Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying standalone Ind AS Financial Statements of Pondy Oxides & Chemicals Limited (âthe Companyâ) which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including other comprehensive income), the Statement of changes in equity and the Statement of Cash Flows for the year then ended and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS Financial Statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with the Companies (Indian Accounting Standard) Rules, 2015, as amended.
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; design, implementation and maintenance of adequate internal financial controls, that are operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements, that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2018, its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by section 143(3) of the Act, we further 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 as appears from our examination of those books;
c) the Balance Sheet, Statement of Profit and Loss (including other comprehensive income), Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account;
d) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015 as amended;
e) On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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 Aâ; and
g) With respect to other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial position
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
Annexure - A to the Independent Auditorsâ Report
(Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report to the members of Pondy Oxides & Chemicals Limited 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 PONDY OXIDES AND CHEMICALS LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. 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 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 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 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 March 31, 2018, based on 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.
Annexure - B to the Independent Auditorâs Report
Statement of matters specified in Para 3 & 4 of the order referred to in sub-section (11) of 143.
The annexure referred to in Para 2 under the heading of âReport on other Legal and Regulatory Requirementsâ of our report to the members of PONDY OXIDES & CHEMICALS LIMITED of even date
1. In respect of companyâs fixed assets:
a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) As per the information and explanation given to us, all the fixed assets have been physically verified by the Company at reasonable intervals and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of land, are held in the name of the Company as at the balance sheet date. Immovable properties of freehold land disclosed as fixed assets in the financial statement whose title deeds have been pledged as security for loans, are held in the name of the Company. In respect of immovable properties of land that have been taken on lease and disclosed as fixed asset in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement.
2. The inventories have been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable and adequate in relation to the size of the company and nature of its business. No material discrepancies were noticed on physical verification of inventories as compared to the book records.
3. During the year, the company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013. Accordingly, Clause 3 (iii) of the Order is not applicable to the Company.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
5. The Company has not accepted any deposits during the year and does not have any unclaimed deposits as at March 31, 2018 and therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company.
6. We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules prescribed by the Central Government for the maintenance of cost records under sub Section (1) of section 148 of the Companies Act, 2013 and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have however not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
7. According to the information and explanations given to us, in respect of statutory dues:
a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Goods and Service Tax, Value Added Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.
b) There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Goods and Service Tax, Value Added Tax, Customs Duty, Excise Duty, Cess and other material statutory dues were in arrears as at 31st March, 2018 for a period of more than six months from the date they became payable.
8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks and financial institutions. The Company has not taken any loan or borrowing from government and has not issued any debentures during the year under audit.
9. The company has not raised any money by way of initial public offer or further public offer (including debt instruments) or term loans and hence, reporting under Clause 3 (ix) of the Order is not applicable to the Company.
10. To the best of our knowledge and according to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid or provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12. The Company is not a Nidhi Company and hence, reporting under Clause 3 paragraph 3(xii) of the Order is 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, all transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and the details of such transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
14. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year and hence, reporting under Clause 3 (xiv) of the Order is not applicable to the Company.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with its directors or persons connected to its directors. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. According to the information and explanation 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.
For L Mukundan and Associates
Chartered Accountants
Firm Registration No: 010283S
Place : Chennai L Mukundan
Date : 24.05.2018 Partner
M No. 204372
Mar 31, 2016
To the Members of
Pondy Oxides and Chemicals Limited
Report on the Financial Statements:
We have audited the accompanying standalone financial statements of PONDY OXIDES AND CHEMICALS LIMITED (âthe companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the 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 and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility:
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 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 true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose expressing an opinion on whether the Company has in place an adequate internal financial control 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 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, of the state of affairs of the Company as at 31st March, 2016 and its profit and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements:
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 the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of 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 31st March, 2016, from being appointed as a director in terms of Section 164(2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rule, 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 litigation which would impact its financial position.
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the investor Education and Protection Fund by the Company.
Annexure - A to the Independent Auditorâs Report
The annexure referred to in Para 1 under the heading of âReport on other Legal and Regulatory
Requirementsâ of our report to the members of the Company for the year ended 31st March, 2016.
1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has physically verified the fixed assets at reasonable intervals and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
2. The inventories have physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable and adequate in relation to the size of the company and nature of its business. No materials discrepancies were noticed on physical verification of inventories as compared to the book records.
3. (a) During the year, the company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013.
(b) In view of our comment in paragraph (a) above, Clause III of the aforesaid order are not applicable to the company.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
5. The company has accepted Deposits from Directors and other Corporate. In our opinion and according to information and explanations given to us, all the directives issued by the Reserve Bank of India and provisions of Section 73 to 76 or any other relevant provisions of the Companies Act 2013, and the rules framed there under where applicable were complied with. Further, we are informed by the management that no order has been passed by the Company Law Board or National Company Law Tribunal or RBI or any court or any Other Tribunal on the Company.
6. We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules prescribed by the Central Government for the maintenance of cost records under sub Section (1) of section 148 of the Companies Act, 2013 and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have however not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
7. (a) According to the information and explanation given to us and on the basis of our examination of the records of the company, amount deducted/accrued in the books of accounts in respect of undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Value Added Tax, Excise Duty, Cess and other material statutory dues applicable have been regularly deposited with the appropriate authorities.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty and Excise Duty, Value Added Tax, Cess and other material statutory dues were in arrears as at 31st March, 2016 for a period of more than six months from the date they became payable.
