Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of ORICON ENTERPRISES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âstandalone Ind AS financial statementsâ).
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Board of Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs (financial position) of the Company as at March 31, 2018, and its profit (financial performance including total comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matter
The comparative financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 1, 2016 included in these standalone 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 March 31, 2017 and March 31, 2016 dated May 30, 2017 and May 28, 2016 respectively expressed an unmodified opinion on those standalone 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 (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Aâ 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 including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act read with relevant rules issued thereunder.
(e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer note 71 to the standalone Ind AS financial statements.
(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses - Refer Note 72 to the standalone Ind AS financial statements.
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company - Refer note 73 to the standalone Ind AS financial statements.
ANNEXURE A TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF ORICON ENTERPRISES LIMITED
The Annexure referred to in Independent Auditorâs Report to the members of the Company on the standalone Ind AS financial statements for the year ended March 31, 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 programme of physical verification of its fixed assets by which all fixed assets are verified in a phased manner. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its business. In accordance with the said programme, certain fixed assets were physically verified by the management and no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, except for Residential flats as disclosed under note 4 having gross block value of Rs.4.73 lakhs and net block value of Rs.1.17 lakhs, the title deeds of immovable properties are held in the name of the Company.
(ii) The management has conducted physical verification of the inventory at reasonable intervals, except material in transit and stocks lying with third parties and in bonded warehouse, which are verified with reference to the certificates obtained and / or subsequent clearance of goods. In our opinion, the frequency of physical verification is reasonable. No material discrepancies were noticed on physical verification between the physical stock and book records.
(iii) According to the information and explanations given to us, the Company has granted unsecured loans to three companies covered in the register maintained under Section 189 of the Act.
(a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Companyâs interest.
(b) The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the year-end.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) The Company has not accepted any deposits during the year from the public within the meaning of the provisions of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules made thereunder.
(vi) As informed to us by the management, the Central Government has not prescribed the maintenance of cost records under sub-section (I) of section 148 of the Act, for any of the goods manufactured by the Company.
(vii) (a) According to the information and explanations given to us, and the records examined by us, undisputed statutory dues including provident fund, employeeâs state insurance, income-tax, sales tax, goods and service tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities though there has been delay in few cases. According to the information and explanations given to us, there were no undisputed statutory dues which have remained outstanding as at March 31, 2018 for the period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, and the records examined by us, dues in respect of sales-tax, goods and service tax, income-tax, duty of customs, service tax, duty of excise which have not been deposited on account of disputes and the forum where the dispute is pending are as under:
Sr. No. |
Name of the Statute |
Nature of the Dues |
Period to which amount relates (Financial year) |
Amount (Rs. in lakhs) |
Forum where dispute is Pending |
1. |
Central Excise Act, 1944 |
Excise Duty (Classificati on of goods) |
March 2001 to August 2001 |
62.31 |
Assistant Commissioner of Central Excise |
2. |
Central Excise Act, 1944 |
Excise Duty (Classificati on of goods) Penalty |
June 1996 to February 2001 |
0.76 30.81 |
Central Excise & Service Tax Appellate Tribunal |
3. |
Central Excise Act, 1944 |
Excise Duty (Classificati on of goods) Penalty |
July 1998 to February 2000 |
1.42 10.25 |
Central Excise & Service Tax Appellate Tribunal |
4. |
Income Tax Act, 1961 |
Income Tax |
April 2006 to March 2007 |
10.79 |
Income Tax Appellate Tribunal (Mumbai) |
5. |
Income Tax Act, 1961 |
Income Tax |
April 2007 to March 2008 |
10.12 |
Income Tax Appellate Tribunal (Mumbai) |
6. |
Income Tax Act, 1961 |
Income Tax |
April 2008 to March 2009 |
56.03 |
High Court, Mumbai |
7. |
Income Tax Act, 1961 |
Income Tax |
April 2008 to March 2009 |
20.86 |
Income Tax Appellate Tribunal (Mumbai) |
8. |
Income Tax Act, 1961 |
Income Tax |
April 2012 to March 2013 |
173.05 |
Commissioner of Income-Tax (Appeals) |
9. |
Income Tax Act, 1961 |
Income Tax |
April 2013 to March 2014 |
111.88 |
Income Tax Appellate Tribunal (Mumbai) |
10. |
Income Tax Act, 1961 |
Income Tax |
April 2014 to March 2015 |
95.92 |
Commissioner of Income-Tax (Appeals) |
(viii)In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institution or bank.
(ix) In our opinion, the term loans raised during the year have been applied for the purpose for which they were raised.
(x) Based upon the audit procedures performed and information and explanations given to us, we report that no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations 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 to the Companies Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Therefore, the provisions of clause 3(xii) of Companies (Auditorâs Report) Order, 2016 are not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and section 188 of the Act, where applicable and details of such transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
(xiv)According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Therefore, the provisions of clause 3(xiv) of Companies (Auditorâs Report) Order, 2016 are not applicable to the Company.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Therefore, the provisions of clause 3(xv) of Companies (Auditorâs Report) Order, 2016 are not applicable to the Company.
(xvi)According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE B TO THE INDEPENDENT AUDITORSâ REPORT OF EVEN DATE ONTHE STANDALONE IND AS FINANCIAL STATEMENTS OF ORICON ENTERPRISES LIMITED
Report on the Internal Financial Controls under clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âThe Actâ)
We have audited the internal financial controls over financial reporting of ORICON ENTERPRISES LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (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 Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the standalone 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For S G N & Co
Chartered Accountants
Firm Registration No. 134565W
Shreyans Jain
Partner
Membership No. 147097
Place: Mumbai
Date: May 30, 2018
Mar 31, 2017
Report on the Financial Statements
We have audited the accompanying standalone financial statements of ORICON ENTERPRISES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âthe standalone financial statementsâ).
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these 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 of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone 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 and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone 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 March 31, 2017 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, 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 March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ;
(g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 43 to the standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses - Refer Note 44 to the standalone financial statements;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company - Refer Note 45 to the standalone financial statements.
iv. The Company has provided requisite disclosures in its standalone financial statements as to holdings as well as dealings in Specified bank Notes during the period from November 8, 2016 to December 30, 2016. Based on audit procedure and relying on management representation we report that the disclosure are in accordance with the books of accounts maintained by the Company and as produced to us by the management - Refer Note 42 to the standalone financial statements.
ANNEXURE A TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF ORICON ENTERPRISES LIMITED
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the standalone financial statement for the year ended March 31, 2017. 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 programme of physical verification of its fixed assets by which all fixed assets are verified in a phased manner. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its business. In accordance with the said programme, certain fixed assets were physically verified by the management and no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, except for Residential flats as disclosed under note 10 having gross block value of Rs.473,475/- and net block value of Rs.117,119/-, the title deeds of immovable properties are held in the name of the Company.
