Mar 31, 2016
To the Members of POCHIRAJU INDUSTRIES LIMITED
Report on the Financial Statements
We have audited the accompanying standalone financial statements of POCHIRAJU INDUSTRIES LIMITED (âthe Companyâ), which comprise the balance sheet as at 31 March 2016, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are Free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2016 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 (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-A a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;
d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) on the basis of the written representations received from the directors as on 31 March 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2015 from being appointed as a director in terms of Section 164 (2) of the Act; and
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. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations.
ii. The Company did not have any long-term contracts including derivative contracts
for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure-A to the Auditors'' Report
The Annexure- A referred to in our Independent Auditors'' Report to the members of the Company on the financial statements for the Year ended 31 March 20B, we report that:
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 ®has affixed assets by which fixed assets are verified in a phased manner. 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 physical verification is reasonable having regard to the size of the Company and the nature of its assets.
c. The title deeds of the immovable property are held in the name of the company.
2 The physical verification of the inventory excluding stocks tritM parties has been
conducted at reasonable intervals by the management during the year. In our opinion the frequency of the verification is reasonable.
3. The Company has not granted any loans to bodies corporate covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ).
4 The company has not given loans, made investments, guarantees and security under the provisions of Section B5 and 186 of the Companies Act, 20B.
5. The Company has not accepted any deposits from thbl ipu
6. The Central Government has not prescribed the maintenance of cost records under section 48(1) of the Act, for any of the services rendered by the Company.
7.
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, duty of excise income tax, sales tax, wealth tax, service tax, duty of custom, value added tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
b. According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, income tax, sales tax, wealth tax, service tax, duty of customs, value added tax, cess and other material statutory dues were in arrears as a 31 March 206 for a period of more than six months from the date they became payable.
c. According to the information and explanations given to us, there are no material dues of wealth tax, duty of customs and cess which have not been deposited with the appropriate authorities on account of any dispute.
8. In our opinion and according to the information and explanations given to us, the company has defaulted in repayment of dues to a bank during the year and has outstanding dues to banks.
9. The company did not raise any money by way of initial public offer or further public offer (including debt instrunfes) and terms loans during the year.
B According to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the course of our audit.
11 The company has paid/ provided managerial remuneration accordance with requisite approvals mandated by the provisions of section 197 read with schedule V to the act .
121 The company is not Nidhi Company and the Nidhi Rules, 204 not applicable to it. Accordingly the provisions of Clause 3(Xii) of order noti (apple to the company .
B. The company has entered transactions with the related parties and complied with Section 88 and 77 of Companies Act, 20B where applicable and the details have been disclosed in the Financial Statements etc as required by themairag standards.
4. According to information and explanations given to us and based on our examinations of the records of the company, the company has not preferential allotment / private placement of shares or fully or partly convertible debentures during the year .
15. The company has not entered into any much transactions with directors or persons connected with him. Accordingly the provisions of Clause 3(xv) of order not applicable to the company.
16. The company is not required to be registered update one 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE B TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF POCHIRAJU INDUSTRIES LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of POCHIRAJU INDUSTRIES LIMITED (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on âthe 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 Indiaâ. 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 my / our audit. We conducted my 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 I/we have obtained is sufficient and appropriate to provide a basis for my / our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2)provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on âthe 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 Indiaâ.
For M M REDDY & CO.,
Chartered Accountants
Firm Registration No.010371S
M. Madhusudhana Reddy
Place: Hyderabad Partner
Date : May 28th , 2016 Membership No.213077
Mar 31, 2015
We have audited the accompanying standalone financial statements of
POCHIRAJU INDUSTRIES LIMITED (Âthe Company'), which comprise the
balance sheet as at 31 March 2015, the statement of profit and loss and
the cash flow statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (Âthe Act') with respect
to the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are Free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31 March 2015 and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 (Âthe
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 the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) the balance sheet, the statement of profit and loss and the cash
flow statement dealt with by this Report are in agreement with the
books of account;
d) in our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) on the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
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 does not have any pending litigations.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the Year ended
31 March 2015, we report that:
i.
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner. 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.
ii.
a. According to the information and explanations given to us, the
management has conducted physical verification of inventories at
reasonable intervals during the year. In our opinion, the frequency of
verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventories are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventories.
