Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of MAJESTIC AUTO LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone 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 of these standalone 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 Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone 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 standalone Ind AS financial statements based on our audit. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order issued under section 143(11) of the Act.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 March 31, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report that:
a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) the Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account.
d) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) on the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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 Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
I. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts, for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
(Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report to the Members of Majestic Auto Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of MAJESTIC AUTO LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company 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) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
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, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report to the Members of Majestic Auto Limited of even date)
I. In respect of the Companyâs fixed assets:
a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b. The Company has a program of verification to cover all the items of fixed assets in a phased manner which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
c. According to the information and explanations given to us, the records examined by us and based on the examination of the conveyance deeds provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date. In respect of immovable properties of land and building that have been taken on lease and disclosed as fixed assets in the standalone Ind AS financial statements, the lease agreements are in the name of the Company.
ii. In respect of the Companyâs inventories:
a. The inventories except goods in transit in the custody of the Company have been physically verified during the year by the management. In our opinion, the frequency of the verification is reasonable.
b. There were no discrepancies noticed on physical verification of inventories.
iii. According to the information and explanations given to us, the Company has granted unsecured loans to one bodies corporate, covered in the register maintained under section 189 of the Companies Act, 2013, in respect of which:
a. The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Companyâs interest.
b. The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations.
c. There is no overdue amount remaining outstanding as at the year-end.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
v. The Company has not accepted deposits during the year and does not have any unclaimed deposits as at March 31, 2018 and therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by Central Government under section 148(1) of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. However we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. According to the information and explanations given to us, in respect of statutory dues:
a. The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Goods and Service Tax, Value Added Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.
b. There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Value Added Tax, Goods and Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks and financial institutions. The Company has not taken any loan from the government and has not issued any debentures.
ix. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause 3 (ix) of the Order is not applicable to the Company.
x. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting standards
xiv. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures and hence reporting under clause 3 (xiv) of the Order is not applicable to the Company.
xv. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For SAR & Associates
Chartered Accountants
Firm Registration no. 122400W
Sd/-
CA Anubhav Goyal
Place: Noida Partner
Date: 14th May, 2018 Membership No. 123328
Mar 31, 2016
We have audited the accompanying standalone financial statements of Majestic Auto Limited, ("the Company") which comprise the Balance Sheet as at 31st March''2016, 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 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 and presentation 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 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 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 2016, 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 ("the Order") , as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in âAnnexure Aâ 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 purpose of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, as applicable;
(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 "Annexure B".
(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 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; and
ii. the Company did not have any long term contracts including derivative contract for which there were any material foreseeable losses
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure A to the Independent Auditors'' Report
(Annexure referred to in paragraph 1 under the heading "Report on Other Legal and Regulatory Requirements" of the Independent Auditor''s Report to the members of Majestic Auto Limited for the year ended 31 March, 2016)
i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) As explained to us, all the fixed assets have not been physically verified by the management during the year, but there is a regular program of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. As informed to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanation given to us and on the basis of our examination of the records of the company, the title deeds/lease deeds of immovable property are held in the name of the company.
ii) The inventories except goods in transit in the custody of the Company has been physically verified during the year by the management. In our opinion, the frequency of the verification is reasonable.
iii) The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act.
iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of many investments during the year. The company has not granted any loans or provided guarantees and securities during the year.
v) According to the information and explanation given to us the Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under section 148(1)(d)of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. However we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii) a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and other material statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2016 for a period of more than six months from the date on when they become payable.
b) According to the information and explanations given to us there are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited on account of any dispute except as stated below:
S. No. |
Nature of Statute |
Nature of Dispute |
Amount Unpaid Rs. |
Period to which the amount relates |
Forum where dispute is pending |
1 |
U.P. Trade Tax |
Penalty Under U.P. Trade Tax Act |
1,98,108 |
A.Y. 2005-06 |
Assistant Commissioner (Appeals), U.P. Trade Tax, Noida |
viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks and financial institutions. The Company has not taken any loan from the government and has not issued any debentures.
ix) Based upon the audit procedure performed and the information and explanations given by the management, the company has not raised money by way of initial public offer or further public offer including debt instruments and the company has applied the Term Loan for the purpose for which the loans were raised.
x) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or no fraud / material fraud on the Company by its officers and employees of the Company has been noticed or reported during the year.
xi) Based upon the audit procedures performed and the information and explanations given by the management, 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 Companies Act.
xii) The Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence, not commented upon.
xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
xiv) Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
xv) According to the information and explanations given by the management, the Company has not entered into any noncash transactions with directors or persons connected with them.
xvi) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
For and on behalf of B.D. Bansal & Co.