(ii) The management has conducted physical verification of the inventory at reasonable intervals, except material in transit and stocks lying with third parties and in bonded warehouse, which are verified with reference to the certificates obtained and / or subsequent clearance of goods. In our opinion, the frequency of physical verification is reasonable. No material discrepancies were noticed on physical verification between the physical stock and book records.
(iii) According to the information and explanations given to us, the Company has granted unsecured loans to three companies covered in the register maintained under Section 189 of the Act.
a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Companyâs interest.
b) The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations.
c) There is no overdue amount remaining outstanding as at the year-end.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) The Company has not accepted any deposits during the year from the public within the meaning of the provisions of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules made there under.
(vi) As informed to us by the management, the Central Government has not prescribed the maintenance of cost records under sub-section (I) of section 148 of the Act, for any of the goods manufactured by the Company.
(vii) a) According to the information and explanations given to
us, and the records examined by us, undisputed statutory dues including provident fund, employeeâs state insurance, income-tax, sales tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities though there has been delay in few cases. According to the information and explanations given to us, there were no undisputed statutory dues which have remained outstanding as at March 31, 2017 for the period of more than six months from the date they became payable.
b) According to the information and explanations given to us, and the records examined by us, dues in respect of sales-tax, income-tax, duty of customs, service tax, duty of excise which have not been deposited on account of disputes and the forum where the dispute is pending are as under:
Sr. No. |
Name of the Statute |
Nature of the Dues |
Period to which amount relates (Financial year) |
Amount (Rs.) |
Forum where dispute is Pending |
1. |
Central Excise Act, 1944 |
Excise Duty (Classification of goods) |
March 2001 to August 2001 |
62,30,637 |
Assistant Commissioner of Central Excise |
2. |
Central Excise Act, 1944 |
Excise Duty (Classification of goods) Penalty |
June 1996 to February 2001 |
75,938 30,80,610 |
Central Excise & Service Tax Appellate Tribunal |
3. |
Central Excise Act, 1944 |
Excise Duty (Classification of goods) Penalty |
July 1998 to February 2000 |
1,41,503 10,24,509 |
Central Excise & Service Tax Appellate Tribunal |
4. |
Income Tax Act, 1961 |
Income Tax |
April 2006 to March 2007 |
1,15,78,642 |
Income Tax Appellate Tribunal (Mumbai) |
5. |
Income Tax Act, 1961 |
Income Tax |
April 2007 to March 2008 |
38,82,093 |
Income Tax Appellate Tribunal (Mumbai) |
6. |
Income Tax Act, 1961 |
Income Tax |
April 2008 to March 2009 |
56,02,686 |
High Court, Mumbai |
7. |
Income Tax Act, 1961 |
Income Tax |
April 2008 to March 2009 |
65,85,681 |
Commissioner of Income-Tax (Appeals) |
8. |
Income Tax Act, 1961 |
Income Tax |
April 2012 to March 2013 |
1,73,04,850 |
Commissioner of Income-Tax (Appeals) |
9. |
Income Tax Act, 1961 |
Income Tax |
April 2013 to March 2014 |
1,11,87,852 |
Commissioner of Income-Tax (Appeals) |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institution or bank.
(ix) In our opinion, the term loans raised during the year have been applied for the purpose for which they were raised.
(x) Based upon the audit procedures performed and information and explanations given to us, we report that no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations 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 to the Companies Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Therefore, the provisions of clause 3(xii) of Companies (Auditorâs Report) Order, 2016 are not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and section 188 of the Act, where applicable and details of such transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
(xiv)According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Therefore, the provisions of clause 3(xiv) of Companies (Auditorâs Report) Order, 2016 are not applicable to the Company.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Therefore, the provisions of clause 3(xv) of Companies (Auditorâs Report) Order, 2016 are not applicable to the Company.
(xvi)According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For Khandelwal Jain & Co
Chartered Accountants
Firmâs Registration No. 105049W
(Narendra Jain)
Partner
Membership No. 048725
Place : Mumbai
Date : May 30, 2017
Mar 31, 2016
TO THE MEMBERS OF,
ORICON ENTERPRISES LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of ORICON ENTERPRISES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these 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 of 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.
Auditorâs 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 auditorâs 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 Companyâs 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 Companyâs 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 March 31, 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, 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 March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ;
(g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements-Refer Note 41 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses - Refer Note 42 to the financial statements;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company - Refer Note 43 to the financial statements.
ANNEXURE A TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF ORICON ENTERPRISES LIMITED
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the financial statement for the year ended March 31, 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 programme of physical verification of its fixed assets by which all fixed assets are verified in phased manner. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its business. In accordance with the said programme, certain fixed assets were physically verified by the management and no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, except Factory building and Residential flats as disclosed under note 10(i) & (ii) having gross block value of Rs.34,208,892/- and Rs.473,475/- respectively and net block value of Rs.11,033,310/- and Rs.123,283/-respectively, the title deeds of immovable properties are held in the name of the Company.
(ii) The management has conducted physical verification of the inventory at reasonable intervals, except material in transit and stocks lying with third parties and in bonded warehouse, which are verified with reference to the certificates obtained and / or subsequent clearance of goods. In our opinion, the frequency of physical verification is reasonable. No material discrepancies were noticed on physical verification between the physical stock and book records.
(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. Therefore, the provisions of clause 3(iii) of Companies (Auditorâs Report) Order, 2016 are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to the loans and investments made.
(v) The Company has not accepted any deposits during the year from the public within the meaning of the provisions of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules made there under.
(vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended, prescribed by the Central Government under section 148(1) of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) a) According to the information and explanations given to us, and the records examined by us, undisputed statutory dues including provident fund, employeeâs state insurance, income-tax, sales tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities though there has been delay in few cases. According to the information and explanations given to us, there were no undisputed statutory dues which have remained outstanding as at March 31, 2016 for the period of more than six months from the date they became payable.
b) According to the information and explanations given to us, and the records examined by us, dues in respect of sales-tax, income-tax, duty of customs, wealth-tax, service tax, duty of excise, cess which have not been deposited on account of disputes and the forum where the dispute is pending are as under:
Sr. No. |
Name of the Statute |
Nature of the Dues |
Period to which amount relates (Financial year) |
Amount (Rs.) |
Forum where dispute is Pending |
1. |
Central Excise Act, 1944 |
Excise Duty (Classification of goods) |
March 2001 to August 2001 |
62,30,637 |
Assistant Commissioner of Central Excise |
2. |
Central Excise Act, 1944 |
Excise Duty (Classification of goods) Penalty |
June 1996 to February 2001 |
75,938 30,80,610 |
Central Excise & Service Tax Appellate Tribunal |
3. |
Central Excise Act, 1944 |
Excise Duty (Classification of goods) Penalty |
July 1998 to February 2000 |
1,41,503 10,24,509 |
Central Excise & Service Tax Appellate Tribunal |
4. |
Income Tax Act, 1961 |
Income Tax |
April 2006 to March 2007 |
1,15,78,642 |
Income Tax Appellate Tribunal (Mumbai) |
5. |
Income Tax Act, 1961 |
Income Tax |
April 2007 to March 2008 |
2,33,82,093 |
Commissioner of Income-Tax (Appeals) |
6. |
Income Tax Act, 1961 |
Income Tax |
April 2008 to March 2009 |
56,02,686 |
High Court, Mumbai |
7. |
Income Tax Act, 1961 |
Income Tax |
April 2008 to March 2009 |
1,30,85,681 |
Commissioner of Income-Tax (Appeals) |
8. |
Income Tax Act, 1961 |
Income Tax |
April 2012 to March 2013 |
1,73,04,850 |
Commissioner of Income-Tax (Appeals) |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institution or bank.
(ix) In our opinion, the term loans raised during the year have been applied for the purpose for which they were raised.
(x) Based upon the audit procedures performed and information and explanations given to us, we report that no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations 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 to the Companies Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Therefore, the provisions of clause 3(xii) of Companies (Auditorâs Report) Order, 2016 are not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and Section 188 of the Act, where applicable and details of such transactions have been disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv)According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Therefore, the provisions of clause 3(xiv) of Companies (Auditorâs Report) Order, 2016 are not applicable to the Company.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Therefore, the provisions of clause 3(xv) of Companies (Auditorâs Report) Order, 2016 are not applicable to the Company.
(xvi)According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of ORICON ENTERPRISES LIMITED (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the 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 we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For KHANDELWAL JAIN & CO.
Chartered Accountants
Firm Registration No. 105049W
(NARENDRA JAIN)
PARTNER
Membership No. 048725
Place: Mumbai
Date : May 28, 2016
Mar 31, 2015
We have audited the accompanying standalone financial statements of
ORICON ENTERPRISES LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31, 2015, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31,2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, 2015, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with 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 March 31,2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 40 to the
financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses - Refer Note 41 to the financial statements;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company - Refer Note 42 to the financial statements.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
Annexure referred to in paragraph 1 under the heading of "Report on
Other Legal and Regulatory Requirements" of Independent Auditors' Report
to the members of Oricon Enterprises Limited ("the Company") for the
year ended March 31,2015. We report that:
(i) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets, except in
case of Furniture and Fixtures, Electrical Installation and Equipments
for which quantitative records have been maintained without item wise
break up of value.
b) We are informed that the fixed assets other than Dies and Tools,
Furniture and Fixtures, Electrical Installation and Equipments have
been physically verified by the management at reasonable intervals
during the year and as explained to us no material discrepancies were
noticed on such verification.
(ii) In respect of its inventories:
a) The management has conducted physical verification of the inventory
at reasonable intervals, except material in transit and stocks lying
with third parties and in bonded warehouse, which are verified with
reference to the certificates obtained and / or subsequent clearance of
goods. In our opinion, the frequency of physical verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of the inventory
and no material discrepancies were noticed on physical verification
between the physical stock and book records.
(iii) 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 189 of the Act. Therefore, the provisions
of clause 3(iii) of Companies (Auditor's Report) Order, 2015 are not
applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventories and fixed assets and payment for expenses and
for sale of goods. During the course of our audit, we have not
observed any major weakness in the internal control system.
(v) The Company has not accepted any deposits during the year from the
public within the meaning of the provisions of Section 73 to 76 or any
other relevant provisions of the Companies Act, 2013 and the rules made
there under.
(vi) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Records and Audit) Rules, 2014,
as amended, prescribed by the Central Government under section 148(1)
of the Companies Act, 2013 and are of the opinion that, prima facie,
the prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(vii) a) According to the information and explanations given to
us, and the records examined by us, undisputed statutory dues including
provident fund, employee's state insurance, income-tax, duty of custom,
duty of excise, cess and other material statutory dues have generally
been regularly deposited during the year by the Company with the
appropriate authorities though there has been delay in few cases.
According to the information and explanations given to us, there were
no undisputed statutory dues which have remained outstanding as at
March 31,2015 for the period of more than six months from the date they
became payable.
b) According to the information and explanations given to us, and the
records examined by us, dues in respect of sales-tax, income-tax, duty
of customs, wealth-tax, service tax, duty of excise, cess which have
not been deposited on account of disputes and the forum where the
dispute is pending are as under:
Sr. Name of Nature of Period to
No. the the Dues which
Statute amount
relates
(Financial
year)
1. Central Excise Duty March 2001
Excise (Classifi- to August
Act, 1944 cation of 2001
goods)
2. Central Excise Duty June 1996
Excise (Classifi- to February
Act, 1944 cation of 2001
goods)
Penalty
3. Central Excise Duty July 1998
Excise (Classifi- to February
Act, 1944 cation of 2000
goods)
Penalty
4. Income Tax Income Tax April 2006
Act, 1961 to March
2007
5. Income Tax Income Tax April 2007
Act, 1961 to March
2008
6. Income Tax Income Tax April 2008
Act, 1961 to March
2009
7. Income Tax April 2008
Act, 1961 Income Tax to March
2009
8. Income Tax April 2010
Act, 1961 Income Tax to March
2011
9. Income Tax April 2011
Act, 1961 Income Tax to March
2012
Sr. Name of Amount Forum where
No. the (Rs.) dispute is
Statute Pending
1. Central 62,30,637 Assistant
Excise Commissioner
Act, 1944 of Central
Excise
2. Central 75,938 Central Excise
Excise & Service Tax
Act, 1944 Appellate
Tribunal
30,80,610
3. Central 1,41,503 Central Excise
Excise & Service Tax
Act, 1944 Appellate
Tribunal
10,24,509
4. Income Tax 1,15,78,642 Income Tax
Act, 1961 Appellate
Tribunal
(Mumbai)
5. Income Tax 4,33,82,093 Commissioner
Act, 1961 of Income-Tax
(Appeals)
6. Income Tax 56,02,686 High Court,
Act, 1961 Mumbai
7. Income Tax 1,30,85,681 Commissioner
Act, 1961 of Income-Tax
(Appeals)
8. Income Tax 1,18,26,430 Commissioner
Act, 1961 of Income-Tax
(Appeals)
9. Income Tax 1,30,53,990 Commissioner
Act, 1961 of Income-Tax
(Appeals)
c) According to the information and explanations given to us, the
amount required to be transferred to investor education and protection
fund in accordance with the relevant provisions of the Companies Act,
1956 (1of 1956) and rules made there under has been transferred to such
fund within time.