(c) According to the information and explanation given to us, the dues of Income Tax, Sales Tax, Custom Duty, Wealth Tax, Service Tax, Excise Duty and Cess which have not been deposited on account of dispute are as follows:
S. No |
Name of the Statute |
Nature of Dues |
Amount Rs. in Lacs |
Period to which the amount relates |
Forum where dispute is pending |
1 |
The Income Tax Act, 1961 |
Direct Tax |
7.01 |
AY2009-2010 |
Commissioner of Income Tax (Appeals) |
8. In our opinion and according to the information and explanation given to us, the Company has not defaulted in the repayment of dues to banks. The company has not taken any loans either from financial institutions or from the Government and has not issued any debentures.
9. The Company raised loans from banks during the year and were applied for the purpose for which these were raised. The company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year.
10. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid or provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the Company, all transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and the details of such transactions have been disclosed in the Financial Statements as required by the applicable accounting standards.
14. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. According to the information and explanation 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.
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 PONDY OXIDES AND CHEMICALS LIMITED (âthe Companyâ) as of 31st March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the 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 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 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 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 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 JEERAVLA & Co.,
Chartered Accountants
FR No.001323S
SOHAN C J PARMAR
Place : Chennai Proprietor
Date : 26th May, 2016. Membership No.: 022321
Mar 31, 2015
We have audited the accompanying financial statements of PONDY OXIDES
AND CHEMICALS LIMITED ("the company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, and the
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements:
The Company's Board of Directors is responsible for the matters
stated in section 134(5) of the Companies Act, 2013 ("the Act")
with respect to the preparation and presentation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding 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 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 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 true and
fair view in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose expressing an opinion on
whether the Company has in place an adequate internal financial control
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 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 financial
statements.
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, of the state of affairs of the Company as
at 31st March, 2015 and its profit and its cash flows for the year
ended on that date.
Report on other Legal and Regulatory Requirements:
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) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid 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; and
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rule, 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 litigation which would impact
its financial position.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the investor Education and Protection Fund by the
Company.
Annexure to the Independent Auditor's Report
The annexure referred to in Para 1 under the heading of "Report on
other Legal and Regulatory Requirements" of our report to the members
of the Company for the year ended 31st March, 2015.
1) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The assets have been physically verified by the management at the
end of financial year, which in our opinion is reasonable having regard
to the size of the Company and the nature of its fixed assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
2) (a) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to us, there were no materials discrepancies noticed on
physical verification of inventories as compared to the book records.
3) (a) During the year, the company has not granted any loans, secured
or unsecured, to companies, firms or other parties covered in the
Register maintained under Section 189 of the Companies Act, 2013.
(b) In view of our comment in paragraph (a) above, Clause III of the
aforesaid order are not applicable to the company.
4) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5) The company has accepted Deposits from Directors and Inter
Corporate. In our opinion and according to information and explanations
given to us, all the directives issued by the Reserve Bank of India and
provisions of Section 73 to 76 or any other relevant provisions of the
Companies Act 2013, and the rules framed there under where applicable
were complied with. Further, we are informed by the management that no
order has been passed by the Company Law Board or National Company Law
Tribunal or RBI or any court or any Other Tribunal on the Company.
6) We have broadly reviewed the cost records maintained by the Company
specified 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 accounts and 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 and on
the basis of our examination of the records of the company, amount
deducted/accrued in the books of accounts in respect of undisputed
statutory dues including Provident Fund, Employees' State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Value
Added Tax, Excise Duty, Cess and other material statutory dues
applicable have been regularly deposited with the appropriate
authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax,
Service Tax, Sales Tax, Customs Duty and Excise Duty, Value Added Tax,
Cess and other material statutory dues were in arrears as at 31st
March, 2015 for a period of more than six months from the date they
became payable.
(c) According to the information and explanation given to us, the dues
of Income Tax, Sales Tax, Custom Duty, Wealth Tax, Service Tax, Excise
Duty and Cess which have not been deposited on account of dispute are
as follows:
S.
No Name of the Statute Nature of Dues Amount Period to
Rs. in Lakhs which the
amount relates
1 The Income Tax Act, Direct Tax 7.01 AY 2009-2010
1961
Name of the Statue Forum where
dispute is pending
The Income Tax Act, Commissioner of Income
1961 Tax (Appeals)
(d) According to the information and explanation given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under has been
transferred to such fund within the time.
8) The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
9) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and banks.
The Company does not have any borrowings by way of debentures.
10) According to the information & explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
11) The company has raised new term loan during the year. The term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purpose for which they were raised.
12) In our Opinion and according to the information and explanations
given to us, no material fraud on or by the Company has been noticed or
reported during the year.
for JEERAVLA & Co.,
Chartered Accountants
FRNo.001323S
SOHAN C J PARMAR
Place : Chennai Proprietor
Date : 27th May, 2015. Membership No.: 022321
Mar 31, 2014
We have audited the accompanying financial statements of Pondy Oxides
and Chemicals Limited ("the Company"), which comprise the Balance
sheet as at 31.03.2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''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 principles generally accepted in India including
Accounting Standards referred to in sub-section (3C) of the section 211
of the Companies Act, 1956 ("the Act").This responsibility includes
the design, implementation and maintence of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment
of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India.
