Mar 31, 2015
1. We have audited the accompanying financial statements of Krypton
Industries Limited (referred to as "The Company"), which comprise the
Balance Sheet as at 31st March , 2015, the Statement of Profit and
Loss, the Cash Flow Statement for the year then ended, and a summary of
the Significant Accounting Policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the 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 (Account) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities, selection and
application of appropriate accounting policies; making judgements 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.
Auditors' Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. We have taken into account the provisions of the Act, the
accounting and auditing standards and matters which are required to be
included in the audit report under the provisions of the Act and the
Rules made thereunder.
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the 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 the internal financial control
relevant to the Company's preparation of the financial statements that
give a true and fair view, in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
7. 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
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, its profit and its Cash Flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor's Report) Order, 2015 (herein
referred to as "the Order") issued by the Central Government of India
in terms of sub-section 11 of section 143 of the Act, and on the basis
of such checking of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
10. As required by section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flows, 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 Companies Act,
2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of Written Representation received from the Directors
as on 31st March, 2015, taken on record by the Board of Directors, none
of the Directors are disqualified as on March 31st, 2015, from being
appointed as a Director in terms of Section 164(2) of the Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations as on
March 31, 2015 on its financial position in its financial statements.
ii) The Company has made provision as at March 31, 2015, as required
under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative
contracts.
iii) There has been no delay in transferring amounts, which was
required to be transferred, to the Investor Education and Protection
Fund by the Company during the year ended March 31, 2015.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
Referred to in Paragraph 9 under the heading of "Report on other Legal
and Regulatory Requirements" of our report of even date
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
(b) As per Company's policy, verification of fixed assets is being
conducted in a phased programme by the management designed to cover all
assets over a period of five years, which in our opinion is reasonable
having regard to the size of the Company and the nature of assets. The
verification of assets due as per this programme has been carried out.
No material discrepancies were noticed on such physical verification.
(ii) In respect of its inventories:
(a) During the year, the inventories have been physically verified by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the record of inventories, we
are of the opinion that the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) The Company has granted Unsecured Loans to 2 parties (including 1
Company) covered in the register maintained under Section 189 of the
Act:
(a) In respect of the aforesaid loans, the parties are repaying the
Principal Amounts, as stipulated, and are also regular in payment of
interest as applicable.
(b) In respect of the aforesaid loans, there is no overdue amount more
than Rupees One Lakh.
(iv) According to the information and explanations given to us, there
are adequate internal control procedures commensurate with the size of
the Company and the nature of its business with regard to purchases of
inventories & fixed assets and with regard to the sale of goods &
services. During the course of our audit, no major weakness has been
noticed in the underlying internal controls.
(v) According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (v) of Paragraph 3 of the Order are not
applicable.
(vi) We have broadly reviewed the cost records maintained by the
Company as prescribed by the Central Government under Section 148(1) of
the Act and are of the opinion that, prima facie, the prescribed cost
records have been maintained. We have, however, not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
(vii) In respect of Statutory Dues:
(a) As explained to us, the statutory dues payable by the Company
comprises of Provident Fund, Employees' State Insurance, Income Tax,
Sales Tax, Custom Duty, Excise Duty, Value Added Tax, etc. According to
the records of the Company and information and explanations given to
us, the Company has been regularly depositing the aforesaid undisputed
statutory dues with the appropriate authorities. There are no
undisputed statutory dues as referred to above as at 31st March, 2015
outstanding for a period of more than six months from the date they
become payable.
b) According to the records of the Company and information and
explanations given to us, there are dues of Income Tax aggregating Rs.
2849690/- and Sales Tax aggregating Rs. 5014928.60/-, which have not
been deposited on account of disputes, the details of which are set out
below. We have been informed that there are no further dues in respect
of income tax, sales tax and custom duty which have not been deposited
on account of any dispute.
