Mar 31, 2018
Report on the Audit of the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Panasonic Carbon India Co. Ltd. ("the Company"), which comprise the balance sheet as at 31 March 2018, the statement of profit and loss, the statement of changes in equity and the statement of cash flows for the year then ended, and summary of the significant accounting policies and other explanatory information. (herein after referred to as "Ind AS financial statements")
Management''s Responsibility for the Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Ind AS financial statements that give a true and fair view of the state of affairs, profit (includingother comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditor''s Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We are also responsible to conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor''s report to the related disclosures in the Ind AS financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditor''s report. However, future events or conditions may cause an entity to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31 March 201 8, its profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
Other Matters
The comparative financial information of the Company for the year ended 31 March 2017 and the transition date opening balance sheet as at 1 April 2016 included in these Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended 31 March 2017 and 31 March 2016 dated 10 May 2017 and 25 May 2016 respectively expressed an unmodified opinion on those financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order,
2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The balance sheet, the statement of profit and loss, the cash flow statement and statement of changes in equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 1 33 of the Act.
e) On the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B"; and
g) With respect to the other matters to be included in the 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 Ind AS financial statements; - Refer Note 34 to the Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable loss.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
iv. The disclosures in the Ind AS financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made since they do not pertain to the financial year ended 31 March 2018. However amounts as appearing in the audited financial statements for the period ended 31 March 2017 have been disclosed.
Annexure A to the Independent Auditorâs Report to the members of Panasonic Carbon India Co. Ltd. for the year ended 31 March 2018
(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 fixed assets are verified in a phased manner over a period of two years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The inventory, has been physically verified by the management during the period. In our opinion, the frequency of such verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material.
(iii) The Company has not granted any loan, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register required under Section 189 of the Companies Act, 2013. Accordingly, paragraph 3(iii) of the Order is not applicable.
(iv) The Company has not granted any loans, or made any investments, or given any guarantee or provided any security as covered under section 185 and 186 of the Companies Act, 2013. Accordingly, paragraph 3(iv) of the Order is not applicable.
(v) The Company has not accepted deposits from the public during the year. Accordingly, paragraph 3(v) of the order is not applicable.
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for sale of goods and the services rendered by the Company.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, goods and service tax, cess and any other material statutory dues have been generally deposited regularly during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, goods and service tax, cess and any other material statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise and value added tax which have not been deposited with the appropriate authorities on account of a dispute, except for items as set out in Appendix 1.
(viii) In our opinion and according to the information and explanations given to us, the Company did not have any outstanding loans or borrowings to any financial institution, banks, government or debenture holders during the year.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
(x) According to the information and explanations given to us, no fraud on or by 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 or provided for managerial remuneration during the year in accordance with the requisite approvals as per provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(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 188 of the Act where applicable and details of such transactions have been disclosed in the Ind AS financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give 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 under review. Accordingly, paragraph 3(xiv) of the Order is not applicable.
(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. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Appendix I to the Independent Auditors'' Report of Panasonic Carbon India Co. Ltd. as of and for the year ended 31 March 2018 (referred to in our report even date)
Name of the statute/ period to which it relates |
Nature of dues |
Amount (INR in thousands) |
Period to which amount relates |
Forum where the dispute is pending |
Income Tax Act, 1961 |
Income Tax |
71.86 |
2001-2002 |
Assistant Commissioner of Income Tax |
Income Tax Act, 1961 |
Income Tax |
735.4 |
2002-2003 |
High Court of Madras |
Income Tax Act, 1961 |
Income Tax |
1,739.64 |
2003-2004 |
Income Tax Appellate Tribunal (ITAT) |
Income Tax Act, 1961 |
Income Tax |
8,437.72 |
2008-2009 |
Deputy Commissioner of Income Tax |
Income Tax Act, 1961 |
Income Tax |
81.69 |
2009-2010 |
Assessing Officer |
Income Tax Act, 1961 |
Income Tax |
129.78 |
2010-2011 |
Assessing Officer |
Income Tax Act, 1961 |
Income Tax |
5,983.24 |
2011-2012 |
Assistant Commissioner of Income Tax |
Finance Act, 1994 |
Service tax |
2.89 |
For the period 2009-10 to 2011-12 |
Appellate Tribunal |
Finance Act, 1994 |
Service tax |
14.32 |
2012-2013 |
Commissioner- Appeals |
Finance Act, 1994 |
Service tax |
15.01 |
2013-2014 |
Commissioner- Appeals |
Finance Act, 1994 |
Service tax |
0.14 |
For the period July 2012 to March 2015 |
Commissioner- Appeals |
According to the information and explanation given to us, the items set out above do not include disputed matters settled in the favour of the Company by the relevant forums, for which the Company is yet to receive rectification orders from the assessing officer.
for B S R & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 101248W/W-100022
Place : Chennai K Raghuram
Date : 16 May 2018 Partner Membership No.: 211171
Mar 31, 2017
To
The Members of Panasonic Carbon India Co. Limited
Report on the Financial Statements
1. We have audited the accompanying standalone financial statements of Panasonic Carbon India Co. Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 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.
