Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Polson Limited (âthe Companyâ), which comprise the balance sheet as at 31 March 2018, the statement of profit and loss, the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation 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 Rules 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone 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 in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India,
a. In the case of Balance Sheet, of the state of affairs of the Company as at March 31, 2018.
b. In the case of Statement of Profit and Loss, of the Profit of the Company for the year ended on that date.
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. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the Order, 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 purpose of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far, 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 Rules thereunder.
e) On the basis of written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements. Refer Separate Annexure of this report
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.
(Referred to in paragraph 1 under the heading âReport on Other Legal and Regulatory Requirementsâ of our report of even date)
1. (a) According to information and explanations given to us, the Company has not maintained proper records of fixed assets.
(b) According to information and explanations given to us, the fixed assets have been physically verified by the management at reasonable intervals. As informed to us, no material discrepancies have been noticed by the management on such verification during the year.
(c) According to information and explanations given to us, title deeds of immovable properties are held in the name of the Company. However we were unable to verify the title deeds of immovable properties held by the Company during the course of our Audit, as the Company has not maintained the Fixed Asset Register.
2. According to information and explanations given to us, the inventory has been physically verified by the management at regular intervals during the year. Few discrepancies were noticed on physical verification of inventory as compared to book records and the same has been properly dealt with in the books of accounts.
3. According to the information and explanations given to us, company has not granted any loans, secured or unsecured, to Companies, Firms , Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, this point is not applicable to the Company.
With exception to above there are few transactions with the parties as covered u/s 189 of the act to meet the temporary business exigencies, but the amount has been squared up at the end of the financial year.
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 granted, investments made, guarantees and security given.
5. According to the information and explanations given to us, the Company has not accepted any deposits within the meaning of Sections 73 and 74 or any other relevant provisions of the Act and the rules framed thereunder during the year.
6. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended and prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
7. (a) According to the information and explanation given to us, the Company has been generally regular in depositing the undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, goods and service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues as applicable to the appropriate authorities. No undisputed amounts payable in respect of aforesaid statutory dues were outstanding as on the last day of the financial 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 dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax which have not been deposited on account of any dispute, except as under:
Name of the statute |
Nature of Dues |
Amount (Rs.) |
Period to which it relates |
Forum where dispute is pending |
VIEW OF COMPANY |
Income Tax Act, 1961 |
Tax deducted at source |
8,99,620/- |
A.Y 201819 and earlier years. |
Traces Website. |
The Company is of the view that the said demand may or may not be payable as there might be errors occurred while filing TDS Returns. The Company is in the process of revising the old TDS returns and the demand which is required to be paid will be paid immediately after revision of the said returns. |
Income Tax Act, 1961 |
Income Tax |
6,806 |
A.Y. 201314 |
As per Income Tax Website. |
The said demand will be paid in FY 2018-19. |
8. According to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to the banks or to debenture holders.
9. According to the information and explanations given to us, the Company has not raised moneys by way of initial public offer or further public offer (including debt instruments). The term loans have been applied for the purposes for which such loans are raised.
10. According to the information and explanation given to us, we have neither come across any instances of fraud by the Company or any fraud on the Company by its officers or employees have been noticed or reported during the year, nor have we been informed of any such cases by the management.
11. According to the information and explanations given to us, the Company has paid or provided managerial remuneration as per provisions of Section 197 read with Schedule V of the Act during the year.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, the provisions of clause 3(xii) of the Order are not applicable to the Company.
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, the Company has not made any preferential allotment / private placement of shares or debentures during the year under review.
15. According to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him during the year.
16. In our opining and according to the information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of lndia Act, 1934.
(Referred to in paragraph 2(f) under the heading âReport on Other Legal and Regulatory Requirementsâ of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Polson Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on, the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by The Institute of Chartered Accountants of India (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 Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 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 R G B & Associates
Chartered Accountants
Firm Reg. No.: 144967W
(Bharat R. Kriplani)
Partner
Membership No. 134969
Place: Mumbai
Dated: 30th May 2018.
Mar 31, 2016
Independent Auditors'' Report To the Members of POLSON LIMITED Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of POLSON Limited (''the Company''), 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 Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134 (5) of the Companies Act, 2013 ("the Act") with respect to the preparation 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. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 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, 2016 (''the Order''), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure B; and
(g) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
a. the Company does not have any pending litigations which would impact its financial positions;
b. the Company does not have any long term contracts including derivative contracts for which there were any material foreseeable losses; and
c. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure A to the Independent Auditors'' Report - 31 March 2016
With reference to the Annexure A referred to in the Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended 31 March 2016, we report the following:
(i) (a) The Company has not maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The fixed asset has been physically verified by management at regular intervals and no material discrepancy noticed at such verification.
