Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Kothari Fermentation & Biochem Limited (âthe Companyâ), which comprise the balance sheet as at 31st March 2018, the statement of profit and loss including the statement of other comprehensive income, the cash flow statement and the Statement of changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
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) specified under Section 133 of the Act, read with Company (Indian Accounting Standards) Rules,2015, as amended. 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.
Auditorâs 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, 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 of the Ind AS financial statements in accordance with the Standards on auditing, Issued by the Institute of chartered accountants of India, 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 the disclosures in the financial statements. 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. 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 Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2018, its profit including other comprehensive income, its cash flows and the Changes in Equity for the year ended on that date.
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, we give in the Annexure I, a statement on the matters specified in the paragraph 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 the statement of other comprehensive income, the cash flow statement 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 Accounting Standards specified under Section 133 of the Act, read with companies (Indian accounting Standards) Rule, 2015, as amended;
(e) On the basis of the written representations received from the directors as on 31st March 2018 taken on record by the Board of directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of section 164(2) of the Act:
(f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in âAnnexure IIâ;
(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 its Ind AS financial statements - Refer Note 29 to the financial Statements;
ii. The company did not have any long -term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There were no amount which were required to be transferred to the Investor education and Protection Fund by the company.
Annexure - I to the Independent Auditorsâ Report -31st March, 2018
Referred to ourâ report to the members of the Kothari Fermentation & Biochem Limited as at and for the year ended 31 March 2018,
(i) (a) The Company has maintained proper records showing full particulars, including Quantitative details and situation of property, plant and equipment.
(b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified in a phased manner by the management. In accordance with this programme, All the Fixed assets have not been physically verified by the management during the year which, in our opinion, is reasonable having regard to the size of company and nature of its assets. 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) (a) The management has conducted Physical Verification of inventory at reasonable intervals during the year, other than stock lying with third parties, and no material discrepancies were noticed on such physical verification .
(b) In our opinion, procedures for physical verification of inventory 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 inventory. We have Been explained that discrepancies noticed on physical verification as compared to Book records were not material and the same have been properly dealt with in the Books of account.
(iii) The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the companies Act, 2013 (âthe Actâ). Accordingly, paragraphs 3 (iii) (a), (b) and (c) of the order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given to us, the Company has not granted any loans, or provided any guarantees or security to the Parties covered under Section 185 the companies Act. The Company has complied with the provisions of 186 of the companies Act in respect of the loans given and investment made.
(v) According to the information and explanations given to us, the Company has not accepted any deposits, under the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under. Accordingly, paragraph 3(v) of the Order is not applicable.
(vi) According to the information and explanations given to us, the Central Government has not specified the maintenance of cost records under section 148(1) of the companies Act, 2013 in respect of the Companyâs products.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the company, The company is regular in depositing amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales tax, value added tax, duty of customs, duty of excise, Goods and service tax, cess and other statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund income tax, sales tax, value added Tax, duty of customs, duty of excise, Goods and service tax, cess and other material statutory dues were outstanding, at the year end, for a period of more than 6 months from the date they became payable.
(c) According to the records of the company, the dues of income tax, sales tax, Goods and services tax, services tax, duty of custom, duty of excise, value added Tax and cess on account of any dispute are as follows:
Name of the Statute |
Nature of Dues |
Amount |
Period to which |
Forum Where the |
(in Lacs) |
the amount relates |
dispute is pending |
||
Income Tax Act |
Demand of Tax |
# Rs. 665.81 lacs |
A.Y. 2008-09 |
CIT(A), New Delhi |
# a stay order has been received against the amount disputed and not deposited.
(viii) In our opinion and according to the information and explanations given by the Management, the Company has not defaulted in repayment of loans or borrowing to a financial institution or bank. The Company did not have any outstanding dues in respect of government or debenture holders during the year.
(ix) The Company did not raise any money by way of initial public offer or further Public offer (including debt instruments) during the year under report. Based on Our audit procedures and on the information and explanation given by the Management, we are of the opinion that the money raised by way of term loans Has been applied for the purposes for which those were raised.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him as referred to in section 192 of companies act, 2013. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) In our opinion and according to the information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company
Annexure - II to the Independent Auditorsâ Report -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 Kothari Fermentation and Biochem Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the 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 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 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 Kothari Kuldeep & Co.
