Mar 31, 2018
Report on the Ind AS Financial Statements:
We have audited the accompanying ind AS financial statements of Pee Cee Cosma Sope Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss (including Other Comprehensive lncome/(loss)),the Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Ind AS Financial Statements : The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income/(loss)) cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant rules issued thereunder. 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.
Auditorâs 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 auditorâs 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 Companyâs 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 Companyâs Directors, as well as evaluating the overall presentation of the IndAS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 31st March 2018 and its profit (including other comprehensive income/(loss)) its cash flows and the changes in equity for the year ended on that date.
Other Matters : The Financial information of the Company for the year ended 31.03.2017 and the transition date opening balance sheet as at 1.4.2016 included in the Ind AS financial statements, are based on the previously issued statutory financial statements for the years ended 31.03.2017 and 31.03.2016 prepared in accordance with the Companies (Accounting Standard) rules 2006 (as amended) which were audited by another auditor namely M/s Doogar & Associates, Chartered Accountants, on which they expressed an unmodified opinion dated 29th May, 2017 and 28th May,2016 respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to Ind AS have been audited by us, on which we have expressed an unmodified opinion vide our report dated 26th May,2018.
Our opinion is not qualified in respect of their matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure âAâ, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive lncome/(loss)) the Cash Flow Statement and the Statement of changes in Equity dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act, read with relevant rules issued thereunder;
e) On the basis of the written representations received from the directors as on 31st March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st 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 over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, 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 34to the IndAS financial statements;
II. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
III. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the Ind AS financial statements for the year ended 31st March 2018, we report that:
1. (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 three 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.
2. (a) The inventories, except material lying with the third parties, has been physically verified at reasonable intervals by the management during the year.
(b) In our opinion and according to the information and explanations given to us the procedures followed by the management for such physical verification are reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) In our opinion Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of accounts.
3. According to the information and explanation given to us the Company has not granted any secured or unsecured loans, to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, paragraph 3 (iii) of the order is not applicable to the Company.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
5. The Company has not accepted any deposits from the public. Accordingly, paragraph 3 (v) of the order is not applicable to the Company.
6. According to the information and explanations given to us, the cost records have been maintained by the company pursuant to section 148 (1) of the Companies Act 2013 and are of the opinion that, prima facie, the prescribed cost records have been made and maintained, however, we have not made a detailed examination of such cost records.
7. (a) According to the information & explanations given to us and on the basis of our examination of the records of the Company, Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, employeesâ state insurance, income tax , sales tax, service tax, duty of customs, GST, duty of excise, value added tax, cess and any other statutory dues applicable to it and there are no undisputed statutory dues outstanding as at 31st March, 2018 for a period exceeding six months from the date they became payable.
(b) According to the information & explanations given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, GST, value added tax which have not been deposited on account of any dispute, except the following, along with the forum where dispute is pending:.
Name of Statute |
Nature of the dues |
Amount (Rs) |
Forum where dispute is pending |
ESI Act |
ESI (2004-05) |
1,05,241 |
Civil Court, Agra |
M.P Land Revenue Act, 1959 |
Land Conversion Charges |
14,03,603 |
Court of Collector, Bhind (M.P.) |
8. In our opinion and according to the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to a financial institution, bank or government. The Company has not issued any debentures.
9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments). The Company has availed term loan facility and term loans were generally been applied for the purposes for which those are raised.
10. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the 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 given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3 (xiv) of the Order is not applicable.
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 in to non-cash transactions with directors or persons connected with him. 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.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Pee Cee Cosma Sope Limited (âthe Companyâ) as of 31st March 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls : The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility : Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting : A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting : Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion : In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
FOR BSD & CO.