(c) As the Company has not maintained the Fixed Asset Register, we are unable to get the list of all immovable properties held by the Company and its Title Deeds. According to the information and explanation given to us by the management, all the title deeds of immovable properties are held in the name of the Company.
(ii) The inventory of stores, spare parts, raw materials and finished goods has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. No discrepancies were noticed on verification between the physical stocks and the book records.
(iii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured , to Companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, paragraph 3 (iii) of the Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) The Company has not accepted any deposits 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 products of 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, Income-tax, Sales-tax, Service tax, Duty of Customs, Excise Duty, value added tax, cess and other material statutory dues have been generally deposited during the year by the Company with the appropriate authorities. As explained to us, employee''s state insurance is not applicable to the Company.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident fund, Income-tax, Sales tax, Service tax, Duty of Customs, cessand other material statutory dues were in arrears as at 31 March 2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of Income tax, Sales tax, Value added tax, Service tax, and Duty of Customs which have not been deposited with the appropriate authorities on account of any dispute.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans and borrowings to its banks and financial institutions. The Company did not have any loans or borrowings from government or dues to debenture holders during the year.
(ix) In our opinion and according to the information and explanations give to us, the Company has utilized the money raised by way of term loans during the year for the purpose for which they were raised. The Company has not raised any money by way of initial public offer or further public offer (including debt instruments).
(x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) In our opinion and according to the information and explanations given to us, the managerial remuneration has been paid/provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) In our opinion and according to the information and explanations given to us, transactions with the related parties are in compliance with the provisions of Sections 177 and 188 of the Act where applicable and the details of such related party transactions have been disclosed in the stand alone financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company.
(xvi) In our opinion and according to the information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.
Annexure B to the Independent Auditors'' Report Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Act")
We have audited the internal financial controls over financial reporting of POLSON Limited ("the Company") as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' 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 "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, 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 auditor''s 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 Company''s 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 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For A.S.Madon and Co.
Chartered Accountants
ICAI Registration No: 105725W
Jay M.Shah
Mumbai Partner
Date: 30th May, 2016. Membership No. 048417
Mar 31, 2015
We have audited the accompanying standalone financial statements of
POLSON LIMITED ("the Company"), which comprise of 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 Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation 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 qualified audit opinion on the
standalone financial statements.
Basis for qualified opinion
Pursuant to the Companies Act, 2013 being effective from 1 April 2014,
the Company has revised the method of calculating depreciation as per
management estimated life of block of assets on SLM .Details of Fixed
assets ,itemwise including cost,useful life etc, are not available with
the company. Consequently, depreciation charge for the period from 1
April 2014 to 31 March 2015 is Rs.216 lakhs due to above changes
wherein the opening carrying value as at 1 April 2014 is depreciated
over the remaining useful life. However, in the absence of maintenance
of fixed assets register by the Company, we are unable to obtain
sufficient appropriate audit evidence to corroborate the basis and
assumptions used by management in respect of determination of life over
of the assets. Accordingly we are unable to determine whether any
adjustments to these amounts were necessary.
The company has not made appointment of key managerial personnel i.e
Chief financial officer as per section 203 of the Companies Act, 2013.
The company has also not made appointment of Internal auditor as per
section 138 of the Companies Act, 2013.
Qualified opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph above, 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 ("the
Order") issued by the Central Government of India in terms of sub
section (11) 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 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
purpose of our audit;
b) Except for the effects of the matter described in the Basis for
Qualified opinion paragraph above, 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 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;
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 which would
impact its financial positions.
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 TO THE INDEPENDENT AUDITORS' REPORT OF POLSON LIMITED
The Annexure referred to in our Independent Auditors' Report of even
date to the members of the Company on the financial statements for the
year ended 31 March 2015:
1. (a) The Company has not maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In accordance with this programme, a
portion of the fixed assets has been physically verified by the
management during the year and discrepancies noticed on such
verification which were not material and the same have been properly
dealt with in the books of account.
2. (a) As explained to us, the inventory of stores, spare parts, raw
materials and finished goods have been physically verified by the
management at reasonable intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventories
followed by the management are generally reasonable and adequate in
relation to the size of the Company and the nature of its business
(c) The Company is maintaining proper records of inventory. According
to the information and explanations given to us, the discrepancies
noticed on verification between the physical inventory and book record
were not material and the same have been properly dealt with by the
Company in the books of account.
