Mar 31, 2015
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of
PRAKASH STEELAGE LIMITED ('the Company'), which comprise the Balance
Sheet as at March 31, 2015, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis fo r 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 March 31, 2015, and its profit and its cash flows for the year ended
on that date.
Emphasis of matter
We draw attention to note no. 40 of the financial statements regarding
non-disclosure of initial disclosures namely total assets, total
liabilities, revenue, expenses, net cash flows and pre-tax profit or
loss in respect of the ordinary activities attributable to the
discontinuing operation and the income tax expense related thereto as
required by Accounting Standard (AS) 24 'Discontinuing Operations' in
respect of proposed transfer of its seamless business. As stated in
aforesaid note, the company is unable to determine the income,
expenses, assets and liabilities clearly attributable to the
discontinued operations and the management is of the view that the
seamless business, a component of the enterprise, cannot be
distinguished operationally and for financial reporting purposes for
the reasons mentioned therein.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ('the
Order'), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, 2013, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014
(e) On the basis of the written representations received from The
directors as on March 31, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 41 to the
financial statements;
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts - Refer Note 42
to the financial statements;
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company - Refer Note 43
to the financial statements.
Annexure to the Independent Auditors' Report
Annexure referred to in paragraph 1 under the heading of 'Report on
Other Legal and Regulatory Requirements' of Independent Auditors'
Report to the members of PRAKASH STEELAGE LIMITED ("the Company") for
the year ended March 31, 2015. We report that:
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
b) The fixed assets have been physically verified by the management
during the year. In our opinion, the frequency of verification of fixed
assets by the management, as informed to us, is at reasonable
intervals, having regard to the size of the Company and the nature of
the assets physically verified. As explained to us no material
discrepancies were noticed on such verification.
(ii) a) Inventory have been physically verified by the management at
reasonable intervals. 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 ve rification of inventory
followed by the management are generally reasonable and adequate in
relation to the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanation
given to us, the Company is maintaining proper records of inventory.
Discrepancies noticed on verification by management between the
physical stocks and the book records were not material and the same
have been properly dealt with in The books of account.
(iii) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 189 of the Act. Therefore, the provisions of clause
3(iii) of Companies (Auditor's Report) Order, 2015 are not applicable
to the Company.
(iv) 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
purchase of inventory, fixed assets and for sale of goods and services.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in the internal control systems.
(v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits during the year
from the public within the meaning of the provisions of Section 73 to
76 or any other relevant provisions of the Companies Act, 2013 and the
rules made thereunder.
(vi) According to information and explanations given to us, the Company
has maintained books of account and records required to be maintained
pursuant to the rule prescribed by the Central Government for the
maintenance of cost records under section 148(1) of the Companies Act,
2013 and are of the opinion that prima facie the prescribed accounts
and records have been made and maintained. The contents of these
accounts and records have not been examined by us.
(vii) a) Undisputed Statutory dues including Employees' Provident Fund,
Employees' State Insurance (ESIC), Value Added Tax, Central Sales Tax,
Entry Tax, Tax Deducted at Source (TDS), Wealth Tax, Service Ta x and
Profession Tax have generally been regularly deposited with the
appropriate authorities except for dues in respect of income- tax where
considerable delay has been observed in depositing such dues with the
appropriate authorities. According to the information and explanations
given to us, there were no undisputed statutory dues which have
remained outstanding as at March 31, 2015 for the period of more than
six months from the date they became payable.
b) According to the information and explanations given to us, and the
records examined by us, the dues in respect of Sales-Tax, Income-Tax,
Duty of Customs, Wealth-tax, Service Tax, entry tax, Value Added Tax,
Central Sales Tax, Duty of Excise, Cess as at March 31, 2015 that have
not been deposited with the appropriate authority on account of any
disputes and the forum where the dispute is pending are as under:
c) According to the information and explanations given to us, there
were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and rules
made thereunder.
