(g) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(h) In our opinion and according to the information and explanations
given to us, there are adequate internal financial controls over
financial reporting which have effective control over its operation
considering the size of the Company.
(i) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us :
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 22(1) to
the financial statements.
(ii) The Company is not required to make any provision for material
foreseeable losses in respect of long-term contracts including
derivative contracts as it has not entered into any such contract.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
2. As required by the Companies (Auditor's Report) Order, 2015 issued
by the Central Government in exercise by powers conferred by
sub-section (11) of Section 143 of Companies Act, 2013 we enclosed in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the said order.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in Report on Other Legal and Regulatory Requirements of our
Report of even date)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) A substantial portion of the fixed assets has been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material and these have been properly
dealt with in the books of account.
(iii) The Company has not granted any loans, secured or unsecured
to/from Companies, firms or other parties covered in the register
maintained under Section 189 of the Companies Act, 1956. Accordingly,
Sub- Clause (a) and (b) are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal system.
(v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any Deposits from the public
during the year.
(vi) We are informed that the Central Government has not prescribed
maintenance of cost records under sub- section (l) 148 of the Companies
Act, 2013 for any of the products of the Company.
(vii) (a) According to the records of the Company, in respect of
Provident Fund, Employees State Insurance Fund, Income Tax, Sales Tax
Wealth Tax, Service Tax, Cess have been generally, regularly deposited
during the year with the appropriate authorities. As per the
explanations given to us, no undisputed amounts payable in respect of
above were in arrears, as at 31st March 2015 for a period of more than
six months from the date on which they became payable.
(b) According to the records of the Company, Sales Tax, Income Tax,
Customs Duty, Wealth Tax, Excise Duty and Cess In respect of Gratuity
payments the extent of arrears of outstanding dues, as at the last day
of the financial year for a period of more than six months from the
date they became payable are given below :
Name of the Period to A Forum where Amount
statute which the dispute is (Rs.)
(nature of dues) amount pending
relates
Duty Drawback 1989-1990 High Court, 7,04,000
Rules Mumbai
Foreign Trade 1999-2000 DGFT/Jt.DGFT 86,58,000
(Development &
Regulation)
Act, 1992
State Sales Tax 1993-2004 Appellate 3,35,58,458
Central Sales Tax Authorities
Central Excise 1990-2004 Appellate 15,72,000
Service Tax Authorities
(c) According to the information and explanations given to us, the
Company has transfer to investor education and protection fund, in
accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and rules made there under, has been transferred to such fund
within time.
(viii) The accumulated losses at the end of the financial year are
above Company net worth. The Company has incurred cash loss of Rs.
1,45,70,987/-. In the current financial year and Rs. 85,58,111/- in the
preceding financial year.
(ix) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to a Bank.
(x) During the course of our examination of books and records of the
Company carried out in accordance with generally accepted accounting
practices followed in India, and based on the audit procedures
performed to report the true and fair view of the financial statements
and as per the information and explanation given by the management, we
report that we have neither come across any material 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. C. Shah & Co.
Chartered Accountants
Firm Reg. No. 109818W
Place : Mumbai V.C. Shah
Date : 7th May, 2015 Partner
Membership No. 10360
Mar 31, 2014
We have audited the accompanying financial statements of PHIL
CORPORATION LIMITED ("the Company"), which comprise the Balance Sheet
as at March 31,2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance & cash flows of the Company in accordance with
accounting principles generally accepted in India, including Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Forming an Opinion and Reporting on Financial
Statements Act"), read with General Circular 15/2013 dated 13th
September 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
(b) in the case of the Statement of Profit and Loss, "Profit" for the
year ended on that date; and In the case of the Cash Flow Statement, of
the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are In agreement with the books of
account.
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
And Cash Flow Statement comply with the Accounting Standards notified
under the Companies Act, 1956 read with the General Circular 15/2013
dated 13 September 2013 of Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT (Referred to in Report on Other Legal
and Regulatory Requirements of our Report of even date)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) A substantial portion of the fixed assets has been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification.
(c) There has been no substantial disposal of fixed assets during the
year.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material and these have been properly
dealt with in the books of account.
(iii) The Company has not granted nor taken any loans, secured or
unsecured to/from Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, Sub-Clause (b), (c), (d), (e), (f) and (g) are not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal controls.