3. According to information and explanations given to us, the Company
has granted loan to company covered in the register maintained under
Section 189 of the Act. The company has given loan to a wholly owned
subsidiary, Dudhwala Builders Pvt.Ltd., the maximum amount outstanding
of the said loan at any time during the year was Rs.28.41 crores and
the year end balance also amounted to Rs.28.41 crores.
(a) In the case of the aforementioned loan. the borrowers have been
regular in the payment of the interest as stipulated. The terms of
arrangements do not stipulate any repayment schedule accordingly,
paragraph 3(iii)(a) of the Order is not applicable to the Company in
respect of repayment of the principal.
(b) There are no overdue amounts of more than rupees one lakh in
respect of the loans granted to the company listed in the register
maintained under section 189 of the Act.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased of special nature and suitable alternative sources are not
readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchase of
inventories and fixed assets and sale of goods . During the course of
our audit,we have not obsereved any major weakness in such internal
control system.
5. The Company has not accepted any deposits from public.
6. According to the information and explanation given to us, the
Central Government has not prescribed the maintenance of cost records
under Section sub-section (1) of section 148 of the Companies Act,for
the products of the company.
7. (a) According to the information and explanation given to us, and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of accounts in respect of undisputed
statutory dues including provident fund, employees' state insurance,
income tax, sales tax, service tax, custom duty, excise duty, value
added tax, cess and other material statutory dues have been generally
deposited during the year by the company with the appropriate
authorities.
According to the information and explanations given to us,no undisputed
amounts payable payable in respect of Provident fund, Employees' State
Insurance, Income-tax, Sales tax, Wealth tax, Service tax, Duty of
Customs 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.
(b) According to the information and explanations given to us, there
are no dues of income tax, sales tax, service tax, customs duty, wealth
tax, excise duty, value added tax and cess, which have not been
deposited on account of any dispute as at 31 March 2015.
(c) According to the information and explanations given to us, there
are no amount that are due to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder.
8. The Company does not have accumulated losses at the end of the
financial year and has incurred cash losses during the financial year
and in the immediately preceding financial year.
9. Based on audit procedures and according to the information and
explanations given to us, the Company has not defaulted in repayment of
dues to banks. The Company does not have any borrowings from financial
institutions or by way of debentures.
10. According to the information and explanations given to us, and in
our opinion, the Company has not given guarantees for loans taken by
others from banks or financial institutions, the terms and conditions
whereof, are prima-facie, not prejudicial to the interest of the
Company.
11. In our opinion and according to the information and explanations
given to us, the term loans obtained by the Company have been applied
for the purpose for which such loans were obtained.
12. According to the information and explanations given to us, no
instance of fraud on or by the Company has been noticed or reported
during the course of our audit.
For A.S.MADON & CO.
Chartered Accountants
ICAI Registration No.: 105725W
(Jay M. Shah)
Partner
Membership No. 048417
Place : Mumbai
Date: May 30, 2015
Mar 31, 2014
We have audited the accompanying financial statements of POLSON LIMITED
("the Company"), which comprise the Balance Sheet as at March 31, 2014,
the Statement of Profit and Loss and the Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 (the Act), read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
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 basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) In the case of the Statement of Profit and Loss, of the profit/ loss
for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("theOrder") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books ofaccount.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
notified under 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.
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
Annexure to Independent Auditor''s Report
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date to the members
of POLSON LIMITED on the financial statements for the year ended 31st
March, 2014.
i. (a) The Company has not maintained proper records showing full
particulars, including quantitative details and situation of the
fixed assets.
(b) The Company has a program for phased physical verification of all
its fixed assets over a period of three years, which, in our opinion,
is reasonable having regard to the size of the Company and nature of
its assets. Accordingly, certain fixed assets have been physically
verified by the management during the year and discrepancies noticed on
such verification, which were not material, have been properly dealt
with in the books of account.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
ii. (a) As explained to us, the inventories were physically verified
during the year by the Management at reasonable
intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were 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 has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iii. (a) The Company has taken/granted loans, secured or unsecured,
from companies, firms or other parties listed in
the Register maintained under Section 301 of the Companies Act, 1956.
The Company has given interest free loan to a subsidiary, Dudhwala
Builders Pvt. Ltd. In respect of the said loan, the maximum amount
outstanding at any time during the year was Rs.19.91 crore and the
year-end balance is Rs.15.82 crore.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie, prejudicial to the interest of the
company.
(c)There is no agreement for the repayment of the loan but the interest
amount is paid properly.
