Mar 31, 2018
Independent Auditor''s Report
To the Members of Morganite Crucible (India) Limited
Report on the Audit of Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Morganite Crucible (India) Limited ("the Company"), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Ind AS financial statements that give a true and fair view of the state of affairs, profit / loss and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditor''s Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder
We conducted our audit of 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 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 Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We are also responsible to conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditor''s report. However, future events or conditions may cause an entity to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 31 March 2018, and its profit and other comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Emphasis of Matter
During an earlier year, the Company had paid managerial remuneration to Late Hitesh Saiwal- Managing Director amounting to '' 102.07 lakhs which was in excess of the limits specified in section 197 read with Schedule V of the Act by '' 73.01 lakhs. The Company had made an application to the Central Government for waiver of such excess remuneration paid. During the year ended 31 March 2018, the Central Government has rejected the said application by its Order dated 11 August 2017. Further, based on the management''s evaluation of the response received from legal heirs of Late Hitesh Saiwal to the notice sent for recovery of such excess remuneration, the Company has filed the application with the Central Government to reconsider its aforesaid Order.
Our opinion is not modified in respect of this matter.
Other Matter
The comparative financial information of the Company for the year ended 31 March 2017 and the transition date opening balance sheet as at 1 April 2016 included in these Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended 31 March 2017 and 31 March 2016 dated 25 May 2017 and 30 May 2016 respectively expressed an unmodified opinion on those financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of section 143(11) of the Act, we give in the "Annexure A" 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 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, the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31 March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B", and
g) With respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements
- Refer note 30 to the Ind AS financial statements.
ii. The Company did not have any material foreseeable losses on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company.
iv. The disclosures in the financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made since they do not pertain to the financial year ended 31 March 2018. However amounts as appearing in the audited financial statements for the period ended 31 March 2017 have been disclosed.
With reference to the Annexure referred to in paragraph 1 in Report on Other Legal and Regulatory Requirements of the Independent
Auditor''s Report to the members of the Company on the Ind AS financial statements for the year ended 31 March 2018, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets by which its fixed assets are verified every year. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its fixed assets. In accordance with this program, all fixed assets were physically verified by the management during the year and no material discrepancies were noticed on such verification.
(c) The title deeds of the immovable properties are held in the name of the Company
(ii) The inventory, except good-in-transit, has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable and adequate in relation to the size of the Company and the nature of its business. The discrepancies noticed on verification between physical stocks and book records were not material.
(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. Accordingly, paragraph 3(iii) of the Order is not applicable to the Company.
(iv) According to the information and explanations given to us, the Company has not granted any loans, made any investments or provided any guarantees or security to which the provisions of section 185 and 186 of the Act apply. Accordingly, paragraph 3(iv) of the Order is not applicable to the Company
(v) The Company has not accepted any deposits in accordance with the provisions of sections 73 to 76 of the Act and the rules made there under
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the goods manufactured by the Company.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Provident fund, Employees'' state insurance, Income tax, Sales tax, Service tax, Value added tax, Duty of customs, Duty of excise, Goods and services tax and any other statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident fund, Employees'' state insurance, Income tax, Service tax, Sales tax, Value added tax, Duty of customs, Duty of excise, Goods and services tax and any other statutory dues were in arrears as at 31 March 2018, 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, Value added tax, Service tax, Duty of Customs, Duty of Excise and Goods and services tax which have not been deposited with the appropriate authorities on account of any dispute except as disclosed below.
