Mar 31, 2014
We have audited the accompanying financial statements of M/s. OSWAL
MINERALS LIMITED ("the Company") which comprise the balance sheet as
at 31st March 2014, the statement of profit and loss and the cash flow
statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management 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 Companies Act, 1956 ("the Act") read with the General circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of Companies Act, 2013. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and
fairview 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 st, 2014;
b) in the case ofthe Profit and LossAccount, of the profit/loss for the
year ended on that date; and
c) in the case ofthe Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirement
1. As required by the Companies (Auditor''s Report) Order, 2003, as
amended 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 ofthe Companies Act, 1956, we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5
of the said order.
2. As required by section 227(3) of the Act, we report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of
ouraudit.
ii. In our opinion, the Company has kept proper books of account as
required by law so far as appears from our examination of those books..
iii. The Balance Sheet and profit and loss account referred to in this
report are in agreementwith the books of account.
iv. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 read with
the General circular 15/2013 dated 13th September, 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of Companies Act, 2013.
v. On the basis of written representations received from the directors,
as on 31st March 2014 and taken on record by the Board of Directors,
we report that none ofthe Directors is disqualified as on 31st March,
2014 from being appointed as director in terms of clause (g) of sub-
section (1) of section 274 ofthe Companies Act, 1956.
vi. Since the Central Government has not issued any notification as
to the rate at which the cess is to be paid under section 441Aof the
Companies Act, 1956 nor has it issued any , Rules under the said
section, prescribing the manner in which such cess is to be paid,
no cess is due and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Oswal Minerals Limited on the accounts of the company
for the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets. -
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies
werenoticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (d) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the
Company.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
taken unsecured loan of Rs 38.36 Crores from Directors of the Company.
(f) In our opinion, the rate of interest and other terms and conditions
on which loan is taken are not prima facie prejudicial to the interest
of the company.
(g) The repayment of principal and interest are in accordance with the
arrangements miade with the borrower.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in
the internal controls has been noticed.
5. (a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the particulars
of contracts or arrangements referred to in section 301 of the Act have
been entered in the register required to be maintained under that
section.
(b) As per information & explanations given to us and in our opinion,
the transaction made in pursuance of contracts and arrangements
referred to in (v)(a) above and exceeding the value of Rs.5.00 Lakhs
with any party during the year have been at prices which are reasonable
having regard to the prevailing market price at the relevant time.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
7. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. The Central Government of India has not prescribed the maintenance
of cost records under Section 209(1 )(d) of the Act for any of the
services rendered by the Company.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income- tax, Sales-tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, cess to the extent applicable
and any other statutory dues have generally been regularly deposited
with the appropriate authorities According to the information and
explanations given to us theassessee has preferred an appeal against
the demand raised by the Income tax.
A. Y.:-2005-06 Rs. 14,62,740/-
A.Y.:-2006-07 Rs. 8,15,664/-
Otherwise there were no outstanding statutory dues as on 31st of March,
2014 for a period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us, the
assessee has paid Income tax of Rs 40, 00,000/- under protest for the
Assessment Year 2004-2005. The order issued in the favor of assessee
otherwise there is no amounts payable in respect of income tax, wealth
tax, service tax, sales tax, customs duty and excise duty which have
not been deposited on account of any disputes.
10. The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments.
15. According to the information and explanations given to us, the
Company has given Rs. 1.02 Crores Fixed Deposits provided against
guarantees for loan taken by others from a bank or financial
institutions.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case bvthe manaaement.
ForN.N.Yuvaraj&Associates
Chartered Accountants
Firm Registration No:
-00S1377
Sd/-
C.ASanjay Pitliya
Partner
Date: 30.05.2014 Membership No.:216105
Place: Bengaluru
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