Chartered Accountants
ICAI Firm Registration No. - 015960C
Place: New Delhi CA KULDEEP KOTHARI
Dated: 23/05/2018 Proprietor, Membership No.: 413714
Mar 31, 2016
Independent Auditor''s Report
To the Members of Kothari Fermentation and Biochem Limited Report on the Financial Statements
We have audited the accompanying financial statements of Kothari Fermentation And Biochem Limited (âthe Company''), which comprise the balance sheet as at 31 March 2016, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) 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 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 31 March 2016 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) 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, a statement on the matters specified in the paragraph 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 31 March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in ouropinion 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 28 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; and
iii. There were no amount which were required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure -Ato the Independent Auditors'' Report -31" March 2016
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the financial statements for the year ended 31 March 2016, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets
(b) The fixed assets were physically verified by the management in accordance with regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to, no material discrepancies were notices 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) (a) As explained to us inventory, other than stock lying with third parties, has been physically verified by the management at regular intervals during the year.
(b) In our opinion, procedures for physical verification of inventory 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 inventory. We have been explained that discrepancies noticed on physical verification as compared to book records were not material and the same have been properly dealt with in the books of account
(iii) The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (''the Act''). Accordingly, paragraphs 3 (iii) (a), (b) and (c) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has not granted any loans, or provided any guarantees or security to the parties covered under Section 185 of the Act. The Company has complied with the provisions of Section 186 of the Act in respect of the loans given and investments made.
(v) According to the information and explanations given to us, the Company has not accepted any deposits, under the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.
(vi) According to the information and explanations given to us, the Central Government has not specified the maintenance of cost records under section 148(1) of the Companies Act, 2013 in respect of the Company''s products.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, income-tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of employees'' state insurance and duty of excise.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31 March 2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no material dues of duty of customs which have not been deposited with the appropriate authorities on account of any dispute. However, according to information and explanations given to us, the following dues of income tax, sales tax, duty of excise, service tax and value added tax have not been deposited by the Company on account of disputes:
Statue |
Nature |
Amount involved |
Period |
Forum where dispute is pending |
Income Tax Act |
Demand of tax |
#Rs.665.81 lacs |
A.Y. 2008-09 |
CIT(A), New Delhi |
* a stay order has been received against the amount disputed and not deposited.
(viii) Based on our audit procedures and on the information and explanation given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution and banks. There were no debenture holders during the year under audit.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year under report. Based on our audit procedures and on the information and explanation given by the management, we are of the opinion that the money raised by way of term loans has been applied for the purposes for which those were raised.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) In our opinion and according to the information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.
Annexure - B to the Independent Auditors'' Report -31st March 2016
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Actâ)
We have audited the internal financial controls over financial reporting of Kothari Fermentation and Biochem Limited (âthe Companyâ) as of 31 March 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the 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 auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
for Nahata Jain & Associates
Chartered Accountants
Firm Regn. No. 016351-N
Place: New Delhi (CA Anil K Jain)
Date: 30th May, 2016 Partner, M. No.93912
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Kothari Fermentation & Biochem Limited ('the Company'), which
comprise the balance sheet as at 31 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 Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31 March 2015 and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) in our opinion proper books of account as required by law have been
kept by the Company so far as 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 in this Report are in agreement with the
books of account;
(d) in our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board o-:
Directors, none of the directors is disqualified as on 31 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 anc Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its
financial position in its financial statements (Refer Note 27 to the
financial statements);
ii. the Company did not have any long -term contracts including
derivative contracts for which there were any material foreseeable
losses; and
iii. There was no amount which was required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report
(Referred to in paragraph 1 of our 'Report on Other Legal and
Regulatory Requirements)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets were physically verified by the management in
accordance with regular programme of verification which, ir our
opinion, provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanation
given to, no material discrepancies were notices on such verification.
(ii) (a) As explained to us inventories have been physically verified
by the management at regular intervals during the year.
(b) In our opinion, procedures for physical verification of inventory
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
inventory. We have been explained that discrepancies noticed on
physical verification as compared to book records were not material and
the same have been properly dealt with in the books o-: account
(iii) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013 ('the Act').
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and with regard to the sale of
goods. During the course of our audit, we have not observed any major
weaknesses in internal contro system.
(v) According to the information and explanations given to us, the
Company has not accepted any deposits, under the provisions of Sections
73 to 76 or any other relevant provisions of the Companies Act, 2013
and the rules framed there under during the year under report.
