Mar 31, 2015
We have audited the accompanying financial statements of M/S. MIPCO
SEAMLESS RINGS (GUJARAT) LIMITED ("the Company"), which comprise the
Balance Sheet as at March 31, 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 Standalone Financial Statements
The management and Board of Directors of the Company are responsible
for the matters stated in Section 134(5) of the Companies Act, 2013
('the act') with respect to the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
rule 7 of Companies (Accounts) Rules, 2014. This responsibility
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; 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 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 disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements, that give a true and fair
view, in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's management and Board of
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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India;
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) In the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
Without qualifying our opinion, we draw attention to Note No.7 and Note
No.17.1 regarding writing back of provision and contingent liabilities
as detailed in the said note.
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 section143 of the Act, we give in the Annexure a
statement on the matters Specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we further 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 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 financial statements comply with the
applicable Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules 2014.
e) on the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors are disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014;
i. the Company has disclosed the impact of pending disputed statutory
demands on its financial position in its financial statements as
contingent liabilities - Refer Note no.17.1 to the financial
statements;
ii. The Company did not have any long-term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise.
iii. There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise.
Annexure referred to in paragraph 7 Our Report of even date to the
members of MIPCO SEAMLESS RINGS (GUJARAT) LIMITED on the accounts of
the company for the year ended 31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
i. (a) The Company does not have any fixed assets, hence maintenance
of proper records and physical verification is not required;
ii. The nature of business of the Company does not require it to have
any inventory. Hence, the requirement of clause (ii) of paragraph 3 of
the said Order is not applicable to the Company
iii. The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act., hence reporting (a) & (b) is
not required.
iv. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of fixed assets and for the sale of services. Further, on the
basis of our examination of the books and records of the Company and
according to the information and explanations given to us, no major
weakness has been noticed or reported.
v. The Company has not accepted any deposits from the public covered
under Section 73 to 76 of the Companies Act, 2013.
vi. As informed to us, the Central Government has not prescribed
maintenance of cost records under sub-section (1) of Section 148 of the
Act.
vii. (a) According to the information and explanations given to us and
based on the records of thecompany examined by us, the company is
regular in depositing the undisputed statutory dues, including Provident
Fund, Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty and other material statutory dues,
as applicable, with the appropriate authorities in India ;
(b) According to the information and explanations given to us and based
on the records of the company examined by us, there are no dues of
Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty and Excise
Duty which have not been deposited on account of any disputes.
(c) There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of reporting delay in transferring such
sums does not arise.
viii. The Company have accumulated losses at the end of the financial
year and has incurred cash losses in the financial year and in the
immediately preceding financial year.
ix. According to the records of the company examined by us and as per
the information and explanations given to us, the company has not
availed of any loans from any financial institution or banks and has
not issued debentures.
x. In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from a bank or financial institution during the year.
xi. In our opinion, and according to the information and explanations
given to us, the company has not raised any term loans during the year.
xii. During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have we been informed of any such instance by the
Management.
For M/s. Ganesh Venkat & Co.,
Chartered Accountants
Firm Regd.No.005293S
G. Rajavenkat
Partner
Membership No.025014
Place: Hyderabad.
Date: 28th May, 2015.
Mar 31, 2014
We have audited the accompanying financial statements of MIPCO SEAMLESS
RINGS (GUJARAT) LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31, 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance of the Company in accordance with the Accounting
Standards referred to in sub section (3C) of section 211 of 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 judgement, 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 slate of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
(C) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (I) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid , no cess is
due and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of MIPCO SEAMLESS RINGS (GUJRAT) LIMITED, on the
accounts of the company for the year ended 31st March. 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. According to the information and explanation given to us and on the
basis of our examination of the books of account ,all fixed assets has
been disposed off by the company and consequently commenting on
maintenance of records and physical verification of assests does not
arise.
2. According to the information and explanation given to us on the
basis of our examination of the books of account during the course of
our audit, there being no inventory on hand during the year/at the end
of the year , commenting on procedure of physical verification of
inventory , maintenance of proper records and ascertaining of
discrepancies does not arise.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(b) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
taken loans from related parties listed in the register maintained
under Section 301 of the Companies Act, 1956. During the year the
company has taken an unsecured loan of Rs.6.19 lakhs from the party
having an opening balance of Rs. 19.46 lakhs.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act does not exceeds five lacs rupees in a financial year
therefore requirement of reasonableness of transactions does not
arises.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
7. As per information & explanations given by the management, the
Company does not have an internal audit system commensurate with its
size and the nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has not been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained.
9. (a) According to the records of the company, 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 to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
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 is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
10. The Company have accumulated loss and has incurred cash loss our
audit and in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments. Proper
records & timely entries have been maintained in this regard & further
investments specified are held in their own name.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For M/s. GANESHVENKAT & CO.,
Chartered Accountants
Firm Regd. No.005293S
Sd/-
G.Rajavenkat
Date: 27.05.2014 Partner
Place: Hyderabad Membership No.025104
Mar 31, 2011
We have audited the attached Balance Sheet of Mipco Seamless Rings
(Gujarat) Limited as at 31 st March, 2011 and also the Profit and
Loss Account and the Cash Flow Statement for the year ended on that
date annexed thereto.