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date ; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies ( Auditor''s Report ) Order , 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matter 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 is 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 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 the agreement with the
books of accounts.
(d) In our opinion, the Balance sheet, Statement of Profit and Loss,
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
(e) On the basis of written representations received from the directors
as on March 31,2014, 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 Companies Act, 1956.
(f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO AUDITORS'' REPORT DATED May 30, 2014
The annexure referred to in the Auditors'' Report to the Members of
Pondy Oxides and Chemicals Limited ("the Company") for the year ended
31st March 2014
1) In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
(b) The assets have been physically verified by the management at the
end of financial year, which in our opinion is reasonable having regard
to the size of the Company and the nature of its fixed assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, no
substantial part of fixed assets has been disposed off during the year
and the going concern status of the Company is not affected.
2) In respect of its Inventories:
(a) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to us, there were no materials discrepancies noticed on
physical verification of inventories as compared to the book records.
3) In respect of the loans, secured or unsecured , granted or taken by
the company to/from companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956:
(a) The Company has given loans to its Subsidiary. In respect of the
said loan, the maximum amount outstanding at any time during the year
was Rs 3.93 Cr and the year-end balance is Rs 1.61 Cr.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the company, are not prima facie prejudicial to the
interest of the company.
(c) The principal amount is repayable on demand.
(d) In respect of the said loans and interest thereon, there are no
overdue amounts.
(e) The Company has taken loans during the year from companies, firms
or other parties covered in the Register maintained under Section 301
of the Companies Act, 1956. The maximum outstanding at any time during
the year was Rs 9.56 Cr and the year-end balance is Rs 3.60 Cr..
(f) In our opinion, the rate of interest and other terms and conditions
of the said loan are not prima facie prejudicial to the interest of the
company.
(g) The interest payments, wherever applicable, have been regularly
paid by the company.
4) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchases of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5) In respect of the contract or arrangement referred to in Section 301
of the Companies Act, 1956:
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the Register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs.5,00,000 in
respect of each party during the year have been made at prices which
appear reasonable as per information available with the Company.
6) The company has accepted Fixed Deposits from Directors & their
relatives/friends. In our opinion and according to information and
explanations given to us, all the directives issued by the Reserve Bank
Of India and provisions of Section 58A and 58AA or any other relevant
provisions of the Companies Act 1956, and rules framed there under
where applicable were complied with. Further, we are informed by the
management that no order has been passed by the Companies Law Board or
National Company Law Tribunal or RBI or any Other Tribunal on the
Company.
7) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
8) We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have however, not made
a detailed examination of the cost records with a view to determine
whether they are accurate or complete.
9) In respect of Statutory dues:
(a) Undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty,
Cess and other material statutory dues applicable have generally been
regularly deposited with the appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax,
Service Tax, Sales Tax, Customs Duty and Excise Duty and Cess were
outstanding as at 31st March, 2014 for a period of more than six months
from the date they became payable.
(c) The disputed statutory dues aggregating Rs 7.01 Lakhs that have not
been deposited on account of dispute pending before appropriate
authorities are as under:
Name of the Nature of Amount Period to which
Statute Dues Rs. in Lakhs the amount relates
The Income Direct Tax 7.01 AY 2009-2010
Tax Act, 1961
Name of the Statute Forum where dispute is pending
The Income Statute Commissioner of Income Tax (Appeals)
10) The company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
11) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and banks.
The Company does not have any borrowings by way of debentures.
12) In our opinion and according to the information and explanations
given to us and based on the information available, no loans and
advances have been granted by the Company on the basis of security by
way of pledge of shares, debentures and other securities. Hence
paragraph 4(xii) of the CARO, 2003 is not applicable to this Company.
13) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to
the Company.
14) In our opinion, and as per the information and explanations given
to us, the Company has not dealt or traded in shares, securities,
debentures and other investments. In respect of the Long term
investments made in the equity shares of another company, proper
records have been maintained and timely entries have been made therein
and the shares have been held by the Company in its own name.
15) According to the information & explanations given to us, the
Company has given guarantee for loans taken from banks by its
subsidiary; the terms and conditions whereof in our opinion are not
prima facie prejudicial to the interest of the Company.
16) The company has raised new term loan during the year. The term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purpose for which they were raised.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, we are of the
opinion that no funds raised on short term basis that have been used
for long term investments.
18) The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
19) The Company has not issued any debentures during the year
20) The Company has not raised any money by public issue during the
year.
21) In our Opinion and according to the information and explanations
given to us, no material fraud on or by the Company has been noticed or
reported during the year.
For JEERAVLA & CO.,
Chartered Accountants
(Firm Registration No.001323S)
SOHAN C J PARMAR
Chennai Proprietor
Date: May 28, 2014 Membership No.: 022321
Mar 31, 2013
Report on the Financial Statements:
We have audited the accompanying financial statements of Pondy Oxides
and Chemicals Limited ("the Company"), which comprise the Balance sheet
as at 31.03.2013, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''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 principles generally accepted in India including
Accounting Standards referred to in sub-section (3C) of the section 211
of the Companies Act, 1956 ("the Act").This responsibility includes the
design, implementation and maintence of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India.
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) In the case of the Profit and Loss Account, of the profit 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 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matter 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 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 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 the agreement with the
books of accounts.