Nature of Demand Amount of Amount Deposited
Demand/Dispute
I. Income Tax Disallowance of claim -
(For The Company) U/S 80 HHC
II. Income Tax Rs. 14, 33,509/- -
(For The Company)
III. Income Tax Rs. 5, 23,839/- Rs. 4, 00,000/-
(For EWPL now
Merged with the
Company)
IV Income Tax Rs. 12,92,342/- -
(For EWPL now
Merged with the
Company)
V Sales Tax & VAT Rs. 43,56,213/- Rs.38,300/-
(For The Company)
VI. Sales Tax & VAT Rs. 6,97,015.60/- -
(For The Company)
Nature of Demand Forum where dispute
is pending
I. Income Tax Appeal U/s 250 for
(For The Company) Assessment Year 2002-03
Before Appellate Tribunal.
II. Income Tax Appeal u/s 246A for
(For The Company) Assessment Year 2012-13
Before CIT (Appeals)
III. Income Tax Appeal u/s 250 for
(For EWPL now Assessment Year 2007-08
Merged with the Before Appellate Tribunal.
Company)
IV Income Tax Appeal u/s 250 for
(For EWPL now Assessment Year 2008-09
Merged with the Before Appellate Tribunal.
Company)
V Sales Tax & VAT Appeal with Joint Commissioner
(For The Company) for the Financial Year 2010-2011
VI. Sales Tax & VAT Appeal with Joint Commissioner
(For The Company) for the Financial Year 2010-2011
(c) The Company has transferred Rs. 757434/- to the Investor Education
and Protection Fund in accordance with Section 205C and other relevant
provisions of the Companies Act, 1956, and rules made thereunder within
the prescribed time limit.
(viii) The Company has no accumulated losses and has not incurred cash
losses during the financial year covered by our audit and there is no
cash loss in the immediately preceding financial year.
(ix) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to banks. The Company
has not issued any debentures.
(x) The company has not given any guarantee for loans taken by others,
therefore the provisions of Clause (xi) of Paragraph 3 of the Order are
not applicable.
(xi) In our opinion, the Term Loan has been applied for the purpose for
which they were obtained.
(xii) Based upon the audit procedures performed and information and
explanations given by the management, we report that no material fraud
on or by the Company has been noticed or reported during the course of
our audit during the year.
For JAGDISH AGARWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No.320253E
Place: Kolkata. J.P.AGARWAL
Dated: The 30th Day of May, 2015 PARTNER
Membership No.055436
Mar 31, 2014
We have audited the accompanying financial statements of Krypton
Industries Limited (referred to as "The Company"), which comprise the
Balance Sheet as at 31st March , 2014, the Statement of Profit and Loss
and Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance, and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in term of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
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
theamounts 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 the internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal Control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the 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.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" of our report of even date
(i) In respect of its fixed assets:
(b) As per Company''s policy, verification of fixed assets is being
conducted in a phased programme by the management designed to cover all
assets over a period of five years, which in our opinion is reasonable
having regard to the size of the Company and the nature of assets. The
verification of assets due as per this programme has been carried out.
No material discrepancies were noticed on such physical verification.
(c) In our Opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern assumption of
the company is not affected.
(ii) In respect of its inventories:
(a) During the year, the inventories have been physically verified by
the management.In our opinion,the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the record of inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) In respect of the 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) The Company has not granted any loan during the year to companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956. Consequently, the requirements of
Clauses (iii) (b), (iii) (c) and (iii) (d) of paragraph 4 of the Order
are not applicable.
(e) The company has taken unsecured loan from relative of the Chief
Executive Officer covered in the register maintained under section 301
of the Companies Act, 1956. The maximum amount involved during the year
and the year ended balance of loan from such party was " 6468.30 (in
Â000) [P. Y. Rs. 6468.30 (in Â000)]
(f) In our opinion the rate of interest and other terms and conditions
on which the unsecured loan has been taken from the party listed in the
register maintained under section 301 of the Companies Act, 1956 are
not prima facie, prejudicial to the interest to the Company.
(g) The payment of principal amounts and interest in respect of such
loans during the year has been regular/as per stipulation.
(iv) According to the information and explanations given to us, there
are adequate internal control procedures commensurate with the size of
the Company and the nature of its business with regard to purchases of
inventories, fixed assets and with regard to the sale of goods &
services. During the course of our audit, no major weakness has been
noticed in the underlying internal controls.