(vi) According to the information and explanations given to us, the
Central Government has not specified the maintenance of cost records
under section 148(1) of the Companies Act, 2013 in respect of the
Company's products.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records, the Company has
generally been regular in depositing undisputed statutory dues
including provident fund, employees' state insurance dues, income
tax, sales tax, wealth tax, service tax, duty of customs, value added
tax, cess and other material statutory dues applicable to it with the
appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund employees'
state insurance dues, income tax, sales tax, wealth tax, service tax,
duty of customs, value added tax, cess and other material statutory
dues were in arrears as at 31 March 2015 for a period of more than six
months from the date they became payable.
(c) According to the information and explanation given to us, there are
no dues of income tax, sales tax, wealth tax, service tax duty of
customs, excise duty and cess, which have not been deposited on account
of dispute.
(d) According to the information and explanations given to us, there
was no amount which was required to be transferred to the Investor
Education and Protection Fund by the Company.
((viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the' financial
year and in the immediately preceding financial year.
(ix) Based on our audit procedures and on the information and
explanation given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institution and banks. There were no debenture holders during the year
under audit.
(x) In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(xi) In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have beer applied for
the purposes for which they were raised
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
for Nahata Jain & Associates
Chartered Accountants Firm Regn. No. 016351-N
Place: New Delhi (CA Anil K Jain]-
Date: 30th May, 2015 Partner,
M. No.93912
Mar 31, 2014
We have audited the accompanying financial statements of Kothari
Fermentation and Biochem Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2014, and the Statement of Profit and
Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards 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 Responsibitlity
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
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, 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.
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 referred to in paragraph-1 of Section "Report on Other Legal
and Regulatory Requirements" of our report of even date Re: KOTHARI
FERMENTATION AND BIOCHEM LIMITED (the Company) for the year ended 31
March 2014)
On the basis of such checks as we considered appropriate and in terms
of the information and explanations given to us, we state that:-
01. In respect of its fixed assets:
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, the fixed assets have been physically verified
by the management during the year, which in our opinion is reasonable,
having regard to the size of the company and nature of its assets. No
material discrepancies were noticed on such physical verification.
c) In our opinion, the company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
company is not affected.
02. In respect of inventories
a) As explained to us inventories have been physically verified by the
management at regular intervals during the year.
b) In our opinion, procedures for physical verification of inventory
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
inventory. We have been explained that discrepancies noticed on
physical verification as compared to book records were not material and
the same have been properly dealt with in the books of account.
03. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a) During the year, the company has granted unsecured loan to one party
covered in the register maintained u/s 301 of the Companies Act, 1956
and the same was received back during the year. The amount involved was
'' 97.38 lacs. However, during the year no interest has been charged on
such accounts.
b) During the year, the company has taken unsecured loan from two party
covered in the register maintained u/s 301 of the Companies Act, 1956
and repaid back the same during the year. The amount involved was
Rs.19.00 lacs and no interest has been paid during the year on such
account. In our opinion the terms and conditions of unsecured loan
taken by the company, are not, prima-facie, prejudicial to the interest
of the company.
04. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventories and fixed assets and sale of goods. During the
course of our audit, we have not observed any major weaknesses in
internal control system.
05. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions that need to be entered in the register
in pursuance to 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, the transaction, if any, made in pursuance of contract or
arrangements entered in the registers maintained under Section 301 and
exceeding the value of rupees five lacs in respect of any party during
the year have been made at prices which are reasonable having regard to
prevailing market price at the relevant time.
06. The company has not accepted any deposits from the public thus the
directives issued by the Reserve Bank of India and the provisions of
section 58A, 58AA or any other relevant provisions of the Act and the
rules framed there under are not applicable.
07. In our opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
08. We have broadly reviewed the books of accounts maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Act in
respect of the Company''s products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate and complete.
09. In respect of statutory dues:
a) According to the information and explanations given to us and on the
basis of our examination of the records of the company, the company is
generally regular in depositing the undisputed statutory dues including
provident fund, ESI contributions, income tax, service tax, cess and
other statutory dues as applicable with appropriate authorities except
few cases of delays in deposit of ESI contributions and tax deducted at
source. According to the information and explanations given to us,
generally there are no undisputed amounts payable in respect of
statutory dues which have remained outstanding as at 31st March, 2014
for a period of more than six months.
b) According to the information and explanations given to us and as per
the books and records examined by us, there are no dues of income tax,
sales tax, service tax, wealth tax, excise duty, custom duty, cess,
etc., which have not been deposited on account of any dispute, except
following:
Name of the Nature of dues Amount
involved Period Forum where
dispute
Statute ('' in
Lacs) is pending
Central Excise
Act Demand of duty
due to 2.52 1994-95 Dy. Commiss
-ioner,
non-allowability
of expenses Central Excise,
Division
V, Noida
10. The company has no accumulated losses as at 31st March, 2014. The
company has not incurred any cash losses in the financial year under
report and in the immediately preceding financial year.