(viii) The Company did not have any accumulated losses at the end of
the financial year, nor had it incurred any cash loss during the
financial year or in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank.
(x) In our opinion and according to the information and explanations
given to us, the terms and conditions of guarantees given by the Company
for loans taken by others from banks and financial institutions are not
prima facie prejudicial to the interests of the Company.
(xi) In our opinion, the term loans raised during the year have been
applied for the purpose for which they were raised.
(xii) To the best of our knowledge and belief and 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 KHANDELWAL JAIN & CO.
Chartered Accountants
Firm Registration No. 105049W
(NARENDRA JAIN)
PARTNER
Membership No. 048725
Place: Mumbai
Date : May 27, 2015
Mar 31, 2014
We have audited the accompanying financial statements of ORICON
ENTERPRISES LIMITED ("the Company"), which comprise the Balance Sheet
as at March 31, 2014, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statement
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in Sub- Section (3C) of Section
211 of the Companies Act, 1956 ("the Act") read with the General
Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013 and in
accordance with the accounting principles generally accepted in India.
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by 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 aforesaid financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of Statement of Profit and Loss, of the profit of the
Company for the year ended on that date; and
c) 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 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 comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Act read with the
General Circular 15/2013 dated September 13, 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013;
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of Independent Auditors'' Report to the members of
Oricon Enterprises Limited (''''the Company'''') for the year ended March
31, 2014)
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
i) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets, except in
case of Furniture and Fixtures, Electrical Installation and Equipments
for which quantitative records have been maintained without item wise
break up of value.
b) We are informed that the fixed assets other than Dies and Tools,
Furniture and Fixtures, Electrical Installation and Equipments have
been physically verified by the management at reasonable intervals
during the year and as explained to us no material discrepancies were
noticed on such verification.
c) During the year, the Company has not disposed off any substantial
part of fixed assets.
ii) In respect of its inventories:
a) The management has conducted physical verification of the inventory
at reasonable intervals, except material in transit and stocks lying
with third parties and in bonded warehouse, which are verified with
reference to the certificates obtained and / or subsequent clearance of
goods. In our opinion, the frequency of physical verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of the inventory
and no material discrepancies were noticed on physical verification
between the physical stock and book records.
iii) In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
a) The Company has not granted loans to companies, firms or other
parties covered in the register maintained under Section 301 of the
Act.
b) The Company had taken unsecured loan from one party covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs.12,39,917/- and the year
end balance of loans taken from such party was NIL.
c) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions on
which these loans have been taken are not prima facie prejudicial to
the interest of the Company.
d) The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchase of inventories and fixed assets and payment for expenses and
for sale of goods. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control system.
v) In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
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 Companies Act, 1956, have been entered in the
register required to be maintained under that section.
b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and 58AA or any
other relevant provisions of the Companies Act, 1956 and the rules
framed there under with regard to deposits accepted from the public.
According to the information and explanations given to us, no order
under the aforesaid Sections has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other Tribunal on the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
ix) a) According to the information and explanations given to us, and
the records examined by us, undisputed statutory dues including
provident fund, employee''s state insurance, income-tax, custom duty,
excise-duty, cess and other material statutory dues have generally been
regularly deposited during the year by the Company with the appropriate
authorities though there has been delay in few cases. According to the
information and explanations given to us, there were no undisputed
statutory dues which have remained outstanding as at March 31, 2014 for
the period of more than six months from the date they became payable.
b) According to the information and explanations given to us, and the
records examined by us, dues in respect of sales-tax, income-tax,
custom duty, wealth-tax, service tax, excise duty, cess as at March 31,
2014 that have not been deposited with the appropriate authority on
account of any disputes and the forum where the dispute is pending are
as under:-
Sr. Name of Nature of Period to Amount Forum where
No. the
the Dues which the (Rs.) dispute
Statute amount is pending
relates
1. Central Excise
Duty March 2001 62,30,
637 Assistant
Excise
(Classifi- to August Commissioner
Act,
1944 cation of 2001 of Central
goods) Excise
2. Central Excise
Duty June 1996 75,938 Central
Excise Excise
(Classifi- to February & Service
Tax
Act,
1944 cation of 2001 Appellate
goods) Tribunal
Penalty 30,80,
610
3. Central Excise
Duty July 1998 1,41,
503 Central
Excise Excise
(Classifi- to February & Service
Tax
Act,
1944 cation of 2000 Appellate
goods) Tribunal
Penalty 10,24,
509
4. Income
Tax Income Tax April 2006 1,88,
78,642 Commissioner
Act,
1961
to March of Income-Tax
2007 (Appeals)
5. Income
Tax Income Tax April 2007 4,63,
82,093 Commissioner
Act,
1961
to March of Income-Tax
2008 (Appeals)
6. Income
Tax Income Tax April 2008 56,02,
686 Income-Tax
Act,
1961 to
March Appeals
2009 Tribunal
(Mumbai)
7. Income
Tax Income Tax April 2010 1,18,
26,430 Commissioner
Act,
1961
to March of Income-Tax
2011 (Appeals)
x) The Company has no accumulated losses as at the end of the financial
year and has not incurred cash loss in the current financial year or in
the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank.
xii) Based on the information and explanations given to us, the Company
has not granted any loans and / or advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii) The Company is not a Chit Fund Company or nidhi / mutual benefit
fund / society.
xiv) The Company has maintained proper records of transactions and
contracts in respect of dealing and trading in shares, securities,
debentures and other investments and the timely entries have generally
been made therein. All shares, securities, debentures and other
investments have been held by the Company in its own name except to the
extent of the exemption granted under Section 49 of the Companies Act,
1956 and save for certain shares which are either lodged for transfer
or held with valid transfer forms.
xv) In our opinion and according to the information and explanations
given to us, the terms and conditions of guarantees given by the
Company for loans taken by others from banks and financial institutions
are not prima facie prejudicial to the interests of the Company.
xvi) In our opinion, the term loans raised during the year have been
applied for the purpose for which they were raised.
xvii) According to the information and explanations given to us and on
an examination of the Balance Sheet of the Company, we report that, on
an overall basis, funds raised on short-term basis have, prima facie,
not been used during the year for long-term investment.
xviii)The Company has not made any preferential allotment of shares
during the year to parties covered in register maintained under section
301 of the Companies Act, 1956.
xix) In our opinion and according to the information and explanations
given to us, the Company has not issued any secured debentures during
the year covered by our report.
xx) During the year covered by our Audit Report the Company has not
raised any money by public issues.
xxi) To the best of our knowledge and belief and 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 KHANDELWAL JAIN & CO.