Chartered Accountants
ICAI Reg No. 000621N
Place : Ludhiana (Anil Gupta)
Date : 16.05.2016 Partner
Membership No.89988
Mar 31, 2015
We have audited the accompanying financial statements of Majestic Auto
Limited, ("the Company") which comprise of the Balance Sheet as at 31
st March'2015, the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation 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 are 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 evaluatingthe
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, 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 and Companies (Audit &
Auditors) Rule, 2014, we further report that:
(a) We have sought all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the aforesaid 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 of
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;
(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 on its
financial position in its financial statements; and
ii. the Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts;
iii. There were no amounts which were required to be transferred to the
Investor Education and Proction Fund by the Company.
Annexure to the Independent Auditors' Report
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, all the fixed assets have not been physically
verified by the management during the year, but there is a regular
program of verification which, in our opinion, is reasonable having
regard to the size of the company and the nature of its assets. As
informed to us,no material discrepancies were noticed on such
verification.
ii) a) The inventories except goods in transit in the custody of the
Company has been physically verified during the year by the management.
In our opinion, the frequency of the verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of 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) The company has maintained proper records of inventories. As per the
information and explanations given to us, no material discrepancies
were noticed on physical verification.
iii) The Company has not granted any loans, to companies, firms or
other parties covered in the register maintained under section 189 of
the Companies Act, 2013.
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 inventories and fixed assets and sale of goods and
services. In our opinion and according to the information and
explanations given to us, there is no continuing failure to correct
major weaknesses in internal control system.
v) The company has not accepted any deposits from the public, in
accordance with the provisions of section 73 to76of the Act and rules
framed there under.
vi) We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (CostRecords and Audit) Rules, 2014
prescribed by the Central Government under section 148(1 )(d)of the
Companies Act, 2013 and are of the opinion that, prima facie, the
prescribed accounts and cost records have been made and maintained.
However we have, however, not made a detailed examination of the cost
records with a view to determine whether they are accurate or complete.
vii) a) According to the information and explanation given to us and on
the basis of our examination of the records of the company, amount
deducted/ accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth tax, Service tax, duty of Customs, duty of
Excise , Value Added Tax, Cess and any other material statutory dues
have been regularly deposited with the appropriate authorities during
the year by the company.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the above statutory dues were
in arrears as at March 31,2015 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 dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty and Cesss which have not been deposited on account of any
dispute except as stated below:
ix) a) According to the records of the Company / information and
explanations given to us, the Company is regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues applicable to it with the appropriate
authorities. According to the information and explanations given to us,
no undisputed amount payable in respect of the above were in arrear as
at 31st March, 2014 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 dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty and Cess which have not been deposited on account of any
dispute except as stated below:
S. No. Nature Nature of Amount
of Statute Dispute Unpaid
Rs.
1 U.P. Trade Tax Penalty Under
U.P. Trade Tax Act 1,98,108
S. No. Nature Period to Forum wheredispute
which the is pending
amount relates
1 U.P. Trade Tax A.Y. 2005-06 Assistant Commissioner
(Appeals), U.P. Trade
Tax, Noida
c) According to the information and explanations given to us, there are
no amounts that are due tobe transferred to Investor Education and
Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under.
viii) The Company does not have any accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and immediately preceding financial year.
ix) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to its
bankers. The company did not have any outstanding dues to any financial
institution or debenture holder during the year.
x) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
xi) According to the information and explanations given to us, the
company has applied the term loans for the purpose, for which, the
loans were raised .
xii) 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 and on behalf of B.D. Bansal & Co.