Management''s Responsibility for the Financial
Statements
2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these 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.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
4. 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.
5. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
6. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
7. 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, of the state of affairs of the Company as at 31st March, 2017, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor''s Report) Order,
2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure - "A", a statement on the matters specified in paragraphs 3 and 4 of the Order.
9. As required by Section 1 43 (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 financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31 st March, 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 Annexure - "B".
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in
ANNEXURE A TO AUDITORS'' REPORT Referred to in paragraph 8 of our report of even date
1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets;
(b) Fixed assets have been physically verified by the management during the year based on the programme of verifying all the assets over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its fixed assets. 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, the title deeds of immovable properties are held in the name of the Company.
2. Physical verification of inventory has been conducted by the Management at reasonable intervals. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been adequately dealt with in the books of account.
its financial statements - Refer Note no. 23 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.
iii. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in the financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November
2016 to 30th December 2016. Based on audit procedures and relying on the management representation we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management-Refer note no. 36 to the financial statements.
Membership no. 2000//
3. In our opinion and according to the information and explanations given to us, 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 1 89 of the Act. Therefore, clauses (iiia), (iiib) and (iiic) of paragraph 3 of the Order are not applicable to the company for the year.
4. In our opinion and according to the information and explanations given to us, there are no loans, investments, guarantees and securities granted in respect of which the provisions of section 185 and 186 of the Act are applicable.
5. The company has not accepted any deposits from the public to which the directives issued by the Reserve Bank of India and the provision of section 73 to 76 of the Act or any other relevant provisions of the Act and the rules framed there under, apply.
6. We have broadly reviewed the cost records maintained by the Company prescribed by the Central Government under Section 148(1) of the Act, and are of the opinion that prima facie the prescribed cost records have been maintained.
7. a) According to the information and explanations
given to us and on the basis of our examination of the books of account, the company has been regular in depositing undisputed statutory dues including provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, cess and other statutory dues with the appropriate authorities during the year. There are no undisputed amounts payable in respect of statutory dues, which are outstanding as at 31st March, 2017 for a period of more than six months from the date they become payable.
b) Based on our audit procedures and on the information and explanations given to us, there are no dues outstanding in respect of sales tax, service-tax, duty of customs, duty of excise, value added tax on account of any dispute. Income tax demands under the Income Tax Act, 1961 for the assessment years 1999-2000 to 2007-08 aggregating to Rs.1,87,46,659/- have not been deposited since the Company''s appeals are pending disposal before the Income Tax Appellate Authorities.
8. during the year under report, the company did not avail any loan or borrowings from banks or financial institutions and also did not have any debentures outstanding during the year under report. Accordingly, the provisions of clause 3(viii) of the Order are not applicable.
9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and the company has not availed any term loans during the year and accordingly, the provisions of clause 3(ix) of the Order are not applicable.
1 0. To the best of our knowledge and belief and according to the information and explanations given to us, there have been no cases of fraud by the company or on
ANNEXURE - "B" TO AUDITORS'' REPORT
Referred to in paragraph 9 (f) of our report of even date
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
1. We have audited the internal financial controls over financial reporting of Panasonic Carbon India Co. Limited ("the Company") as of 31 March, 2017 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
2. The Company''s management is responsible for the company by its officers or employees has been noticed or reported during the year under report.
11. According to the information and explanations give 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 Act.
1 2. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
1 3. 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 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.
1 4. According to the information and explanations give 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.
15. 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 them. Accordingly, paragraph 3(xv) of the Order is not applicable.
1 6. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1 934.
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 company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 201 3.
Auditors'' Responsibility
3. 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 "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error,
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial
Reporting
6. 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
7. 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
8. 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, 2017, 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 BRAHMAYYA & CO.,
Chartered Accountants
Firm Registration No: 000511S
Place : Chennai R.Nagendra Prasad
Date: 10th May, 2017 Partner
Membership No: 203377
Mar 31, 2016
To
The Members of Panasonic Carbon India Co. Limited
Report on the Financial Statements
1. We have audited the accompanying standalone financial statements of Panasonic Carbon India Co. Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 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 Financial
Statements
2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these 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
3. Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
4. 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.
5. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
6. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
7. 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, of the state of affairs of the Company as at 31st March, 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure - âA", a statement on the matters specified in paragraphs 3 and 4 of the Order.
9. 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.
c) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March,
2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure - âBâ.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note no. 23 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.
iii. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company.
Referred to in paragraph 8 of our report of even date
1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets;
(b) Fixed assets have been physically verified by the management during the year based on the programme of verifying all the assets over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its fixed assets. 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, the title deeds of immovable properties are held in the name of the Company.
2. Physical verification of inventory has been conducted by the Management at reasonable intervals. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been adequately dealt with in the books of account.
3. In our opinion and according to the information and explanations given to us, 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, clauses (iiia), (iiib) and (iiic) of paragraph 3 of the Order are not applicable to the company for the year.
4. In our opinion and according to the information and explanations given to us, there are no loans, investments, guarantees and securities granted in respect of which the provisions of section 185 and 186 of the Act are applicable.
5. The company has not accepted any deposits from the public to which the directives issued by the Reserve Bank of India and the provision of section 73 to 76 of the Act or any other relevant provisions of the Act and the rules framed there under, apply.
6. We have broadly reviewed the cost records maintained by the Company prescribed by the Central Government under Section 148(1) of the Act, and are of the opinion that prima facie the prescribed cost records have been maintained.
7. i) According to the information and explanations given to us and on the basis of our examination of the books of account, the company has been regular in depositing undisputed statutory dues including provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, cess and other statutory dues with the appropriate authorities during the year. There are no undisputed amounts payable in respect of statutory dues, which are outstanding as at 31st March, 2016 for a period of more than six months from the date they become payable.
ii) Based on our audit procedures and on the information and explanations given to us, there are no dues outstanding in respect of sales tax, service-tax, duty of customs, duty of excise, value added tax on account of any dispute. Income tax demands under the Income Tax Act, 1961 for the assessment years 1999-2000 to 2007-08 aggregating to Rs.1,87,46,659/- have not been deposited since the Company''s appeals are pending disposal before the Income Tax Appellate Authorities.
8. During the year under report, the company did not avail any loan or borrowings from banks or financial institutions and also did not have any debentures outstanding during the year under report. Accordingly, the provisions of clause 3(viii) of the Order are not applicable.
9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and the company has not availed any term loans during the year and accordingly, the provisions of clause 3(ix) of the Order are not applicable.
10. To the best of our knowledge and belief and according to the information and explanations given to us, there have been no cases of fraud by the company or on the company by its officers or employees has been noticed or reported during the year under report.
11. According to the information and explanations give 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 Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13. 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 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.
14. According to the information and explanations give 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.
15. 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 them. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
For BRAHMAYYA & CO.,
Chartered Accountants
Firm Registration No: 000511S
Place : Chennai R.Nagendra Prasad
Date : 25th May, 2016 Partner
Membership No: 203377
Mar 31, 2015
Report on the Financial Statements
1. We have audited the accompanying standalone financial statements of
Panasonic Carbon India Co. Limited ("the Company"), which comprise the
Balance Sheet as at 31st March, 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 Financial Statements
2. The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these 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 inaccordance 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.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
4. 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.
5. 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.
6. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
Opinion
7. 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, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
9. 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 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 31stMarch, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31stMarch, 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 no. 23 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.
iii. There has been no delay in transferring amounts, required to be
transferred to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO AUDITORS' REPORT
Referred to in paragraph 8 of our report of even date
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. Fixed
assets have been physically verified by the management during the year
based on the programme of verifying all the assets over a period of
three years, which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its fixed assets. No material
discrepancies were noticed on such verification.
2. Physical verification of inventory has been conducted by the
Management at reasonable intervals. 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. The company is maintaining proper records of its inventory
and the discrepancies noticed on verification between the physical
stocks and the book records were not material and have been adequately
dealt with in the books of account.
3. In our opinion and according to the information and explanations
given to us, the company has not granted any loans secured or unsecured
to companies, firms or other parties covered in the register maintained
under Section 189 of the Act. Therefore, clauses (iii a), and (iii b)
of paragraph 3 of the Order are not applicable to the company for the
year.