(Rs, In lakhs)
Name of the Statute |
Nature of dues |
Amount* |
Amount paid under protest |
Period to which amount relates |
Forum where dispute is pending |
Central Excise Act, 1944 |
Excise duty |
18.96 |
- |
2005-06 to 2009-10 |
Central Excise Appellate Tribunal |
Central Excise Act, 1944 |
Excise duty |
4.12 |
April 2013 to September 2015 |
Commissioner of Central Excise and Service Tax (Appeal) |
|
Finance Act, 1994 |
Service Tax |
13.02 |
April 2012 to August 2015 |
Assistant Commissioner of Central Excise and Service Tax audit |
Name of the Statute |
Nature of dues |
Amount* |
Amount paid under protest |
Period to which amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Income tax |
153.42 |
20.00 |
2011-12 |
Income Tax Appellate Tribunal |
Income Tax Act, 1961 |
Income tax |
110.46 |
80.30** |
2012-13 |
Commissioner of Income Tax (Appeal) |
Income Tax Act, 1961 |
Income tax |
15.92## |
15.92 |
2008-09 |
Income Tax Appellate Tribunal |
Income Tax Act, 1961 |
Income tax |
7.20## |
1.08 |
2010-11 |
Commissioner of Income Tax (Appeal) |
Income Tax Act, 1961 |
Income tax |
36.95## |
36.95 |
2010-11 to 2011-12 |
Income Tax Appellate Tribunal |
Income Tax Act, 1961 |
Income tax |
119.18## |
117.51 |
2012-13 to 2014-15 |
Commissioner of Income Tax (Appeal) |
(*excluding interest and penalty)
(**includes amount of advance tax of Rs, 72.47 lakhs adjusted against demand order)
(##pertains to erstwhile Diamond Crucible Company Limited, which has been amalgamated with the Company)
(viii) In our opinion and according to the information and explanations given to us, the Company did not have any outstanding dues to any financial institution, banks, government or any debentures during the year.
(ix) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) or term loans during the year
(x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Act. However, in an earlier year, the Company had paid managerial remuneration to Late Hitesh Saiwal- Managing Director amounting to Rs, 102.07 lakhs which was in excess of the limits specified in section 197 read with Schedule V of the Act by Rs, 73.01 lakhs. The Company had made an application to the Central Government for waiver of such excess remuneration paid. During the year ended 31 March 2018, the Central Government has rejected the said application by its Order dated 11 August 2017. Further, based on the managementRs,s evaluation of the response received from legal heirs of Late Hitesh Saiwal to the notice sent for recovery of such excess remuneration, the Company has filed the application with the Central Government to reconsider its aforesaid Order. Refer note 40 to the Ind AS financial statements.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company as per the Act.
(xiii) In our opinion and according to the information and explanations given to us, all transactions with related parties are in compliance with section 177 and 188 of the Act and the details, as required by the applicable accounting standards have been disclosed in the financial statements.
(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partially convertible debentures during the year
(xv) According to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with them during the year.
(xvi) In our opinion and according to the information and explanations given to us, the Company is not required to register under section 45-IA of the Reserve Bank of India, 1934.
Referred to in paragraph 2(f) in Report on Other Legal and Regulatory Requirements of the Independent Auditor''s Report to the members of Morganite Crucible (India) Limited on the Ind AS financial statements for the year ended 31 March 2018.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act
We have audited the internal financial controls with reference to financial statements of Morganite Crucible (India) Limited ("the Company") as of 31 March 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for the Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements 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 with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of
internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system with reference to financial statements.
Meaning of Internal Financial Controls with reference to Financial Statements
A company''s internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial controls with reference to financial statements 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 Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the Ind AS financial statements.
Inherent Limitations of Internal Financial Controls with reference to Financial Statements
Because of the inherent limitations of internal financial controls with reference to financial statements, 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 with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at 31 March 2018, based on the internal controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For B S R & Associates LLP
Chartered Accountants
Firm Registration No: 1 16231W/ W-100024
Shiraz Vastani
Place: Pune Partner
Date: 24 May 2018 Membership No.: 103334
Mar 31, 2016
To the Members of Morganite Crucible (India) Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Morganite Crucible (India) Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the 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 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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, and its profit and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to Note 37 to the standalone financial statements, which more fully explains that during the year the Company has paid managerial remuneration to Mr. Hitesh Saiwal- Managing Director amounting to Rs. 10,207,067 which is in excess of the limits specified in section 197 read with Schedule V of the Companies Act 2013 by Rs. 7,300,563. The Company has made an application to the Central Government for excess remuneration paid and pending approval has treated the excess remuneration paid as a recoverable. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in âAnnexure Bâ 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 report that :
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid 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 31st March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ; and
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us :
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 26 to the financial statements.
ii. The Company did not have any material foreseeable losses on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure A to the Independent Auditors'' Report on the Standalone Financial Statements
Referred to in paragraph 2(f) in Report on Other Legal and Regulatory Requirements of the Independent Auditors'' Report to the members of the Morganite Crucible (India) Limited on the standalone financial statements for the year ended 31 March 2016.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act
We have audited the internal financial controls over financial reporting of Morganite Crucible (India) Limited (âthe Companyâ) as of 31st March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Control
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Control Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Control Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Annexure B to the Independent Auditors'' Report
With reference to the Annexure referred to in paragraph 1 in Report on Other Legal and Regulatory Requirements of the Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended 31 March 2016, we report that :
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets by which its fixed assets are verified every year. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its fixed assets. In accordance with this programme, all fixed assets were physically verified by the management during the year and no material discrepancies were noticed on such verification.