Chartered Accountants
ICAI Reg No. 000621N
Place : Ludhiana (Anil Gupta)
Date : 30.05.2015 Partner
Membership No.89988
Mar 31, 2014
We have audited the accompanying financial statements of Majestic Auto
Limited ("the Company") which comprise of 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 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 accounting principles generally accepted in India,
including the Accounting Standards notified under the Companies Act,
1956. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India.
a. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March''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 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, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act, 1956, read with General Circular
8/2014 dated 4 April 2014 issued by the Ministry of Corporate Affairs;
(e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
Annexure to the Independent Auditors'' Report
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the Company has a system of physical
verification, which is designed to cover all assets over a period of
three years, which in our opinion is reasonable having regard to the
size of the Company and the nature of its fixed assets. Pursuant to the
programme, certain fixed assets have been physically verified by the
management during the year and no material discrepancies were noticed
on such verification.
c) In our opinion, the company has not disposed off any substantial
part of its fixed assets so as to affect the Company as a going
concern.
ii) a) The inventory in the custody of the Company has been physically
verified during the year by the management. In our opinion, the
frequency of the verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of 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) On the basis of examination of the records, we are of the opinion
that the Company has maintained proper records of inventory and no
material discrepancy was noticed on physical verification.
iii) a) The Company has not granted any loans, secured and unsecured,
to companies, firms or other parties listed in the register maintained
u/s 301 of the Companies Act, 1956, therefore the provisions of Clause
4 (iii)(b), (c) and (d) of the Companies (Auditor''s Report) Order, 2003
are not applicable to the Company.
b) The Company has taken unsecured loans from directors of the company
covered under register maintained u/s 301 of the Companies Act, 1956.
The maximum amount outstanding during the year was Rs.26.33 crores and
the year end balance is Rs.26.33 crores.
c) According to information and explanations given to us, the rate of
interest and other terms & conditions of the aforesaid deposits are not
prima-facie prejudicial to the interest of the company.
d) In our opinion and according to information and explanations given
to us, the Company has been regular in repayment of stipulated
principal and interest.
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 for the
purchase of inventory and fixed assets and for sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct any major weakness in internal controls.
v) a) Based on the audit procedures applied by us and according to the
information and explanations given to us, the transactions made in
pursuance of contracts or arrangments that need to be entered in the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956, and exceeding a value of Rs. 5 lacs in respect
of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time except for items stated to be of proprietary nature, where the
question of comparison does not arise.
vi) As the Company has not accepted deposit from the public during the
year, therefore provision of clause 4(vi) of the paragraph 4 of the
order, 2003 is not applicable to the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii) We have broadly reviewed the cost records 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 Companies
Act, 1956 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 cost records with a view to determine
whether they are accurate or complete.
ix) a) According to the records of the Company / information and
explanations given to us, the Company is regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues applicable to it with the appropriate
authorities. According to the information and explanations given to us,
no undisputed amount payable in respect of the above were in arrear as
at 31st March, 2014 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 dues of Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty and Cess which have not been
deposited on account of any dispute except as stated below:
S.No. Nature Nature of Amount Period to
of Statute Dispute Unpaid which the
Rs. amount
relates
1 U.P. Trade Tax Penalty Under
U.P. Trade Tax Act 1,98,108 A.Y. 2005-06
S.No. Nature Forum where
of Statute dispute is
pending
1 U.P. Trade Tax Assistant Commissioner (Appeals),
U.P. Trade Tax, Noida
x) The Company has no accumulated losses at the end of the financial
year. It has not incurred cash losses in the financial year covered by
the audit and in the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to the
financial institutions or banks or debenture holders.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund/ nidhi/ mutual
benefit fund/ society. Therefore, the provision of clause 4(xiii) of
the Companies Act (Auditor''s Report) order, 2003 is not applicable to
the Company.
xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, the provision of Clause
4(xiv) of the Companies (Auditor''s report) order, 2003 is not
applicable to the Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi) According to information and explanations given to us, the Company
has applied the term loans for the purpose for which the loans were
raised.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet and Cash Flow Statement of
the Company, we report that no funds raised on short term basis have
been used for long term investments.
xviii) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
xix) The Company has not issued any debentures during the year covered
by the audit.
xx) The Company has not raised any money by way of public issue during
the year.
xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and In our
opinion and according to the information and explanations given by the
management, no material fraud on or by the Company has been noticed or
reported during the course of our audit.
For and on behalf of B.D. Bansal & Co.