As per the information and explanation given to us, no material
discrepancies were noticed on physical verification.
iii. The Company has not granted any loans to bodies corporate covered
in the register maintained under section 189 of the Companies Act, 2013
(Âthe Act').
iv. In our opinion and according to the information and explanations
given to us, the Company has an adequate internal control system
commensurate with its size and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in such internal control
system.
v. The Company has not accepted any deposits from the public.
vi. The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, for any of 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,
duty of excise income tax, sales tax, wealth tax, service tax, duty of
customs, value added tax, cess and other material statutory dues have
been regularly deposited during the year by the Company with the
appropriate authorities.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
sales tax, wealth tax, service tax, duty of customs, value added tax,
cess and other material statutory dues were in arrears as at 31 March
2015 for a period of more than six months from the date they became
payable.
c. According to the information and explanations given to us, there are
no material dues of wealth tax, duty of customs and cess which have not
been deposited with the appropriate authorities on account of any
dispute.
viii. The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
ix. In our opinion and according to the information and explanations
given to us, the company has defaulted in repayment of dues to a bank
during the year and has outstanding dues to banks.
x. In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
xi. According to the information and explanations given to us, the
company has applied the terms loans for which they were raised.
xii. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For M M REDDY & Co.,
Chartered Accountants
Firm Registration No.010371S
(M Madhusudhana Reddy)
Place: Hyderabad Partner
Date : 28.05.2015 Membership No.213077
Mar 31, 2014
We have audited the accompanying financial Statements of M/s. POCHIRAJU
INDUSTRIES LIMITED which comprise the Balance Sheet as at 31st March
2014, The statement of Profit & Loss and the cash flow Statement for
the year ended, and a summary of the significant accounting policies
and other explanatory information.
Managements Responsibility for the Financial Statements
The Companies management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position and financial performance of the company in accordance with
the accounting standards referred to in Sub-section (3C) of section 211
of the companies Act, 1956. 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 misstatements, whether
due to fraud or error.
Auditors Responsibility
We have audited the attached Balance Sheet of M/s POCHIRAJU INDUSTRIES
LIMITED, Hyderabad as at 31st March 2014, the Profit & 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
company''s management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. These standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An audit includes
examining on 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 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 said accounts read with other notes to
accounts and accounting policies give the information required by the
Companies Act 1956, in the manner so required and give a true and fair
view:-
i) In the case of Balance Sheet of the state of the affairs of the
Company as at 31st March 2014 and
ii) In the case of Statement of Profit & Loss of the Profit of the
Company for the year ended on that date.
iii) In the Cash Flow statement of the Cash Flow for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) 0rder,2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
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 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 Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 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 Section 274(1)(g) of the
Act.
Annexure to the Auditor''s Report (referred to in paragraph 3 of our
Report of even date to the Members of POCHIRAJU INDUSTRIES LIMITED for
the year ended March 31, 2014)
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 and, in our opinion, the verification is reasonable having
regard to the size of the company and the nature of its assets. There
is no discrepancies were noticed on such verification.
(c) No substantial part of fixed assets has been disposed off during
the year.
2. In respect of its inventories:
a) The Inventory of the Company has been physically verified during the
year by the management. In our opinion, the frequency of verification
is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper record of inventories. As
explained to us, there were no material discrepancies notices on
physical verification of inventories as compared to the book records.
3. As informed the Company has neither granted nor taken any loans,
secured or unsecured to and from companies, firms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956. Accordingly, clauses 4(III) (b) to (d) of the Order are not
applicable.
4. On the basis of checks carried out during the course of audit and
as per explanations given to us, we are of the opinion that there are
adequate internal control procedures commensurate with the size of the
company and the nature of its business; for the purchases of inventory
and fixed assets and for the sale of goods. During the course of our
audit, no major weakness has been noticed in the internal controls.
5. a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the transactions that need to
entered into 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, transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees five lakhs in
respect of each party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits within the
meaning of Sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. To the best our knowledge and as explained, the Central Government
has not prescribed maintenance of cost records under Section 209 (i)
(d) of the of the Companies Act, 1956 in respect of the Company''s
nature of business.