(c) The title deeds of the immovable properties are held in the name of the Company.
(ii) The inventory, except good-in-transit, has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable and adequate in relation to the size of the Company and the nature of its business. The discrepancies noticed on verification between physical stocks and book records were not material.
(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. Accordingly, paragraph 3(iii) of the Order is not applicable to the Company.
(iv) According to the information and explanations given to us, the Company has not granted any loans, made any investments, or provided any guarantees, or security to which the provisions of section 185 and 186 of the Companies Act, 2013 apply. Accordingly, paragraph 3(iv) of the Order is not applicable to the Company.
(v) The Company has not accepted any deposits in accordance with the provisions of sections 73 to 76 of the Act and the rules made there under.
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the goods manufactured by the Company.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Provident fund, employees'' state insurance, Income tax, Sales tax, Service tax, Value added tax, duty of customs, duty of excise and any other statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident fund, employees'' state insurance, Income tax, Service tax, Sales tax, Value added tax, duty of customs, duty of excise and other statutory dues were in arrears as at 31 March 2016, for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of Income-tax, Sales tax, Value added tax, Service tax, duty of Customs, and duty of Excise which have not been deposited with the appropriate authorities on account of any dispute except as disclosed below.
Name of the Statute |
Nature of dues |
Amount* |
Period to which amount relates |
Forum where dispute is pending |
Central Excise Act, 1944 |
Excise duty |
1,896,472 |
2005-06 to 2009-10 |
Commissioner of Central Excise and Service Tax |
(*excluding interest and penalty)
(viii) In our opinion and according to the information and explanations given to us, the Company did not have any outstanding dues to any financial institution, banks, government or any debentures during the year.
(ix) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) or term loans during the year.
(x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) During the year the Company has paid managerial remuneration to Mr. Hitesh Saiwal- Managing Director amounting to Rs. 10,207,067 which is in excess of the limits specified in section 197 read with Schedule V of the Companies Act 2013 by Rs.7,300,563. The Company has made an application to the Central Government for excess remuneration paid and pending approval has treated the excess remuneration paid as a recoverable. Refer note 37 to the financial statements.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company as per the Act.
(xiii) In our opinion and according to the information and explanations given to us, all transactions with related parties are in compliance with section 177 and 188 of the Act and the details, as required by the applicable accounting standards have been disclosed in the financial statements.
(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partially convertible debentures during the year.
(xv) According to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him during the year.
(xvi) In our opinion and according to the information and explanations given to us, the Company is not required to register under section 45-IA of the Reserve Bank of India, 1934.
For B S R & Co. LLP
Chartered Accountants
Firm Registration No: 101248W/ W-100022
Vijay Mathur
Place : Mumbai Partner
Date : 30 May 2016 Membership No: 046476
Mar 31, 2014
We have audited the accompanying financial statements of Morganite
Crucible (India) Limited ("the Company") which comprise the Balance
Sheet as at 31 March 2014, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation and presentation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of Section 211 of the Companies Act, 1956 ("the Act") read with
the General Circular 15/2013 dated 13th September 2013 of the Ministry
of Corporate Affairs in respect of section 133 of the Companies Act
2013. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with 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 of
material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2014;
(ii) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company 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"), as amended, 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 it appears from our examination of
those books;
c. the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d. in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Act read with the
General Circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013;
and
e. on the basis of written representations received from the Directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors of the Company is disqualified as on 31 March
2014, from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act.
Annexure to the Independent Auditors'' Report - 31 March 2014 (Referred
to in our report of even date)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of the fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified every year. In our
opinion, this periodicity of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. In
accordance with this programme, all fixed assets were physically
verified by the management during the year and no material
discrepancies were noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern assumption.
(ii) (a) The inventory, except good-in-transit, has been physically
verified by the management during the year. In our opinion, the
frequency of such verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by 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 inventory. The
discrepancies noticed on verification between physical stocks and book
records were not material.