(d) In our opinion, the Balance sheet, Statement of Profit and Loss,
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
(e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
(f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO AUDITORS'' REPORT DATED May 30, 2013
The annexure referred to in the Auditors'' Report to the Members of
Pondy Oxides and Chemicals Limited ("the Company") for the year ended
31st March 2013
1) In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
(b) The assets have been physically verified by the management at the
end of financial year, which in our opinion is reasonable having regard
to the size of the Company and the nature of its fixed assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, no
substantial part of fixed assets has been disposed off during the year
and the going concern status of the Company is not affected.
2) In respect of its Inventories:
(a) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to us, there were no materials discrepancies noticed on
physical verification of inventories as compared to the book records.
3) In respect of the loans, secured or unsecured , granted or taken by
the company to/from companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956:
(a) The Company has given loans to its Subsidiary. In respect of the
said loan, the maximum amount outstanding at any time during the year
was Rs 4.13 Cr and the year-end balance is Rs.2.59 Cr.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the company, are not prima facie prejudicial to the
interest of the company.
(c) The principal amount is repayable on demand.
(d) In respect of the said loans and interest thereon, there are no
overdue amounts.
(e) The Company has taken loans during the year from companies, firms
or other parties covered in the Register maintained under Section 301
of the Companies Act, 1956. The year-end balance is Rs 7.63 Cr
(including interest on loan of Rs.0.95 Cr) and the maximum outstanding
at any time during the year was Rs 11.15 Cr.
(f) In our opinion, the rate of interest and other terms and conditions
of the said loan are not prima facie prejudicial to the interest of the
company.
(g) The interest payments, wherever applicable, have been regularly
paid by the company.
4) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchases of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5) In respect of the contract or arrangement referred to in Section 301
of the Companies Act, 1956:
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the Register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs.5,00,000 in
respect of each party during the year have been made at prices which
appear reasonable as per information available with the Company.
6) The company has accepted Fixed Deposits from Directors & their
relatives/friends. In our opinion and according to information and
explanations given to us, all the directives issued by the Reserve Bank
Of India and provisions of Section 58A and 58AA or any other relevant
provisions of the Companies Act 1956, and rules framed there under
where applicable were complied with. Further, we are informed by the
management that no order has been passed by the Companies Law Board or
National Company Law Tribunal or RBI or any Other Tribunal on the
Company.
7) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
8) We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have however, not made
a detailed examination of the cost records with a view to determine
whether they are accurate or complete.
9) In respect of Statutory dues:
(a) Undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund (IEPF), Employees'' State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess and other material statutory dues applicable have generally
been regularly deposited with the appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax,
Service Tax, Sales Tax, Customs Duty and Excise Duty and Cess were
outstanding as at 31st March, 2013 for a period of more than six months
from the date they became payable.
(c) The disputed statutory dues aggregating Rs 7.01 Lakhs that have not
been deposited on account of dispute pending before appropriate
authorities are as under:
S.
No Name of the Statute Nature of Dues Amount in
Rs Lakhs
1 The Income Tax Act, Direct Tax 7.01
1961
Name Period to Forum where
which the dispute is pending
amount
relates
The Income Tax Act, AY 2009-2010 Commissioner of Income
Tax (Appeals)
10) The company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceeding
financial year.
11) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and banks.
The Company does not have any borrowings by way of debentures.
12) In our opinion and according to the information and explanations
given to us and based on the information available, no loans and
advances have been granted by the Company on the basis of security by
way of pledge of shares, debentures and other securities. Hence
paragraph 4(xii) of the CARO, 2003 is not applicable to this Company.
13) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
14) In our opinion, and as per the information and explanations given
to us, the Company has not dealt or traded in shares, securities,
debentures and other investments. In respect of the Long term
investments made in the equity shares of another company, proper
records have been maintained and timely entries have been made therein
and the shares have been held by the Company in its own name.
15) According to the information & explanations given to us, the
Company has given guarantee for loans taken from banks by its
subsidiary; the terms and conditions whereof in our opinion are not
prima facie prejudicial to the interest of the Company.
16) The company has raised new term loan during the year. The term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purpose for which they were raised.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, we are of the
opinion that no funds raised on short term basis that have been used
for long term investments.
18) The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
19) The Company has not issued any debentures during the year
20) The Company has not raised any money by public issue during the
year.
21) In our Opinion and according to the information and explanations
given to us, no material fraud on or by the Company has been noticed or
reported during the year.
For JEERAVLA & CO
Chartered Accountants
(Firm Registration No.001323S)
SOHAN C J PARMAR
Chennai Proprietor
Date: May 30, 2013 Membership No.: 22321
Mar 31, 2012
1. We have audited the attached Balance Sheet of Pondy Oxides and
Chemicals Limited as at 31st March 2012, the relative Statement of
Profit and Loss and the Cash Flow Statement for the year ended on that
date and signed by us under reference to this report. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956 we enclose in the Annexure a
statement on matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply in all
material respects with the applicable Accounting Standards issued by
the Institute of Chartered Accountants of India referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956;
(v) On the basis of written representations received from the
Directors, and taken on record by the Board of Directors, we report
that none of the Director is prima facie disqualified as on March 31,
2012 from being appointed as a Director in terms of clause (g) of
sub-section (1)of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, ' the aforesaid financial statements read
with the statement on significant accounting policies and notes on
financial statements give the information required by the Companies
Act, 1956, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of the affairs of the
Company as at March 31, 2012;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR AUDIT REPORT OF EVEN DATE TO
THE MEMBERS OF PONDY OXIDES AND CHEMICALS LIMITED ON THE FINANCIAL
STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2012.