9. (a) According to the records of the company, the company is regular
in depositing undisputed statutory dues including provident fund,
employees'' state insurance, Income Tax, Wealth Tax, Customs Duty,
Excise duty, cess and other material statutory dues applicable at the
end of the year 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 income tax, wealth tax, sales tax, customs duty and excise duty,
which have not been deposited on account of any dispute. There were no
dues on account of cess under 441A of the Companies Act 1956, since the
date from which the aforesaid section comes into force has not yet been
notified by the Central Government.
10. The company does not have the accumulated losses as at the end of
the financial year and it has not incurred any cash losses during the
current financial year covered by our audit and the immediately
preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company did not have any outstanding dues to financial Institutions,
Banks or Debenture holders.
12. According to the information and expiations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
14. The company is not in the business of dealing or trading in
shares, securities, debenture and other instruments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
15. The company has not given any guarantee for loans taken by others
from banks or financial institutions.
16. The company has taken term loans from the banks and the same have
been applied for the purpose for which they were raised.
17. On the basis of an overall examination of the balance sheet of the
company, in our opinion and according to the information and
explanations given to us, we report that funds raised on short- term
basis have not been used for long-term investment..
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. During the year covered by our audit report, the Company does not
have any outstanding debentures during the year.
20. During the year the company has not raised money through the
Public Issue, the utilization of funds does not arise.
21. 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 M M REDDY & CO.,
Chartered Accountants
Firm Reg. No. 010371S
Place: Hyderabad (M. Madhusudhana Reddy)
Date: 24th May, 2014 Partner
Membership No.213077
Mar 31, 2013
Report on the Financial Statements:
We have audited the accompanying financial statements of M/s POCHIRAJU
INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet
as at March 31, 2013, and the Statement of Profit and Loss for the
year then ended, and a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements:
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and
financial performance 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; and
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order
to the extent applicable to the company.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account;
d. in our opinion, the Balance Sheet, and Statement of Profit and Loss
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.
Annexure to the Auditors'' Report (referred to in paragraph 3 of our
Report of even date to the Members of POCHIRAJU INDUSTRIES LIMITEDfor
the year ended March 31, 2013)
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 and,
in our opinion, the verification is reasonable having regard to the
size of the company and the nature of its assets. There is no
discrepancies were noticed on such verification.
(c) No substantial part of fixed assets has been disposed off during
the year.
2. As explained to us, inventories have been physically verified by
the management at reasonable intervals.
In our opinion and according to the information and explanations given
to us, the procedure for physical verification of Inventories followed
by the management is reasonable and adequate in relation to the size of
the company and the nature of its business .As explained to us, no
material discrepancies have been noticed on physical verification of
inventories as compared to book records.
3. In our opinion and according to the information and explanations
given to us, the company has not granted or not taken any loans secured
or unsecured to or from companies, firms or other parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
4. 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 with
regard to the sale of goods.
5. (a) 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 there are no transactions that need to be entered into
the register maintained U/s. 301.
(b) Where each of such transaction is in excess of Rs 5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
(c) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits within the
meaning of Sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public.
6. In our opinion, the company has an internal audit system
commensurate with the size and nature if its business.
7. The Central Government has not prescribed the maintenance of
records in pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956.
8. According to the records of the company, there are no dues to
statutory authorities.
a) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty and excise duty were outstanding, as at 31.03.2013
for a period of more than six months from the date they became payable
except in some cases.
b) According to the records of the company, the company has been
regular in depositing with appropriate authorities undisputed statutory
dues including, Income-Tax, Sales-Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty and other statutory dues.
9. The Company neither has accumulated losses nor has it incurred any
cash losses during the current financial year and in the immediately
preceding financial year.
10. In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of dues to
banks and financial institutions.
11. Based on our examination of documents and records, we are of the
opinion that the company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
12. Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transaction and contracts and timely
entries have been made in those records. We also report that the
company has not held any shares, securities, debentures and other
securities in its own name.
13. In our opinion, the Company is not a chit or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
14. The company is not in the business of dealing or trading in
shares, securities, debenture and other instruments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
15. The company has not given any guarantee for loans taken by others
from banks or financial institutions.
16. The term loans and working capital loans obtained from the banks
have been applied for the purpose for which they were taken.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet and Cash Flow statement,
the funds raised on short term basis have not been used for long term
purposes.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. During the period covered by our audit report, the company does
not have any outstanding debentures during the year.
20. During the year the company has not raised any money through the
public issue.