(v) (a) Based on the Audit Procedure applied by us and according to
information and explanations given to us, the particulars of contracts
or arrangements referred to in section 301 of the Act have been entered
in the register required to be maintained under that section.
(b) In our opinion and according to information and explanation given
to us, the transactions made in pursuance of such contracts have been
made at prices which are reasonable having regard to prevailing market
prices at the relevant time and the exceeding the value of " 5,00,000
in respect of each party during the year have been made at prices which
appear reasonable as per information available with the company.
(vi) According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (vi) of Paragraph 4 of the Order are not
applicable.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however not made
a detailed examination of the cost records with a view to determine
whether they are accurate or complete.
(ix) In respect of Statutory Dues:
(a) As explained to us, the statutory dues payable by the Company
comprises of provident fund, employees'' state insurance, income tax,
sales tax, custom duty, excise duty, cess and etc. According to the
records of the Company and information and explanations given to us,
the Company has been regularly depositing the aforesaid undisputed
statutory dues with the appropriate authorities. There are no
undisputed statutory dues as referred to above as at 31st March, 2014
outstanding for a period of more than six months from the date they
become payable.
(b) According to the records of the Company and information and
explanations given to us, there are dues of income - tax aggregating "
95,42,775.60/-, which have not been deposited on account of disputes,
the details of which are set out below. We have been informed that
there are no further dues in respect of income tax, sales tax and
custom duty which have not been deposited on account of any dispute.
Nature of Amount of Amount Deposited Forum where dispute
Demand Demand/Dispute is pending
I. Income Disallowance - Appeal U/s 250 for
Tax of claim Assessment Year
U/S 80 HHC 2002-03
Before Appelate
Tribunal.
II. Income
Tax
(For The
Company) 14, 58,561/- 2, 50,000/- Appeal u/s 250 for
(For The Assessment Year
Company> 2003-04
Before Appellate
Tribunal.
III. Income 30, 94,600/- 19, 19,086/- Appeal u/s 246 A(1)
IV. Income 7, 27,591/- Â Appeal u/s 250 for
tax Assessment Year
(For The 2004-05
Company> Before Appellate
Tribunal.
V. Income Tax 5, 23,839/- 4, 00,000/- Appeal u/s 250 for
(For EWPL now Assessment Year
Merged with 2007-08
the Company> Before Appellate
Tribunal.
VI. Income 12,92,342/- Â Appeal u/s 250 for
tax (For EWPL Assessment Year
now Merged 2008-09
with the Before Appellate
Company> Tribunal.
VII. Sales 43,56,213/- 38300/- Appeal with Joint
Tax & Vat Commissioner for the
(For the Financial Year
Company) 2010-2011
VIII. Sales 6,97,015.60/- Â Appeal with Joint
Tax & Vat Commissioner for the
(For The Financial Year
Company) 2010-2011
(x) The Company has no accumulated losses and has not incurred cash
losses during the financial year covered by our audit and there is no
cash loss in the immediately preceding financial year.
(xi) Based on our audit procedures and on the information and
explanations given by the management,we are of the opinion that, the
Company has not defaulted in repayment of dues to banks. The Company
has not issued any debentures.
(xii) In our opinion and according to the explanations given to us and
based on the information available, no loan and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) As the Company is not a chit fund / nidhi / mutual benefit funds
/ society. Therefore, the provisions of paragraph 4(xiii) of the Order
are not applicable to the Company.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
(xv) As the company has no subsidiaries, therefore the provision of
paragraph 4(xv) of the Order is not applicable.
(xvi) In our opinion, the Term Loan, have been applied for the purpose
for which they were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short - terms basis have been used for long -
term investment except permanent working capital.
(xviii) As the Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act, paragraph 4(xviii) of the Order is not applicable.
(xix) As the Company has not issued any debentures, paragraph 4(xix) of
the Order is not applicable.
(xx) The company has not raised any monies by way of public issue
during the year, therefore the provision of paragraph 4(xx) of the
Order is not applicable.