1) (i) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(ii) The fixed assets are being physically verified under a phased
programme of verification by the management, which in our opinion is
reasonable having regard to the size of the Company and the nature of
its assets. According to the information and explanations given to us,
no material discrepancies were noticed on such verification.
(iii) According to the information and explanations given to us, no
substantial part of fixed assets has been disposed off during the year.
2) (i) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(ii) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(iii) The Company has maintained proper records of inventory. As
explained to us, there were no materials discrepancies noticed on
physical verification of inventories as compared to the book records.
3) (a) In respect of the loans, secured or unsecured, granted by the
company to companies, firms or other parties covered in the Register
maintained under Section 301 of the Companies Act, 1956, according to
the information and explanations given to us:
(i) The Company has granted unsecured loans to its subsidiary. The
maximum amount involved during the year was Rs. 2.11 Cr and the
year-end balance of the loan granted to such Company is Rs.0.90 Cr.
(ii) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interests of
the Company.
(iii) The principal amount is repayable on demand.
(iv) The loan and the interest due thereon are not due for repayment as
per the terms of the agreement.
(v) There are no overdue amounts outstanding as at the Balance Sheet
date.
(b) The Company has taken the unsecured loans from 21 parties covered
in the register maintained under Section 301 of the Companies Act, 1956,
the maximum amount outstanding during the year was Rs.12.71 Cr and the
year- end balance of loan taken from such parties was Rs. 7.34 Cr.
(i) In our opinion, the rate of interest and other terms and conditions
of the said loans are not prima facie, prejudicial to the interest of
the Company.
(ii) The interest payments, wherever applicable, have been regularly
paid by the Company.
4) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5) In respect of the contract or arrangement referred to in Section 301
of the Companies Act, 1956:
(i) In cur opinion and according to the information and explanations
given to us, we are of the opinion that the particulars of the
contracts or arrangements that need to be entered in the register
maintained under Section 301 of the Companies Act, 1956 have been so
entered.
(ii) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts and
arrangements entered in the register maintained under sec 301 of the
Companies Act 1956 exceeding the value of Rs.5,00,000 in respect of
each party during the year, have been made at prices, which are prima
facie reasonable, having regard to prevailing market prices at the
relevant time.
6) In our opinion and according to information and explanations given
to us, all the directives issued by the Reserve Bank of India and
provisions of Section 58A and 58AA or any other relevant provisions of
the Companies Act 1956, and rules framed there under where applicable
were complied with. Further, we are informed by the management that no
order has been passed by the Company Law Board or National Company' Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal for
non-compliance with the provisions of Section 58Aand 58AAofthe
Companies Act, 1956.
7) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
8) On the basis of the records produced, we are of the opinion that
prima facie, the cost records and accounts prescribed by the Government
of India under Section 209(1) (d) of the Companies Act, 1956 have been
made and maintained by the Company.
9) (i) According to the information and explanation given to us and
records of the Company examined by us, in our opinion, the Company
is generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other material statutory dues as
applicable with the appropriate authorities.
(ii) According to the information and explanations given to us, there
were no undisputed amounts payable in respect of Provident Fund,
Investor Education and Protection Fund, Employees' State Insurance,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues outstanding as at 31st March, 2012 for a
period of more than six months from the date they became payable.
(iii) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of Income Tax as
at 31st March 2012 which have not been deposited on account of dispute
is as under:
S.No Name of the
Statute Nature of Amount Period to Forum where dispute
is pending
disputed Rs. in which the
dues Lakhs amount
relates
1 The Income
Tax Act, Direct Tax 7.01 AY 2009-
2010 Commissioner of
Income Tax(Appeals)
1961
10) The company has no accumulated losses as at March 31, 2012 and has
not incurred cash losses during the financial year covered by our audit
or in the immediately preceding financial year.
11) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to financial institution and bank. The Company
does not have any borrowings by way of debentures.
12) According to the information and explanations given to us and based
on the documents and records produced before us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company.
14) According to the information furnished to us, the Company is not
dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the requirements of clause (xiv) of paragraph
4 of the Order are not applicable.
15) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken from banks by its subsidiary from banks and
financial institutions are not prima-facie prejudicial to the interest
of the Company.
16) In our opinion and according to the information and explanations
given to us, the term loans availed by the Company were, prima facie,
applied by the Company during the year for which the loans were
obtained.
17) According to the information and explanations 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 for long term
investments or other investments during the year under report.
18) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956 during the year.
19) The Company has not issued any debentures during the year. Hence
the clause (xix) of paragraph 4 of the Order is not applicable.
20) The Company has not raised any money by public issue during the
year. Accordingly the provisions of clause (xx) of paragraph 4.of the
Order are not applicable to the Company during the year under report.
21) 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 instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by management.