These financial statements are the responsibility of the 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 standards generally
accepted in India, which requires 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, and 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 of India in terms of sub- section (4A) of
section 227 of the Companies Act, 1956 and on the basis of such checks
of books and records of the Company as considered appropriate and as
per the information and explanations given to us, 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 above, we report
that:
1. 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;
2. 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;
3. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report, are in agreement with the books of account
of the Company;
4. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
5. On the basis of written representations received from the Directors
of the company and taken on record by the Board of Directors, we report
that none of the Directors are disqualified as on 31 st March, 2011
from being appointed as a Director in terms of Section 274 (1) (g) of
the Companies Act, 1956;
6. Though the accounts for the year have been prepared on the
assumption of going concern basis, the company's ability to continue as
a going concern, however is dependent upon restructuring of operations
by considering appropriate business strategies and financial
viabilities.
Subject to the foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts read with the notes thereon give the information required by
the Companies Act, 1956, in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India;
a. in the case of 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 Loss for the
year ended on that date; and
c. in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS' REPORT
on the Accounts for the year ended 31s1 March, 2011
1. All the Fixed Assets have been disposed off by the company and
consequently commenting on maintenance of records and physical
verification of assets dose not arise.
2. There being no inventory on hand during the year/at the end of the
year commenting on procedure of physical verification of inventory,
maintenance of proper records and ascertaining of discrepancies does
not arise.
3. a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
4. According to the information and explanations given to us, for the
activities carried out during the year, there was in our opinion,
adequate internal control system commensurate with the size of the
Company and nature of the business. No major weakness was noticed in
the course of our audit in this behalf.
5. In our opinion, and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under Section 301
of the Companies Act, 1956.
6. The Company has not accepted any deposits from the public,
consequently the provisions of Section 58A and 58AA of the Companies
Act, 1956 and the rules framed there under are not applicable.
7. The Company does not have any formal internal audit system. As
informed to us this is in view of the continuing suspension of the
business operations.
8. The Central Government has not prescribed maintenance of cost
records under Section 209(1 )(d) of the Companies Act, 1956.
9. a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
been generally regular in depositing with appropriate authorities
undisputed statutory dues including income- tax, sales-tax, wealth-tax,
service tax, custom duty, excise-duty, and other statutory dues during
the year to the extent applicable. As at 31st March, 2011, there were
no undisputed dues payable for a period of more than six months from
the date they became payable.
b) According to information and explanation given to us the disputed
dues in respect of Sales tax and Income tax that have not been
deposited by the Company are as follows:
Name of the Nature of Amount (Rs. In Forum where
Statute dues lacs) and (Per dispute is pending
-iod to which
it relates)
Gujarat Sales Sales Tax Rs. 1.65 lacs Asst. Sales Tax Commis
Tax Act, 1969 (1988-89) -sioner Appeal 7 Circle
4 - Vadodara Gujarat
Sales Tax Tribunal at
Ahmedabad
Income Tax Income Tax Rs. 39.94 lacs Income Tax Appellate
Act,1961 (2005-06) Tribunal - Mumbai
10. The accumulated losses of the Company exceeded fifty percent of
its net worth at the end of the financial year. The Company has
incurred cash loss in the current year and immediately preceding
financial year.
11. The Company has not availed any loans from Banks Financial
Institution or by issue of debentures.
12. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The company is not a chit fund/nidhi/mutual benefit fund/society.
Accordingly the provisions of the clause 4(xiii) of the Order are not
applicable.
14. As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. The Company has not obtained any term loans during the year.
17. According to the information and explanations given to us, the
Company has not raised any funds on short term basis during the year.
18. The Company has not made any preferential allotment of shares to
any parties and companies covered under the register maintained u/s.301
of the Companies Act, 1956 during the year.
19. No security or charge is required to be created since the company
has not issued any Debentures.
20. The Company has not raised any money by public issue during the
year.
21. On the basis of examination of books of account and other relevant
records in the course of our audit and as per the information and
explanation given to us no fraud on or by the Company has been noticed
or reported during the year.
For GANESH VENKAT & CO.,
CHARTERED ACCOUNTANTS
Firm Registration No. 005293S
G. RAJAVENKAT
Partner
Membership No. 025014
Hyderabad, 28th May 2011.
Mar 31, 2010
We have audited the attached Balance Sheet of Mipco Seamless Rings
(Gujarat) Limited as at 31st March, 2010 and also the Proft and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These fnancial statements are the responsibility of
the CompanyÃs management. Our responsibility is to express an opinion
on these fnancial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India, which requires that we plan and perform the audit to
obtain reasonable assurance about whether the fnancial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the fnancial
statements, and also includes assessing the accounting principles used
and signifcant estimates made by management, as well as evaluating the
overall fnancial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
As required by the Companies (AuditorÃs Report) Order, 2003, issued by
the Central Government of India in terms of sub- section (4A) of
section 227 of the Companies Act, 1956 and on the basis of such checks
of books and records of the Company as considered appropriate and as
per the information and explanations given to us, we enclose in the
Annexure a statement on the matters specifed in paragraphs 4 and 5 of
the said order.