(d) As there is no commitment for the repayment of loan, hence in our
opinion there is no overdue amount of loans taken from companies, firms
or other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, having regard to the explanations
that some of the items purchased are of special nature and suitable
alternative sources are not readily available for obtaining comparable
quotations, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
v. According to the information and explanations given to us, we are
of the opinion that the particulars of contracts
or arrangements referred to in Section 301 that needed to be entered in
the Register maintained under the said Section have been so entered. In
our opinion and according to the information and explanations given to
us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees Five Lacs have been entered
during the year at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within
the meaning of Sections 58A and 58AA or any other relevant provisions
of the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules,1975 .
vii. In our opinion, the Company does not have an adequate internal
audit system commensurate with the size and the nature of its business.
viii. According to the information and explanations given to us, the
notification under section 209 (i)(d) of the Companies Act, 1956 is not
applicable
ix. (a) According to the records of the company, the company is
regular in depositing undisputed statutory dues including provident
fund, investor education and protection fund, employees state insurance,
income tax, sales tax, wealth tax, customs duty, excise duty, cess and
other statutory dues with appropriate authorities.
(b) According to the information and explanation given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Sales
Tax, Custom Duty, Excise Duty and Cess were outstanding as at 31st
March, 2014 for the period of more than six months from the date they
became payable.
(c) According to the information and explanation given to us, there are
no dues of Income Tax, Sales Tax, Service Tax, Custom Duty & Excise
Duty which have not been deposited on account of any dispute.
x. The Company does not have accumulated losses as at 31st March, 2014
and has not incurred cash losses during the financial year ended on
that
date and in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks,
financial institutions and debenture holders.
xii. In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore provisions of Clause 4(xiii) of the
said Order are not applicable to the Company.
xiv. In our opinion the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of paragraph 4(xiv) of the Order are not applicable to the
Company.
xv. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions, the terms and conditions, whereof,
in our opinion are prejudicial to the interests of the Company.
xvi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
xvii. In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short term basis have not been used during
the year for long term investments.
xviii. According to the information and explanations given to us, 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.
xix. According to the information and explanations given to us, the
Company has not issued any debentures.
xx. The Company has not raised any money by public issue during the
year.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
Significant fraud on or by the Company, noticed or reported during the
year nor have we been informed of such case by the management.
(ii)Terms/rights attached to equity shares:
The Company is having only one class of equity shares having par value
of Rs. 50/ - each. Each holder of equity share is entitled to one vote
per share.
During the year ended March, 31, 2014, the amount of per share dividend
recognized as distribution to equity shareholders was Rs NIL (March 31,
2013 : Rs. NIL)
In the event of liquidation of the company, the holde rs o f the equity
shares will be entitled to receive remaining assets of the Company,
after the distribution of all preferential amounts. The distribution
will be in proportion to the number of equity shares held by
shareholders.
(ii)Long term borrowings from banks towards cash credit are secured by
hypothecation of stocks and book debts and by first pari passu charge
on the fixed asset of the company and equitable mortgage of land at
Kolhapur and Andheri. The Company continues to avail non-fund based
limits and the charge continues.
NOTE - 26.1 Additional information to the financial statement for the
year ended 31st MARCH 2014Contingent liabilities and commitments (to
the extent not provided for
* The Company has filed two suits against Modipon Ltd., for unlawful
termination of agreement for a sum aggregating to Rs.3,26,60,748/-. The
said Company has made counter claim for Rs.4,76,30,582.68. The case is
pending before the Court.
For A. S. MADON & CO.
CHARTERED ACCOUNTANTS
(Registration No. 105725W)
Sd/-
JAY M. SHAH
PARTNER
Membership No. 048417
Place: Mumbai
Date: 24.05.2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of POLSON LIMITED
("the Company"), which comprise the Balance Sheet as at March 31, 2013,
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
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 Interne! 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 menagement, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained Is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fairview in conformity with the accounting principles
generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
b) In the case of the Statement of Profit and Loss, of the profit/ loss
for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("theOrder") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (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 441 Aof 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.
Annexure to Independent Auditor''s Report
Referred to in Paragraph 1 under the heading of Report on Other Legal
and Regulatory Requirements" of our report of even date to the members
of POLSON LIMITED on the financial statements for the year ended 31"
March, 2013.
i. (a) The Company has not maintained proper records showing full
particulars, including quantitative details and situation of the fixed
assets.