Chartered Accountants
ICAI Reg No. 000621N
Place : Ludhiana (Anil Gupta)
Date : 30.05.2014 Partner
Membership No.89988
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Majestic Auto
Limited ("the Company") which comprise of the Balance Sheet as at 31st
March''2013, the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India.
a. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March''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 Cash Flow Statement, of the cash flows for the year
ended on that date. Report on the Other Legal and Regulatory
Requirements
1. As required by the companies ( Auditor''s Report) order, 2013 ("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
statements 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
book;
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 sub-section (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on 31st March''2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March''2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the companies Act 1956.
Annexure to the Independent Auditors'' Report
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the Company has a system of physical
verification, which is designed to cover all assets over a period of
three years, which in our opinion is reasonable having regard to the
size of the Company and the nature of its fixed assets. Pursuant to the
programme, certain fixed assets have been physically verified by the
management during the year and no material discrepancies were noticed
on such verification.
c) The company has not disposed off any substantial part of its fixed
assets so as to affect the Company as a going concern.
ii) a) The inventory in the custody of the Company has been physically
verified during the year by the management. In our opinion, the
frequency of the verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of 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) On the basis of examination of the records of inventories, we are of
the opinion that the Company is maintaining proper records of inventory
and no material discrepancy was noticed on physical verification.
iii) a) The Company has not granted any loans, secured and unsecured,
to companies, firms or other parties listed in the register maintained
u/s 301 of the Companies Act, 1956, therefore the provisions of Clause
4 (iii)(b), (c) and (d) of the Companies (Auditor''s Report) Order, 2003
are not applicable to the Company.
b) The Company has taken unsecured loans from two parties covered under
register maintained u/s 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs.24.67 crores and the year end
balance was Rs.24.67 crores.
c) According to information and explanations given to us, the rate of
interest and other terms & conditions of the aforesaid deposits are not
prima-facie prejudicial to the interest of the company.
d) In our opinion and according to information and explanations given
to us, the Company has been regular in repayment of stipulated
principal and interest.
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 for the
purchase of inventory and fixed assets, and for sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct any major weakness in internal controls.
v) a) Based on the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
particulars of contracts or arrangements referred to in Section 301 of
the Companies Act, 1956 have been entered in the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956, and exceeding a value of Rs. 5 lacs in respect
of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time except for items stated to be of proprietary nature, where the
question of comparison does not arise.
vi) As the Company has not accepted deposit from the public during the
year, therefore provision of clause 4(vi) of the Companies (Auditors''
Report) order, 2003 is not applicable to the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii) We have broadly reviewed the books of account 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 Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained.
ix) a) According to the records of the Company / information and
explanations given to us, the Company is regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues applicable to it with the appropriate
authorities. According to the information and explanations given to us,
no undisputed amount payable in respect of the above were in arrear as
at 31st March, 2013 for a period of more than six months from the date
they became payable.
x) The Company has no accumulated losses at the end of the financial
year. It has not incurred cash losses in the current year and in the
immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to the
financial institutions or banks or debenture holders.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund/ nidhi/ mutual
benefit fund/ society. Therefore, the provision of clause 4(xiii) of
the Companies Act (Auditor''s Report) order, 2003 is not applicable to
the Company.
xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, the provision of Clause
4(xiv) of the Companies (Auditor''s report) order, 2003 is not
applicable to the Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi) According to information and explanations given to us, the Company
has applied the term loans for the purpose for which the loans were
raised.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet and Cash Flow Statement of
the Company, we report that no funds raised on short term basis have
been used for long term investments.
xviii) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly,
the provision of clause 4(xviii) of the Companies (Auditor''s Report)
Order, 2003 is not applicable to the Company.
xix) The Company has not issued new debentures during the year covered
by our audit. Accordingly, the provision of clause 4(xix) of Companies
(Auditor''s Report) Order, 2003 is not applicable to the Company.
xx) The Company has not raised money by way of public issue during the
year. Accordingly, the provision of clause 4(xx) of the Companies
(Auditor''s Report) Order, 2003 is not applicable to the Company.
xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the 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.
For and on behalf of B.D.Bansal & Co.,
Chartered Accountants,
ICAI Regn. No. 000621N
Place : Ludhiana (Satish Kumar Bansal )
Date : 27.05.2013 Partner
Membership No.80324
Mar 31, 2012
We have audited the attached balance sheet of M/S. MAJESTIC AUTO LTD as
at 31st March 2012, the Statement of Profit & Loss and also 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.