(v) (a) Based upon the audit procedures performed and according to the
information and explanations given to us, the transactions that need to
be entered in the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, such transactions exceeding the value of Rs. 5.00 lacs in
respect of any party during the period have been made at prices which
are reasonable having regard to 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 any fixed deposits from the
public during the year. There are unclaimed deposits in respect of
which the Company has complied with the provisions of Section 58 A and
58AAof the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975. In respect of the orders passed by the Company
Law Board in earlier years the Company has complied with the said
orders.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We are informed that the Central Government has not prescribed
maintenance of cost records under Section 209(i)(d) of the Companies
Act, 1956 for any of the products of the Company.
(ix) (a) According to the records of the Company, in respect of
Provident Fund, Investor Education and Protection Fund, Income Tax,
Wealth Tax, Cess have been generally, regularly deposited during the
year with the appropriate authorities. As per the explanations given
to us, no undisputed amounts payable in respect of above were in
arrears, as at 31st March, 2014 for a period of more than six months
from the date on which they became payable. In respect of Gratuity
payments the extent of arrears of outstanding dues, as at the last day
of the financial year for a period of more than six months from the
date they became payable are given below:
Name of Nature of Amount Period to which the
Statute Dues (Rs.) Amount Relates
Underthe Pay-
ment ofGrat- Gratuity 2,80,830 Upto 31st March, 2014
uity Act, 1972
(b) According to the records of the Company, Sales Tax, Income Tax,
Customs Duty, Wealth Tax, Excise Duty and Cess which have not been
deposited on account of any dispute are given below:
Name of the Period to A Forum where Amount
statute which the dispute is (Rs.)
(nature of dues) amount pending
relates
Duty Drawback 1989-1990 High Court, 7,04,000
Rules Mumbai
Foreign Trade 1999-2000 DGFT/Jt.DGFT 1,92,73,000
(Development &
Regulation)
Act, 1992
State Sales Tax 1993-2004 Appellate 2,98,78,973
Central Sales Tax Authorities
Central Excise 1990-2004 Appellate 15,72,000
Service Tax Authorities
(x) The accumulated losses at the end of the financial year are more
than 50% of the net worth. The Company has incurred cash loss of Rs.
85,58,111/- in the current financial year and Rs. 36,11,678/- in the
preceding financial year.
(xi) In our opinion and according to information given to us, the
Company does not own any dues to Financial Institutions, Banks or
Debenture holders. Therefore the provisions of clause 4(xi) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
(xii)Based on our examination of the records and explanations given to
us, the Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of the clause 4(xiv) of the Companies (Auditors'' Report)
Order, 2003 are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xvi) According to the information and explanations given to us, the
Company has not taken any term loan during the year.
(xvii)According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that the Company has not raised any fund on short term or long term
basis.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
theAct.
(xix) The Company has not issued any debentures during the year.
(xx) During the year, the Company has not raised any money by public
issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For V. C. Shah & Co.
Chartered Accountants
Firm Reg. No. 109818W
V. C. Shah
Place: Mumbai Partner
Dated: 12th May, 2014 Membership No. 10360
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of PHIL
CORPORATION LIMITED ("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 of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Forming an Opinion and Reporting on Financial
Statements 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 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, "Loss" for the
year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
And Cash Flow Statement comply with the Accounting Standards referred
to in subsection (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 Report on Other Legal and Regulatory Requirements of
our Report of even date)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) A substantial portion of the fixed assets has been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification.
(c) There has been no substantial disposal of fixed assets during the
year.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material and these have been properly
dealt with in the books of account.
(iii) The Company has not granted nor taken any loans, secured or
unsecured to/from Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, Sub-Clause (b), (c), (d), (e), (f) and (g) are not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal controls.
(v) (a) Based upon the audit procedures performed and according to the
information and explanations given to us, the transactions that need to
be entered in the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, such transactions exceeding the value of Rs. 5.00 lacs in
respect of any party during the period have been made at prices which
are reasonable having regard to 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 any fixed deposits from the
public during the year. There are unclaimed deposits, in respect of
which the Company has complied with the provisions of Section 58A and
58AA of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975. In respect of the orders passed by the Company
Law Board in earlier years the Company has complied with the said
orders.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We are informed that the Central Government has not prescribed
maintenance of cost records under Section 209(i)(d) of the Companies
Act, 1956 for any of the products of the Company.