Chartered Accountants
(Firm Reg No-000312S)
Place: Agra (CA. WarshaSinghania)
Dated: 26.05.2018 Partner
Membership No. 520935
Mar 31, 2015
We and the Statement of Profit and Loss, the Cash Flow information. is
responsible for the matters stated in Section 134(5) of the give a true
and fair view of the financial position, financial performance and cash
flows of the Company in accordance 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate and
maintenance of adequate internal financial controls, that preparation
and presentation of the financial statements that give a true and fair
view and are free from material misstatement, whether duet of raudor
error. Auditor's Responsibility : Our responsibility is to express the
Act, the accounting and auditing standards and matters which are
required to be included in the audit report under the provisions of the
Act and the Rules made there under. We conducted our audit in
accordance with the Standards on and plan and perform the audit to
obtain reasonable statements. The procedures selected depend on the
auditor's judgment, including the assessment of the risks of auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give of expressing an
opinion on whether the Company has in place an adequate internal
financial controls system over appropriateness of accounting policies
used and the reasonableness of the accounting estimates made by
Company's directors, as well as evaluating the overaN presentation of
the financial statements.
Opinion on the standalone financial statements
Opinion : In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid and fair view
in conformity with the accounting principles generally accepted in
India, of the state of affairs of the Report on Other Legal and
Regulatory Requirements 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, to the extent
2. AsrequKd by section 143(3)of theca, we report that:
a) we have sought and obtained all the information and
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid standalone financial
7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on March 31, 2015, taken on record 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 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 30 to the financial 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 under the heading "Report on Other Legal and
Regulatory Requirements" of our report of even date on the accounts of
Pee Cee Cosma Sope Limited for the year ended 31st March, 2015)
1. (a) The Company has maintained proper records to show full particulars
including quantitative details and
situation of fixed assets.
(b) The fixed assets have been physically verified by the management at
the reasonable intervals, which in our opinion, is reasonable having regard
to the size of the Company and the nature of its assets. According to the
information and explanations given to us, no material discrepancies were
noticed on such verification.
2. (a) The inventory, except material lying with the third parties has
been physically verified by the management during the year.
(b) In our opinion and according to the information and explanations
given to us the procedures followed by the management for such physical
verification are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) In our opinion Company is maintaining proper records of inventory.
The discrepancies noticed on physical verification of inventory as
compared to book records were not material and have been properly dealt
within the books of accounts.
3. (a) According to information and explanation given to us the
Company has not granted any secured or unsecured loans, to companies,
firms or other parties covered in the register maintained under section
189 of theCompaniesAct,2013.
4. In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the Company and nature of its business with regard to
the purchase of inventory and fixed assets and also for the sale of
goods & services. Further on the basis of our examination of the books
of the Company, carried out in accordance with the generally accepted
auditing practices in India, we have neither come across nor have we
been informed of any instance of major weaknesses in the aforesaid
internal control systems.
5. According to the information and explanations given to us, the
Company has not accepted any deposit from the public within the meaning
of provisions of section 73 to 76 or any other relevant provisions of
the Companies Act, 2013 and the rules framed there under. Therefore,
the provisions of the clause 3 (v) of the order are not applicable to
the Company.
6. According to the information and explanations given to us, the cost
records have been maintained by the company pursuant to section 148(1)
of the Companies Act 2013and are of the opinion that, prima facie, the
prescribed cost records have been made and maintained, however, we have
not made a detailed examination of such cost records.
7. (a) According to the information & explanations given to us, the
Company is generally regular in depositing with the appropriate authorities
undisputed statutory dues including provident fund, employees' state insurance,
income tax , sales tax, wealth tax, service tax, duty of customs, excise, value
added tax, cess and any other statutory dues applicable to it and there are
no undisputed statutory dues outstanding as at March 31,2015 for a period exceeding
six months from the date they became payable.