(b) The Company has a program for phased physical verification of all
its fixed assets over a period of three years, which, in our opinion,
is reasonable having regard to the size of the Company and nature of
its assets. Accordingly, certain fixed assets have been physically
verified by the management during the year and discrepancies noticed on
such verification, which were not material, have been properly dealt
with in the books of account.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
ii. (a) As explained to us, the inventories were physically verified
during the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were 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 has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iii. (a) The Company has taken/granted loans, secured or unsecured,
from companies, firms or other parties listed in the Register
maintained under Section 301 of the Companies Act, 1956. The Company
has given interest free loan to a subsidiary, Dudhwala Builders Pvt.
Ltd. In respect of the said loan, the maximum amount outstanding at any
time during the year was Rs. 18.37 crore and the year-end balance is
Rs. 18.38 crore.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie, prejudicial to the interest of the
company.
(c) There is no agreement for the repayment of the loan but the
interest amount is paid properly.
(d) As there is no commitment for the repayment of loan, hence in our
opinion there is no overdue amount of loans taken from companies, firms
or other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
v. According to the information and explanations given to us, we are of
the opinion that the particulars of contracts or arrangements referred
to in Section 301 that needed to be entered in the Register maintained
under the said Section have been so entered. In our opinion and
according to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements
exceeding value of Rupees Five Lacs have been entered during the year
at prices which are reasonable having regard to the prevailing market
prices at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975.
vii. In our opinion, the Company does not have an adequate internal
audit system commensurate with the size and the nature of its business.
viii. According to the information and explanations given to us, the
notification under section 209 (i)(d) of the Companies Act, 1956 is not
applicable to the company.
ix. (a) According to the records of the company, the company is regular
in depositing undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income tax, sales tax, wealth tax, customs duty, excise duty, cess and
other statutory dues with appropriate authorities.
(b) According to the information and explanation given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Sales
Tax, Custom Duty, Excise Duty and Cess were outstanding as at 31 st
March, 2013 for the period of more than six months from the date they
became payable.
(c) According to the information and explanation given to us, there are
no dues of Income Tax, Sales Tax, Service Tax, Customs Duty & Excise
Duty which have not been deposited on account of any dispute.
x. The Company does not have accumulated losses as at 31s'' March, 2013
and has not incurred cash losses during the financial year ended on
that date and in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks, financial institutions and debenture holders.
xii In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore provisions of Clause 4(xiii) of the
said Order are not applicable to the Company.
xiv. In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of paragraph 4(xiv) of the Order are not applicable to the
Company.
xv. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions, the terms and conditions, whereof, in
our opinion are prejudicial to the interests of the Company.
xvi. in our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes forwhich
they were obtained.
xvii. In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short term basis have not been used during
the year for long term investments.
xviii. According to the information and explanations given to us, 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.
xix. According to the information and explanations given to us, the
Company has not issued any debentures.
xx. The Company has not raised any money by public issue during the
year.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
significant fraud on or by the Company, noticed or reported during the
year nor have we been informed of such case by the management.
For A.S. MADON & CO.
CHARTERED ACCOUNTANTS
(Registration No. 105725W)
JAY M. SHAH
PARTNER
Membership No. 048417
Place: Mumbai
Date: 21" June 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of POLSON LIMITED ("the
Company") as at 31st March, 2012, the Statement of Profit and Loss
Account and Cash Flow statement for the Financial Year Ended on that
date, annexed thereto. These financial statements are responsibility of
the Company's Management. Our responsibility is to express opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with our accounting standard
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An Audit
includes examining, on a test basis, evidence supporting the amount and
disclosure in the financial statements. An audit 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 of
our opinion.
3. As required by the Companies' (Auditor's Report) Order, 2003 (CARO)
issued by the Central Government of India in terms of section 227(4A)
of the Companies' Act, 1956, we enclose in the annexure, a statement on
the matters specified in paragraph 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
a. We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of Accounts as required by Law have
been kept by the Company so far as appear from our examination of the
books;
c. the Balance Sheet, the Statement of Profit and Loss Account and
Cash Flow Statement dealt with this report are in agreement with the
Books of Accounts;
d. In our opinion, the Balance Sheet, Profit & 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 representation received from the Directors,
as on 31st March, 2012 and taken on record by the Board of Directors, we
report that none of the Director is disqualified as on 3 Ist 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.
5. In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon/attached thereto and the schedule of the
significant Accounting policies given in the prescribed manner the
information required by the Act and give 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 on 31 March, 2012;
b. in the case of the Statement 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 flow for the year
ended on that date.