For Jeeravla & Co.,
Chartered Accountants
Firm Reg No. 001323S
Sohan C.J.Parmar
Place : Chennai Proprietor
Date : 27th July 2012 Membership No:22321
Mar 31, 2011
1. We have audited the attached Balance Sheet of Pondy Oxides and
Chemicals Limited as at 31st March 2011, the relative Profit and Loss
account and the Cash Flow Statement for the year ended on that date and
signed by us under reference to this report. These financial statements
are the responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies [Auditor's Report] Order, 2003 issued
by the Central Government of India in terms of sub-section [4A] of
Section 227 of the Companies Act, 1956 we enclose in the Annexure a
statement on matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
[i] We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
[ii] In our Opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
[iii] The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
[iv] In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply in all material
respects with the applicable Accounting Standards issued by the
Institute of Chartered Accountants of India referred to in sub-section
{3C] of Section 211 of the Companies Act, 1956;
[v] On the basis of written representations received from the
Directors, and taken on record by the Board of Directors, we report
that none of the Directors is prima facie disqualified as on March
31,2011 from being appointed as a Director in terms of clause [g] of
sub-section [1] of Section 274 of the Companies Act, 1956;
[vi] In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements read
with the statement on significant accounting policies and notes to the
accounts give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
a] in the case of the Balance Sheet, of the state of the affairs of the
Company as at March 31,2011;
b] in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c] in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR AUDIT REPORT OF EVEN DATE TO
THE MEMBERS OF PONDY OXIDES & CHEMICALS LIMITED ON THE ACCOUNTS AS AT
AND FOR THE YEAR ENDED 31st MARCH, 2011.
1. In respect of its Fixed Assets:
[i] The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
[ii] The assets have been physically verified by the management at the
end of financial year, which in our opinion is reasonable having regard
to the size of the Company and the nature of its fixed assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
[iii] According to the information and explanations given to us, no
substantial part of fixed assets has been disposed off during the year.
2. In respect of its Inventories:
[i] The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
[ii] In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
[iii] The Company has maintained proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3. In respect of the loans, secured or unsecured, granted or taken by
the company to/from companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956:
[i] (a) The Company has not granted any Loans, secured or unsecured, to
companies, firms or other parties covered under the register maintained
under section 301 of the Companies Act, 1956. Therefore, the provisions
of clause 4 (iii) (a) to (d) of the Companies(Auditor Report) Order are
not applicable.
[ii] (e) The Company has taken loans during the year from companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956 amounting to Rs. 15.27 crores, the
year-end balance was Rs.3.98 crores and maximum balance due was
Rs.12.84crores.
(f) In our opinion, the rate of interest and other terms and conditions
of the said loans are not prima facie prejudicial to the interest of
the company.
(g) The Interest payments, wherever applicable, have been regularly
paid by the company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods&
services. Further, on the basis of our examination of the books and
records of the Company, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedure.
5. In respect of the contract or arrangement referred to in Section
301 of the Companies Act, 1956:
[i] In our opinion and according to the information and explanations
given to us, we are of the opinion that the particulars of the
contracts or arrangements that need to be entered in the register
maintained under Section 301 of the Companies Act, 1956 have been so
entered.
[ii] In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rs.5,00,000/- in respect of any
party during the year, have been made at prices, which are prima facie
reasonable, having regard to prevailing market prices at the relevant
time.
6. In our opinion and according to information and explanations given
to us, the company has complied with the provisions of Section 58Aand
58AAor any other relevant provisions of the Companies Act 1956, and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to deposits
accepted from the public. According to the information and explanation
given to us, no order has been passed by the Company Law Board or the
National Company Law Tribunal or Reserve Bank of India or any Court or
any*other Tribunal.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
8. According to information and explanations given to us, the Central
Government has not prescribed forthe maintenance of cost records under
section 209[1][d] of the Companies Act, 1956, in respect of the products
of the company.
9. In respect of Statutory dues:
[i] According to the information and explanation given to us and
records of the Company examined by us, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income tax, Sales tax, Wealth tax, Service
tax, Customs duty, 'Excise duty, Cess and other material statutory dues
as may be applicable have been generally regularly deposited with
the appropriate authorities.
[ii] According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31s' March, 2011 for a period of more than six months
from the date they became payable.
[iii] According to the information and explanations given to us, there
are no disputed dues which have remained unpaid as on 31st March, 2011
in respect of Income tax, Wealth tax, Sales tax, Customs Duty, Excise
Duty and Cess.
10. The company has no accumulated losses as at 31st March 2011 and
has not incurred cash losses during the financial year covered by our
audit or in the immediately preceeding financial year.
11. In our opinion and according to the information and explanations
given to us. the Company has not defaulted in repayment of dues to
financial institutions and banks. The Company does not have any
borrowings by way of debentures.
12., According to the information and explanations given to us the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4 [xiii] of the
Companies [Auditor's Report] Order, 2003 are not applicable.
14. The Company is not dealing in or trading in Share, Securities,
Debentures and Other Investments. Therefore, the provisions of clause
4[xiv] of Companies[Auditor's Report] Order 2003 are not applicable.
15. In our opinion and according to the information & explanations
given to us, the terms and conditions of the gurantees given by the
company for loan taken by others from banks and financial institutions
are not prima-facie prejudicial to the interest of the Company.
16. In our opinion and according to the information and explanations
given to us, the term loans availed by the company were, prima facie,
applied by the Company during the year for the purpose for which the
loans were obtained.
17. According to the information and explanations given to us the cash
flow statement examined by us and on an overall examination of the
balance sheet of the Company, we report that funds raised on short term
basis have not been used for long term Investments.
18. According to the information and explanations given to us the
Company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956.