(iii) (a) The Company has not granted or taken any loans, secured or
unsecured, to/from companies, firms or other parties
covered in the register required to be maintained under Section 301 of
the Act. Consequently, clauses 4(iii)(a) to 4(iii)(f) of the Order are
not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchases of
certain items of inventories are for the Company''s specialized
requirements and, similarly, sale of certain goods, are for the buyers''
specialized requirements, and suitable alternative sources are not
available to obtain comparable quotations, 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 with regard to sale of goods. The Company does not
render any services. We have not observed any major weakness in the
internal control system during the course of the audit.
(v) (a) In our opinion and according to the information and explanation
given to us, the particulars of contracts or
arrangements referred to in Section 301 of the Act have been entered in
the register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements referred to in (a) above and exceeding the value of rupees
five lakhs in respect of any party during the year have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with it''s size and the nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules prescribed by the Central Government for
the maintenance of cost records under Section 209 (1) (d) of the Act
and are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained. However, we have not made a
detailed examination of the records.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the
Company, amounts deducted/accrued in the books of account in respect of
undisputed statutory dues including Provident fund, Employees'' State
Insurance, Investor Education and Protection Fund, Income-tax, Wealth
Tax, Sales tax/ Value added tax, Service tax, Customs duty, Excise duty
and other material statutory dues have been generally regularly
deposited during the year by the Company with the appropriate
authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident fund, Employees''
State Insurance, Investor Education and Protection Fund, Income-tax,
Wealth Tax, Sales tax/ Value added tax, Service tax, Customs duty,
Excise duty and other material statutory dues were in arrears as at 31
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/Value added tax, Wealth tax,
Service tax, Customs duty, and Excise duty which have not been
deposited with the appropriate authorities on account of any dispute.
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company did not have any outstanding dues to any
financial institution, banks or debenture holders during the year.
(xii) According to the information and explanations given to us, the
Company has not granted loans or advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) In our opinion, and according to the information and
explanations given to us, the Company is not a chit fund or a nidhi /
mutual benefit fund / society.
(xiv) According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments.
(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) The Company did not have any term loans outstanding during the
period.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that the funds raised on short-term basis have not been
used for long-term investment.
(xviii) In our opinion and according to the information and
explanations given to us, the Company has not made any preferential
allotment of shares to companies / firms / other parties covered in the
register maintained under Section 301 of the Act during the year.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money by public issues during the
year.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For B S R & Co. LLP
Chartered Accountants
Firm Registration No: 101248W
Mumbai Aniruddha Godbole
22 May 2014 Partner
Membership No: 105149
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Morganite
Crucible (India) Limited ("the Company'') which comprise the balance
sheet as at 31 March 2013, the statement of profit and loss and the
cash flow statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation and presentation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting 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 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 of
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 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:
( i ) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2013;
(ii) in the case of the statement of profit and loss, of the profit of
the Company for the year ended on that date; and
(iii) in the case of the cash flow statement, of the cash flows of the
Company 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 it appears from our examination of
those books;
c. the balance sheet, the statement of profit and loss and the cash
flow statement dealt with by this report are in agreement with the
books of account;
d. in our opinion the balance sheet, the statement of profit and loss
and the cash flow statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Act; and
e. on the basis of written representations received from the Directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors of the Company is disqualified as on 31 March
2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act.
Annexure to the Independent Auditors'' Report  31 March 2013 (Referred
to in our report of even date)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of the fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified every year. In our
opinion, this periodicity of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. In
accordance with this programme, all fixed assets were physically
verified by the management during the year and no material
discrepancies were noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern assumption. (ii) (a) The
inventory, except good-in-transit, has been physically verified by the
management during the year. In our opinion, the frequency of such
verification is reasonable.
(b) The procedures for the physical verification of inventory followed
by 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 inventory. The
discrepancies noticed on verification between physical stocks and book
records were not material.
(iii) (a) The Company has not granted any loans, secured or unsecured,
to companies, firms or other parties covered in the register required
to be maintained under Section 301 of the Act. Consequently, clauses
4(iii)(a) to 4(iii)(d) of the Order are not applicable to the Company.