Sr. Name of Nature of Financial Year
No. the Statute the Dues to which
amount relates
1 Bombay Sales Sales Tax 1994-95
Tax Act
2 Bombay Sales Sales Tax 1995-96
Tax Act
3 Central Sales Central 1995-96
Tax Act Sales Tax
4 Central Sales Central 2009-10
Tax Act, 1958 Sales Tax
5 Maharashtra Maharashtra 2009-10
VAT Act, 2002 Value Added Tax
6 Maharashtra Maharashtra 2005-06
VAT Act, 2002 Value Added Tax
7 Central Sales Central Sales 2005-06
Tax Act, 1958 Tax
8 Maharashtra Maharashtra 2008-09
VAT Act, 2002 Value Added Tax
9 Central Sales Central Sales 2008-09
Tax Act, 1958 Tax
10 Central Excise Cenvat Credit April 2007 to
Act,1944 & Penalty August 2009
Name of the Statute Amount Forum where dispute
(Rs.) is Pending
Bombay Sales Tax Act 79,202/- Dy. Comm. Sales Tax (Appeal)
IV, Mumbai
Bombay Sales Tax Act 59,317/- Dy. Comm. Sales Tax (Appeal)
IV, Mumbai
Central Sales Tax Act 2,85,360/- Dy. Comm. Sales Tax (Appeal)
IV, Mumbai
Central Sales Tax Act 42,53,968/- Joint Comm. Sales Tax (Appeal)
IV, Mumbai
Maharashtra VAT
Act, 2002 1,07,56,527/- Joint Comm. Sales Tax (Appeal)
IV, Mumbai
Maharashtra VAT
Act, 2002 1,14,78,701/- Joint Comm. Sales Tax (Appeal)
IV, Mumbai
Central Sales Tax
Act, 1958 1,25,90,800/- Joint Comm. Sales Tax (Appeal)
IV, Mumbai
Maharashtra VAT
Act, 2002 3,76,000/- Joint Comm. Sales Tax (Appeal)
IV, Mumbai
Central Sales Tax
Act, 1958 3,82,78,500/- Joint Comm. Sales Tax (Appeal)
IV, Mumbai
Central Excise
Act, 1944 17,23,624/- Customs Excise & Service Tax
Appellate Tribunal, Ahmedabad
(viii) The Company has no accumulated losses at the end of the
financial year and has not incurred cash loss in the current financial
year or in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank.
(x) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xi) In our opinion and according to the information and explanation
given to us, the term loans raised during the year have been applied
for the purpose for which they were raised.
(xii) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on the
Company or by the Company has been noticed or reported during the
course of our audit.
FOR KHANDELWAL JAIN & CO. FOR BATLIBOI & PUROHIT
Chartered Accountants Chartered Accountants
Firm's Registration No. 105049W Firm's Registration No. 101048W
sd/- sd/-
(NARENDRA JAIN) (R.D.HANGEKAR)
PARTNER PARTNER
Membership No. 048725 Membership No. 030615
Place: Mumbai
Date: May 30, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Prakash
Steelage Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act")read with the General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013 and in accordance
with the accounting principles generally accepted in India. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) In the case of the Statement of Profit and Loss, of the profit 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"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Act read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013;
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
Annexure to the Independent Auditors'' Report
Annexure referred to in paragraph 1 under the heading of "Report on
Other Legal and Regulatory Requirements" of Independent Auditors''
Report to the members of Prakash Steelage Limited ("the Company") for
the year ended March 31, 2014. We report that:
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and
situation of fixed assets.
(b) The fixed assets have been physically verified by the management
during the year. In our opinion, the
frequency of verification of fixed assets by the management, as
informed to us, is at reasonable intervals, having regard to the size
of the Company and the nature of the assets physically verified and as
explained to us no material discrepancies were noticed on such
verification.
(c) During the year, the Company has not disposed off any substantial
part of its fixed assets.
ii) (a) Inventory have been physically verified by the management at
reasonable intervals. 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 inventory
followed by the management are generally reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory. Discrepancies noticed on verification by management between the
physical stocks and the book records were not material and same
have been properly dealt with in the books of account.
iii) (a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to any
company, firm or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, provisions
of clause 4 (iii) (b) (c) (d) are not applicable to the Company.
(b) According to the information and explanations given to us, the
Company has taken unsecured loans during the year from a company
and a director covered in the register maintained under Section 301
of the Companies Act, 1956. The maximum amount involved during the
year was Rs.35,00,00,000 and the year-end balance of loans taken from
such parties was Rs. 25,00,00,000.
(c) In our opinion, the rate of interest and other terms and conditions
on which such loans have been taken from a company and a director
listed in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie, prejudicial to the interest of the
company.