4. 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 purchases of inventory, fixed assets and with regard to the sale of
goods. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
5. The company has not accepted any deposits from the public to which
the directives issued by the Reserve Bank of India and the provision of
section 73 to 76 of the Act or any other relevant provisions of the Act
and the rules framed there under, apply.
6. We have broadly reviewed the cost records maintained by the Company
prescribed by the Central Government under Section 148(1) of the Act,
and are of the opinion that prima facie the prescribed cost records
have been maintained.
7. According to the information and explanations given to us and on
the basis of our examination of the books of account, the company has
been regular in depositing undisputed statutory dues including
provident fund, employees state insurance, income-tax, sales-tax/VAT,
wealth- tax, service tax, custom duty, excised-duty, cess and other
statutory dues with the appropriate authorities during the year. There
are no undisputed amounts payable in respect of statutory dues, which
are outstanding as at 31st March, 2015 for a period of more than six
months from the date they become payable.
8. Based on our audit procedures and on the information and
explanations given to us, there are no dues outstanding in respect of
sales tax, excise duty, customs duty, wealth-tax, service- tax and cess
on account of any dispute. Income tax demands under the Income Tax Act,
1961 for the assessment years 1999-2000 to 2007-08 aggregating to Rs.
1,87,46,659/- have not been deposited since the Company's appeals are
pending disposal before the Income Tax appellate authorities.
9. According to the information and explanations given to us, the
amounts which were required to be transferred to the Investor Education
and Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules thereunder has been
transferred to such fund within time.
10. The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year and in the immediately preceding financial year.
11. During the year under report, the company did not have any
borrowings from banks or financial institutions and also did not have
any debentures outstanding during the year under report. Accordingly,
the provisions of clause 3(ix) of the Order are not applicable.
12. In our opinion and according to the information and explanations
given to us, the company has not given any guarantees for loans taken by
others from banks or financial institutions. Accordingly, the provisions
of clause 3(x) of the Order are not applicable.
13. The company has not availed any term loans during the year and
accordingly, the provisions of clause 3(xi) of the Order are not
applicable.
14. To the best of our knowledge and belief and according to the
information and explanations given to us, there have been no cases of
material fraud on or by the company has been noticed or reported during
the year under report.
For BRAHMAYYA & CO.,
Chartered Accountants
(Firm Registration No: 000511S)
Place : Chennai R.Nagendra Prasad
Date: 7th May, 2015 Partner
(Membership No: 203377)
Mar 31, 2014
1. We have audited the accompanying financial statements of M/s.
Panasonic Carbon India Co. Limited ("the Company") which comprise the
Balance Sheet as at 31st March, 2014, the Profit and Loss Statement and
the Cash Flow Statement for the year ended and a summary of significant
accounting policies and other explanatory information.
ManagementRss Responsibility for the Financial Statements
2. 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 notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September, 2013
of the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
3. 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 auditorRss 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 CompanyRss 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 entityRss
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
4. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2014;
(ii) in the case of the Profit and Loss Statement, of the Profit for
the year ended on that date;and
(iii) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements:
5. As required by the Companies (AuditorRss Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
6. 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 Profit and Loss Statement and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Profit and Loss Statement and
Cash Flow Statement comply with the Accounting Standards notified under
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 the Companies Act, 2013; and
e. on the basis of written representations
received from the directors as on 31st March, 2014 and taken on record
by the Board of Directors, none of the directors is disqualified as on
31st March, 2014 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Act.
Annexure
1. The provisions of Clauses of Paragraph 4 of the Companies
(AuditorRss Report) Order, 2003 listed below are not applicable to the
Company for the year.
a) Clause (vi) regarding acceptance of deposits since no deposits
accepted from public during the year;
b) Clause (x) regarding accumulated losses since the companyRss net
worth is positive and the company has not incurred any cash losses
during the current year and in the immediately preceding financial
year;
c) Clause (xi) regarding defaults in repayment of dues to financial
institutions, bank and debenture-holders since the company has not
availed any loans during the year;
d) Clause (xii) regarding loans granted against pledge of shares and
securities etc. since no loans have been granted by the company during
the year;
e) Clause (xiii) regarding special statutes applicable to Chit Funds
and Nidhis/Mutual Benefit Fund and Societies since the company has not
carried on such business;
f) Clause (xiv) regarding dealing or trading in shares, securities etc.
since the company did not carry on such activities during the year;
g) Clause (xvi) regarding funds raised by term loans and their end use
since the company did not borrowed term loans during the year;
h) Clause (xviii) regarding preferential allotment of shares to
specified parties since no allotment of shares was made during the year
to such parties;
i) Clause (xix) regarding creation of securities in respect of
debentures since no debentures issued during the year; and
j) Clause (xx) regarding money raised by public issue and their end use
since no money was raised by public issue during the year.
2. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. Fixed
assets have been physically verified by the Management during the year
based on the programme of verifying all the assets over a period of
three years, which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its fixed assets. No material
discrepancies were noticed on such verification. During the year, there
was no substantial disposal of fixed assets affecting the status of the
Company as a going concern.
3. Physical verification of inventory has been conducted by the
Management at reasonable intervals. 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. The Company is maintaining proper records of its
inventory and the discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
adequately dealt with in the Books of Account.
4. (a) In our opinion and according to the information and explanations
given to us, the company has not granted any loan, secured or
unsecured, to companies, firms or other parties covered in the register
maintained under section 301 of the Act.
(b) In our opinion and according to the information and explanations
given to us, the company has not taken any loan, secured or unsecured,
from companies, firms or other parties covered in the register
maintained under section 301 of the Act.
5. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and sale
of goods. During the course of our audit, no major weakness has been
noticed in the internal controls.
6. Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that particulars of contracts and arrangements referred to in
section 301 of the Act have been entered in the register maintained
under the said section.
7. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the Registers maintained under Section 301 and
exceeding the value of Rs 5,00,000/- in respect of any party during the
year have been made at prices which are reasonable having regard to
prevailing market prices and commercial conditions at the relevant
time.
8. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
9. We have broadly reviewed the cost records maintained by the Company
prescribed by the Central Government under Section 209(1)(d) of the
Act, and are of the opinion that prima facie the prescribed cost
records have been maintained.
10. According to the records of the Company, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employeesRs state insurance, income-tax, sales-tax, wealth-tax,
service-tax, customs duty, excise duty and cess. There are no
undisputed amounts payable in respect of statutory dues, which are
outstanding as on 31st March,2014 for a period of more than six months
from the date they become payable.
11. Based on our audit procedures and on the information and
explanations given by the Management, there are no dues outstanding in
respect of sales tax, excise duty, customs duty, wealth-tax,
service-tax and cess on account of any dispute. Income tax demands for
the assessment years 1999-2000 to 2007-08 aggregating to Rs
1,87,46,659/- has not been deposited since the CompanyRss appeals are
pending disposal before the appellate authorities.
12. The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
13. The Company has not raised any funds short term and long term.
14. Based upon the audit procedures performed and information and
explanations given by the Management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
For BRAHMAYYA & CO.
Chartered Accountants
(Firm Registration No.000511S)
R.NAGENDRA PRASAD
Place: Chennai Partner
Date : 8th May, 2014 (Membership No.: 203377)
Mar 31, 2013
Report on the Financial Statements:
1. We have audited the accompanying financial statements of M/s.
Panasonic Carbon India Co. Limited ("the Company) which comprise the
Balance Sheet as at 31st March 2013, the Profit and Loss Statement and
the Cash Flow Statement for the year ended on that date and a summary
of significant accounting policies and other explanatory information.
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.
Management''s Responsibility for the Financial Statements:
2. Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility:
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion:
4. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March 2013;
(ii) in the case of the Profit and Loss Statement, of the Profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements:
5. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub- section (4A) of section 227 of the Companies Act, 1956, we
enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
6. As required by section 227(3) of the Companies Act, 1956, 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 Profit and Loss Statement and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Profit and Loss Statement and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Act; and
e) On the basis of written representations received from the directors
as on 31st March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure referred to in Paragraph 5 of our report of even date
1. The provisions of Clauses of Paragraph 4 of the Companies (Auditor''s
Report) Order, 2003 listed below are not applicable to the Company for
the year.
a) Clause (vi) regarding acceptance of deposits since no deposits
accepted from public during the year;
b) Clause (x) regarding accumulated losses since the company''s net
worth is positive and the company has not incurred any cash losses
during the current year and in the immediately preceding financial
year;
c) Clause (xi) regarding defaults in repayment of dues to financial
institutions, bank and debenture-holders since the company has not
availed any loans during the year;
d) Clause (xii) regarding loans granted against pledge of shares and
securities etc. since no loans have been granted by the company during
the year;
e) Clause (xiii) regarding special statutes applicable to Chit Funds
and Nidhis/Mutual Benefit Fund and Societies since the company has not
carried on such business;
f) Clause (xiv) regarding dealing or trading in shares, securities etc.
since the company did not carry on such activities during the year;
g) Clause (xvi) regarding funds raised by term loans and their end use
since the company did not borrowed term loans during the year;
h) Clause (xviii) regarding preferential allotment of shares to
specified parties since no allotment of shares was made during the year
to such parties;
i) Clause (xix) regarding creation of securities in respect of
debentures since no debentures issued during the year; and
j) Clause (xx) regarding money raised by public issue and their end use
since no money was raised by public issue during the year.
2. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. Fixed
assets have been physically verified by the Management during the year
based on the programme of verifying all the assets over a period of
three years, which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its fixed assets. No material
discrepancies were noticed on such verification. During the year, there
was no substantial disposal of fixed assets affecting the status of the
Company as a going concern.
3. Physical verification of inventor y has been conducted by the
Management at reasonable intervals. 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. The Company is maintaining proper records of its
inventory and the discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
adequately dealt with in the Books of Account.
4. (a) In our opinion and according to the
information and explanations given to us, the company has not granted
any loan, secured or unsecured, to companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
(b) In our opinion and according to the information and explanations
given to us, the company has not taken any loan, secured or unsecured,
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
5. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and sale
of goods. During the course of our audit, no major weakness has been
noticed in the internal controls.
6. Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that particulars of contracts and arrangements referred to in
section 301 of the Act have been entered in the register maintained
under the said section.
7. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the Registers maintained under Section 301 and
exceeding the value of Rs. 5,00,000/- in respect of any party during the
year have been made at prices which are reasonable having regard to
prevailing market prices and commercial conditions at the relevant
time.
8. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
9. We have broadly reviewed the cost records maintained by the Company
prescribed by the Central Government under Section 209(1)(d) of the
Act, and are of the opinion that prima facie the prescribed cost
records have been maintained.
10. According to the records of the Company, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees'' state insurance, income-tax, sales-tax, wealth-tax,
service-tax, customs duty, excise duty and cess. There are no
undisputed amounts payable in respect of statutory dues, which are
outstanding as on 31st March,2013 for a period of more than six months
from the date they become payable.
11. Based on our audit procedures and on the information and
explanations given by the Management, there are no dues outstanding in
respect of sales tax, excise duty, customs duty, wealth-tax,
service-tax and cess on account of any dispute. Income tax demands for
the assessment years 1999-2000 to 2007-08 aggregating to Rs.
1,87,46,659/- has not been deposited since the Company''s appeals are
pending disposal before the appellate authorities.
12. The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
13. The Company has not raised any funds short term and long term.
14. Based upon the audit procedures performed and information and
explanations given by the Management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
For BRAHMAYYA & CO.,
Chartered Accountants
Firm Registration No.000511S
R.NAGENDRA PRASAD
Place : Chennai Partner
Date : 26th April, 2013 Membership No.: 203377
Mar 31, 2012
1. We have audited the attached Balance Sheet of Panasonic Carbon
India Co. Limited as at 31st March 2012, and the Profit and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the Company's Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with the generally
accepted Auditing Standards in India. Those Standards require that we
plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub- section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, 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 our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
(v) On the basis of 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;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts read with the notes
thereon give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012;
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure referred to in Paragraph 3 of our report of even date
1. The provisions of Clauses of Paragraph 4 of the Companies
(Auditor's Report) Order, 2003 listed below are not appli- cable to the
Company for the year.
a) Clause (vi) regarding acceptance of deposits;
b) Clause (x) regarding accumulated losses;
c) Clause (xi) regarding defaults in repayment of dues to financial
institutions, bank and debenture-holders;
d) Clause (xii) regarding loans granted against pledge of shares and
securities etc.;
e) Clause (xiii) regarding special statutes applicable to Chit Funds
and Nidhis/Mutual Benefit Fund and Societies;
f) Clause (xiv) regarding dealing or trading in shares, securities
etc.;
g) Clause (xvi) regarding funds raised by term loans and their end use;
h) Clause (xviii) regarding preferential allotment of shares to
specified parties;
i) Clause (xix) regarding creation of securities in respect of
debentures; and j) Clause (xx) regarding money raised by public issue
and their end use.
2. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. Fixed
assets have been physically verified by the Management during the year
based on the programme of verifying all the assets over a period of
three years, which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its fixed assets. No material
discrepancies were noticed on such verification. During the year, there
was no substantial disposal of fixed assets affecting the status of the
Company as a going concern.