(b) The Company has taken a loan from a company covered in the register
maintained under Section 301 of the Act. The maximum amount outstanding
during the year was Rs 49,374,556 and the year-end balance of such loan
is Rs Nil.
(c) In our opinion, the rate of interest and other terms and conditions
on which the loan has been taken from the company listed in the
register maintained under Section 301 of the Act, is not, prima facie,
prejudicial to the interests of the Company.
(d) In the case of loan taken from a company listed in the register
maintained under Section 301 of the Act, the Company has been regular
in repaying the principal amount as stipulated and in the payment of
interest.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchases of
certain items of inventories are for the Company''s specialized
requirements and, similarly, sale of certain goods, are for the buyers''
specialized requirements, and suitable alternative sources are not
available to obtain comparable quotations, 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 with regard to sale of goods. The Company does not
render any services. We have not observed any major weakness in the
internal control system during the course of the audit. (v) (a) In our
opinion and according to the information and explanation given to us,
the particulars of contracts or arrangements referred to in Section 301
of the Act have been entered in the register required to be maintained
under that section. (b) In our opinion and according to the information
and explanations given to us, the transactions made in pursuance of
contracts or arrangements referred to in (a) above and exceeding the
value of rupees five lakhs in respect of any party during the year have
been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time. (vi) The Company has not
accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and the nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules prescribed by the Central Government for
the maintenance of cost records under Section 209 (1) (d) of the Act
and are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained. However, we have not made a
detailed examination of the records. (ix) (a) According to the
information and explanations given to us and on the basis of our
examination of the records of the Company, amounts deducted/accrued in
the books of account in respect of undisputed statutory dues including
Provident fund, Employees'' State Insurance, Investor Education and
Protection Fund, Income-tax, Sales tax/ Value added tax, Service tax,
Customs duty, Excise duty and material statutory dues have been
generally regularly deposited during the year by the Company with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of Provident
fund, Employees'' State Insurance, Investor Education and Protection
Fund, Income-tax, Sales tax/ Value added tax, Service tax, Customs
duty, Excise duty and other material statutory dues were in arrears as
at 31 March 2013 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, Value added
tax, Wealth tax, Service tax, Customs duty, and Excise duty which have
not been deposited with the appropriate authorities on account of any
dispute. (x) The Company does not have any accumulated losses at the
end of the financial year and has not incurred cash losses in the
current financial year and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company did not have any outstanding dues to any
financial institution, banks or debenture holders during the year.
(xii) 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. (xiii) In our
opinion, and according to the information and explanations given to us,
the Company is not a chit fund or a nidhi / mutual benefit fund /
society. (xiv) According to the information and explanations given to
us, the Company is not dealing in or trading in shares, securities,
debentures and other investments. (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) In
our opinion and according to the information and explanations given to
us, the term loans taken by the Company have been applied for the
purpose for which they 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 are of the opinion that the funds
raised on short-term basis have not been used for long-term investment.
(xviii) In our opinion and according to the information and
explanations given to us, the Company has not made any preferential
allotment of shares to companies / firms / parties covered in the
register maintained under Section 301 of the Act during the year. (xix)
The Company did not have any outstanding debentures during the year.
(xx) The Company has not raised any money by public issues during the
year. (xxi) According to the information and explanations given to us,
no fraud on or by the Company has been noticed or reported during the
course of our audit.
Mumbai For B S R & Co.
6 June 2013 Chartered Accountants
Firm Registration No: 101248W
Bhavesh Dhupelia
Partner Membership No: 042070
Mar 31, 2012
We have audited the attached balance sheet of Morganite Crucible
(India) Limited ('the Company') as at 31 March 2012 and the related
statement of profit and loss and the cash flow statement of the Company
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. 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.
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 Companies Act, 1956 ('the
Act'), we enclose in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the said Order.
2 Further to our comments in the Annexure referred to above, we report
that:
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the balance sheet, the statement of profit and loss and the cash
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 dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Act;
e) on the basis of written representations received from the directors
of the Company as on 31 March 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as at
31 March 2012 from being appointed as a director in terms of clause (g)
of sub-section (1) of Section 274 of the Act; and
f) in our opinion and to the best of our information and according to
the explanations given to us, they said accounts 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:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2012;
(ii) in the case of the statement of profit and loss, of the profit of
the Company for the year ended on that date; and
(iii) in the case of the cash flow statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT - 31 MARCH 2012
REFERRED TO IN PARAGRAPH 3 OF AUDITORS' REPORT OF EVEN DATE TO THE
MEMBERS OF MORGANITE CRUCIBLE (INDIA) LIMITED ON THE FINANCIAL
STATEMENTS FOR THE YEAR ENDED MARCH 31, 2012
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified every year. In our
opinion, this periodicity of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
(ii) (a) The inventory, except goods in transit, has been physically
verified by the management during the year. In our opinion, the
frequency of such verification is reasonable.