11. According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to the financial institutions or banks. The
company has no debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/society. Accordingly clause (xiii) of para no. 4 of the
Companies (Auditor''s Report) (amended) Order, 2004 is not applicable.
14. According to the information & explanation given to us the company
is not dealing or trading in shares, securities, debentures and other
investments. Accordingly, clause (xiv) of para no.4 of the Order is not
applicable.
15. According to the information & explanation given to us and on our
overall examination of balance sheet of the company we are of the
opinion that the company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were raised.
17. According to the information and explanation given to us and on our
overall examination of the balance sheet of the company, we are of the
opinion that no funds raised on short term basis have been used for
long term purposes.
18. During the year, the Company has not made any preferential
allotment of shares.
19. The company has not issued any debentures during the year.
20. The company has not made any public issue during the year.
21. 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 have we been
informed of such case by the management.
For NAHATA JAIN & ASSOCIATES
Chartered Accountants
Regn. No. 016351-N
(CA ANIL K. JAIN)
Partner,
M. No.93912
Place: New Delhi
Date : 30th May, 2014
Mar 31, 2013
We have audited the accompanying financial statements of Kothari
Fermentation And Biochem 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 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.
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. In our opinion
and to the best of our information and according to the txplanations
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, 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.
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 REFERRED TO IN PARA-1 OF THE AUDITORS'' REPORT TO THE MEMBERS
OF KOTHARI FERMENTATION AND BIOCHEM LIMITED ON THE ACCOUNTS FOR THE
YEAR ENDED 31.03.2013.
On the basis of such checks as we considered appropriate and in terms
of the information and explanations given to us, we state that:- 01.
In respect of its fixed assets:
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, the fixed assets have been physically verified
by the management during the year, which in our opinion is reasonable,
having regard to the size of the company and nature of its assets. No
material discrepancies were noticed on such physical verification.
c) In our opinion, the company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
company is not affected.
02. In respect of inventories
a) As explained to us inventories have been physically verified by the
management at regular intervals during the year.
b) In our opinion, procedures for physical verification of inventory
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
inventory. We have been explained that discrepancies noticed on
physical verification as compared to book records were not material and
the same have been properly dealt with in the books of account
03. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a) During the year, the company has granted unsecured loan to two
parties covered in the register maintained u/s 301 of the Companies
Act, 1956 and the same was received back during the year. The amount
involved was Rs. 182.10 lacs. However, during the year no interest has
been charged on such accounts.
b) During the year, the company has taken unsecured loan from one party
covered in the register maintained u/s 301 of the Companies Act, 1956
and repaid back the same during the year. The amount involved was
Rs.2.65 lacs and no interest has been paid during the year on such
account. In our opinion the terms and conditions of unsecured loan
taken by the company, are not, prima-facie, prejudicial to the interest
of the company.
04. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventories and fixed assets and sale of goods. During the
course of our audit, we have not observed any major weaknesses in
internal control system.
05. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions that need to be entered in the register
in pursuance to 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, the transaction, if any, made in pursuance of contract or
arrangements entered in the registers maintained under Section 301 and
exceeding the value of rupees five lacs in respect of any party during
the year have been made at prices which are reasonable having regard to
prevailing market price at the relevant time.
06. The company has not accepted any deposits from the public thus the
directives issued by the Reserve Bank of India and the provisions of
section 58A, 58AA or any other relevant provisions of the Act and the
rules framed there under are not applicable.
07. In our opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
08. We have broadly reviewed the books of accounts maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Act in
respect of the Company''s products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate and complete.