ANNEXURE TO AUDITORS' REPORT
Referred to in paragraph 3 of the Auditors' Report of even date to the
members of POLSON LIMITED on the financial statements for the year
ended March 31, 2012.
i. (a) The Company has not maintained proper records showing full
particulars, including quantitative details and situation of the fixed
assets.
(b) The Company has a program for phased physical verification of all
its fixed assets over a period of three years, which, in our opinion,
is reasonable having regard to the size of the Company and nature of
its assets. Accordingly, certain fixed assets have been physically
verified by the management during the year and discrepancies noticed on
such verification, which were not material, have been properly dealt
with in the books of account.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
ii. (a) As explained to us, the inventories were physically verified
during the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were 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 has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iii. (a) The Company has taken/granted loans, secured or unsecured,
from companies, firms or other parties listed in the Register
maintained under Section 301 of the Companies Act, 1956.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie, prejudicial to the interest of the
company.
(c) There is no agreement for the repayment of the loan but the
interest amount is paid properly.
(d) As there is no commitment for the repayment of loan, hence in our
opinion there is no overdue amount of loans taken from companies, firms
or other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system. ...
v. According to the information and explanations given to us, we are of
the opinion that the particulars of contracts or arrangements referred
to in Section 301 that needed to be entered in the Register maintained
under the said Section have been so entered.In our opinion and
according to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements
exceeding value of Rupees Five Lacs have been entered during the year
at prices which are reasonable having regard to the prevailing market
prices at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 .
vii. In our opinion, the Company does not have an adequate internal
audit system commensurate with the size and the nature of its business.
viii. According to the information and explanations given to us, the
notification under section 209 (i)(d) of the Companies Act, 1956 is not
applicable to the company.
ix. (a) According to the records of the company, the company is regular
in depositing undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income tax, sales tax, wealth tax, customs duty, excise duty, cess and
other statutory dues with appropriate authorities.
(b) According to the information and explanation given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Sales
Tax, Custom Duty, Excise Duty and Cess were outstanding as at 31st
March, 2012 for the period of more than six months from the date they
became payable.
(c) According to the information and explanation given to us, there are
no dues of Income Tax, Sales Tax, Service Tax, Customs Duty & Excise
Duty which have not been deposited on account of any dispute.
x. The Company does not have accumulated losses as at 31st March, 2012
and has not incurred cash losses during the financial year ended on
that date and in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks, financial institutions and debenture holders.
xii. In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore provisions of Clause 4(xiii) of the
said Order are not applicable to the Company.
xiv. In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of paragraph 4(xiv) of the Order are not applicable to the
Company.
xv. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions the terms and conditions, whereof, in
our opinion are prejudicial to the interests of the Company.
xvi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
xvii. In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short term basis have not been used during
the year for long term investments.
xviii. According to the information and explanations given to us, 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.
xix. According to the information and explanations given to us, the
Company has not issued any debentures.
xx. The Company has not raised any money by public issue during the
year.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
significant fraud on or by the Company, noticed or reported during the
year nor have we been informed of such case by the management.
For A. S. MADON & CO.
CHARTERED ACCOUNTANTS
(Registration No. 105725W)
JAY M. SHAH
PARTNER
(Membership No. 048417)
Place: MUMBAI
Date: 14 August, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of POLSON LIMITED as at
31st March, 2011 and also the Profit & Loss Account and Cash Flow
statement for the Financial Year Ended on that date, annexed thereto.
These financial statements are responsibility of the Company's
Management. Our responsibility is to express opinion on these financial
statements based on our audit.
2. We conducted our audit in accordance with our accounting standard
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An Audit
includes examining, on a test basis, evidence supporting the amount and
disclosure in the financial statements. An audit includes assessing the
accounting principles used and significant estimates made by the
Management, as well as evaluating the overall financial statement
presentation.
3. As required by the Companies' (Auditor's Report) Order, 2003,
issued by the Central Government of India in terms of section 227(4A)
of the Companies Act, 1956, we enclose in the annexure, a statement on
the matters specified in paragraph 4 & 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that
i. We have obtained all the information and explanation which to the
best of our know belief were necessary for the purpose of our
audit;
ii. In our opinion, proper books of Accounts as required by Law have
been kept by the Company so far as appear from our examination of the
books;
iii. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with this report are in agreement with the Books of Accounts;.
iv. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this Report comply with the accounting
standards - - referred to in sub-section (3c) of section 211 of the
Companies' Act, 1956;
v. On the basis' of written representation received from the Directors,
as on 31st Director in terms of clause (g) of sub-section (1) of section
274 of the Companies' Act, 1956;
vi. in our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon/attached thereto and the schedule of the
significant Accounting policies given in the prescribed manner the
information required by the Act and give 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 on 31st March, 2011;
(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 flow for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITOR'S REPORT TO THE
MEMBERS OF POLSON LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH
,2011.