We conducted our audit in accordance with Auditing and Assurance
standards generally accepted in India. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government in terms of section 227 (4A) 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.
Further to our comments in the annexure referred to in above paragraph,
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 accounts as required by law have
been kept by the company, so far as appears from our examination of
such books;
c) The Balance sheet, Statement of profit and loss and the Cash Flow
Statement referred to in this report are in agreement with the books of
account;
d) In our opinion, the balance sheet and the Statement of profit and
loss and Cash Flow Statement comply with the mandatory accounting
standards referred to in section 211(3C) of the Companies Act, 1956.
e) On the basis of the written representations received from the
directors as on 31st March, 2012 and taken on record by the Board of
Directors of the company, we report that none of the directors is
disqualified as on 31st March, 2012 from being appointed as a director
in terms of section 274 (1)(g), of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
significant accounting policies and notes to accounts, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India: -
i) in the case of the Balance sheet, of the state of affairs of the
company as at 31st March, 2012;
ii) in the case of the Statement of profit and loss, of the loss of the
company for the period ended on that date; and
iii) in the case of the cash flow statement, of the cash flow for the
period ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH '3' OF THE AUDITORS' REPORT TO
THE MEMBERS OF MAJESTIC AUTO LIMITED ON THE ACCOUNTS 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 explained to us, the Company has a system of physical
verification, which is designed to cover all assets over a period of
three years, which in our opinion is reasonable having regard to the
size of the Company and the nature of its fixed assets. Pursuant to the
programme, certain fixed assets have been physically verified by the
management during the year and no material discrepancies were noticed
on such verification.
c) The company has not disposed off any substantial part of its fixed
assets so as to affect the Company as a going concern.
ii) a) The inventory in the custody of the Company has been physically
verified during the year by the management. In our opinion, the
frequency of the verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of 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) On the basis of examination of the records of inventories, we are of
the opinion that the Company is maintaining proper records of inventory
and no material discrepancy was noticed on physical verification.
iii) a) The Company has not granted any loans, secured and unsecured,
to companies, firms or other parties listed in the register maintained
u/s 301 of the Companies Act, 1956, therefore the provisions of Clause
4 (iii)(b), (c) and (d) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
b) The Company has taken unsecured loans from two parties covered under
register maintained u/s 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs.23.40 crores and the year end
balance was Rs. 23.40 crores.
c) According to information and explanations given to us, the rate of
interest and other terms & conditions of the aforesaid deposits are not
prima-facie prejudicial to the interest of the company.
d) In our opinion and according to information and explanations given
to us, the Company has been regular in repayment of stipulated
principal and interest.
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 for the
purchase of inventory and fixed assets, and for sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct any major weakness in internal controls.
v) a) Based on the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
particulars of contracts or arrangements referred to in Section 301 of
the Companies Act, 1956 have been entered in the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956, and exceeding a value of Rs. 5 lacs in respect
of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time except for items stated to be of proprietary nature, where the
question of comparison does not arise.
vi) The Company has accepted deposit from the public during the current
year and the directives issued by the RBI, provisions of Section 58A
and other relevant provisions of the Act and the rules framed
thereunder, where applicable, have been complied with. The company has
not accepted any sum from small depositors and hence the provisions of
Section 58AA of the Act are not applicable. Further, as informed to us
no order has been passed by the Company Law Board or National Company
Law T ribunal or RBI or any court or any tribunal in this regard.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii) We have broadly reviewed the books of account 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 Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained.
ix) a) According to the records of the Company / information and
explanations given to us, the Company is regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees' State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues applicable to it with the appropriate
authorities. According to the information and explanations given to
us, no undisputed amount payable in respect of the above were in arrear
as at 31st March, 2012 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 dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty and Cess which have not been deposited on account of any
dispute except as stated below:-
S.
No. Nature Nature of Amount Period to Forum where
of Statute Dispute Unpaid which the dispute is
(Rs.) amount
relates pending
1. Punjab Value Penalty u/s
51(7) (b) of 42,700 A.Y.
2005-06 Dy. Excise &
Taxation
Added Tax,
2005 Punjab Value
Added Commissioner
(Appeals) Patiala
Tax Act, 2005
2. U.P. Trade
Tax Penalty
Under 1,98,108 A.Y.