(xxi) Based upon the audit procedures performed and information and
explanations given by the management, we report that, no material fraud
on or by the Company has been noticed or reported during the course of
our audit during the year.
Place:Kolkata.
Dated:The 30th Day For JAGDISH AGARWAL & ASSOCIATES
of May, 2014 CHARTERED ACCOUNTANTS
Firm Registration No.320253E
J.P.AGARWAL
PARTNER
Membership No.055436
Mar 31, 2012
1. We have audited the attached Balance Sheet of KRYPTON INDUSTRIES
LIMITED, as at 31st March, 2012 and also the statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date,
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 as
amended by Companies (Auditor's reports) (Amendment) Order,
2004(together the 'Order') issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Companies Act, 1956, we
enclose in the Annexure, a statement on the matters specified in
paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
i) We have obtained all the information and explanations which, to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) 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;
iii) 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,
iv) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
v) On the basis of written representations received from the directors
as on 31st March, 2012, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2012 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
notes thereon, give the information required by the Companies Act,
1956, in the manner so required and give a true and fair view, in
conformity with the accounting principles generally accepted in India;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
b) in the case of the statement of Profit and Loss, of the loss of the
Company for the year ended on that date; and
c) in the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
Annexure referred to in paragraph '3' of our Report of even date on the
accounts of
KRYPTON INDUSTRIES LIMITED as at and for the year ended 31st March,
2012.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As per Company's policy, verification of fixed assets is being
conducted in a phased programme by the management designed to cover all
assets over a period of five years, which in our opinion is reasonable
having regard to the size of the Company and the nature of assets. The
verification of assets due as per this programme has been carried out.
The discrepancies noticed on such verification were not material and
have been properly dealt with in the books of account.
(c) The Company has not disposed off a substantial part of its fixed
assets during the year and the going concern assumption of the company
is not affected.
(ii) (a) During the year, the inventories have been physically verified
by the management. In our opinion, the frequency of verification is
reasonable. ..
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the record of inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) The Company has granted unsecured loan to its subsidiary
company covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was '
2570.12 (in'000) and the year ended balance of loan granted to such
party was ' Nil (in'000).
(b) In our opinion the rate of interest and other terms & conditions on
which loan has been taken from the party listed in the register
maintained under section 301 of the Companies Act, 1956 are not prima
facie, prejudicial to the interest of the Company.
(c) The receipt of principal amounts and interest during the year has
been regular/as per stipulation.
(d) The Company had not taken unsecured loan from subsidiary company
covered in the register maintained under section 301 of the Companies
Act, 1956.
(e) In our opinion the rate of interest and other terms & conditions on
which loan has been taken from the party listed in the register
maintained under section 301 of the Companies Act, 1956 are not prima
facie, prejudicial to the interest to the Company.
(f) The payment of principal amounts and interest in respect of such
loans during the year has been regular/as per stipulation.
(iv) According to the information and explanations given to us, there
are adequate internal control procedures commensurate with the size of
the Company and the nature of its business with regard to purchases of
inventories, fixed assets and with regard to the sale of goods &
services. During the course of our audit, no major weakness has been
noticed in the underlying internal controls.
(v) (a) Based on the Audit Procedure applied by us and according to
information and explanations given to us, the particulars of contracts
or arrangements referred to in section 301 of the Act have been entered
in the register required to be maintained under that section.
(b) In our opinion and according to information and explanation given
to us, the transactions made in pursuance of such contracts have been
made at prices which are reasonable having regard to prevailing market
prices at the relevant time.
(vi) The Company has not accepted any deposit within the meaning of
section 58A, 58AA or any other relevant provisions of the Act and the
rules framed thereunder.
(vii) That Company has an internal audit system, which in our opinion,
is commensurate with its size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however not made
a detailed examination of the cost records with a view to determine
whether they are accurate or complete.
(ix) (a) As explained to us, the statutory dues payable by the Company
comprises of provident fund,
employees' state insurance, income tax, sales tax, custom duty, excise
duty, cess and etc. According to the records of the Company and
information and explanations given to us, the Company has been
regularly depositing the aforesaid undisputed statutory dues with the
appropriate authorities. There are no undisputed statutory dues as
referred to above as at 31st March, 2012 outstanding for a period of
more than six months from the date they become payable.