(d) According to the information and explanations given to us,
repayment of principal and interest thereon were in accordance with
the terms and conditions of loan.
iv) 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 the purchase of inventory, fixed assets and for sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control system.
v) (a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements, referred to
in section 301 of the Companies Act, 1956, have been entered in the
register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi) In our opinion and according to information and explanations given
to us, no public deposits under the provisions of Section 58A and 58AA
of the Companies Act, 1956 and rules framed have been accepted by the
Company. According to the information and explanations given to us, no
order under the aforesaid sections 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 on the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) According to information and explanations given to us, the
Company has maintained books of account and records required to be
maintained pursuant to the rule prescribed by the central government
for the maintenance of cost records under section 209 (1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. The
contents of these accounts and records have not been examined by us.
ix) (a) Undisputed Statutory Dues including Employees'' Provident Fund,
Employees'' State Insurance (ESIC),
Value Added Tax, Central Sales Tax, Entry Tax, Tax Deducted at Source
(TDS), Income Tax, Wealth Tax, Service Tax and Profession Tax have
generally been regularly deposited with the appropriate authorities,
however, there have been delays in depositing such dues in some cases.
According to the information and explanations given to us, there were
no undisputed statutory dues which have remained outstanding as at
March 31, 2014 for the period of more than six months from the date
they became payable.
(b) According to the information and explanations given to us, and the
records examined by us, dues in respect of Sales-Tax, Income-Tax,
Customs Duty, Wealth Tax, Service Tax, Entry Tax, Value Added Tax,
Central Sales Tax, Excise Duty, Cess as at March 31, 2014 that have not
been deposited with the appropriate authority on account of any
disputes and the forum where the dispute is pending are as under:-
Sr. Name of Nature of Period to which
No. the Statute the Dues the amount relates
1 Bombay Sales Sales Tax 1994-95
Tax Act
2 Bombay Sales Sales Tax 1995-96
Tax Act
3 Central Sales Central 1995-96
Tax Act Sales Tax
4 Central Sales Central 2009-10
Tax Act, 1958 Sales Tax
5 Maharashtra Sales Tax 2009-10
VAT Act, 2002
Name of Amount Forum where dispute
the Statute (Rs.) is pending
Bombay Sales 79,202/- Dy. Comm. Sales Tax (Appeal)
Tax Act IV, Mumbai
Bombay Sales 59,317/- Dy. Comm. Sales Tax (Appeal)
Tax Act IV, Mumbai
3 Central Sales 2,85,360/- Dy. Comm. Sales Tax (Appeal)
Tax Act IV, Mumbai
Central Sales 42,53,968/- Joint Comm. Sales Tax (Appeal)
Tax Act IV, Mumbai
Maharashtra1, 07,56,527/- Joint Comm. Sales Tax (Appeal)
VAT Act, 2002 IV, Mumbai
x) The Company has no accumulated losses at the end of the financial
year and has not incurred cash loss in the current financial year
or in the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
a financial institution or bank.
xii) Based on the information and explanations given to us, the Company
has not granted any loans and/or advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii) The Company is not a chit fund or nidhi / mutual benefit fund /
society.
xiv) In our opinion and according to the information and explanations
given to us, the Company has not done dealing or trading in shares,
securities, debentures and other investments during the year under
audit.
xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks or financial institutions.
xvi) In our opinion and according to the information and explanations
given to us, the term loans raised during the year have been applied
for the purpose for which they were raised.
xvii) According to the information and explanations given to us and on
an examination of the Balance Sheet of the Company, we report that, on
an overall basis, funds raised on short-term basis have, prima facie,
not been used during the year for long-term investment.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) In our opinion and according to the information and explanations
given to us, the Company has not issued any debentures during the year
or in earlier years.
xx) The Company has not raised any money by public issue during the
year.
xxi) 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 KHANDELWAL JAIN & CO. FOR D. C. BOTHRA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
FIRM REGISTRATION NO: 105049W FIRM REGISTRATION NO: 112257W
Sd/- Sd/-
NARENDRA JAIN PAWAN BOTHRA
PARTNER PARTNER
MEMBERSHIP NO. 048725 MEMBERSHIP NO. 031215
PLACE : MUMBAI
DATE : 29TH MAY, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Prakash
Steelage Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors'' 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 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.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Act;
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 Act.
Annexure to the Independent Auditors'' Report
Annexure referred to in paragraph 1 under the heading of "Report on
Other Legal and Regulatory Requirements" of Independent Auditors''
Report to the members of Prakash Steelage Limited ("the Company") for
the year ended March 31, 2013. We report that:
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year. In our opinion, the frequency of verification of fixed
assets by the management, as informed to us, is at reasonable
intervals, having regard to the size of the Company and the nature of
the assets physically verified and as explained to us no material
discrepancies were noticed on such verification.