(b) According to the information & explanations given to us, there are
no dues of provident fund, employees' state insurance, income tax,
sales tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax or cess which have not been deposited on account of any
dispute .except the following, along with the forum where dispute is
pending:
Name of Nature of the Amount Forum where
Statute dues (Rs) dispute is
pending
Income Tax Income Tax 10,42,322 Hon'bleHigh
Act (A.Y. 2009-10) Court.Allahabad
Income Tax Income Tax 3,13,050 ITAT.Agra
Act (A.Y. 2010-2011)
Income Tax Income Tax 26,77,310 CIT(Appeal) II,
Act (A.Y. 2010-2011) Agra
Income Tax Income Tax 13,93,070 CIT(Appeal) II,
Act (AY. 2011-2012) Agra
central Excise Duty 15,38,544 Addl Commiss-
ioner
Excise (2007-08 to Central Excise,
2010-2011) Kanpur.
central Excise Duty 18,88,86,000 CESAT, New Delhi
Excise (Jan 2002 to (Refer note
no 30)
Feb 2006)
UP. Trade Sales Tax 2,25,000 Hon'bleHigh
tax Court, Tax
(1995-96) Allahabad
central Sales Tax 1,60,710 Hon'bleHigh
Court,
Sales Tax (1995-96) Allahabad
Rajasthan Sales Tax 68,452 Rajasthan Tax
Trade Tax
(2000-01) Board, Ajmer
U.P VAT Trade Mark 27,084 Dy. Commissi-
oner,
Act License Fee Agra
(2003-04)
U.P VAT Trade Mark 24,393 Dy. Commissi-
oner,
Act License Fee Agra
(2004-05)
ESIAct EST(2004-05) 1,05,241 Civil Court,
Agra
MP Land Land
Conversion. 14,03,603 Court of
Collector,
Revenue Charges Bhind(M.R)
Act,1959
(c) According to the information and explanation given to us, the
amount required to be transferred to investor education and protection
fund in accordance with the relevant provisions of Companies Act, 1956
and rules made there under has been transferred to such fund within
time.
8. The Company does not have any accumulated losses at the end of the
financial year. The Company has not incurred cash losses in the
financial year covered by our audit and in the immediately preceding
financial year.
9. In our opinion and according to the information and explanations
given to us, we are of the opinion that the Company has not defaulted
in repayment of dues to a financial institution or bank. The Company
has not issued any debentures.
10. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
11. In our opinion, and according to the information and explanations
given to us, term loans have generally been applied for the purposes
for which they were raised.
12. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
FOR DOOGAR& ASSOCIATES
Chartered Accountants
(Firm Reg NO-000561N)
Place: Agra (CA. UDIT BANSAL)
Dated: 30.05.2015 Partner
M. No. 401642
Mar 31, 2014
We have audited the accompanying financial statements of Pee Cee Cosma
Sope Ltd. ("the Company"), which comprise the Balance Sheet as at March
31, 2014, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting policies
and other explanatory information.
Management Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General
Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error. Auditor''s
Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a
basisforourauditopinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b) in the case of the Profit and Loss Account, of the Profitfor the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. Asrequired by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. Asrequired 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreementwith the books of
account.
d) in our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the 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;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the CompaniesAct, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
(Referred to in Paragraph 1 under the heading "Report on Other Legal
and Regulatory Requirements" of our report of even date on the
accounts of Pee Cee Cosma Sope Limited for the year ended 31st March,
2014)
1. (a) The Company has maintained proper records to show full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a phased program of physical verification of its
fixed assets which in ouropinion is reasonable, having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such physical verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern assumption.
2. (a) The inventory, except material lying with the third parties has
been physically verified by the management during the year.
(b) In our opinion and according to the information and explanations
given to us the procedures followed by the management for such physical
verification are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) In our opinion Company is maintaining proper records of inventory.
The discrepancies noticed on physical verification of inventory as
compared to book records were not material and have been properly dealt
with in the books of accounts.
3. (a) According to information and explanation given to us, the Company
has not granted any loan secured or unsecured to any party covered in
the register maintained under section 301 of the Companies Act, 1956. Accordingly provisions of clause 4 (iii) (b) (c) (d) of the order are
not applicable to the Company
(e) According to information and explanation given to us the Company
has not taken any secured or unsecured loans, from parties covered in
the register maintained undersection 301 of the companies Act, 1956
accordingly provisions of sub clause (f) to (g) of clause 3 are not
applicable to the company.