2005-06 Assistant
Commissioner
(Appeals),
U.P. Trade
Tax Act U.P. Trade Tax,
Noida
x) The Company has no accumulated losses at the end of the financial
year. It has not incurred cash losses in the current year and in the
immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to the
financial institutions or banks or debenture holders.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund/ nidhi/ mutual
benefit fund/ society. Therefore, the provision of clause 4(xiii) of
the Companies Act (Auditor's Report) order, 2003 is not applicable to
the Company.
xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, the provision of Clause
4(xiv) of the Companies (Auditor's report) order, 2003 is not
applicable to the Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi) According to information and explanations given to us, the Company
has applied the term loans for the purpose for which the loans were
raised.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet and Cash Flow Statement of
the Company, we report that no funds raised on short term basis have
been used for long term investments.
xviii) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly,
the provision of clause 4(xviii) of the Companies (Auditor's Report)
Order, 2003 is not applicable to the Company.
xix) The Company has not issued new debentures during the year covered
by our audit. Accordingly, the provision of clause 4(xix) of Companies
(Auditor's Report) Order, 2003 is not applicable to the Company.
xx) The Company has not raised money by way of public issue during the
year. Accordingly, the provision of clause 4(xx)of the Companies
(Auditor's Report) Order, 2003 is not applicable to the Company.
xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the 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.
For and on behalf of B.D.Bansal & Co.,
Chartered Accountants,
ICAI Regn. No. 000621N
Place : Ludhiana (Satish Kumar Bansal)
Date : 28.05.2012 Partner
Membership No.80324
Mar 31, 2011
1. We have audited the attached Balance Sheet of Majestic Auto Limited,
Ludhiana as at March 31, 2011, the Profit and Loss Account and also 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 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 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 above paragraph,
we state 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 such
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 Section 211(3C) of the Companies Act, 1956;
v) On the basis of written representations received from the directors
as on 31st March, 2011 and taken on record by the Board of Directors of
the Company, we report that none of the directors is disqualified as on
31.03.2011 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956; and
vi) Without qualifying our report, we draw attention to note no. 16 of
notes to account, regarding the non ascertainability of the impact on
stock valuation on the financials of the company due to change in stock
valuation technique from "Monthly Moving weighted average Basis" to
"Moment Moving Weighted average" for more appropriate and relevant
presentation of financial statements.
vii) In our opinion and to the best of our information and according to
the explanations given and management representations made to us, the
said accounts read together with 'Significant Accounting Policies' and
other 'Notes to Account' 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, 2011.
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAH '3' OF THE AUDITORSÃ REPORT TO THE
MEMBERS OF MAJESTIC AUTO LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED
31ST MARCH, 2011.
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the Company has a system of physical
verification, which is designed to cover all assets over a period of
three years, which in our opinion is reasonable having regard to the
size of the Company and the nature of its fixed assets. Pursuant to the
programme, certain fixed assets have been physically verified by the
management during the year and no material discrepancies were noticed
on such verification.
c) The company has not disposed off any substantial part of its fixed
assets so as to affect the Company as a going concern.
ii) a) The inventory in the custody of the Company has been physically
verified during the year by the management. In our opinion, the
frequency of the verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of 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) On the basis of examination of the records of inventories, we are of
the opinion that the Company is maintaining proper records of inventory
and no material discrepancy was noticed on physical verification.
iii) a) The Company has not granted any loans, secured and unsecured,
to companies, firms or other parties listed in the register maintained
u/s 301 of the Companies Act, 1956, therefore the provisions of Clause
4 (iii)(b), (c) and (d) of the Companies (Auditor's Report) Order, 2003
are not applicable to the Company.
b) The Company has taken unsecured inter corporate deposits from three
Companies covered under register maintained u/s 301 of the Companies
Act, 1956. The maximum amount involved during the year was Rs.15.25
crores and the year end balance was Rs. 5 crores.
c) According to information and explanations given to us, the rate of
interest and other terms & conditions of the aforesaid deposits are not
prima-facie prejudicial to the interest of the company.
d) In our opinion and according to information and explanations given
to us, the Company has been regular in repayment of stipulated
principal and interest.