21. 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.
Date: 14/08/2013 For M M REDDY& CO.
Place: Hyderabad Chartered Accountants
Firm Reg. No. 010371S
(M.Madhusudhana Reddy)
Partner
Membership No.213077
Mar 31, 2012
We have audited the attached Balance Sheet of M/s POCHIRAJU INDUSTRIES
LIMITED ("the Company"), as at 31st March, 2012 and also the Profit
and Loss Account and Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. These Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the companies (Auditor's Report) Order, 2003(CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act,1956, we enclose in the Annexure hereto a Statement on
the matters specified in paragraphs 4 and 5 of the said order, to the
extent applicable to the Company.
2. Further to our comments in the Annexure referred to in paragraph
(1) above, we state 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 & Loss Account and Cash Flow Statement
referred to in 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, complies with the Accounting
Standards referred to in Section 211 (3C) of Companies Act, 1956;
e) On the basis of written representations received from the directors
as on 27th August, 2012 and taken on record by the Board of Directors,
none of the directors of the Company are disqualified as on 31st March,
2012 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts together with the notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India;
(i) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2012
(ii) In the case of the Profit and Loss Account, of the Profit, of the
Company for the year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the Cash Flow for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT
With reference to the annexure referred to in Para No. 3 of the
Auditor's Report to the members of M/s POCHIRAJU INDUSTRIES LIMITED
("the Company") on the financial statement for the year ended as on
31st March, 2012 we report that:
In respect of its fixed assets:
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, all the fixed assets have been physical verified
by the management in a phased periodical manner, which in our opinion
is reasonable, having regards to the size of the company and the nature
of its assets. No material discrepancies were noticed on such physical
verification.
c) As per information and explanations given to us, during the year,
the company has not disposed off any substantial part of fixed assets
that would affect the going concern.
2) In respect of its inventories:
a) As explained to us, inventories have been physically verified by the
management at reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedure for physical verification of Inventories
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
c) As explained to us, no material discrepancies have been noticed on
physical verification of inventories as compared to book records.
3) The company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
Register maintained under section 301 of the Companies Act,1956. During
the year from the parties mentioned above.
4) According to the information and explanations given to us, there are
adequate internal control procedures commensurate with the size of the
company and nature of its business for the purchase of inventory and
fixed assets, sales of goods and services, we have not observed any
major weakness in such internal control system.
5) (a) According to information and explanations given to us, we are of
the opinion that the transactions, if any, 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) Where each of such transaction is in excess of Rs 5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
(c) According to the information and explanations given to us, the
company has not accepted any deposits from the public during the year.
6) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
7) The Central Government has not prescribed maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956 in respect
of activities carried on by the company. Hence the provisions of clause
4 (viii) of the companies (Auditor's Report) order, 2003 are not
applicable to the company.
8) (a) According to the records of the company, the company has been
regular in depositing with appropriate authorities undisputed statutory
dues including, Income-Tax, Sales-Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty and other statutory dues.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of such statutory dues were
outstanding as at 31st March, 2012 for a period of more than six months
from the date they became payable.
9) The Company neither has accumulated losses nor has it incurred any
cash losses during the current financial year and in the immediately
preceding financial year.
10) In our opinion and according to the information and explanation
given to us , the company has not defaulted in repayment of dues to
banks and financial institutions.
11) In our opinion, the company is not a chit fund, a nidhi or a mutual
benefit society. Therefore, the provisions of clause 4 (xiii) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
12) Term loans obtained by the company were applied for the purpose for
which the loans were obtained, other than temporary deployment pending
application.
13) According to Cash Flow Statement and other records examined by us
and the information and explanation given to us, on an overall basis,
funds raised on short term basis have not, prima facie, been used
during the year been used for long term investment.
14) According to the information and explanation given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments.
15) During the year the Company has not made any preferential allotment
of equity shares to a Company, covered in the register maintained under
section 301 of the Companies Act, 1956, at price which is prejudicial
to the interest of the Company.
16) The Company has not issued any debentures during the year ending on
31.03.2012.
17) The company has not raised any money by public issues during the
year.
18) 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
was noticed or reported during the year.