09. In respect of statutory dues:
a) According to the information and explanations given to us and on the
basis of our examination of the records of the company, the company is
generally regular in depositing the undisputed statutory dues including
provident fund, ESI contributions, income tax, service tax, cess and
other statutory dues as applicable with appropriate authorities except
few cases of delays in deposit of provident fund, ESI contributions and
tax deducted at source. According to the information and explanations
given to us, generally there are no undisputed amounts payable in
respect of statutory dues which have remained outstanding as at 31st
March, 2013 for a period of more than six months.
b) According to the information and explanations given to us and as per
the books and records examined by us, there are no dues of income tax,
sales tax, service tax, wealth tax, excise duty, custom duty, cess,
etc., which have not been deposited on account of any dispute, except
following:
Name of the Nature of dues Amount involved Period Forum where
Statute (Rs. in Lacs) dispute is pending
Central Excise Act Demand of duty due to 2.52 1994-95 Dy. Commissioner,
non-allowability of expenses Central Excise,
Division V, Noida
10. The company has no accumulated losses as at 31st March, 2013. The
company has not incurred any cash losses in the financial year under
report and in the immediately preceding financial year.
11. According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to the financial institutions or banks. The
company has no debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/society. Accordingly clause (xiii) of para no. 4 of the
Companies (Auditor''s Report) (amended) Order, 2004 is not applicable.
14. According to the information & explanation given to us the company
is not dealing or trading in shares, securities, debentures and other
investments. Accordingly, clause (xiv) of para no.4 of the Order is not
applicable.
15. According to the information & explanation given to us and on our
overall examination of balance sheet of the company we are of the
opinion that the company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were raised.
17. According to the information and explanation given to us and on
our overall examination of the balance sheet of the company, we are of
the opinion that no funds raised on short term basis have been used for
long term purposes.
18. During the year, the Company has not made any preferential
allotment of shares.
19. The company has not issued any debentures during the year.
20. The company has not made any public issue during the year.
21. 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 have we been
informed of such case by the management.
For NAHATA JAIN & ASSOCIATES
Chartered Accountants
Regn. No. 016351-N
(ANIL K. JAIN)
Partner, M. No.93912
Place : New Delhi
Date : 30th May, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of KOTHARI FERMENTATION AND
BIOCHEM LIMITED as at 31st March, 2012 and also the Profit & Loss
Account and the Cash Flow Statement of the company for the year ended
on that date annexed thereto. These financial statements are the
responsibilities of company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on the test basis evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion and further report that:
1. As required by the Companies (Auditor's Report) (Amendment) Order
2004 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 matters specified in paragraphs 4 and 5 of said order.
2. Further to our comments in the Annexure referred to in paragraph 1
above, we state 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 of head office, works and branch offices;
c. The Balance Sheet, Profit & Loss Account and the Cash Flow
Statement referred to in this report are in agreement with the books of
account.
d. The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement of the Company, comply with the Accounting Standards referred
to in Sub Section (3C) of Section 211 of the Companies Act, 1956, in so
far as they are applicable to the company.
e. On the basis of the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the said directors are disqualified as on 31st March 2012 from
being appointed as directors 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 Balance Sheet, Profit & Loss
Account and the Cash Flow Statement, read together with the Notes and
significant accounting policies 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 Profit & Loss Account of the Profit of the
Company for the year ended on that date.
III. In case of the Cash Flow Statement, of the cash flow for the year
ended on that date.
ANNEXURE REFERRED TO IN PARA-1 OF THE AUDITORS' REPORT TO THE MEMBERS
OF KOTHARI FERMENTATION AND BIOCHEM LIMITED ON THE ACCOUNTS FOR THE
YEAR ENDED 31.03.2012.
On the basis of such checks as we considered appropriate and in terms
of the information and explanations given to us, we state that:- 01.
In respect of its fixed assets:
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, the fixed assets have been physically verified
by the management during the year, which in our opinion is reasonable,
having regard to the size of the company and nature of its assets. No
material discrepancies were noticed on such physical verification.
c) In our opinion, the company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
company is not affected.
02. In respect of inventories
a) As explained to us inventories have been physically verified by the
management at regular intervals during the year.
b) In our opinion, procedures for physical verification of inventory
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
inventory. We have been explained that discrepancies noticed on
physical verification as compared to book records were not material and
the same have been properly dealt with in the books of account
03. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a. During the year, the company has granted unsecured loan to two
parties covered in the register maintained u/s 301 of the Companies
Act, 1956 and the same was received back during the year. The amount
involved was Rs. 195.15 lacs. However, during the year no interest has
been charged on such accounts.
b. During the year, the company has not taken any loan secured or
unsecured loan from companies, firms and other parties covered in the
register maintained u/s 301 of the Companies Act, 1956. Consequently,
clauses 3(e) to 3(g) of paragraph 4 of CARO are not applicable.
04. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventories and fixed assets and sale of goods. During the
course of our audit, we have not observed any major weaknesses in
internal control system.
05. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions that need to be entered in the register
in pursuance to 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, the transaction, if any, made in pursuance of contract or
arrangements entered in the registers maintained under Section 301 and
exceeding the value of rupees five lacs in respect of any party during
the year have been made at prices which are reasonable having regard to
prevailing market price at the relevant time.
06. The company has not accepted any deposits from the public thus the
directives issued by the Reserve Bank of India and the provisions of
section 58A, 58AA or any other relevant provisions of the Act and the
rules framed there under are not applicable.
07. In our opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
08. We have broadly reviewed the books of accounts maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Act in
respect of the Company's products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate and complete.
09.In respect of statutory dues:
a. According to the records of the company, the company is generally
regular in depositing the undisputed statutory dues with appropriate
authorities; however there were few cases of delays in deposit of
provident fund, ESI contributions and tax deducted at source.
For NAHATA JAIN & ASSOCIATES
Chartered Accountants
Regn. No. 016351-N
(ANIL K. JAIN)
Partner,
M. No.93912
Place : New Delhi
Date : 29th August, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of KOTHARI FERMENTATION AND
BIOCHEM LIMITED as at 31st March, 2011 and also the Profit & Loss
Account and the Cash Flow Statement of the company for the year ended
on that date annexed thereto. These financial statements are the
responsibilities of company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on the test basis evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion and further report that:
1. As required by the Companies (Auditor's Report) (Amendment) Order
2004 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 matters specified in paragraphs 4 and 5 of said order.
2. Further to our comments in the annexure referred to in paragraph 1
above, we state 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 of head office, works and branch offices;
c. The Balance Sheet, Profit & Loss Account and the Cash Flow
Statement referred to in this report are in agreement with the books of
account.
d. The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement of the Company, comply with the Accounting Standards referred
to in Sub Section (3C) of Section 211 of the Companies Act, 1956, in so
far as they are applicable to the company except non-recognition of
Deferred Tax Assets/Libilities (AS-22) amount of which has not been
calculated.
e. On the basis of the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the said directors are disqualified as on 31st March 2011 from
being appointed as directors 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 Balance Sheet, Profit & Loss
Account and the Cash Flow Statement, read together with the Notes and
significant accounting policies thereon give the information required
by the Companies Act, 1956 in the manner so required and give a true
and fair view in conformity with the accounting principles generally
accepted in India;
I. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011;
II. In the case of the Profit & Loss Account of the Profit of the
Company for the year ended on that date.
III. In case of the Cash Flow Statement, of the cash flow for the year
ended on that date.
ANNEXURE REFERRED TO IN PARA-1 OF THE AUDITORS' REPORT TO THE MEMBERS
OF KOTHARI FERMENTATION AND BIOCHEM LIMITED ON THE ACCOUNTS FOR THE
YEAR ENDED 31.03.2011.
On the basis of such checks as we considered appropriate and in terms
of the information and explanations given to us, we state that:-
01. In respect of its fixed assets:
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, the fixed assets have been physically verified
by the management during the year, which in our opinion is reasonable,
having regard to the size of the company and nature of its assets. No
material discrepancies were noticed on such physical verification.
c) In our opinion, the company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
company is not affected.
02. In respect of inventories
a) As explained to us inventories have been physically verified by the
management at regular intervals during the year.
b) In our opinion, procedures for physical verification of inventory
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
inventory. We have been explained that discrepancies noticed on
physical verification as compared to book records were not material and
the same have been properly dealt with in the books of account
03. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a. During the year, the company has granted unsecured loan to three
parties covered in the register maintained u/s 301 of the Companies
Act, 1956 and the same was received back during the year. The amount
involved was Rs. 529.24 lacs how ever, during the year no interest has
been charged on such accounts.
b. During the year, the company has taken unsecured loan from three
parties covered in the register maintained u/s 301 of the Companies
Act, 1956 and repaid back the same during the year. The amount involved
was Rs.126.05 lacs and no interest has been paid during the year on
such account.
04. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventories and fixed assets and sale of goods. During the
course of our audit, we have not observed any major weaknesses in
internal control system.
05. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions that need to be entered in the register
in pursuance to 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, the transaction, if any, made in pursuance of contract or
arrangements entered in the registers maintained under Section 301 and
exceeding the value of rupees five lacs in respect of any party during
the year have been made at prices which are reasonable having regard to
prevailing market price at the relevant time.