Further to our comments in the Annexure referred to above, we report
that:
1. 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;
2. 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;
3. The Balance Sheet, Proft and Loss Account and Cash Flow Statement
dealt with by this report, are in agreement with the books of account
of the Company;
4. In our opinion, the Balance Sheet, Proft and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
5. On the basis of written representations received from the Directors
of the company and taken on record by the Board of Directors, we report
that none of the Directors are disqualifed as on 31st March, 2010 from
being appointed as a Director in terms of Section 274 (1) (g) of the
Companies Act, 1956;
6. Though the accounts for the year have been prepared on the
assumption of going concern basis, the companyÃs ability to continue as
a going concern, however is dependent upon restructuring of operations
by considering appropriate business strategies and fnancial
viabilities.
Subject to the foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts read with the notes thereon give the information required by
the Companies Act, 1956, in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India;
a. in the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
b. in the case of the Proft and Loss Account, of the Loss for the year
ended on that date; and
c. in the case of Cash Flow Statement, of the cash fows for the year
ended on that date.
RE : MIPCO SEAMLESS RINGS (GUJARAT) LIMITED
ANNEXURE TO AUDITORSÃ REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31ST
MARCH, 2010
1. a) The Company has maintained proper records showing full
particulars including quantitative details and location of its fxed
assets (viz. wind mill).
b) The only Fixed Assets ( viz Wind mills ) have been disposed off
during the year consequently commenting on maintenance of records and
physical verifcation of assets dose not arise.
c) The going concern status of the company is affected on disposal of
the balance of assets.
2 There being no inventory on hand during the year/at the end of the
year commenting on procedure of physical verifcation of inventory,
maintenance of proper records and ascertaining of discrepancies does
not arise.
3 a) The Company has not granted any loans, secured or unsecured to
companies, frms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) The Company has not taken any loans, secured or unsecured from
companies, frms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
4 According to the information and explanations given to us, for the
activities carried out during the year, there was in our opinion,
adequate internal control system commensurate with the size of the
Company and nature of the business. No major weakness was noticed in
the course of our audit in this behalf.
5 In our opinion, and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under Section 301
of the Companies Act, 1956.
6 The Company has not accepted any deposits from the public,
consequently the provisions of Section 58A and 58AA of the Companies
Act, 1956 and the rules framed there under are not applicable.
7 The Company does not have any formal internal audit system. As
informed to us this is in view of the continuing suspension of the
business operations.
8 The Central Government has not prescribed maintenance of cost records
under Section 209(1)(d) of the Companies Act, 1956.
9 a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
been generally regular in depositing with appropriate authorities
undisputed statutory dues including income-tax, sales-tax, wealth-tax,
service tax, custom duty, excise-duty, and other statutory dues during
the year to the extent applicable. As at 31st March, 2010, there were
no undisputed dues payable for a period of more than six months from
the date they became payable.
b) According to information and explanation given to us the disputed
dues in respect of Sales tax and Income tax that have not been
deposited by the Company are as follows:
Name of Statute Nature of dues Amount (Rs. in lacs) and
(Period to which it relates)
Gujarat Sales Tax
Act,1969 Sales Tax Rs.1.65 lacs (1988-1989)
Rs.6.25 lacs (1999-2000)
Income Tax Act, 1961 Income Tax Rs.39.94 lacs (2005-06)
Name of Statue Forum where the dispute is pending
Gujarat Sales Tax Act,1969 Asst. Sales Tax Commissioner Ã
Appeal 7 Circle 4 - Vadodara
The Gujarat Sales Tax
Tribunal at Ahmedabad
Income Tax Act, 1961 Income Tax Appellate Tribunal -
Mumbai
10. The accumulated losses of the Company exceeded ffty percent of its
net worth at the end of the fnancial year. The Company has incurred
cash loss in the current year and immediately preceeding fnancial year.
11. The Company has not availed any loans from Banks Financial
Institution or by issue of debentures.
12. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The company is not a chit fund/nidhi/mutual beneft fund/society.
Accordingly the provisions of the clause 4(xiii) of the Order are not
applicable.
14. As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and fnancial institutions.
16. The Company has not obtained any term loans during the year.
17. According to the information and explanations given to us, the
Company has not raised any funds on short term basis during the year.
18. The Company has not made any preferential allotment of shares to
any parties and companies covered under the register maintained u/s.301
of the Companies Act, 1956 during the year.
19. No security or charge is required to be created since the company
has not issued any Debentures.
20. The Company has not raised any money by public issue during the
year.
21 On the basis of examination of books of account and other relevant
records in the course of our audit and as per the information and
explanation given to us no fraud on or by the Company has been noticed
or reported during the year.
For PARIKH & SHAH
Chartered Accountants
(H. K. Desai)
Partner
Mumbai: 4th May, 2010. Membership No. 13719
Firm Registration No. 107528W