4. In our opinion and according to the information and explanations
given to us there is an adequate internal control systems commensurate
with the size of the Company and nature of its business with regard to
the purchase of inventory and fixed assets and also for the sale of
goods & services. Further on the basis of our examination of the books
of the Company, carried out in accordance with the generally accepted
auditing practices in India, we have neither come across nor have we
been informed of any instance of major weaknesses in the aforesaid
internal control systems.
5. (a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or arrange
-ments that needed to be entered in the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in to the register required to be maintained in
pursuance of section 301 of the Act and exceeding the value of Rs 5
Lacs in respect of any party during the year, have generally been made,
other than the transaction for which comparable prices are not
available at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public during the
year within the meaning of Section 58A and 58AA or any other relevant
provisions of the Companies Act 1956 and the Companies (Acceptance of
Deposits) Rules, 1975.
7. In our opinion, the Company has an internal audit system
commensurate with the size & nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules 2011,
prescribed by the Central Government under section 209(1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have however not made
a detailed examination of the records with a view to determining
whether they are accurate or complete.
9. (a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax , Sales tax, Service tax, Custom
Duty, Excise Duty, Cess and other statutory dues have been generally
regularly deposited with the appropriate authorities during the year
and there are no undisputed statutory dues outstanding as on the date
of balance sheet for a period exceeding six months from the date they
become payable.
(b) According to the information & explanations given to us and as per
the books and records examined by us, there are no dues of Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax , Sales tax, Service tax, Custom Duty, Excise
Duty, Cess and other statutory dues which have not been deposited on
account of any dispute ,except the following, along with the forum
where dispute is pending:
Name of Nature of the Amount Forum where
Statute dues (Rs) dispute is
pending
M.P Land Land 14,03,603 Court of Collector,
Revenue Conversion Bhind (M.P.)
Act, 1959 Charges
Income Tax Income Tax 20,84,290 Hon''ble High Court,
Act (A.Y.2009-10) Allahabad
Income Tax Income Tax 17,79,350 CIT(Appeal) II,
Act (A.Y.2010-2011) Agra
Income Tax Income Tax 26,77,310 CIT(Appeal) II,
Act (A.Y.2010-2011) Agra
Income Tax Income Tax 3,93,070 CIT(Appeal) II,
Act (A.Y.2011-2012) Agra
Income Tax Income Tax 28,160 CIT(Appeal) II,
Act (A.Y.2011-2012) Agra
Central Excise Duty 15,38,544 Addl Commissioner
Excise (2007-08 to Central Excise,
2010-2011) Kanpur.
Central Excise Duty 18,88,86,000 CESAT, New Delhi
Excise (Jan 2002 to (Refer note no 29)
Feb 2006)
U.P.Trade Sales Tax 2,25,000 Hon''ble High Court,
Tax (1995-96) Allahabad
Central Sales Tax 1,60,710 Hon''ble High Court,
Sales Tax (1995-96) Allahabad
Rajasthan Sales Tax 68,452 Rajasthan Kar
Trade Tax (2000-01) Board, Ajmer
Rajasthan Sales Tax 19,659 Commissioner,
Trade Tax (2005-06) (Appeal),Bharatpur
Rajasthan Entry Tax 55,027 Commissioner,
Trade Tax (2006-07) (Appeal),Bharatpur
Rajasthan Entry Tax 15,019 Commissioner,
Trade Tax (2007-08) (Appeal),Bharatpur
Rajasthan Entry Tax 1,02,257 Commissioner,
VATAct (2008-09) (Appeal),Bharatpur
Rajasthan Entry Tax 97,366 Commissioner,
VATAct (2009-10) (Appeal),Bharatpur
Rajasthan Entry Tax 89,865 Hon''ble High
VATAct (2010-11) Court,Jaipur
Rajasthan Entry Tax 59,157 Hon''ble High
VATAct (2011-12) Court, Jaipur
U.P.VatAct Sales Tax 111,394 Dy.Commissioner,
(2009-10) Agra
U.P.VatAct Entry Tax 20,363 Dy.Commissioner,
(2008-09) Agra
ESIAct ESI (2004-05) 1,05,241 Civil Court, Agra
10. The Company has no accumulated losses at the end of the financial
year. The Company has not incurred cash losses during the financial
year covered by our Audit and in the immediately preceding financial
year.