Chartered Accountants
Firm Registration No. 105049W
(NARENDRA JAIN)
PARTNER
Membership No. 048725
Place: Mumbai
Date : May 29, 2014
Mar 31, 2013
Report on Financial Statements
We have audited the accompanying financial statements of ORICON
ENTERPRISES LIMITED {"the Company"), which comprise the Balance Sheet
as at March 31, 2013, and the Statement of Prafltand Loss and Cash Flow
Statementforlhe year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statement
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance arid 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'') and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance ol 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, wh ether dueto fraud orerror.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing Issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit Involves performing procedures to obtain audit evidence about
the amounts and disclosures In the financial statements.The procedures
selected depend on the auditor''s Judgment, Including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud orerror. 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 Company''s
internal control, An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so requi red and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case ol the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
b) in the case of Statement of Profit and Loss, of the profit of the
Company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the yearended 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)oftheAct,wereportthat:
a) We have obtained ell the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) !n 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
How 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 Acccu nting Standards
referred to in subsection (3C) of section 211 of the Act;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director In terms of clause (g) of sub-section (1) of
Section 274 of the Act.
ANNEXURETOTHE INDEPENDENT AUDITORS1 REPORT
(Referred to In paragraph 1 under ''Report on other Legal and Regulatory
Requirements'' section of Independent Auditors'' Report to the members of
Oricon Enterprises Limited ("the Company") for the year ended March
31,2013)
On the basis of such checks as we considered appropriate and according
to trie information and explanation given to us during the course of
our audit, we report thai:
I) In respect of Its fixed assets:
a) The Company has maintained proper records showing fu II particulars
including quantitative details and situation of fixed assets, except in
case of Furniture and Fixtures, Electrical Installation and Equipments
for which quantitative records have been maintained without item wise
break up of value.
b) WeareinformedthatlhefixedasselsotherthanDiesand Tools, Furniture and
Fixtures, Electrical Installation and Equipments have been physically
verified by the management at reasonable intervals during the year and
as explained to us no material discrepancies were noticed on such
verification.
c) During the year, the Company has not disposed off any substantial
part of fixed assets,
ii) In respect of its inventories:
a) The management has conducted physical verification of the inventory
at reasonable intervals, except material in transit and stocks lying
with third parties and in bonded warehouse, which are verified with
reference to tha certificates obtained and / or subsequent clearance of
goods. In our opinion, the frequency of physical verification is
reasonable.
b) In our opinion and according to the information and explanations
given lo us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of the inventory
and no material discrepancies were noticed on physical verification
between the physical stock and book records.
iii) In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
a) The Company has not granted loans to companies, firms or other
parties covered in the register maintained under Section 301 of the
Act.
b) The Company had taken unsecured loan from one party covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs 12,39,9'' 71- and the
year end balance of loans taken from such party was Rs. 12,39,917/-.
c) In our opinion and according to the information and explanation
given to us, the rate of Interest and other terms and conditions on
which these loans have been taken are not prima facie prejudicial to
the inlerest of Ihe Company.
d) The Company is regular in repaying Ihe principal amounts as
stipulated and has been regular in Ihe payment of inlerest
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal conlrol systems commensurate
with the size of the Company and Ihe nature of its business, for the
purchase of inventories and fixed assets and payment for expenses and
for sale of goods. During the course of our audit, we have not
observed any continuing failure to correct major weakness In internal
conlrol system.
v) In respect of the contracts or arrangements referred lo in Section
301 of the Companies Act, 1956:
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 Ihe Companies Act, 1956, have been entered in the
register required to be maintained under that section.
b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered In Ihe register maintained under Section 301 oi
the Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi) In our opinion and according to the information and explanations
given lo us, the Company has compiled with Ihe directives issued by the
Reserve Bank of India and Ihe provisions of Section 58A and 5SAA or any
other relevant provisions of the Companies Act, 1956 and the rules
framed the re under with regard to deposits accepted from the public.
According to the information and explanations given to us, no order
under the aforesaid Sections has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other Tribunal on the Company.
vii) In our opinion, the Company has an Internal audit system commensu
rate with its size and the nature ol its business.
viii) We have broadly reviewed the cost records maintained by Ihe
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209(1 )(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
ix) a) According to the inlormalion and explanations given to us, and
the records examined by us, undisputed statutory dues including
provident fund, employee''s state Insurance, Income-tax, custom duty,
excise-duty, cess and other material statutory dues have generally been
regularly deposited during the year by the Company with the appropriate
authorities though there has been delay in few cases. According to the
information and explanations given to us, there were no undisputed
statutory dues which have remained outstanding as at March 31, 2013 for
the period ol more than six months from the date they became payable.
The Company has no accumulated losses as at the end of the financial
year and has not incurred cash loss in the current financial year or in
the immediately preceding financial year.
xl) In our opinion and according to the Information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank.
xii) Based on the information and explanations given to us, the Company
has not granted any loans and / or advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii) The Company is not a Chit Fund Company or nidhi / mutual benefit
fund /society.
xiv) The Company has maintained proper records of transactions and
contracts in respect of dealing and trading In shares, securities,
debentures and other investments and the timely entries have generally
been made therein. All shares, securities, debentures and other
investments have been held by the Company in Its own name except to the
extent of the exemption granted under Section 49 of the Companies Act,
1956 and save for certain shares which are either lodged for transfer
or held with valid transfer forms.
xv) In our opinion and according to the information and explanations
given to us, the terms and conditions of guarantees given by the
Company for loans taken by others from banks and financial institutions
are not prima facie prejudicial to the i nterests of the Company.
xvl) In our opinion, the term loans raised during the year have been
applied for the purpose for which they were raised.
xvii) According to the information and explanations given to us and on
an examination of the Balance Sheet of the Company, we report that, on
an overall basis, funds raised on short-term basis have, prima facie,
not been used during the year for long-term investment.
xvlil)Ths Company has not made any preferential allotment of shares
during the year to parties covered in register maintained undersection
301 oftheCompaniesAct, 1956.
xix) In our opinion and according to the Information and explanations
given to us, the Company has not issued any secured debentures during
the year covered by our report
xx) During the year covered by our Audit Reportthe Company has not
raised any money by public issues.
xxi) To the best of our knowledge and belief and 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 KHANDELWAL JAIN & CO.