19. The Company has not issued any debentures during the year
20. The Company has not raised any money by public issue of securities
during the year and therefore, the verification of the end use of the
money does not arise.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the year.
For Jeeravla & Co.,
Chartered Accountants
Firm Registration No : 001323S
Sohan C.J.Parmar
Place : Chennai Proprietor
Date : 28.07.2011 Membership No. 022321
Mar 31, 2010
1. We have audited the attached Balance Sheet of Pondy Oxides and
Chemicals Limited as at 31st March 2010, the relative Profit and Loss
account and the Cash Flow Statement for the year ended on that date and
signed by us under reference to this report. These financial statements
are the responsibility of the Companys management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies [Auditors Report] Order, 2003 issued
by the Central Government of India in terms of sub-section [4A] of
Section 227 of the Companies Act, 1956 we enclose in the Annexure a
statement on matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
[i] We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
[ii] In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
[iii] The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
[iv] In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply in all material
respects with the applicable Accounting Standards issued by the
Institute of Chartered Accountants of India referred to in sub-section
[3C] of Section 211 of the Companies Act, 1956;
[v] On the basis of written representations received from the
Directors, and taken on record by the Board of Directors, we report
that none of the Director is prima facie disqualified as on March 31,
2010 from being appointed as a Director in terms of clause [g] of
sub-section [1] of Section 274 of the Companies Act, 1956;
[vi] In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements read
with the statement on significant accounting policies and notes to the
accounts give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
a] in the case of the Balance Sheet, of the state of the affairs of the
Company as at March 31,2010;
b] in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c] in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR AUDIT REPORT OF EVEN DATE TO
THE MEMBERS OF PONDY OXIDES & CHEMICALS LIMITED ON THE ACCOUNTS AS AT
AND FOR THE YEAR ENDED 31st MARCH, 2010.
1. In respect of its Fixed Assets:
[i] The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
[ii] The assets have been physically verified by the management at the
end of financial year, which in our opinion is reasonable having regard
to the size of the Company and the nature of its fixed assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
[iii] According to the information and explanations given to us, no
substantial part of fixed assets has been disposed off during the year.
2. In respect of its Inventories:
[i] The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
[ii] In our Opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
[iii] The Company has maintained proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records..
3. In respect of the loans, secured or unsecured , granted or taken by
the company to/from companies, firms or other-parties covered in the
Register maintained under Section 301 of the Companies Act, 1956:
fi] The Company has not given Loans during the year to parties covered
in the Register under section 301 of the companies Act. The transaction
is covered in the Register maintained under Section 301 of the
Companies Act, 1956.
[ii] The Company has taken loans during the year from companies, firms
or other parties covered in the Register maintained under Section 301
of the Companies Act, 1956 to Rs.2.06 Cr of which Rs.1.64 Cr returned
by them. Highest amount of outstanding is Rs.4.43 Cr and the terms and
conditions are prima facie not prejudicial to the interest of the
company and are regular in repayment as per stipulation.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods&
services. Further, on the basis of our examination of the books and
records of the Company, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedure.
5. In respect of the contract or arrangement referred to in Section
301 of the Companies Act, 1956:
[i] In our Opinion and according to the information and explanations
given to us, we are of the opinion that the particulars of the
contracts or arrangements that need to be entered in the register
maintained under Section 301 of the Companies Act, 1956 have been so
entered.
[ii] In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rs.5,00,000 in respect of any
party during the year, have been made at prices, which are prima facie
reasonable, having regard to prevailing market prices at the relevant
time.
6. The company has accepted Fixed Deposits from Directors & their
relatives and friends only. In our opinion and according to information
and explanations given to us, all the directives issued by the Reserve
Bank of India and provisions of Section 58A and 58AA or any other
relevant provisions of the Companies Act 1956, and rules framed there
under where applicable were complied with. Further, we are informed by
the management that no order has been passed by the Company Law Board
or National Company Law Tribunal or RBI or any other Tribunal on the
Company.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
8. According to information and explanations given to us, the Central
Government has not prescribed for the maintenance of cost records under
section 209[1][d] of the Companies Act, 1956, in respect of the
products of the company.
9. In respect of Statutory dues:
[i] Undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income tax,
Sales tax, Wealth tax, Service tax, Customs duty, Excise duty, Cess and
other material statutory dues applicable have generally been regularly
deposited with the appropriate authorities.
[ii] According to the information and explanations given to us, no
undisputed amounts payable in respect of Income tax, Wealth tax,
Service tax, Sales tax, Customs duty and Excise duty and Cess were
outstanding as at 31st March, 2010 for a period of more than six months
from the date they became payable.
[iii] According to the information and explanations given to us, there
are no dues of Income tax, Wealth tax, Sales tax, Customs duty and
Excise duty and Cess, which have not been deposited on account of any
dispute.
10. The company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceeding
financial year.
11. According to the information and explanations given to us by the
management, we are of the opinion that the Company has not defaulted in
repayment of dues to financial institutions and banks. The Company does
not have any borrowings by way of debentures.
12. In our opinion and according to the information and explanations
given to us and based on the documents and records produced to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4 [xiii] of
the Companies [Auditors Report] Order, 2003 are not applicable to the
Company.
14. In our opinion, the Company is not dealing in or trading in Share,
Securities, Debentures and Other Investments. Accordingly, the
provision of clause[xiv] of Companies[Auditors Report] Order 2003 are
not applicable to the Company.