11. According to the information and explanations given to us, we are
of the opinion that the Company has not defaulted in repayment of dues
to any bank. The Company has not borrowed any amount from any financial
institution or debenture holder.
12. According to the information and explanations given to us and based
on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures andothersecurities.
13. The provisions of clause 4(xiii) of the Companies (Auditor''s
Report) Order, 2003 are not applicable to the Company as the company is
not a chit fund ora Nidhi/mutual benefit fund/society.
14. The provisions of clause 4(xiv) of the Companies (Auditor''s
Report) Order, 2003 are not applicable to the Company as the company is
not dealing in or trading in shares, securities, debentures and
otherinvestments.
15. To the best of our information the Company has not given any
guarantee for loans taken by others from bankorfinancial institutions.
16. During the year company has raised Corporate Term Loan from Bank.
According to information and explanations given to us and the records
of the Company examined by us, the term loan taken by the Company has
been applied for the purpose for which they were raised.
17. According to the information and explanations given to us and on an
overall examination of the books of accounts of the Company, we report
that no funds raised on short-term basis have been used for long-term
investments.
18. According to the information and explanations given to us the
Company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issues during the
year.
21. According to the information and explanations given to us, during
the year no fraud on or by the Company has been noticed or reported,
during the course of our audit.
FOR DOOGAR & ASSOCIATES
Chartered Accountants
(Firm Reg NO-000561N)
Place: Agra (CA. UDIT BANSAL)
Dated: 30.05.2014 Partner
M. No.401642
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Pee Cee Cosma
Sope Ltd. ("the Company"), which comprise the Balance Sheet as at March
31,2013, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management Responsibility for the Financial Statements Management is
responsible for the preparation of these financial statements that give
a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with 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
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
b) in the case of the Profit and Loss Account, of the Profit forthe
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows forthe
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act. we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary forthe purpose of
ouraudit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
(Referred to in Paragraph 1 under the heading "Report on Other Legal
and Regulatory Requirements" of our report of even date on the accounts
of Pee Cee Cosma Sope Limited for the year ended 31 st March, 2013)
1. (a) The Company has maintained proper records to show full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a phased program of physical verification of its
fixed assets which in our opinion is reasonable, having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such physical verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern assumption.
2. (a) The inventory, except material lying with the third parties has
been physically verified by the management during the year.
(b) In our opinion and according to the information and explanations
given to us the procedures followed by the management for such physical
verification are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) In our opinion Company is maintaining proper records of inventory.
The discrepancies noticed on physical verification of inventory as
compared to book records were not material and have been properly dealt
with in the books of accounts.
3. (a) According to information and explanation given to us, the
Company has not granted any loan secured or unsecured to any party
covered in the register maintained under section 301 of the Companies
Act, 1956. Accordingly provisions of clause 4 (iii) (b) (c) (d) of the
order are not applicable to the Company
(b) According to information and explanation given to us the Company
has not taken any secured or unsecured loans, from parties covered in
the register maintained under section 301 of the companies Act, 1956
accordingly provisions of sub clause (f) to (g) of clause 3 are not
applicable to the company.
4. In our opinion and according to the information and explanations
given to us there is an adequate internal control systems commensurate
with the size of the Company and nature of its business with regard to
the purchase of inventory and fixed assets and also for the sale of
goods & services. Further on the basis of our examination of the books
of the Company, carried out in accordance with the generally accepted
auditing practices in India, we have neither come across nor have we
been informed of any instance of major weaknesses in the aforesaid
internal control systems.