(i) (a) The company, for Fixed Assets, has not maintained proper
records showing full particulars including quantitative details and
situation of fixed assets. (b) A substantial portion of the fxed
assets has been physically verified by the management during the year.
According to the information and explanation given to us no material
discrepancies were noticed on such verification.
(ii) (a) As explained to us , the inventories were physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedure of physical verification of inventories
followed by the relation to the size of the
c) The company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventories as
compared to the book record were not material.
(iii) (a) The Company has taken loans from Companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
(b) In our opinion, the rate of interest and other terms and conditions
on which pigmy facie, prejudicial to the interest of the company.
(c) There is no agreement for the repayment of the loan but the
interest amount
(d) As Para here rope no y. commitment for the repayment of loan, hence
in our opinion there is no overdue amount of loans taken from
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(iv) ' In our opinion and according to the information and explanation
given to us, there are adequate internal control procedure commensurate
with the size of the company and the nature of the business for the
purchase of inventory, fixed asset and sale of goods. Further, on the
basis of our examination of the books and records of the company and
according to the information and explanation given to us ,we have
neither come across nor have been informed of any continuing failure to
correct major weakness in the aforesaid internal control, procedures.
(v) There were transactions that need to be entered into the Register
in pursuance " of section 301 of the Companies Act, 1956 and have been
appropriately - recorded.
(vi) The company has not accepted deposit from the public within the
meaning of Section 53A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules ,1975
(vii) The Company has an internal audit system which, in our opinion is
by Central Government under section (209) ( i ) (d) of the Companies
Act 1956 is not applicable to the company.
(ix) (a) According to the records of the company, the company is
regular in depositing undisputed statutory dues including provident
fund, investor education and protection fund, employees state
insurance, income tax, sales tax, wealth tax, customs duty, excise
duty, cess and other statutory dues with appropriate authorities.
b) - According to the information and explanation given to us, no
undisputed amount payable in respect of Income Tax , wealth Tax, Sales
Tax. Custom Duty, Excise Duty and Cess were outstanding as at 31st
March, 2011 for the Income Tax, Sales Tax, Service Tax, Customs Duty &
Excise Duty which. have not been deposited on account of any dispute.
(x) The company has no accumulated losses and has not incurred cash
losses in the current financial year and in the immediately preceding
financial year.
(xi) According to the records of the company examined by us and
the information and explanation given to us, the company has not
defaulted in repayment of dues to any bank or debenture holders as at
the Balance Sheet date. The Company has not taken loan or credit
facility from any financial institution (except commercial Bank).
(xii) The company has not granted any loans or advances on the basis of
the security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the company is not a chit fund, Nidhi or mutual
benefit fund /societies. Therefore the provision of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause
(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable
to the Company.
(xv) In our opinion and according to the information and explanation
given to us , no guarantee has been given by the Company for loans
taken by others from banks and financial institutions.
(xvi) In our opinion, the term foan1 has been applied for the purpose
for which they were raised.
(xvii) According to the information and explanation given to us , and
on an overall examination of the. Balance Sheet of the company., funds
raised on short term basis have, prima facie, not been "used during
the" year for Long term investment and vice versa.
(xviii) The company has not made any preferential allotment of shares
to parties and companies found in the register maintained under section
301 of the companies Act, 1956 during the year.
(xix) According to the information and explanation given to us and the
records examined by us, no debentures have been issued by the Company.
(xx) The company has not raised any money by way of public issue during
the- year.
(xxi) - On the basis of our examination and according to the
information and explanation given to us, no fraud on or by the company,
has been noticed or reported during the year.
Mumbai, For A .S.MADON& Co
30.08.2011 (Chartered Accountants)
Jay.M.Shah
Partner
Membership No. 48417
Mar 31, 2010
1. We have audited the attached Balance Sheet of POLSON LIMITED as at
31st March, 2010 and also the Profit & Loss Account and Cash Flow
statement for the Financial Year Ended on that date, annexed thereto.
These financial statements are responsibility of the Companys
Management. Our responsibility is to express opinion on these financial
statements based on our audit.
2. We conducted our audit in accordance with our accounting standard
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An Audit
includes examining, on a test basis, evidence supporting the amount and
disclosure in the financial statements. An audit includes assessing the
accounting principles used and significant estimates made by the
Management, as well as evaluating the overall financial statement
presentation.