(b) According to the records of the Company and information and
explanations given to us, there are dues of income - tax aggregating '
37,48,814/-, which have not been deposited on account of disputes, the
details of which are set out below. We have been informed that there
are no further dues in respect of income tax, sales tax and custom duty
which have not been deposited on account of any dispute.
Nature of
Demand Amount of Amount
Deposited Forum where dispute
Demand/Dispute is pending
I.Income Tax Disallowance
of claim - Appeal U/s 250 for
U/S 80 HHC Assessment Year 2002-03
Before Appellate Tribunal.
II.Income
Tax Rs.14, 58,561/- Rs.2,50,000/- Appeal u/s 246 A(1)(a) for
Assessment Year 2003-04
Before Commissioner of
Income Tax - Kolkata
III.
Income Tax Rs.30, 94,600/- Rs.
14,19,086/- Appeal u/s 246 A(1)(a) for
Assessment Year 2005-06
Before Commissioner of
Income Tax - Kolkata
IV.
Income Tax Rs.1,37,148/- - Appeal u/s 246 A for
Assessment Year 2006-07
Before Commissioner of
Income Tax - Kolkata
VIncome
-tax Rs.7,27,591/- - Appeal u/s 143(3) for
Assessment Year 2004-05
before Commissioner
(Appeals) Kolakta
(x) The Company has no accumulated losses and has incurred cash losses
during the financial year covered by our audit and there is no cash
loss in the immediately preceding financial year.
(xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to banks. The Company
has not taken loans from financial institutions and has not issued
debentures.
(xii) As Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities,
paragraph 4(xii) of the Order is not applicable.
(xiii) As the Company is not a chit fund / nidhi / mutual benefit funds
/ society. Therefore, the provisions of paragraph 4(xiii) of the Order
are not applicable to the Company.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
(xv) In respect of guarantees given by the Company for loans taken by
its subsidiaries from banks, the terms and conditions are prima facie
not prejudicial to the interest of the Company.
(xvi) In our opinion, the Term Loan, have been applied for the purpose
for which they were obtained.
(xvii)According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short - terms basis have been used for long
- term investment except permanent working capital.
(xviii) As the Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act, paragraph 4(xviii) of the Order is not applicable.
(xix) As the Company has not issued any debentures, paragraph 4(xix) of
the Order is not applicable.
(xx) The company has made right issue during the year and has disclosed
the end use of money received from right issue in point no (42) in
notes to financial statements, and the same has been verified by us.
(xxi) Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended 31st March, 2012.
For JAGDISH AGARWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No.320253E
Place: Kolkata. J. P. AGARWAL
Dated: The 30th Day of May, 2012 PARTNER
Membership No.055436
Mar 31, 2010
1. We have audited the attached Balance Sheet of KRYPTON INDUSTRIES
LIMITED, as at 31st March, 2010 and also the Profit and Loss Account
and the Cash Flow Statement for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended by Companies (Auditors reports) (Amendment) Order,
2004(together the ÃOrder) issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Companies Act, 1956, we
enclose in the Annexure, a statement on the matters specified in
paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that :
i) 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 ;
ii) 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;
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of Account,
iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.
v) On the basis of written representations received from the directors
as on 31st March, 2010, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2010 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
notes thereon, give the information required by the Companies Act,
1956, in the manner so required and give a true and fair view, in
conformity with the accounting principles generally accepted in India;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
b) in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date; and
c) in the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph Ã3 of our Report of even date on the
accounts of KRYPTON INDUSTRIES LIMITED as at and for the year ended
31st March, 2010.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As per Companys policy, verification of fixed assets is being
conducted in a phased programme by the management designed to cover all
assets over a period of five years, which in our opinion is reasonable
having regard to the size of the Company and the nature of assets. The
verification of assets due as per this programme has been carried out.
The discrepancies noticed on such verification were not material and
have been properly dealt with in the books of account.