(ix) (a) According to the records of the Company, in respect of
Provident Fund, Investor Education and Protection Fund, Income Tax,
Wealth Tax, Cess have been generally, regularly deposited during the
year with the appropriate authorities. As per the explanations given
to us, no undisputed amounts payable in respect of above were in
arrears, as at 31st March, 2013 for a period of more than six months
from the date on which they became payable.
(x) The accumulated losses at the end of the financial year are more
than 50% of the net worth. The Company has incurred cash loss of Rs.
36,11,678/- in the current financial year and Rs. 1,02,18,388/- in the
preceding financial year.
(xi) In our opinion and according to information given to us, the
Company does not own any dues to Financial Institutions, Banks or
Debenture holders. Therefore the provisions of clause 4(xi) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
(xii)Based on our examination of the records and explanations given to
us, the Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of the clause 4(xiv) of the Companies (Auditors'' Report)
Order, 2003 are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xvi) According to the information and explanations given to us, the
Company has not taken any term loan during the year.
(xvii)According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that the Company has not raised any fund on short term or long term
basis.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Act.
(xix) The Company has not issued any debentures during the year.
(xx) During the year, the Company has not raised any money by public
issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For V. C. Shah & Co.
Chartered Accountants
Firm Reg. No. 109818W
V. C. Shah
Place : Mumbai Partner
Dated : 21st May, 2013 Membership No. 10360
Mar 31, 2012
1. We have audited the attached Balance Sheet of PHIL CORPORATION
LIMITED, as of 31st March, 2012 the Statement of Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed hereto. 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 have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003, issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraph 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(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 such
books and proper returns adequate for the purpose of our audit have
been received from branches not visited by us;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow statement comply with Accounting Standards referred to in
Sub- Section (3C)of Section 211 of the Companies Act, 1956;
(e) On the basis of the written representations received from the
Directors as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
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 of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon give the information required by the Companies Act, 1956,
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) In the case of the Statement of Profit and Loss, the loss of the
Company 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)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) A substantial portion of the fixed assets has been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification.
(c) There has been no substantial disposal of fixed assets during the
year.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material and these have been properly
dealt with in the books of account. .
(iil) The Company has not granted nor taken any loans, secured or
unsecured to/from Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, Sub-Clause (b), (c), (d), (e), (f) and (g) are not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal controls.
(v) (a) Based upon the audit procedures performed and according to the
information and explanations given to us, the transactions that need to
be entered in the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, such transactions exceeding the value of Rs. 5.00 lacs in
respect of any party during the period have been made at prices which
are reasonable having regard to 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 any fixed deposits from the
public during the year. There are unclaimed deposits, in respect of
which the Company has complied with the provisions of Section 58Aand
58AAof the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975. In respect of the orders passed by the Company
Law Board in earlier years the Company has complied with the said
orders.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We are informed that the Central Government has not prescribed
maintenance of cost records under Section 209(i)(d) of the
Companies Act, 1956 for any of the products of the Company.
(ix) (a) According to the records of the Company, in respect of
Provident Fund, Investor Education and Protection Fund, Income Tax,
Wealth Tax, Cess have been generally, regularly deposited during the
year with the appropriate authorities. As per the explanations given
to us, no undisputed amounts payable in respect of above were in
arrears, as at 31st March, 2012 for a period of more than six months
from the date on which they became payable. In respect of Income Tax,
Sales Tax, Gratuity payments the extent of arrears of outstanding dues,
as at the last day of the financial year for a period of more than six
months from the date they became payable are given below:
Name of Nature of Amount Period to which the
Statute Dues (Rs.) Amount Relates
Income
Tax Act Income Tax- 31028 April 2010 to
1961 TDS March 2011
Under the
Payment of Gratuity 1850510 Upto 31st March,2012
Gratuity
Act
(b) According to the records of the Company, Sales Tax, Income Tax,
Customs Duty, Wealth Tax, Excise Duty and Cess which have not been
deposited on account of any dispute are given below:
Name of the Period to Forum where Amount
statute which the dispute is (Rs.)