3. Physical verification of inventory has been conducted by the
Management at reasonable intervals. 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. The Company is maintaining proper records of its
inventory and the discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
adequately dealt with in the Books of Account.
4. (a) In our opinion and according to the information and
explanations given to us, the company has not granted any loan, secured
or unsecured, to companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information and explanations
given to us, the company has not taken any loan, secured or unsecured,
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
5. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and sale
of goods. During the course of our audit, no major weakness has been
noticed in the internal controls.
6. Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that particulars of contracts and arrangements referred to in
section 301 of the Companies Act, 1956 have been entered in the
register maintained under the said section.
7. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the Registers maintained under Section 301 and
exceeding the value of Rs 5,00,000/- in respect of any party during the
year have been made at prices which are reasonable having regard to
prevailing market prices and commercial conditions at the relevant
time.
8. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
9. We have broadly reviewed the cost records maintained by the Company
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 maintained by the
company.
10. According to the records of the Company, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees' state insurance, income-tax, sales-tax, wealth-tax,
service-tax, customs duty, excise duty and cess. There are no
undisputed amounts payable in respect of statutory dues, which are
outstanding as on 31st March,2012 for a period of more than six months
from the date they become payable.
11. Based on our audit procedures and on the information and
explanations given by the Management, there are no dues outstanding in
respect of sales tax, excise duty, customs duty, wealth-tax,
service-tax and cess on account of any dispute. Income tax demands for
the assessment years 1999-2000 to 2007-08 aggregating to Rs
1,87,46,659/- has not been deposited since the Company's appeals are
pending disposal before the appellate authorities.
12. The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
13. The Company has not raised any funds short term and long term.
14. Based upon the audit procedures performed and information and
explanations given by the Management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
FOR BRAHMAYYA & CO.,
Chartered Accountants
Firm Registration No. 000511S
R. NAGENDRA PRASAD
Place: Chennai Partner
Date : 25th May, 2012 Membership No:203377
Mar 31, 2011
1. We have audited the attached Balance Sheet of Panasonic Carbon
India Co. Limited as at 31st March 2011, and the Profit and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the Companys Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with the generally
accepted Auditing Standards in India. Those Standards require that we
plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, 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 our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the Directors
as on 31st March 2011 and taken on record by the Board of Directors, 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;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts read with the notes
thereon give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011;
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure referred to in Paragraph 3 of our report of even date
1. The provisions of Clauses of Paragraph 4 of the Companies
(Auditors Report) Order, 2003 listed below are not applicable to the
Company for the year.
a) Clause (vi) regarding acceptance of deposits;
b) Clause (viii) regarding maintenance of cost records under Section
209(1 )(d) of the Companies Act, 1956;
c) Clause (x) regarding accumulated losses;
d) Clause (xi) regarding defaults in repayment of dues to financial
institutions, bank and debenture-holders;
e) Clause (xii) regarding loans granted against pledge of shares and
securities etc.;
f) Clause (xiii) regarding special statutes applicable to Chit Funds
and Nidhis/Mutual Benefit Fund and Societies;
g) Clause (xiv) regarding dealing or trading in shares, securities
etc.;
h) Clause (xvi) regarding funds raised by term loans and their end use;
i) Clause (xviii) regarding preferential allotment of shares to
specified parties;
j) Clause (xix) regarding creation of securities in respect of
debentures; and
k) Clause (xx) regarding money raised by public issue and their end
use.
2. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. Fixed
assets have been physically verified by the Management during the year
based on the programme of verifying all the assets over a period of
three years, which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its fixed assets. No material
discrepancies were noticed on such verification. During the year, there
was no substantial disposal of fixed assets affecting the status of the
Company as a going concern.
3. Physical verification of inventory has been conducted by the
Management at reasonable intervals. 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. The Company is maintaining proper records of its
inventory and the discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
adequately dealt with in the Books of Account.
4. (a) In our opinion and according to the information and explanations
given to us, the company has not granted any loan, secured or
unsecured, to companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information and explanations
given to us, the company has not taken any loan, secured or unsecured,
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
5. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and sale
of goods. During the course of our audit, no major weakness has been
noticed in the internal controls.
6. Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that particulars of contracts and arrangements referred to in
section 301 of the Companies Act, 1956 have been entered in the
register maintained under the said section.
7. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the Registers maintained under Section 301 and
exceeding the value of Rs.5,00,000/- in respect of any party during the
year have been made at prices which are reasonable having regard to
prevailing market prices and commercial conditions at the relevant
time.
8. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
9. According to the records of the Company, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income-tax, sales-tax, wealth-tax,
service-tax, customs duty, excise and cess. There are no undisputed
amounts payable in respect of statutory dues, which are outstanding as
on 31st March, 2011 for a period of more than six months from the date
they become payable.
10. Based on our audit procedures and on the information and
explanations given by the Management, there are no dues outstanding in
respect of sales tax, excise duty, customs duty, wealth-tax,
service-tax and cess on account of any dispute. Income tax demands for
the assessment years 1999-2000 to 2007-08 aggregating to
Rs.1,87,46;659/- has not been deposited since the Companys appeals are
pending disposal before the appellate authorities.
11. The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
12. The Company has not raised any funds short term and long term.
13. Based upon the audit procedures performed and information and
explanations given by the Management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
FOR BRAHMAYYA & CO.,
Chartered Accountants
Registration No. 000511S
R. NAGENDRA PRASAD
Partner
Membership No:203377
Place: Chennai
Date : 29th April, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Panasonic Carbon
India Co. Limited as at 31st March 2010, and the Profit and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the Companys Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with the generally
accepted Auditing Standards in India. Those Standards require that we
plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, 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 our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the Directors
as on 31st March 2010 and taken on record by the Board of Directors, 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;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts read with the notes
thereon give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2010;
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure referred to in Paragraph 3 of our report of even date
1. The provisions of Clauses of Paragraph 4 of the Companies
(Auditors Report) Order, 2003 listed below are not applicable to the
Company for the year.
a) Clause (vi) regarding acceptance of deposits;
b) Clause (viii) regarding maintenance of cost records under Section
209(1 )(d) of the Companies Act, 1956;
c) Clause (x) regarding accumulated losses;
d) Clause (xi) regarding defaults in repayment of dues to financial
institutions, bank and debenture-holders;
e) Clause (xii) regarding loans granted against pledge of shares and
securities etc.;
f) Clause (xiii) regarding special statutes applicable to Chit Funds
and Nidhis/Mutual Benefit Fund and Societies;
g) Clause (xiv) regarding dealing or trading in shares, securities
etc.; h) Clause (xvi) regarding funds raised by term loans and their
end use;
i) Clause (xviii) regarding preferential allotment of shares to
specified parties;
j) Clause (xix) regarding creation of securities in respect of
debentures; and
k) Clause (xx) regarding money raised by public issue and their end
use.
2. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. Fixed
assets have been physically verified by the Management during the year
based on the programme of verifying all the assets over a period of
three years, which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its fixed assets. No material
discrepancies were noticed on such verification. During the year,
there was no substantial disposal of fixed assets affecting the status
of the Company as a going concern.
3. Physical verification of inventory has been conducted by the
Management at reasonable intervals. 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. The Company is maintaining proper records of its
inventory and the discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
adequately dealt with in the Books of Account.
4. (a) In our opinion and according to the information and
explanations given to us, the company has not granted any loan, secured
or unsecured, to companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information and explanations
given to us, the company has not taken any loan, secured or unsecured,
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
5. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and sale
of goods. During the course of our audit, no major weakness has been
noticed in the internal controls.
6. Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that particulars of contracts and arrangements referred to in
section 301 of the Companies Act, 1956 have been entered in the
register maintained under the said section.
7. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the Registers maintained under Section 301 and
exceeding the value of Rs.5,00,000/- in respect of any party during the
year have been made at prices which are reasonable having regard to
prevailing market prices and commercial conditions at the relevant
time.
8. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
9. According to the records of the Company, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income-tax, sales-tax, wealth-tax,
service-tax, customs duty, excise duty and cess. There are no
undisputed amounts payable in respect of statutory dues, which are
outstanding as on 31st March, 2010 for a period of more than six months
from the date they become payable.
10. Based on our audit procedures and on the information and
explanations given by the Management, there are no dues outstanding in
respect of sales tax, excise duty, customs duty, wealth-tax,
service-tax and cess on account of any dispute. Income tax demands for
the assessment years 1999-2000 to 2007-08 aggregating to Rs.
1,87,46,659/- has not been deposited since the Companys appeals are
pending disposal before the appellate authorities.
11. The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
12. The Company has not raised any funds short term and long term.
13. Based upon the audit procedures performed and information and
explanations given by the Management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
FOR BRAHMAYYA & CO.,
Chartered Accountants
Registration No. 000511S
R. NAGENDRA PRASAD
Place: Chennai Partner
Date: 22nd April, 2010 Membership No:203377
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