(b) The procedures for the physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (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 Act. Consequently, clauses 4(iii)(a) to
4(iii)(d) of the Order are not applicable to the Company.
(b) The Company has taken a loan from a company covered in the register
maintained under Section 301 of the Act. The maximum amount outstanding
during the year was Rs.107,821 ,565 and the year-end balance of such
loan was Rs. 49,374,556.
(c) In our opinion, the rate of interest and other terms and conditions
on which the loan has been taken from the company listed in the
register maintained under Section 301 of the Act, are not, prima facie,
prejudicial to the interest of the Company.
(d) In the case of a loan taken from a company listed in the register
maintained under Section 301 of the Act, the Company has been regular
in repaying the principal amount as stipulated and in the payment of
interest.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchases of
certain items of inventories are for the Company's specialized
requirements and, similarly sale of certain goods, are for the
buyer's specialized requirements, and suitable alternative sources
are not available to obtain comparable quotations, 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 with regard to the sale of goods and services. We have
not observed any major weakness in the internal control system during
the course of the audit.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Act, have been entered in the
register required to be maintained under that Section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs.5
lakh with any party during the year have been made at prices which are
reasonable having regard to the prevailing prices at the relevant time.
(iv) The Company has not accepted any deposits from the public.
(v) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under Section 209(1)(d) of the Act and are
of the opinion that prima facie, the prescribed accounts and records
have been made and maintained. However, we have not made a detailed
examination of the records.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Income-tax, Sales tax, Provident fund, Service
tax, Customs duty, Excise duty, Value added tax, Employees State
Insurance Corporation, Investor Education and Protection Fund and other
material statutory dues have been generally regularly deposited during
the year by the Company with the appropriate authorities. As explained
to us, the Company did not have any dues on account of Wealth tax.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Income-tax, Sales tax,
Provident fund, Service tax, Customs duty, Excise duty, Value added
tax, Employees State Insurance Corporation, Investor Education and
Protection Fund and other material statutory dues were in arrears as at
31 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, Service tax, Customs
duty, Excise duty and Value added tax which have not been deposited
with the appropriate authorities on account of any dispute. According
to the information and explanations given to us, the dues of Employees
State Insurance Corporation, as listed below have not been deposited by
the Company on account of disputes:
Name of
the statute Nature of
the dues Amount Period to which Forum where dispute
(Rs) the amount
relates is pending
Employees'
State Employees'
state 52,498 October 2004 to Assistant Director,
Insurance
Act, 1948 insurance March 2005 Employees State
Insurance
Corporation,
Aurangabad
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company did not have any outstanding dues to any
financial institution, banks or debenture holders during the year.
(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 and according to information and explanations
given to us, the Company is not a chit fund or a nidhi / mutual benefit
fund / society.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
(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) In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purpose for which they 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 are of
the opinion that the funds raised on short-term basis have not been
used for long-term investment.
(xviii) In our opinion and according to the information and
explanations given to us, the Company has not made any preferential
allotment of shares to companies/firms/parties covered in the register
maintained under Section 301 of the Act.
(xix) In our opinion and according to the information and explanations
given to us, the Company did not have any outstanding debentures during
the year.
(xx) In our opinion and according to the information and explanations
given to us, the Company has not raised any money by public issues.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For B S R & Co.
Chartered Accountants
Firm's Registration No: 101248W
Vijay Mathur
Mumbai Partner
29 May 2012 Membership No: 046476
Mar 31, 2011
We have audited the attached balance sheet of Morganite Crucible
(India) Limited ('the Company') as at 31 March 2011 and the related
profit and loss account and the cash flow statement of the Company 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. 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.