(nature of dues) amount pending
relates
Duty Drawback 1989-1990 High Court, 7,04,000
Rules Mumbai
Foreign Trade 1999-2000 DGFT/Jt.DGFT 1,92,73,000
(Development &
Regulation)
Act, 1992
Excise Duty on 2003-2005 Central Excise 1,70,46,000
Films. Tribunal
State Sales Tax 1992-2006 Appellate 4.69,81,313
CST CENTRAL Tribunal
EXCISESERVICE TAX
(x) The accumulated losses at the end of the financial year are more
than 50% of the net worth. The Company has incurred cash loss of Rs.
1,02,18,388/- in the current financial year and Rs. 1,66,57,419/- in
the preceding financial year.
(xi) In our opinion and according to information given to us, the
Company does not owe any dues to Financial Institutions, Banks or
Debenture holders. Therefore the provisions of clause 4(xi) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
(xii) Based on our examination of the records and the ' information and
explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion, tle Company is not a chit fund or a
nidhi/mutual benefit fund/society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditors' Report) Order, 2003 are not
applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of the clause 4(xiv) of the Companies (Auditors' Report)
Order, 2003 are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xvi) According to the information and explanations given to us, the
Company has not taken any term loan during the year.
(xvii)According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that the Company has not raised any funds on short term or long term
basis.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Act.
(xix) The Company has not issued any debentures during the year.
(xx) During the year, the Company has not raised any money by public
issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For V.C. Shah & Co.
Chartered Accountants
Firm Reg. No. 109818W
V. C. Shah
Place: Mumbai Partner
Dated: 25th May, 2012 Membership No. 10360
Mar 31, 2011
We have audited the attached Balance Sheet of PHIL CORPORATION LIMITED,
as of 31st March, 2011 and also the Profit and Loss Account of the
Company and the Cash Flow Statement for the year ended on that date
annexed hereto.
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.
1. We have conducted our audit in accordance with auditing standards
generally accepted in India.
Those Standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditors' Report) Order, 2003, issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraph 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to in paragraph 2
above, we report that:
(a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(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 such
books and proper returns adequate for the purpose of our audit have
been received from branches not visited by us;
(c) the Balance Sheet, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account;
(d) in our opinion, the Balance Sheet, the Profit & Loss Account and
Cash Flow statement comply with Accounting Standards referred to in
Sub- Section (3C) of Section 211 of the Companies Act, 1956;
(e) on the basis of the written representations received from the
Directors as on 31st March,' 2011 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2011, from being appointed as a Director in terms of Clause
(g) of Sub-Section (1) of Section 274 of the Companies Act, 1956;
(f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon give the information required by the Companies Act, 1956,
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India;
(i) in the case of the Balance Sheet, of the state - of affairs of the
Company as at 31st March, 2011;
(ii) in the case of the Profit and Loss Account, after considering
extraordinary items, the profit of the Company 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 AUDITOR'S REPORT
(Referred to in paragraph 2 of our Report of even date)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) Asubstantial portion of the fixed assets has been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification.
(c) There has been no substantial disposal of fixed assets during the
year.
(ii) (a) The inventories have been physically verified during the
period by the management. In our opinion, the frequency of verification
is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material and these have been properly
dealt with in the books of account.
(iii) The Company has not granted nor taken any loans, secured or
unsecured to/from Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, Sub-Clause (b), (c), (d), (e), (f) and (g) are not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal controls.
(v) (a) Based upon the audit procedures performed and according to the
information and explanations given to us, the transactions that need to
be entered in the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, such transactions exceeding the value of Rs. 5 lacs in
respect of any party during the period have been made at prices which
are reasonable having regard to 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 any fixed deposits from the
public during the year. There are unclaimed deposits, in respect of
which the Company has complied with the provisions of Section 58Aand
58AA of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975. In respect of the orders passed by the Company
Law Board in earlier years the Company has complied with the said
orders.
(vii) We are informed that in view of closure of substantial business
of the Company the management has not considered it appropriate to have
any formal internal audit system.
(viii) We are informed that the Central Government has not prescribed
maintenance of cost records under Section 209(i)(d) of the Companies
Act, 1956 for any of the products of the Company.