For M M REDDY & CO.,
Chartered Accountants
Firm Registration Number : 010371S
Place: Hyderabad Sd/-
Date: 27-08-2012 M. MADHUSUDHANA REDDY
Partner
Membership No. 213077
Mar 31, 2010
We have audited the attached Balance Sheet of M/s POCHIRAJU INDUSTRIES
LIMITED ("the Com- pany"), as at 31st March, 2010 and also the Profit
and Loss Account and 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.
We conducted our audit in accordance with auditing standards generally
accepted in India. These Stan- dards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the companies (Auditors Report) Order, 2003(CARO)
issued by the Central Gov- ernment in terms of Section 227(4A) of the
Companies Act,1956, we enclose in the Annexure hereto a Statement on
the matters specified in paragraphs 4 and 5 of the said order, to the
extent applicable to the Company.
2. Further to our comments in the Annexure referred to in paragraph
(1) above, we state 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 & Loss Account and Cash Flow Statement
referred to in 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, complies with the Accounting
Standards referred to in Section 211 (3C) of 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,
none of the directors of the Company are disqualified as on 31st March,
2010 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts together with the notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India;
(i) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2010
(ii) In the case of the Profit and Loss Account, of the Profit, of the
Company for the year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the Cash Flow for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT
With reference to the annexure referred to in Para No. 3 of the
Auditors Report to the members of M/s POCHIRAJU INDUSTRIES LIMITED
(Ãthe CompanyÃ) on the financial statement for the year ended as on
31st March, 2010 we report that: In respect of its fixed assets:
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, all the fixed assets have been physical verified
by the management in a phased periodical manner, which in our opinion
is reasonable, having regards to the size of the company and the nature
of its assets. No material discrepancies were noticed on such physical
verification.
c) As per information and explanations given to us, during the year,
the company has not disposed off any substantial part of fixed assets
that would affect the going concern.
2) In respect of its inventories:
a) As explained to us, inventories have been physically verified by the
management at reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedure for physical verification of Inventories
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
c) As explained to us, no material discrepancies have been noticed on
physical verification of inventories as compared to book records.
3) The company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
Register maintained under section 301 of the Companies Act,1956. During
the year from the parties mentioned above.
4) According to the information and explanations given to us, there are
adequate internal control procedures commensurate with the size of the
company and nature of its business for the purchase of inventory and
fixed assets, sales of goods and services, we have not observed any
major weakness in such internal control system.
5) (a) According to information and explanations given to us, we are of
the opinion that the transactions, if any, 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) Where each of such transaction is in excess of Rs 5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
(c) According to the information and explanations given to us, the
company has not accepted any deposits from the public during the year.
6) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
7) The Central Government has not prescribed maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956 in respect
of activities carried on by the company. Hence the provisions of clause
4 (viii) of the companies (Auditors Report) order, 2003 are not
applicable to the company.
8) (a) According to the records of the company, the company has been
regular in depositing with appropriate authorities undisputed statutory
dues including, Income-Tax, Sales-Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty and other statutory dues. (b) According to the
information and explanations given to us, no undisputed amounts payable
in respect of such statutory dues were outstanding as at 31st March,
2010 for a period of more than six months from the date they became
payable.
9) The Company neither has accumulated losses nor has it incurred any
cash losses during the current financial year and in the immediately
preceding financial year.
10) In our opinion and according to the information and explanation
given to us , the company has not defaulted in repayment of dues to
banks and financial institutions.
11) In our opinion, the company is not a chit fund, a nidhi or a mutual
benefit society. Therefore, the provisions of clause 4 (xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
12) Term loans obtained by the company were applied for the purpose for
which the loans were obtained, other than temporary deployment pending
application.
13) According to Cash Flow Statement and other records examined by us
and the information and explanation given to us, on an overall basis,
funds raised on short term basis have not, prima facie, been used
during the year been used for long term investment.
14) According to the information and explanation given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments.
15) During the year the Company has not made any preferential allotment
of equity shares to a Company, covered in the register maintained under
section 301 of the Companies Act, 1956, at price which is prejudicial
to the interest of the Company.
16) The Company has not issued any debentures during the year ending on
31.03.2010.
17) The company has not raised any money by public issues during the
year.
18) 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
was noticed or reported during the year.
For B. RAMA RAO & CO,
Chartered Accountants
Place: Hyderabad Sd/-
Date: 24-08-2010 G V RANGA BABU
Partner
Membership No. 202432
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