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 Companies Act, 1956 ('the Act'),
we enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
2 Further to our comments in the Annexure referred to above, we report
that:
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the balance sheet, the profit and loss account 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, the profit and loss account and
the cash flow statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Act;
e) on the basis of written representations received from the directors
of the Company as on 31 March 2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as at
31 March 2011 from being appointed as a director in terms of clause (g)
of sub-section (1) of Section 274 of the Act; and
f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2011;
(ii) in the case of the profit and loss account, of the profit of the
Company for the year ended on that date; and
(iii) in the case of the cash flow statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT Ã 31 MARCH 2011
REFERRED TO IN PARAGRAPH 3 OF AUDITORS' REPORT OF EVEN DATE TO THE
MEMBERS OF MORGANITE CRUCIBLE (INDIA) LIMITED ON THE FINANCIAL
STATEMENTS FOR THE YEAR ENDED MARCH 31, 2011
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified every year. In our
opinion, this periodicity of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
(ii) (a) The inventory, except goods in transit, has been physically
verified by the management during the year. In our opinion, the
frequency of such verification is reasonable.
(b) The procedures for the physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (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 Act. Consequently, clauses 4(iii)(a) to
4(iii)(d) of the Order are not applicable to the Company.
(b) The Company has taken loan from a company covered in the register
maintained under Section 301 of the Act. The maximum amount outstanding
during the year was Rs.150,835,726 and the year-end balance of such
loan was Rs.105,050,334.
(c) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from the company listed in the register
maintained under Section 301 of the Act, are not, prima facie,
prejudicial to the interest of the company.
(d) In the case of loan taken from company listed in the register
maintained under Section 301 of the Act, the company has been regular
in repaying the principal amount as stipulated and in the payment of
interest.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchases of
certain items of inventories are for the Company's specialised
requirements and, similarly sale of certain goods, are for the buyer's
specialised requirements, and suitable alternative sources are not
available to obtain comparable quotations, 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 with regard to the sale of goods and services. We have
not observed any major weakness in the internal control system during
the course of the audit.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Act, have been entered in the
register required to be maintained under that Section.
(b) In our opinion and according to the information and explanations
given to us, except for purchases of certain items of inventories which
are for the Company's specialized requirements and sale of certain
goods which are for the buyer's specialised requirements, for which
suitable alternative sources are not available, the transactions made
in pursuance of contracts and arrangements referred to in (a) above and
exceeding the value of Rs.5 lakh with any party during the year have
been made at prices which are reasonable having regard to the
prevailing prices at the relevant time. However, on the basis of
information and explanation provided, the same appear to be reasonable.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has not prescribed the maintenance of
cost records under Section 209(1)(d) of the Act for any of the products
manufactured by the Company.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Income-tax, Sales tax, Provident fund, Service
tax, Customs duty, Excise duty, Value added tax, Employees State
Insurance Corporation, Investor Education and Protection Fund and other
material statutory dues have been generally regularly deposited during
the year by the Company with the appropriate authorities. As explained
to us, the Company did not have any dues on account of Wealth tax.
There were no dues on account of Cess under Section 441A of the Act,
since the date from which the aforesaid Section comes into force has
not yet been notified by the Central Government.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Income-tax, Sales tax,
Provident fund, Service tax, Customs duty, Excise duty, Value added
tax, Employees State Insurance Corporation, Investor Education and
Protection Fund and other material statutory dues were in arrears as at
31 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, Service tax,
Customs duty, Excise duty, Value added tax and Cess which have not been
deposited with the appropriate authorities on account of any dispute.
According to the information and explanations given to us, the dues of
Employees State Insurance Corporation, as listed below have not been
deposited by the Company on account of disputes:
Name of the
statute Nature of the
dues Amount Period to which Forum where
dispute
(Rs) the amount
relates is pending
Employees'
State Employees'
state 52,498 October 2004 to Assistant
Director,
Insurance
Act, 1948 insurance March 2005 Employees State
Insurance
Corporation,
Aurangabad
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company did not have any outstanding dues to any
financial institution, banks or debentureholders during the year.
(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 and according to information and explanations
given to us, the Company is not a chit fund or a nidhi / mutual benefit
fund / society.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
(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) In our opinion and according to the information and explanations
given to us, the term loans taken by the company have been applied for
the purpose for which they 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 are of
the opinion that the funds raised on short-term basis have not been
used for long-term investment.