5. (a) In our opinion and according to the information and
explanations given to us, the transactions made in pursuance of
contracts or arrangements that needed to be entered in the register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in to the register required to be maintained in
pursuance of section 301 of the Act and exceeding the value of Rs 5
Lacs in respect of any party during the year, have generally been made,
other than the transaction for which comparable prices are not
available at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public during
the year within the meaning of Section 58A and 58AA or any other
relevant provisions of the Companies Act 1956 and the Companies
(Acceptance of Deposits) Rules, 1975.
7. In our opinion, the Company has an internal audit system
commensurate with the size & nature of its business.
8. We have broadly reviewed the exist records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules 2011,
prescribed by the Central Government under section 209(1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have however not made
a detailed examination of the records with a view to determining
whether they are accurate or complete.
9. (a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax , Sales tax, Service tax, Custom
Duty, Excise Duty, Cess and other statutory dues have been generally
regularly deposited with the appropriate authorities during the year
and there are no undisputed statutory dues outstanding as on the date
of balance sheet for a period exceeding six months from the date they
become payable.
(b) According to the information & explanations given to us and as per
the books and records examined by us, there are no dues of Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax , Sales tax, Service tax, Custom Duty, Excise
Duty, Cess and other statutory dues which have not been deposited on
account of any dispute .except the following, along with the forum
where dispute is pending:
Name of Nature of the Amount Forum where
the Statue dues (Rs.) dispute is
Pending
M.P Land Land 14,03,603 Court of Collector,
Revenue Act, Conversion Bhind(M.P.)
1959 Charge
Income Tax Act Income Tax 59,591 ACIT, Range 4
(A.Y.2007-08) Agra
Income Tax Act Income Tax 10,22,380 Income Tax
(A.Y.2009-10) Appellate
Tribunal, Agra
Income Tax Act Income Tax 16,81,840 AICT, Range 4
(A.Y.2007-08) Agra
Income Tax Act Income Tax 20,84,290 Income Tax
(A.Y.2009-10) Appellate
Tribunal, Agra
Income Tax Act Income Tax 17,79,350 CIT (Appeal) II
(A.Y.2010-11) Agra
Income Tax Act Income Tax 26,77,310 CIT (Appeal) II
(A.Y.2010-11) Agra
Central Excise Excise Duty 15,38,544 Addl Comm.
(2007-08 to Central Excise
2010-11) Kanpur
Central Excise Excise Duty 18,88,86,000 CESAT, New
(Jan 2002 to Delhi (Refer
Feb 2006) note no.29)
Sales Tax UP. Trade 2,25,000 High Court,
Tax (1995-96) Allahabad
Sales Tax Central Sales 1,60,710 High Court,
Tax (1995-96) Allahabad
Sales Tax Rajasthan Trade 68,452 Rajasthan Kar
Tax (2000-01) Board, Ajmer
Sales Tax Rajasthan Trade 19,659 Comm. (Appeal),
Tax (2005-06) Bharatpur
Sales Tax Rajasthan Trade 55,027 Comm. (Appeal),
Tax (2006-07) Bharatpur
Sales Tax Rajasthan Trade 15,019 Comm. (Appeal),
Tax (2007-08) Bharatpur
Sales Tax Rajasthan Trade 1,02,257 Comm. (Appeal),
Tax (2008-09) Bharatpur
Sales Tax Rajasthan Trade 97,366 Comm. (Appeal),
Tax (2009-10) Bharatpur
10. The Company has no accumulated losses at the end of the financial
year. The Company has not incurred cash losses during the financial
year covered by our Audit and in the immediately preceding financial
year.