Chartered Accountants
Firm Registration No. 105049W
(NARENDRA JAIN)
PARTNER
Membership No. 048725
Place: Mjmbai.
Date:May30.2013.
Mar 31, 2012
1. We have audited the attached Balance Sheet of ORICON ENTERPRISES
LIMITED as at 31st March 2012 and also the 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, and
read with the amendments made by the Companies (Auditor's Report)
(Amendment) Order 2004, issued by the Central Government of India in
terms of sub section (4A) of section 227 of the Companies Act, 1956,
and on the basis of such checks of books and records of the company as
we considered appropriate and according to the information and
explanation given to us we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order to the extent
they are applicable to the Company.
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
such 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 Companies Act, 1956.
(e) On the basis of the written representations received from the
Directors as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a Director in terms of Clause
(g) of Sub-section (1) of Section 274 of the Companies Act, 1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts and read together with
the notes thereon, give the information required by the Companies Act,
1956, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012;
(ii) in the case of the Statement of Profit and Loss, of the 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
(REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE TO THE MEMBERS
OF ORICON ENTERPRISES LIMITED 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, except in case of Furniture and Fixtures, Electrical
Installation and Equipments for which quantitative records have been
maintained without item wise break up of value.
b) We are informed that the fixed assets other than Dies and Tools,
Furniture and Fixtures, Electrical Installation and Equipments have
been physically verified by the management at reasonable intervals
during the year and as explained to us no material discrepancies were
noticed on such verification.
c) During the year, the Company has not disposed off any substantial
part of fixed assets.
ii) a) The management has conducted physical verification of the
inventory at reasonable intervals, except material in transit and
stocks lying with third parties and in bonded warehouse, which are
verified with reference to the certificates obtained and/or subsequent
clearance of goods. In our opinion, the frequency of physical
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of the inventory
and no material discrepancies were noticed on physical verification
between the physical stock and book records.
iii) a) The Company has not granted loans to companies, firms or other
parties covered in the register maintained under Section 301 of the
Act.
b) The Company had taken unsecured loan from one party covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 12,39,917/- and the
year end balance of loans taken from such party was Rs. 12,39,917/-.
c) In our opinion and according to the information and explanation
given to us the rate of interest and other terms and conditions on
which these loans have been taken are not prima facie prejudicial to
the interest of the Company.
d) The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
iv) In our opinion, and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, with
regard to the purchase of inventory, fixed assets and for sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
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 Companies Act, 1956, have been entered in the
register required to be maintained under that section.
b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and 58AA or any
other relevant provisions of the Companies Act, 1956 and the rules
framed there under with regard to deposits accepted from the public.
According to the information and explanations given to us, no order
under the aforesaid Sections has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other Tribunal on the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209(1 )(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
ix) a) According to the information and explanations given to us, and
the records examined by us, undisputed statutory dues including
provident fund, employee's state insurance, income-tax, custom duty,
excise-duty, cess and other material statutory dues have generally been
regularly deposited during the year by the Company with the appropriate
authorities though there has been slight delay in few cases. According
to the information and explanations given to us, there were no
undisputed statutory dues which have remained outstanding as at 31st
March, 2012 for the period of more than six months from the date they
became payable.
b) According to the information and explanations given to us, and the
records examined by us, dues in respect of sales-tax, income-tax,
custom duty, wealth-tax, service tax, excise duty, cess as at 31st
March, 2012 that have not been deposited with the appropriate authority
on account of any disputes and the forum where the dispute is pending
are as under:-
Sr. Name of Nature Period to Amount Forum where
No. the Statute of the Dues which the (Rs.) dispute
amount is pending
relates
1 Central Excise Duty March 2001 62,30,637 Assistant
Excise (Classifi- to August Commissi-
Act, 1944 cation of 2001 oner of
goods) Central
Excise
2 Central Excise Duty June
1996 to 75,938 Central
excise (Classifi- February Excise &
Act,1944 cation of 2001 Service Tax
goods) Appellate
Tribunal
Penalty 30,80,610
3 Central Excise Duty July
1998 to 1,41,503 Central
excise (Classifi- February Excise &
Act, 1944 cation of 2001 Service Tax
goods) Appellate
Tribunal
Penalty 10,24,509
x) The Company has no accumulated losses as at the end of the financial
year and has not Incurred cash loss In the current financial year or In
the Immediately preceding financial year.
xi) In our opinion and according to the Information and explanations
given to us, the Company has not defaulted In repayment of dues to a
financial Institution or bank.
xii) Based on the Information and explanations given to us, the Company
has not granted any loans and / or advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii) The Company Is not a Chit Fund Company or nldhl/mutual benefit
fund/society.
xiv) The Company has maintained proper records of transactions and
contracts in respect of dealing and trading in shares, securities,
debentures and other investments and the timely entries have generally
been made therein. All shares, securities, debentures and other
investments have been held by the Company in its own name except to the
extent of the exemption granted under Section 49 of the Companies Act,
1956 and save for certain shares which are either lodged for transfer
or held with valid transfer forms.
xv) In our opinion and according to the information and explanations
given to us, the terms and conditions of guarantees given by the
company for loans taken by others from banks and financial institutions
are not prima facie prejudicial to the interests of the company.
xvi) In our opinion, the term loans raised during the year have been
applied for the purpose for which they were raised.
xvii) According to the information and explanations given to us and on
an examination of the Balance Sheet of the Company, we report that, on
an overall basis, funds raised on short-term basis have, prima facie,
not been used during the year for long- term investment.
xviii) The Company has not made any preferential allotment of shares
during the year to parties covered in register maintained under section
301 of the Companies Act, 1956.
xix) In our opinion and according to the information and explanations
given to us, the Company has not issued any secured debentures during
the year covered by our report.
xx) During the year covered by our Audit Report the Company has not
raised any money by public issues.
xxi) To the best of our knowledge and belief and 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 KHANDELWAL JAIN & CO.
Chartered Accountants
Firm Registration No.105049W
(NARENDRA JAIN)
PARTNER
Membership No.048725
Place : Mumbai
Date : May 30, 2012.
Mar 31, 2011
1. We have audited the attached Balance Sheet of ORICON ENTERPRISES
LIMITED as at 31st March 2011 and also the Profit & Loss Account and
the Cash Flow Statement of the Company for the year ended on that date,
annexed thereto. These financial statements are the responsibility of
the Company's man- agement. Our responsibility Is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit In accordance with auditing standards
generally accepted In India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatements. An audit
Includes examining, on a test basis, evidence supporting the amounts
and disclosures In the finan- cial statements. An audit also Includes
assessing the account- ing principles used and significant estimates
made by manage- ment, as well as evaluating the overall financial
statement pre- sentation. We believe that our audit provides a
reasonable ba- sis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, and
read with the amendments made by the Companies (Auditor's Report)
(Amendment) Order 2004, issued by the Central Government of India in
terms of sub section (4A) of section 227 of the Companies Act, 1956,
and on the basis of such checks of books and records of the company as
we considered appropriate and according to the information and
explanation given to us we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order to the extent
they are applicable to the Company.