(xviii) In our opinion and according to the information and
explanations given to us, the Company has not made any preferential
allotment of shares to companies/firms/parties covered in the register
maintained under Section 301 of the Act.
(xix) In our opinion and according to the information and explanations
given to us, the Company did not have any outstanding debentures during
the year.
(xx) In our opinion and according to the information and explanations
given to us, the Company has not raised any money by public issues.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For B S R & Co.
Chartered Accountants
Firm's Registration No: 101248W
Vijay Mathur
Mumbai Partner
25 May 2011 Membership No: 046476
Mar 31, 2010
1. We have audited the attached Balance Sheet of Morganite Crucible
(India) Limited (the "Company") as at March 31, 2010, and the related
Profit and Loss Account and Cash Flow Statement for the year ended on
that date annexed thereto, which we have signed under reference to this
report. These financial statements are the respon- sibility of the
Companys Management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
(together the "Order"), issued by the Central Government of India in
terms of sub- section (4A) of Section 227 of The Companies Act, 1956
of India (the Act) and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and expla- nations given to us, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, 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 Act;
(e) On the basis of written representations received from the
directors, as on March 31, 2010 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2010
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Act, 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 March 31, 2010;
(ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT
REFERRED TO IN PARAGRAPH 3 OF AUDITORSÃ REPORT OF EVEN DATE TO THE
MEMBERS OF MORGANITE CRUCIBLE (INDIA) LIMITED ON THE FINANCIAL
STATEMENTS FOR THE YEAR ENDED MARCH 31, 2010
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets of the Company have been physically verified by
the Management during the year and no material discrepancies between
the book records and the physical inventory have been noticed. In our
opinion, the frequency of verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
2. (a) The inventory (excluding stocks with third parties) except
Work-in-Progress aggregating Rs. 16,586,278 has
been physically verified by the Management during the year. In respect
of inventory lying with third parties, these have substantially been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, 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 our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
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 Act. Accordingly, clauses (iii)(b) to (iii)(d)
of Paragraph 4 of the Order are not applicable to the Company for the
current period.
(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 Act. Accordingly, clauses (iii)(f) to (iii)(g)
of paragraph 4 of the Order are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanation that certain items
purchased are of special nature for which suitable alternative sources
do not exist for obtaining com- parative quotations, 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,
fixed assets and for the sale of goods. 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, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control system.
5. According to the information and explanations given to us, there
have been no contracts or arrangements referred to in Section 301 of
the Act during the year to be entered in the register required to be
maintained under that Section. Accordingly, the question of commenting
on transactions made in pursuance of such contracts or arrangements
does not arise.
6. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. The Central Government of India has not prescribed the maintenance
of cost records under clause (d) of sub-section (1) of Section 209 of
the Act for any of the products of the Company.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing undisputed Work Contract Tax and is
regular in depositing the undisputed statutory dues including provident
fund, investor education and protection fund, employees state
insurance, income-tax, sales-tax, wealth tax, service tax, customs
duty, excise duty, cess and other material statutory dues as applicable
with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
income-tax, sales-tax, wealth-tax, service-tax, customs duty, excise
duty and cess as at March 31, 2010 which have not been deposited on
account of a dispute, are as follows:
REFERRED TO IN PARAGRAPH 3 OF AUDITORSÃ REPORT OF EVEN DATE TO THE
MEMBERS OF MORGANITE CRUCIBLE (INDIA) LIMITED ON THE FINANCIAL
STATEMENTS FOR THE YEAR ENDED MARCH 31, 2010
Name of the Nature of dues Amount Period to which Forum where the
statute (Rs.) the amount
relates dispute is
pending
Employees
State Employees state 52,498 October 2004 to Assistant
Director,
Insurance
Act, 1948 insurances March 2005 Employees State
Insurance
Corporation,
Aurangabad
10. The Company has no accumulated losses as at March 31, 2010 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, deben- tures and other securities.
13. The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit fund / societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guaran- tee for loans taken
by others from banks or financial institutions during the year.
16. In our opinion, and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
17. On the basis of an overall examination of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The Company has not issued debentures during the year.
20. The Company has not raised any money by public issues during the
year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For Price Waterhouse & Co.
Firm Registration Number: 007567S
Chartered Accountants
Uday Shah
Mumbai Partner
Date : July 9, 2010 Membership Number: F-46061
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