11. According to the information and explanations given to us, we are
of the opinion that the Company has not defaulted in repayment of dues
to any bank. The Company has not borrowed any amount from any
financial institution or debenture holder.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13. The provisions of clause 4(xiii) of the Companies (Auditor''s
Report) Order, 2003 are not applicable to the Company as the company is
not a chit fund or a Nidhi/mutual benefit fund/society.
14. The provisions of clause 4(xiv) of the Companies (Auditor''s
Report) Order, 2003 are not applicable to the Company as the company is
not dealing in or trading in shares, securities, debentures and other
investments.
15. To the best of our information the Company has not given any
guarantee for loans taken by others from bankorfinancial institutions
16. To the best of our information and explanation given to us, no
term loans have been raised by the company during the year.
17. According to the information and explanations given to us and on
an overall examination of the books of accounts of the Company, we
report that no funds raised on short-term basis have been used for
long-term investments.
18. According to the information and explanations given to us the
Company has made allotment of 12% Non Cumulative Compulsorily
Redeemable Preference Shares to parties covered in the register
maintained under section 301 of the Companies Act, 1956 on 15.10.2012,
in terms of Scheme of Arrangement as approved by the Hon''ble High Court
of Allahabad.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issues during the
year.
21. According to the information and explanations given to us, during
the year no fraud on or by the Company has been noticed or reported,
during the course of our audit.
FOR DOOGAR & ASSOCIATES
Chartered Accountants
Firm Reg No. 000561N
(CA. UDIT BANSAL)
Partner
M.No. 401642
Place: Agra
Dated : 29th May, 2013
Mar 31, 2010
1. We have audited the attached Balance Sheet of Pee Cee Cosma Sope
Ltd., as at 31st March, 2010, the Profit and Loss Account and also the
Cash Flow Statement 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 conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statement. 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 as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act 1956 and on the basis of such checks as we
considered appropriate and according to the information and
explanations given to us, we enclose in the Annexure hereto a statement
on the matters specified in paragraphs 4 & 5 of the said Order.
4. Furtherto our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) in our opinion, proper books of account, as required by law, have
been kept by the Company, so far as appears from our examination of
those books;
(c) the Balance Sheet, Profit and Loss account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) in our opinion, the Balance Sheet, Profit and Loss account and Cash
Flow Statement dealt with by this report, comply with the Accounting
Standards referred to in sub-section [3C] of Section 211 of the
Companies Act, 1956;
(e) 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.
5. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the
Significant Accounting Policies and notes thereon give the information
required by the Companies Act, 1956 in the manner so required and
present a true and fair view in conformity with the accounting
principles generally accepted in India:
(a) in the case of Balance Sheet, of the State of Affairs of the
Company as at 31st March 2010;
(b) in the case of Profit and Loss Account, of the Profit for the year
ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT
(Referred to in Paragraph 3 of our Report of even date on the accounts
of Pee Cee Cosma Sope Limited for the year ended 31 st March, 2010)
1. (a) The Company has maintained proper records
to showing full particulars including quantitative details and
situation of fixed assets.
(b) The Company has a phased program of physical verification of its
fixed assets which in our opinion is reasonable, having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such physical verification.
(c) During, the year Company has disposed of Land, Building and Misc
Assets of Rudrapur unit at Pantnagar, Uttranchal for a consideration of
Rs. 1150 iacs. However such disposal does not affect the going concern
assumption as all operating assets have been re-lnstalled/replaced at
their Malanpur unit.
2. (a) The inventory, except material lying with the third partios has
been physically verified by the management during the year.
(b) In our opinion and according to the information and explanations
given to us the procedures followed by the management for such physical
verification are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) In our opinion Company is maintaining proper records of inventory.
The discrepancies noticed on physical verification of inventory as
compared to book records were not material and have been properly dealt
with in the books of accounts.
3. (a) The Company has not granted any loan to a Company covered in
the register maintained under section 301 of the Companies Act, 1956.
Accordingly provisions of clause 4 (iii) (b) (c) (d) of the order are
not applicable to the Company
(b) Company has taken unsecured loan from one company covered in the
register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 72.56 Lac and the
Year end balance is Rs. NIL.