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 for the purchase of inventory and fixed assets, and for
sale of goods and services. During the course of our audit, we have not
observed any continuing failure to correct any major weakness in
internal controls.
v) a) Based on the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
particulars of contracts or arrangements referred to in Section 301 of
the Companies Act, 1956 have been entered in the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956, and exceeding a value of Rs. 5 lacs in respect
of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time except for items stated to be of proprietary nature, where the
question of comparison does not arise.
vi) As the Company has not accepted any deposits from the public,
therefore provision of clause 4
(vi) of the Companies (Auditors' Report) order, 2003 is not applicable
to the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of is business.
viii) We have broadly reviewed the books of account 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 Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained.
ix) a) According to the records of the Company / information and
explanations given to us, the Company is regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues applicable to it with the appropriate
authorities. According to the information and explanations given to
us, no undisputed amount payable in respect of the above were in arrear
as at 31st March, 2011 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 dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty and Cess which have not been deposited on account of any
dispute except as stated below:-
S. No. Nature Nature of Amount
of Statute Dispute Unpaid
Rs.
1. Punjab Value Penalty u/s 51(7) (b) 1,77,357
Added Tax, 2005 of Punjab Value Added
Tax Act, 2005
2. -do- -do- 42,700
3. U.P. Trade Penalty Under 1,98,108
Tax U.P. Trade Tax Act
Nature Period to Forum where
of Statute which the dispute is
amount relates pendin
Punjaj Value A.Y. 2005-06 Dy. Excise & Taxation
Added Tax, 2005 Commissioner (Appeals),
Patial
-do- A.Y. 2005-06 -do-
U.P.Trade A.Y. 2005-06 Assistant Commissioner
Tax (Appeals), U.P. Trade Tax,
Noida
x) The Company has no accumulated losses at the end of the financial
year. It has not incurred cash losses in the current year and in the
immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to the
financial institutions or banks or debenture holders.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund/ nidhi/ mutual
benefit fund/ society. Therefore, the provision of clause 4(xiii) of
the Companies Act (Auditor's Report) order, 2003 is not applicable to
the Company.
xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, the provision of Clause
(xiv) of the Companies (Auditor's report) order, 2003 is not
applicable to the Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi) According to information and explanations given to us, the Company
has applied the term loans for the purpose for which the loans were
raised.
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 Rs.212.18 Lac raised on short term basis have been used for long
term investments.
xviii) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly,
the provision of clause 4 (xviii) of the Companies (Auditor's Report)
Order, 2003 is not applicable to the Company.
xix) The Company has not issued new debentures during the year covered
by our audit. Accordingly, the provision of clause 4(xix) of Companies
(Auditor's Report) Order, 2003 is not applicable to the Company.
xx) The Company has not raised money by way of public issue during the
year. Accordingly, the provision of clause 4(xx)of the Companies
(Auditor's Report) Order, 2003 is not applicable to the Company.
xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the 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.
For and on behalf of B.D.Bansal & Co.
Chartered Accountants
ICAI Reg. No. 000621N
(Satish Kumar Bansal)
Place : Ludhiana PARTNER
Date : 30.05.2011 Membership No.80324
Mar 31, 2010
1. We have audited the attached Balance Sheet of Majestic Auto
Limited, Ludhiana as at March 31, 2010, the Profit and Loss Account and
also 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 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 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 above
paragraph, we state 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 such
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 Section 211(3C) 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 of
the Company, we report that none of the directors is disqualified as on
31.03.2010 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956; and
vi) In our opinion and to the best of our information and according to
the explanations given and management representations made to us, the
said accounts read together with Significant Accounting Policies and
other Notes to Account 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 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.
ANNEXURE REFERRED TO IN PARAGRAH 3 OF THE AUDITORS REPORT TO THE
MEMBERS OF MAJESTIC AUTO LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31
ST MARCH, 2010.