(ix)(a) According to the records of the Company, in respect of
Provident Fund, Investor Education and Protection Fund, Income Tax,
Wealth Tax, Cess have been generally, regularly deposited during the
year with the appropriate authorities. As per the explanations given
to us, no undisputed amounts payable in respect of above were in
arrears, as at 31st March, 2011 for a period of more than six months
from the date on which they became payable. In respect of Sales Tax,
Gratuity payments the extent of arrears of dues, as at the last day of
the financial year outstanding for a period of more than six months
from the date they became payable are given below:
Name of Nature of Amount Period to which the
Statute Dues (Rs.) Amount Relates
Delhi Sales Tax 552616 April 2005 to
VAT Act, 2004 August 2005
Delhi-Sales Sales Tax 459090 April 1992 to
Tax Payable March 1997
Chennai VAT 6854 April 2010 to
September 2010
Maharashtra VAT 399614 April 2006 to
VAT Act, 2002 September 2010
Goa Sales Tax Sales Tax 1159441 April 2006 to
September 2010
Underpayment Gratuity 3589579 Upto 31st March,2010
of Gratuity Act
(b) According to the records of the Company, Sales Tax, Income Tax,
Customs Duty, Wealth Tax, Excise Duty and Cess which have not been
deposited on account of any dispute are given below:
Name of the Period to Forum where Amount
statute which the dispute is (Rs.)
(nature of dues) amount pending
relates
Duty Drawback 1989-1990 High Court, 7,04,000
Rules Mumbai
Foreign Trade 1999-2000 DGFT/Jt.DGFT 1,92,73,000
(Development &
Regulation)
Act, 1992
Excise Duty on 2003-2005 Central Excise 1,70,46,000
Films. Tribunal
State SalesTax 1992-2006 Appellate 4,73,85,313
CST CENTRAL Tribunal
EXCISE
SERVICE TAX
(x) The accumulated losses at the end of the financial year are more
than 50% of the net worth. The Company has incurred cash loss of Rs.
1,66,57,419/- in the current financial year and Rs. 95,15,8057- in the
preceding financial year.
(xi) In our opinion and according to information given to us, the
Company does not owe any dues to Financial Institutions, Banks or
Debenture holders. Therefore the provisions of clause 4(xi) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
(xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors' Report) Order, 2003 are not applicable to the
Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of the clause 4(xiv) of the Companies (Auditors' Report)
Order, 2003 are not applicable to the Company.
(xv) According to the information and explanation given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xvi) According to the information and explanations given to us, the
Company has not taken any term loan during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that the Company has not raised any funds on short term or long term
basis.
(xviii)According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Act.
(xix) The Company has not issued any debentures during the year.
(xx) During the year, the Company has not raised any money by public
issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For V. C. Shah & Co.
Chartered Accountants
Firm Reg. No. 109818W
V. C. Shah
Partner
Membership No. 10360
Place : Mumbai
Dated :21st June, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of PHIL CORPORATION LIMITED,
as of 31st March, 2010 and also the Profit and Loss Account of the
Company and the Cash Flow Statement for the year ended on that date
annexed hereto.
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.
1. We have conducted our audit in accordance with auditing standards
generally accepted in India.
Those Standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraph 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to in paragraph 2
above, we report that:
(a) we have obtained all the information and. explanations, which to
the best of our knowledge and belief were necessary for the purpose of
our audit;
(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 such
books and proper returns adequate for the purpose of our audit have been
received from branches not visited by us;
(c) the Balance Sheet, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account;
(d) in our opinion, the Balance Sheet, the Profit & Loss Account and
Cash Flow statement comply with Accounting Standards referred to in
Sub- Section (3C) of Section 211 of the Companies Act, 1956;
(e) on the basis of the written representations received from the
Directors as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2010, from being appointed as a Director in terms of Clause
(g) of Sub-Section (1) of Section 274 of the Companies Act, 1956;
(f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon give the information required by the Companies Act, 1956,
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India;
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(ii) in the case of the Profit and Loss Account, of the "loss" of the
Company 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 2 of our
Report of even date)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) A substantial portion of the fixed assets has been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. We have been informed that
no material discrepancies were noticed on such physical verification.
(c) Fixed assets disposed off during the year were substantial.
According to the information and explanations given to us, we are of
the opinion that the status of the Company as a going concern has been
affected on account of closure of major business division.