4. Further to our comments in the Annexure referred to in Para- graph
3 above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were neces- sary 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
such books;
(c) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agree- ment with the books
of account;
(d) In our opinion, the Balance Sheet, the Profit & 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 Companies Act, 1956.
(e) On the basis of the written representations received from the
Directors as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2011 from being appointed as a Director in terms of Clause
(g) of Sub- section (1) of Section 274 of the Companies Act, 1956;
(f) In our opinion and to the best of our information and ac- cording
to the explanations given to us, the said accounts and read together
with significant accounting policies and notes thereon, give the
information required by the Com- panies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting prin- ciples generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011;
(ii) in the case of the Profit 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
(REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE TO THE MEMBERS
OF ORICON ENTERPRISES LIMITED 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, except in case of Furniture and Fixtures, Electrical
Installation and Equipments for which quantitative records have been
maintained without item wise break up of value.
b) We are informed that the fixed assets other than Dies and Tools,
Furniture and Fixtures, Electrical Installation and Equipments have
been physically verified by the management at reasonable intervals
during the year and as explained to us no material discrepancies were
noticed on such verification.
c) During the year, the Company has not disposed off any substantial
part of fixed assets.
ii) a) The management has conducted physical verification of the
inventory at reasonable intervals, except material in transit and
stocks lying with third parties and in bonded warehouse, which are
verified with reference to the certificates obtained and/or subsequent
clearance of goods. In our opinion, the frequency of physical
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of the inventory
and no material discrepancies were noticed on physical verification
between the physical stock and book records.
iii a) The Company has not granted loans to companies, firms or other
parties covered in the register maintained under Section 301 of the
Act.
b) The Company had taken unsecured loan from one party covered in the
register maintained under section 301 of the companies Act, 1956. The
maximum amount involved during the year was Rs.12,39,917/- and the year
end balance of loans taken from such party was Rs. 12,39,917/-.
c) In our opinion and according to the information and explanation
given to us the rate of interest and other terms and conditions on
which these loans have been taken are not prima facie prejudicial to
the interest of the Company.
d) The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
iv) In our opinion, and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business, with
regard to the purchase of inventory, fixed assets and for sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
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 Companies Act, 1956, have been entered in the
register required to be maintained under that section.
b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and 58AA or any
other relevant provisions of the Companies Act, 1956 and the rules
framed there under with regard to deposits accepted from the public.
According to the information and explanations given to us, no order
under the aforesaid Sections has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other Tribunal on the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) According to the information and explanations given to us, the
Central Government has not prescribed for the maintenance of Cost
Records under Section 209(1 )(d) of the Companies Act, 1956 in respect
of the products of the Company.
ix) a) According to the information and explanations given to us, and
the records examined by us, undisputed statutory dues including
provident fund, employee's state insurance, income-tax, custom duty,
excise-duty, cess and other material statutory dues have generally been
regularly deposited during the year by the Company with the appropriate
authorities though there has been delay in few cases. According to the
information and explanations given to us, there were no undisputed
statutory dues which have remained outstanding as at 31st March, 2011
for the period of more than six months from the date they became
payable.
b) According to the information and explanations given to us, and the
records examined by us, dues in respect of sales- tax, income-tax,
custom duty, wealth-tax, service tax, excise duty, cess as at 31st
March, 2011 that have not been deposited with the appropriate authority
on account of any disputes and the forum where the dispute is pending
are as under:-
Sr. Name of Nature Period to Amount Forum where
No. the Statute of the Dues which the (Rs.) dispute
amount
is pending
1 Central Excise Duty March 2001 62,30,637 Assistant
Excise (Classifi- to Aug.2001 Commissi-
Act, 1944 cation of oner of
goods) Central
Excise
2 Central Excise Duty June 1996 to 75,938 Central
excise (Classifi- Feb'2001 Excise &
Act, 1944 cation of Service Tax
goods) Appellate
Tribunal
Penalty 30,80,610
3 Central Excise Duty July 1998 to 1,41,503 Central
excise (Classifi- Feb 2001 Excise &
Act, 1944 cation of Service Tax
goods) Appellate
Tribunal
Penalty 10,24,509
x) The Company has no accumulated losses as at the end of the financial
year and has not Incurred cash loss In the current financial year or In
the Immediately preceedlng financial year.
xl) In our opinion and according to the Information and explanation
given to us, the Company has not defaulted In repayment of dues to a
financial Institution or bank.
xii) Based on the Information and explanations given to us, the Company
has not granted any loans and / or advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii) The Company is not a Chit Fund Company or nidhi/mutual benefit
fund/society.
xiv) The Company has maintained proper records of transactions and
contracts in respect of dealing and trading in shares, securities,
debentures and other investments and the timely entries have generally
been made therein. All shares, securities, debentures and other
investments have been held by the Company in its own name except to the
extent of the exemption granted under Section 49 of the Companies Act,
1956 and save for certain shares which are either lodged for transfer
or held with valid transfer forms.
xv) In our opinion and according to the information and explanations
given to us, the terms and conditions of guarantees given by the
company for loans taken by others from banks and financial institutions
are not prima facie prejudicial to the interests of the company.
xvi) In our opinion, the term loans raised during the year have been
applied for the purpose for which they were raised.
xvii) According to the information and explanations given to us and on
an examination of the Balance Sheet of the Company, we report that, on
an overall basis, funds raised on short-term basis have, prima facie,
not been used during the year for long- term investment.
xviii) The Company has not made any preferential allotment of shares
during the year to parties covered in register maintained under section
301 of the Companies Act, 1956.
xix) In our opinion and according to the information and explanations
given to us, the Company has not issued any secured debentures during
the year covered by our report.
xx) During the year covered by our Audit Report the Company has not
raised any money by public issues.
xxi) To the best of our knowledge and belief and 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 KHANDELWAL JAIN & CO.