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the Company has a system of physical
verification, which is designed to cover all assets over a period of
three years, which in our opinion is reasonable having regard to the
size of the Company and the nature of its fixed assets. Pursuant to the
programme, certain fixed assets have been physically verified by the
management during the year and no material discrepancies were noticed
on such verification.
c) The company has not disposed off any substantial part of its fixed
assets so as to affect the Company as a going concern.
ii) a) The inventory in the custody of the Company has been physically
verified during the year by the management. In our opinion, the
frequency of the verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of 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) On the basis of examination of the records of inventories, we are of
the opinion that the Company is maintaining proper records of inventory
and no material discrepancy was noticed on physical verification.
iii) a) The Company has not granted any loans, secured and unsecured,
to companies, firms or other parties listed in the register maintained
u/s 301 of the Companies Act, 1956, therefore the provisions of Clause
4 (iii)(b), (c) and (d) of the Companies (Auditors Report) Order, 2003
are not applicable to the Company.
b) The Company has taken unsecured inter corporate deposits from three
Companies covered under register maintained u/s 301 of the Companies
Act, 1956. The maximum amount involved during the year was Rs. 15.25
crores and the year end balance was Rs. 15.25 crores.
c) According to information and explanations given to us, the rate of
interest and other terms & conditions of the aforesaid deposits are not
prima-facie prejudicial to the interest of the company.
d) In our opinion and according to information and explanations given
to us, the Company has been regular in repayment of stipulated
principal and interest.
iv) In our o-:nion 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 for the purchase of inventory and fixed assets, and for
sale of goods and services. During the course of our audit, we have not
observed any continuing failure to correct any major weakness in
internal controls.
v) a) Based on the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
particulars of contracts or arrangements referred to in Section 301 of
the Companies Act, 1956 have been entered in the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956, and exceeding a value of Rs. 5 lacs in respect
of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time except for items stated to be of proprietary nature, where the
question of comparison does not arise.
vi) As the Company has not accepted any deposits from the public,
therefore provision of clause 4 (vi) of the Companies (Auditors
Report) order, 2003 is not applicable to the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii) We have broadly reviewed the books of account 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 Companies Act, 1956 and are of the opinion
that prima facie, the prescribed accounts and records have been made
and maintained.
ix) a) According to the records of the Company / information and
explanations given to us, the Company is regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues applicable to it with the appropriate
authorities. According to the information and explanations given to
us, no undisputed amount payable in respect of the above were in arrear
as at 31st March, 2010 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 dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty and Cess which have not been deposited on account of any
dispute except as stated below:-
S. No. Nature Nature of Amount Period to
of Statute Dispute Unpaid which the
Rs. amount
relates
1. Punjab Value Penalty u/s 51
(7) (b) of 1,77,357 A.Y. 2005-06
Added
Tax, 2005 Punjab Value
Added
Tax Act, 2005
2. -do- -do- 42,700 A.Y. 2005-06
3. U.P. Trade Penalty Under 1,98,108 A.Y. 2005-06
Tax U.P. Trade Tax
Act
S.No. Nature of Statute Forum where dispute is pending
1. Punjab Value Dy. Excise & Taxation
Added Tax, 2005 Commissioner (Appeals), Patiala
2. -do- -do-
3. U.P. Trade Tax Assistant Commissioner
(Appeals), U.P. Trade
Tax, Noida
x) The Company has no accumulated losses at the end of the financial
year. It has not incurred cash losses in the current year and in the
immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to the
financial institutions or banks or debenture holders.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund/ nidhi/ mutual
benefit fund/ society. Therefore, the provision of clause 4
(xiii) of
the Companies Act (Auditors Report) order, 2003 is not applicable to
the Company.
xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, the provision of Clause
4(xiv) of the Companies (Auditors report) order, 2003 is not
applicable to the Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi) According to information and explanations given to us, the Company
has applied the term loans for the purpose for which the loans were
raised.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet and Cash flow of the
Company, we report that no funds raised on short term basis have been
used for long term investments.
xviii)The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly,
the provision of clause 4(xviii) of the Companies (Auditors Report)
Order, 2003 is not applicable to the Company.
xix) The Company has not issued new debentures during the year covered
by our audit. Accordingly, the provision of clause 4(xix) of Companies
(Auditors Report) Order, 2003 is not applicable to the Company.
xx) The Company has not raised money by way of public issue during the
year. Accordingly, the provision of clause 4(xx)of the Companies
(Auditors Report) Order, 2003 is not applicable to the Company.
xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the 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.
For and on behalf of B.D.Bansal & Co.
Chartered Accountants ICAI Reg.
No. 000621N
(Satish Kumar Bansal)
Place: Ludhiana PARTNER
Date : 26.05.2010 Membership No.80324