(c) The Company has not disposed off a substantial part of its fixed
assets during the year and the going concern assumption of the company
is not affected.
(ii) (a) During the year, the inventories have been physically verified
by the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the record of inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) The Company has granted unsecured loan to its subsidiary
company covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs.7776.36 (in000) and the year ended balance of loan granted to such
party was Rs.7776.36 (in000).
(b) In our opinion the rate of interest and other terms & conditions on
which loan has been taken from the party listed in the register
maintained under section 301 of the Companies Act, 1956 are not prima
facie, prejudicial of the interest of the Company.
(c) The receipt of principal amounts and interest during the year has
been regular/as per stipulation.
(d) The Company had taken unsecured loan from subsidiary company
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year was Rs.124.94
(in000) and the year ended balance of loan taken/interest from such
party was Rs.124.94 (in 000).
(e) In our opinion the rate of interest and other terms & conditions on
which loan has been taken from the party listed in the register
maintained under section 301 of the Companies Act, 1956 are not prima
facie, prejudicial of the interest of the Company.
(f) The payment of principal amounts and interest in respect of such
loans during the year has been regular/as per stipulation.
(iv) According to the information and explanations given to us, there
are adequate internal control procedures commensurate with the size of
the Company and the nature of its business with regard to purchases of
inventories, fixed assets and with regard to the sale of goods &
services. During the course of our audit, no major weakness has been
noticed in the underlying internal controls.
(v) (a) Based on the Audit Procedure applied by us and according to
information and explanations given to us, the particulars of contracts
or arrangements referred to in section 301 of the Act have been entered
in the register required to be maintained under that section.
(b) In our opinion and according to information and explanation given
to us , the transactions made in pursuance of such contracts have been
made at prices which are reasonable having regard to prevailing market
prices at the relevant time.
(vi) The Company has not accepted any deposit within the meaning of
section 58A, 58AA or any other relevant provisions of the Act and the
rules framed thereunder.
(vii) That Company has an internal audit system, which in our opinion,
is commensurate with its size and nature of its business.
(viii) To the best of our knowledge and the information given to us,
the Central Government of India has not prescribed the maintenance of
Cost records by the Company under Section 209(1)(d) of the Companies
Act, 1956 for any of its products.
(ix) (a) As explained to us, the statutory dues payable by the Company
comprises of provident fund, employees state insurance, income tax,
sales tax, custom duty, excise duty, cess and etc. According to the
records of the Company and information and explanations given to us,
the Company has been regularly depositing the aforesaid undisputed
statutory dues with the appropriate authorities. There are no
undisputed statutory dues as referred to above as at 31st March, 2010
outstanding for a period of more than six months from the date they
become payable.
(b) According to the records of the Company and information and
explanations given to us, there are dues of income à tax aggregating
Rs.32,49,186/-, which have not been deposited on account disputes, the
details of which are set out in note No. 16(6).
(x) The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
(xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to banks. The Company
has not taken loans from financial institutions and has not issued
debentures.
(xii) As Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities,
paragraph 4(xii) of the Order is not applicable.
(xiii) As the Company is not a chit fund / nidhi / mutual benefit funds
/ society. Therefore, the provisions of paragraph 4(xiii) of the Order
are not applicable to the Company.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
(xv) In respect of guarantees given by the Company for loans taken by
its subsidiaries from banks, the terms and conditions are prima facie
not prejudicial to the interest of the Company.
(xvi) In our opinion, the Term Loan, have been applied for the purpose
for which they were obtained.
(xvii)According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short à terms basis have been used for long
à term investment except permanent working capital.
(xviii) As the Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act, paragraph 4(xviii) of the Order is not applicable.
(xix) As the Company has not issued any debentures, paragraph 4(xix) of
the Order is not applicable.
(xx) During the year, since the Company has not raised money by way of
public issue, paragraph 4(xx) of the Order is not applicable.
(xxi) Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended 31st March, 2010.
For JAGDISH AGARWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
(Firm Registration No. 320253E)
J. P. AGARWAL
Place: Kolkata. PARTNER
Dated: The 16th Day of August, 2010 Membership No. 055436
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