06. The company has not accepted any deposits from the public thus the
directives issued by the Reserve Bank of India and the provisions of
section 58A, 58AA or any other relevant provisions of the Act and the
rules framed there under are not applicable.
07. In our opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
08. According to the information and explanations given to us the
Central Government has not prescribed the maintenance of cost
accounting records under section 209(1) (d) of The Companies Act 1956.
09. In respect of statutory dues:
a. According to the records of the company, the company is generally
regular in depositing the undisputed statutory dues with appropriate
authorities; however there were few cases of delays in deposit of
provident fund, ESI contributions and tax deducted at source.
b. According to the information and explanations given to us and as per
the books and records examined by us, there are no dues of income tax,
sales tax, service tax, wealth tax, excise duty, custom duty, cess,
etc., which have not been deposited on account of any dispute, except
following:
Statue Nature Amount involved Period Forum where
dispute is
pending
Central Excise
Act Demand of duty
due to Rs. 2.52 Lacs 1994-95 CESTAT, New
Delhi
non-allowability
of expenses
Service Tax Service Tax
Demand & Rs.10.68 Lacs March, Commissioner
(Finance Act,
1994) Penalty under
Sec 76 of 2006 to(Appeals)
Central
Finance Act March, Excise,
Noida
2008
10. The company has no accumulated losses as at 31st March, 2011. The
company has not incurred any cash losses in the financial year under
report and in the immediately preceding financial year.
11. According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to the financial institutions or banks. The
company has no debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/society. Accordingly clause (xiii) of para no. 4 of the
Companies (Auditor's Report) (amended) Order, 2004 is not applicable.
14. According to the information & explanation given to us the company
is not dealing or trading in shares, securities, debentures and other
investments. Accordingly, clause (xiv) of para no.4 of the Order is not
applicable.
15. According to the information & explanation given to us and on our
overall examination of balance sheet of the company we are of the
opinion that the company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loan have been applied for
the purposes for which they were raised.
17. According to the information and explanation given to us and on
our overall examination of the balance sheet of the company, we are of
the opinion that no funds raised on short term basis have been used for
long term purposes or vice versa.
18. During the year, the Company has not made any preferential
allotment of shares.
19. The company has not issued any debentures during the year.
20. The company has not made any public issue during the year.
21. 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 have we been
informed of such case by the management.
For NAHATA JAIN & ASSOCIATES
Chartered Accountants
Regn. No. 016351-N
(ANIL K. JAIN)
Partner, M. No.93912
Place : New Delhi
Date : 12th August, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of KOTHARI FERMENTATION AND
BIOCHEM LIMITED as at 31st March, 2010 and also the Profit & Loss
Account and the Cash Flow Statement of the company for the year ended
on that date annexed thereto. These financial statements are the
responsibilities of 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 misstate- ment. An audit
includes examining on the test basis evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion and further report that:
1. As required by the Companies (Auditors Report) (Amendment) Order
2004 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 matters specified in paragraphs 4 and 5 of said order.
2. Further to our comments in the annexure referred to in paragraph 1
above, we state 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 of head office, works and branch offices;
c. The Balance Sheet, Profit & Loss Account and the Cash Flow
Statement referred to in this report are in agreement with the books of
account.
d. The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement of the Company, comply with the Account- ing Standards
referred to in Sub Section (3C) of Section 211 of the Companies Act,
1956, in so far as they are applicable to the company except
non-recognition of Deferred Tax Assets/ Liabilities (AS-22) amount of
which has not been calculated.
e. On the basis of the written representations received from the
Directors and taken on record by the Board of Directors, we report that
none of the said Directors are disqualified as on 31st March 2010 from
being appointed as Directors 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 Balance Sheet, Profit & Loss
Account and the Cash Flow Statement, read together with the Notes and
significant accounting policies 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
and
ii. In the case of the Profit & Loss Account of the Profit of the
Company for the year ended on that date. iii. In case of the Cash
Flow Statement, of the cash flow for the year ended on that date.
ANNEXURE REFERRED TO IN PARA-1 OF THE AUDITORS REPORT TO THE MEMBERS
OF KOTHARI FERMENTATION AND BIOCHEM LIMITED ON THE ACCOUNTS FOR THE
YEAR ENDED 31.03.2010.
On the basis of such checks as we considered appropriate and in terms
of the information and explanations given to us, we state that:- 01.