Chartered Accountants
Firm Registration No.105049W
(NARENDRA JAIN)
PARTNER
Membership No.048725
Place: Mumbai
Date : 10th August, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of ORICON EN- TERPRISES
LIMITED as at 31st March 2010 and also the Profit & Loss Account and
the Cash Flow Statement of the Company for the year ended on that date,
annexed thereto. These finan- cial statements are the responsibility of
the Companys man- agement. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the finan- cial statements. An audit also includes
assessing the account- ing principles used and significant estimates
made by manage- ment, as well as evaluating the overall financial
statement pre- sentation. We believe that our audit provides a
reasonable ba- sis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, and
read with the amendments made by the Companies (Auditors Report)
(Amendment) Order 2004, issued by the Central Government of India in
terms of sub section (4A) of section 227 of the Companies Act, 1956,
and on the basis of such checks of books and records of the company as
we considered appropriate and according to the information and
explanation given to us we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order to the extent
they are applicable to the Company.
4. Further to our comments in the Annexure referred to in Para- graph
3 above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were neces- sary 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
such books;
(c) The Balance Sheet, The Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agree- ment with the books
of account;
(d) In our opinion, the Balance Sheet, the Profit & 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 Companies Act, 1956.
(e) On the basis of the written representations received from the
Directors as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2010 from being appointed as a Director in terms of Clause
(g) of Sub- section (1) of Section 274 of the Companies Act, 1956;
(f) In our opinion and to the best of our information and ac- cording
to the explanations given to us, the said accounts and read together
with significant accounting policies and notes thereon, give the
information required by the Com- panies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting prin- ciples generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31s1 March 2010;
(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
(REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE TO THE MEMBERS
OF OR1CON ENTERPRISES LIMITED FOR THE YEAR ENDED MARCH 31, 2010)
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets, except in case of Furniture and Fixtures, Electrical
Installation and Equipments for which quantitative records have been
maintained without item wise break up of value.
b) We are informed that the fixed assets other than Dies and Tools,
Furniture and Fixtures, Electrical Installation and Equipments have
been physically verified by the management at reasonable intervals
during the year and as explained to us no material discrepancies were
noticed on such verification,
c) During the year, the Company has not disposed off any substantial
part of fixed assets.
ii) a) The management has conducted physical verification of the
inventory at reasonable intervals, except material in transit and
stocks lying with third parties and in bonded warehouse, which are
verified with reference to the certificates obtained and/or subsequent
clearance of goods. In our opinion, the frequency of physical
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of the inventory
and no material discrepancies were noticed on physical verification
between the physical stock and book records.
iii a) The Company has not granted loans to companies, firms or other
parties covered in the register maintained under Section 301 of the
Act.
b) The Company had taken unsecured loan from one party covered in the
register maintained under section 301 of the companies Act, 1956. The
maximum amount involved during the year was Rs. 4,74,66,917/- and the
year end balance of loans taken from such party was Rs. 12,39,917/-.
c) In our opinion and according to the information and explanation
given to us the rate of interest and other terms and conditions on
which these loans have been taken are not prima facie prejudicial to
the interest of the Company.
d) The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
iv) In ouropinion, and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business, with
regard to the purchase of inventory, fixed assets and for sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
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 Companies Act, 1956, have been entered in the
register required to be maintained under that section.
b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and 58AA or any
other relevant provisions of the Companies Act, 1956 and the rules
framed there under with regard to deposits accepted from the public.
According to the information and explanations given to us, no order
under the aforesaid Sections has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other Tribunal on the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) According to the information and explanations given to us, the
Central Government has not prescribed for the maintenance of Cost
Records under Section 209(1 )(d) of the Companies Act, 1956 in respect
of the products of the Company.
ix) a) According to the information and explanations given to us, and
the records examined by us, undisputed statutory dues including
provident fund, employees state insurance, income-tax, custom duty,
excise-duty, cess and other material statutory dues have generally been
regularly deposited during the year by the Company with the appropriate
authorities though there has been delay in few cases. According to the
information and explanations given to us, there were no undisputed
statutory dues which have remained outstanding as at 31s1 March, 2010
for the period of more than six months from the date they became
payable, except for Maharashtra Profession Tax of Rs.8,861/- and
Service Tax of Rs.6,164/- which have been since paid.
x) According to the information and explanations given to us, and the
records examined by us, dues in respect of sales-tax, income-tax,
custom duty, wealth-tax, service tax, excise duty, cess as at 31st
March, 2010 that have not been deposited with the appropriate authority
on account of any disputes and the forum where the dispute is pending
are as under:-
Sr. Name of Nature Period to Amount Forum where
No. the Statute of the Dues which the (Rs.) dispute
amount is pending
relates
1 Central Excise Duty March 2001 62,30,637 Assistant
Excise (Classifi- to Aug. 2001 Commissi-
Act, 1944 cation of oner of
goods) Central
Excise
2 Central Excise Duty June 1996 to 75,938 Central
excise (Classificatior Feb2001 Excise &
Act, 1944 of goods) Service Tax
Appellate
Tribunal
Penalty 30,80,610
3 Central Excise Duty July 1998 to 1,41,503 Central
excise (Classificatior Feb2001 Excises
Act, 1944 of goods) Service Tax
Appellate
Tribunal
Penalty 1024,509
xi) The Company has no accumulated losses as at the end of the
financial year and has not incurred cash loss in the current financial
year or in the immediately proceeding financial year.
xii) In our opinion and according to the information and explana- tions
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank.
xiii) Based on the information and explanations given to us, the
Company has not granted any loans and/or advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiv) The Company is not a Chit Fund Company or nidhi/mutual benefit
fund/society.
xv) The Company has maintained proper records of transactions and
contracts in respect of dealing and trading in shares, securities,
debentures and other investments and the timely entries have generally
been made therein. All shares, securities, debentures and other
investments have been held by the Company in its own name except to the
extent of the exemption granted under Section 49 of the Companies Act,
1956 and save for certain shares which are either lodged for transfer
or held with valid transfer forms.
xvi) In our opinion and according to the information and explanations
given to us, the terms and conditions of guarantees given by the
company for loans taken by others from banks and financial institutions
are not prima facie prejudicial to the interests of the company.
xvii) In our opinion, the term loans raised during the year have been
applied for the purpose for which they were raised.
xviii) According to the information and explanations given to us and on
an examination of the Balance Sheet of the Company, we report that, on
an overall basis, funds raised on short-term basis have, prima facie,
not been used during the year for long- term investment.
xix) The Company has not made any preferential allotment of shares
during the year to parties covered in register maintained under section
301 of the Companies Act, 1956.
xx) In our opinion and according to the information and explanations
given to us, the Company has not issued any secured debentures during
the year covered by our report.
xxi) During the year covered by our Audit Report the Company has not
raised any money by public issues.
xxii) To the best of our knowledge and belief and 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 KHANDELWAL JAIN & CO.
Chartered Accountants Firm Registration No.105049W
(NARENDRA JAIN)
PARTNER
Membership No.048725
Place: Mumbai
Date : 19th October, 2010
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