3. As required by the Companies (Auditors Report) Order, 2003,
issued by the Central Government of India in terms of section 227(4A)
of the Companies Act, 1956, we enclose in the annexure, a statement on
the matters specified in paragraph 4 & 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
i. We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii. In our opinion, proper books of Accounts as required by Law have
been kept by the Company so far as appear from our examination of the
books;
iii. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with this report are in agreement with the Books of Accounts;
iv. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this Report comply with the accounting
standards referred to in sub-section (3c) of section 211 of the
Companies Act, 1956;
v. On the basis of written representation received from the Directors,
as on 31st March, 2010 and taken on record by the Board of Directors,
we report that none of the Director is disqualified as on 31st March
2009 from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon/attached thereto and the schedule of the
significant Accounting policies given in the prescribed manner the
information required by the Act and give 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 on 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 flow for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS REPORT TO THE MEMBERS
OF POLSON LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH ,2010.
(i) (a) The company, for Fixed Assets, has not maintained proper
records showing full particulars including quantitative details and
situation of fixed assets.
(b) A substantial portion of the fixed assets has been physically
verified by the management during the year. According to the
information and explanation given to us no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanation
given to us, the company has not made any substantial disposals during
the year.
(ii) (a) As explained to us , the inventories were physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedure 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 the business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventories as
compared to the book record were not material.
(iii) (a) The Company has taken loans from Companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie, prejudicial to the interest of the
company.
(c) There is no agreement for the repayment of the loan but the
interest amount is paid properly.
(d) As there is no commitment for the repayment of loan, hence in our
opinion there is no overdue amount of loans taken from companies, firms
or other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedure commensurate
with the size of the company and the nature of the business for the
purchase of inventory, fixed asset and sale of goods. Further, on the
basis of our examination of the books and records of the company, and
according to the information and explanation given to us ,we have
neither come across nor have been informed of any continuing failure to
correct major weakness in the aforesaid internal control procedures.
(v) There were transactions that need to be entered into the Register
in pursuance of section 301 of the Companies Act, 1956 and have been
appropriately recorded.
(vi) The company has not accepted deposit from the public within the
meaning of Section 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules ,1975.
(vii) The Company has an internal audit system which, in our opinion is
commensurate with its size and nature of the business. (viii)
According to the information and explanation given to us, the
notification issued by Central Government under section (209) (i) (d)
of the Companies Act 1956 is not applicable to the company. (ix) (a)
According to the records of the company, the company is regular in
depositing undisputed statutory dues including provident fund, investor
education and protection fund, employees state insurance, income tax,
sales tax, wealth tax, customs duty, excise duty, cess and other
statutory dues with appropriate authorities.
(b) According to the information and explanation given to us, no
undisputed amount payable in respect of Income Tax , wealth Tax, Sales
Tax, Custom Duty, Excise Duty and Cess were outstanding as at 31st
March, 2010 for the period of more than six months from the date they
became payable.
(c) According to the information and explanation given to us, there are
no dues of Income Tax, Sales Tax, Service Tax, Customs Duty & Excise
Duty which have not been deposited on account of any dispute. (x) The
company has no accumulated losses and has not incurred cash losses in
the current financial year and in the immediately preceding financial
year.
(xi) According to the records of the company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to any bank or debenture holders as at the Balance
Sheet date. The Company has not taken loan or credit facility from any
financial institution (except commercial Bank).
(xii) The company has not granted any loans or advances on the basis of
the security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the company is not a chit fund, Nidhi or mutual
benefit fund /societies. Therefore, the provision of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
(xv) In our opinion and according to the information and explanation
given to us , no guarantee has been given by the Company for loans
taken by others from banks and financial institutions.
(xvi) In our opinion, the term loan has been applied for the purpose
for which they were raised.
(xvii) According to the information and explanation given to us , and
on an overall examination of the Balance Sheet of the company , funds
raised on short term basis have, prima facie, not been used during the
year for Long term investment and vice versa.
(xviii) The company has not made any preferential allotment of shares
to parties and companies found in the register maintained under section
301 of the companies Act, 1956 during the year.
(xix) According to the information and explanation given to us and the
records examined by us, no debentures have been issued by the Company.
(xx) The company has not raised any money by way of public issue during
the year.
(xxi) On the basis of our examination and according to the information
and explanation given to us, no fraud on or by the company, has been
noticed or reported during the year.
For A.S.Madon & co
Chartered Accountants
Mumbai,
30.08.2010 Jay.M.Shah
Partner
Membership No. 48417