(ji) (a) The inventories have been physically verified during the
period by the management. In our opinion, the frequency of verification
is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material and these have been properly
dealt with in the books of account.
(iii) The Company has not granted nor taken any loans, secured or
unsecured to/from Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, Sub-Clause (b), (c) and (d) are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not
observed any continuing failure to correct major weakness in internal
controls.
(v) (a) Based upon the audit procedures performed and according to the
information and explanations given to us, the transactions that need to
be entered in the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, such transactions exceeding the value of Rs. 5 lacs in
respect of any party during the period have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
(vi) According to the information and explanations given to us, the
Company has not accepted any fixed deposits from the public during the
year. There are unclaimed deposits, in respect of which the Company has
complied with the provisions of Section 58Aand 58AAof the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975. In
respect of the orders passed by the Company Law Board in earlier years
the Company has complied with the said orders.
(vii) We are informed that in view of closure of substantial business
of the Company the management has not considered it appropriate to have
any formal internal audit system.
(viii) We are informed that the Central Government has not prescribed
maintenance of cost records under Section 209(i)(d) of the Companies
Act, 1956 for any of the products of the Company.
(ix)(a) According to the records of the Company, in respect of
Provident Fund, Investor Education and Protection Fund, Income Tax,
Wealth Tax, Cess have been generally, regularly deposited during the
year with the appropriate authorities. As per the explanations given
to us, no undisputed amounts payable in respect of above were in
arrears, as at 31st March, 2010 for a period of more than six months
from the date on which they became payable. In respect of Sales Tax,
Gratuity payments the extent of arrears of dues, as at the last day of
the financial year outstanding for a period of more than six months
from the date they became payable are as , follows:
Name of Nature of Amount Period to which the
Statute Dues (Rs.) Amount Relates
Delhi Sales Tax 5,52,616 April 2005 to
VAT Act, 2004 August 2005
Maharashtra VAT 8,94,844 April 2006 to
VAT Act, 2002 March 2009
A. P. Sales Tax 64,799 February 2006 to
VAT Act, 2005 March 2006
Underpayment Gratuity 32,07,155 Upto31stMarch,2009
of Gratuity Act
(b) According to the records of the Company, Sales Tax, Income Tax,
Customs Duty, Wealth Tax, Excise Duty and Cess which have not been
deposited on account of any dispute are given below:
Name of the Period to which A Forum where Amount
statute the amount dispute is (Rs.)
(nature of dues) relates pending
Duty Drawback 1989-1990 High Court, 7,04,000
Rules Mumbai
Demand of Excise 1990-1992 Excise 15,72,000
Duty against Department
show cause notice
Excise Duty
on Nuts 1997-1999 Supreme 89,85,000
processing food Court
products-
Supreme Court Review
Petition pending
State Sales 1992-2006 Sales Tax 8,33,72,608
Tax/CST Appellate/
Tribunal
Foreign Trade 1999-2000 DGFT/Jt,DGF7 1,92,73,000
(Development &
Regulation)
Act, 1992
Service Tax 2003-2004 Central Excise 20,43,046
Service Tax
Appellate
Tribunal,
Mumbai
Excise Duty on 2003-2005 Central Excise 1,70,46,000
Films. Tribunal.
(x) The accumulated losses at the end of the financial year are more
than 50% of the net worth. The Company has incurred cash loss of Rs.
95,15,805, in the current financial year and Rs. 36,82,865 in the
preceding financial year.
(xi) In our opinion and according to information given to us, the
Company does riot owe any dues to Financial Institutions, Banks or
Debenture holders. Therefore the provisions of clause 4(xi) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
(xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of the clause 4(xiv) of the Companies (Auditors Report)
Order, 2003 are not applicable to the Company.
(xv) According to the information and explanation given to us, the
Company has not given any guarantees for loans taken by other from
banks or financial institutions.
(xvi) According to the information and explanations given to us, the
Company has not taken any term loan during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that the Company has not raised any funds on short term or long term
basis.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Act.
(xix) The Company has not issued any debentures during the year.
(xx) During the year, the Company has not raised any money by public
issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For V. C. Shah & Co.
Chartered Accountants
Firm Reg. No. 109818W
V. C. Shah
Place: Mumbai Partner
Dated: August 37, 2010 Membership No. 10360