(c) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions on
which loan has been taken from a company covered in the register
maintained under section 301 of the Companies Act, 1956, prima facie
are not prejudicial to the interest of the company.
(d) There is no overdue amount of loan taken from a company covered in
the register maintained undersection 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the Company and nature of its business with regard to
the purchase of inventory and fixed assets and also for the sale of
goods & services. Further on the basis of our examination of the books
of the Company, carried out in accordance with the generally accepted
auditing practices in India, we have neither come across nor have we
been informed of any instance of major weaknesses in the aforesaid
internal control systems.
5. (a) In our opinion and according to the information and
explanations given to us, the transactions made in pursuance of
contracts or arrangements that needed to be entered in the register
maintained under section 301 of the Companies Act, 1956 have been so
entered. (b) In our opinion, and according to the information and
explanations given to us the transactions made in pursuance of
contracts or arrangements have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public during
the year within the meaning of Section 58A and 58AA or any other
relevant provisions of the Companies Act 1956 and the Companies
(Acceptance of Deposits) Rules, 1975.
7. In our opinion, the Company has an internal audit system
commensurate with the size & nature of its business.
8. The Central Government has prescribed the maintenance of cost
records under section 209(1) (d) of the Companies Act, 1956 for the
products of the Company. We have broadly reviewed the accounts and
records of the Company in this connection and are of the opinion that,
prima facie, the prescribed accounts and records have been made and
maintained. We have however, not made a detailed examination of the
same.
9. (a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax , Sales tax, Service tax, Custom
Duty, Excise Duty, Cess and other statutory dues have been generally
regularly deposited with the appropriate authorities during the year
and there are no undisputed statutory dues outstanding as on the date
of balance sheet for a period exceeding six months from the date they
become payable.
(b) According to the information & explanations given to us and as per
the books and records examined by us, there are no dues of Income Tax,
Sales tax, Excise duty, Custom duty, Wealth Tax, Service Tax and Cess
which have not been deposited on account of any dispute, except the
following, along with the forum where dispute is pending:
Name of Nature of Amount Forum where
the Statue dispute is
Pending
M.P Land Land 14,03,603.00 Court of Collector,
Revenue Act, Conversion Bhind(M.R)
1959 Charge
Service Tax Act Service Tax 294439.00 Deputy
Commissioner
Central Excise
(Gwalior)
Service Tax Act Service Tax 33192.00 Commissioner(A)
Central Excise
(Indore)
10. The Company has no accumulated losses at the end of the financial
year. The Company has not incurred cash losses during the financial
year and in the immediately preceding financial year.
11. According to the information and explanations given to us, we are
of the opinion that the Company has not defaulted in repayment of dues
to any bank. The Company has not borrowed any amount from any
financial institution or debenture holder.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13. The provisions of clause 4(xiii) of the Companies (Auditors
Report) Order, 2003 are not applicable to the Company as the company is
not a chit fund or a Nidhi/mutual benefit fund/society.
14. The provisions of clause 4(xiv) of the Companies (Auditors
Report) Order, 2003 are not applicable to the Company as the company is
not dealing in or trading in shares, securities, debentures and other
investments.
15. To the best of our information the Company has not given any
guarantee for loans taken by others from bank or financial
institutions.
16. To the best of our information, the term loans have been applied
for the purpose for which the Company has obtained them.
17. According to the information and explanations given to us and on
an overall examination of the books of accounts of the Company, we
report that no funds raised on short-term basis have been used for
long-term investments.
18. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issues during the
year.
21. According to the information and explanations given to us, during
the year no fraud on or by the Company has been noticed or reported,
during the course of our audit.
FOR DOOGAR & ASSOCIATES
Chartered Accountants
Firm Reg No. 000561N
(CA. UDIT BANSAL)
Place : Agra Partner
Dated : 31st July, 2010 M.No. 401642
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