In respect of its fixed assets:
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, the fixed assets have been physically verified
by the management during the year, which in our opinion is reasonable,
having regard to the size of the company and nature of its assets. No
material discrepancies were noticed on such physical verification.
c) In our opinion, the company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
company is not affected.
02. In respect of inventories
a) As explained to us inventories have been physically verified by the
management at regular intervals during the year.
b) In our opinion, procedures for physical verification of inventory
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
inventory. We have been explained that discrepancies noticed on
physical verification as compared to book records were not material and
the same have been properly dealt with in the books of account
03. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a. During the year, the company has granted unsecured loan to three
parties covered in the register maintained u/s 301 of the Companies
Act, 1956 and the same was received back during the year. The amount
involved was Rs. 111.29 lacs and no interest has been charged during
the year on such account.
b. During the year, the company has taken unsecured loan from one
party covered in the register maintained u/s 301 of the Companies Act,
1956 and repaid back the same during the year. The amount involved was
Rs.187.40 and no interest has been paid during the year on such
account. In our opinion the terms and conditions of unsecured loan
taken by the company, are not, prima-facie, prejudicial to the interest
of the company.
04. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventories and fixed assets and sale of goods. During the
course of our audit, we have not observed any major weaknesses in
internal control system.
05. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions that need to be entered in the register
in pursuance to 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, the transaction, if any, made in pursuance of contract or
arrangements entered in the registers maintained under Section 301 and
exceeding the value of rupees five lacs in respect of any party during
the year have been made at prices which are reasonable having regard to
prevailing market price at the relevant time.
06. The company has not accepted any deposits from the public thus the
directives issued by the Reserve Bank of India and the provisions of
section 58A, 58AA or any other relevant provisions of the Act and the
rules framed there under are not applicable.
07. In our opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
08. According to the information and explanations given to us the
Central Government has not prescribed the maintenance of cost
accounting records under section 209(1) (d) of The Companies Act 1956.
09. In respect of statutory dues:
a. According to the records of the company, the company is generally
regular in depositing the undisputed statutory dues with appropriate
authorities; however there were few cases of delays in deposit of
provident fund, ESI contributions and tax deducted at source.
b. According to the information and explanations given to us and as per
the books and records examined by us, there are no dues of income tax,
sales tax, service tax, wealth tax, excise duty, custom duty, cess,
etc., which have not been deposited on account of any dispute, except
following:
Statue Nature Amount involved
Central Excise Act Demand of duty due to non- Rs. 2.52 Lacs
allowability of expenses
U P Tax on Entry Entry Tax Rs. 4.36 Lacs
of Goods Act
U P VAT Act Penalty for incomplete
entries Rs. 1.28 Lacs
in Statutory Form
Statue Period Forum where
dispute is pending
Central Excise Act 1994-95 CESTAT, New Delhi
U P Tax on Entry 2007-08 Joint Comm. (Appeals),
of Goods Act Entry Tax, Bulandsahar
U P VAT Act 2008-09 Joint Comm. (Appeals),
Entry Tax, Bulandsahar
10. The company does not have accumulated losses at the end of the
financial year March 31, 2010. Further, the company has not incurred
any cash losses during the financial year ended on 31st March,2010 and
in the preceding financial year ended on 31st March,2009.
11. According to the records of the company examined by us and the
information and explanations given to us, there is no outstanding dues
to any financial institution or bank during the year. The company has
no debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly clause (xiii) of para no. 4 of the
Companies (Auditors Report) (amended) Order, 2004 is not applicable.
14. According to the information & explanation given to us the company
is not dealing or trading in shares, securities, deben- tures and other
investments. Accordingly, clause (xiv) of para no.4 of the Order is not
applicable.
15. According to the information & explanation given to us and on our
overall examination of balance sheet of the company we are of the
opinion that the company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. During the year under report the company has not taken any term
loan.
17. According to the information and explanation given to us and on
our overall examination of the balance sheet of the com- pany, we are
of the opinion that no funds raised on short term basis have been used
for long term purposes or vice versa.
18. During the year, the Company has not made any preferential
allotment of shares.
19. The company has not issued any debentures during the year.
20. The company has not made any public issue during the year.
21. 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 have we been
informed of such case by the management.
For NAHATA JAIN & ASSOCIATES
Chartered Accountants
Regn. No. 016351-N
Place : New Delhi (ANIL K. JAIN)
Date :14th August, 2010 Partner
M. No. 093912
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