15. According to the information & explanations given to us, the
Company has given guarantee for loans taken from banks by its
subsidiary and associated company, the terms and conditions whereof in
our opinion are not prima-facie prejudicial to the in^rest of the
Company.
16. In our opinion and according to the information and explanations
given to us, the term loans availed by the company were, prima facie,
applied by the Company during the year for the purpose for which the
loans were obtained.
17. According to the information and explanations 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 for Long
term Investments.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year
20. The Company has not raised any money by public issue during the
year.
21. In our Opinion and explanations given to us, no fraud on or by the
Company has been noticed or reported during the course of our audit.
For Jeeravla & CO.
Chartered Accountants
Firm Registration No: 001323S
Sohan CJ.Parmar
Place : Chennai Proprietor
Date : 12.07.2010 Membership No. 022321
Mar 31, 2000
We have audited the attached Balance Sheet of Pondy Oxides and
Chemicals Limited as at 31st March 2000, and the Profit and Loss
Account for the year ended on that date annexed thereto and report
that:
1. As required by the Manufacturing and Other Companies (Auditors
Report) Order, 1988 issued by the Company Law Board in terms of Section
227 (4A) of the Companies Act, 1956, we give below a statement on the
matters specified in paragraphs 4 and 5 of the said order.
i. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. Most of
the assets have been physically verified by the management during the
year and there is a regular programme of verification which in our
opinion is reasonable having regard to the size of the company and
nature of its assets. No material discrepancies were noticed on
verification.
ii. None of the fixed assets has been revalued during the year.
iii. The stocks of finished goods, stores, spare parts and raw
materials have been physically verified during the yearbythe
management. Inour opinion, the frequency of verification is reasonable.
iv. The procedures for physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and nature of its business.
v No material discrepancies were noticed between the physical
verification of stock and the book records.
vi. On the basis of our examination of stock records, we are of the
opinion that the valuation of stock is fair and proper, and in
accordance with the normally accepted accounting principles, and is on
the same basis as in the preceding year.
vii. According to the information and explanations given to us, the
company has taken loans, unsecured from parties listed in the Register
maintained under section 301 of the Companies Act, 1956 and the rate of
interest and terms and conditions on which loans have been taken are
not prejudicial to the interest of the company and the company has not
taken any loan secured, unsecured from the company under the same
management as defined under sub section (1 -B) of section 370 of the
Companies Act, 1956.
viii.The company has granted loans, unsecured to parties listed in the
Register maintained under section 301 and to the companies under the
same management as defined under sub sect ion (1 - B) of section 370 of
the Companies Act, 1956 wherein the rate of interest and terms and
conditions on which loans have been granted are not prejudicial to the
interest of the company.
ix. The parties to whom loans and advances in the nature of loans have
been given by the company are repaying the principal amounts and
interest wherever applicable as stipulated.
x In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of stores, raw materials including
components, plant and machinery, equipment and other assets and for the
sale of goods.
xi. In our opinion and according to the information and explanations
given to us, the transactions of purchases of goods and materials and
sale of goods, materials and services, made in pursuance of contracts
or arrangements entered in the Register under section 301 of the
Companies Act, 1956 and aggregating during the year Rs. 50,000/- or
more in respect of each party have been made at prices which are
reasonable having regard to prevailing market prices of such goods,
materials or services or the prices at which transactions of similar
goods, materials or services have been made with other parties.
xii. According to information given to us the company has no
unserviceable or damaged goods, raw materials and finished goods.
xiii. in our opinion and according to the information and explanations
given to us, the company has not complied with the provisions of
section 58A of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the unsecured loans accepted by
the Company.
xiv. In our opinion, reasonable records have been maintained by the
company for the sale and disposal of its by-product arising during
manufacturing process and the company does not generate any scrap.
xv. In our opinion, the company has an Internal Audit system
commensurate with the size and nature of its business.
xvi. The maintenance of cost records has not been prescribed by the
Central Government under section 209(1)(d)of the Companies Act, 1956 in
respect of the companys products.
xvii. According to the records of the company Provident Fund and
Employees State Insurance dues have been regularly deposited during the
year with the appropriate authorities.
xviii. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs Duty and Exicse Duty were outstanding as at 31 st March
2000 for a period of more than six months from the date they became
payable.
xix. According to information and explanations given to us, no personal
expenses of employees or directors have been charged to revenue
account, other than those payable under contractual obligations or in
accordance with generally accepted business practice.
xx The company is not a sick industrial company within the meaning of
clause (O) of sub section (i)of section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1985.
2. Further to the foregoing 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 such
books.
c) The Balance Sheet and Profit and Loss Account referred to in this
report are in agreement with the books of account.
d) In our opinion, the Profit and Loss Account and the Balance Sheet
comply with the Accounting Standards referred to in sub section (3C) of
section 211 of the Companies Act, 1956;
e) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and Profit and
Loss Account read together with the schedules thereto and notes thereon
give the information required by Companies Act, 1956 in the manner so
required and give a true and fair view:
(i) In so far as it relates to the Balance Sheet, of the state of
affairs of the company as at 31 st March 2000 and
(ii) In so far as it relates to the Profit and Loss Account of the
Profit of the company for the year ended on that date.
For JEERAVLA & Co.,
Chartered Accountants
Place : Chennai SOHAN C.JEERAVLA PARMAR
Date : 12.07.2000 Proprietor.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article