(c) During the year, the Company has not disposed off any substantial
part of its fixed assets.
ii) (a) Inventory have been physically verified by the management at
reasonable intervals. 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 inventory
followed by the management are generally reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory.
Discrepancies noticed on verification by management between the
physical stocks and the book records were not material and same have
been properly dealt with in the books of account.
iii) (a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to any company,
firm or other parties listed in the register maintained under Section
301 of the Companies Act, 1956. Accordingly, provisions of clause 4
(iii) (b) (c) (d) are not applicable to the Company.
(b) According to the information and explanations given to us, the
Company has not taken any loan during the year from companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Accordingly, provisions of clause 4 (iii) (f)
(g) are not applicable to the Company.
iv) 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 the purchase of inventory, fixed assets and for sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
v) (a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements, referred to
in section 301 of the Companies Act, 1956, have been entered in the
register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956, have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi) In our opinion and according to information and explanations given
to us, no public deposits under the provisions of Section 58A and 58AA
of the Companies Act, 1956 and rules framed have been accepted by the
Company. According to the information and explanations given to us, no
order under the aforesaid sections 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 on the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) According to information and explanations given to us, the
Company has maintained books of account and records required to be
maintained pursuant to the rule prescribed by the central government
for the maintenance of cost records under section 209 (1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. The
contents of these accounts and records have not been examined by us.
ix) (a) Undisputed Statutory Dues including Employees'' Provident Fund,
Employees'' State Insurance (ESIC), Value Added Tax, Central Sales Tax,
Entry Tax, Tax Deducted at Source, Income Tax, Wealth Tax, Service Tax,
and Profession Tax have generally been regularly deposited with the
appropriate authorities, however, there have been delays in depositing
such dues in some cases. According to the information and explanations
given to us, there were no undisputed statutory dues which have
remained outstanding as at March 31, 2013 for the period of more than
six months from the date they became payable.
(b) According to the information and explanations given to us, and the
records examined by us, dues in respect of Sales-Tax, Income-Tax,
Customs Duty, Wealth Tax, Service Tax, Entry Tax, Value Added Tax,
Central Sales Tax, Excise Duty, Cess as at March 31, 2013 that have not
been deposited with the appropriate authority on account of any
disputes and the forum where the dispute is pending are as under:-
Sr. Name of Nature of Period to which
No. the Statute the Dues the amount relates
1 Bombay Sales Sales Tax 1994-95
Tax Act
2 Bombay Sales Sales Tax 1995-96
Tax Act
3 Central Sales Central 1995-96
Tax Act Sales Tax
Name of the
Statute Amount Forum where dispute
(Rs.) is pending
Bombay Sales Tax Act 79,202/- Dy. Comm. Sales Tax (Appeal)
IV, Mumbai
Bombay Sales Tax Act 59,317/- Dy. Comm. Sales Tax (Appeal)
IV, Mumbai
Central Sales Tax Act 2,85,360/- Dy. Comm. Sales Tax (Appeal)
IV, Mumbai
x) The Company has no accumulated losses at the end of the financial
year and has not incurred cash loss in the current financial year or in
the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank.
xii) Based on the information and explanations given to us, the Company
has not granted any loans and/or advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii) The Company is not a chit fund or nidhi / mutual benefit fund /
society.
xiv) In our opinion and according to the information and explanations
given to us, the Company has not done dealing or trading in shares,
securities, debentures and other investments during the year under
audit.
xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks or financial institutions.
xvi) In our opinion and according to the information and explanations
given to us, the term loans raised during the year have been applied
for the purpose for which they were raised.
xvii) According to the information and explanations given to us and on
an examination of the Balance Sheet of the Company, we report that, on
an overall basis, funds raised on short-term basis have, prima facie,
not been used during the year for long-term investment.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) In our opinion and according to the information and explanations
given to us, the Company has not issued any debentures during the year
or in earlier years.
xx) The Company has not raised any money by public issue during the
year.
xxi) 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 KHANDELWAL JAIN & CO. FOR D. C. BOTHRA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
FIRM REGISTRATION NO: 105049W FIRM REGISTRATION NO: 112257W
NARENDRA JAIN PAWAN BOTHRA
PARTNER PARTNER
MEMBERSHIP NO. 048725 MEMBERSHIP NO. 031215
PLACE : MUMBAI
DATE : 30th MAY, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of PRAKASH STEELAGE
LIMITED as at 31st March, 2012, the Statement of Profit and Loss and
the Cash Flow Statement for the year ended on that date, both annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of sub
section (4A) of Section 227 of the Companies Act, 1956 and on the basis
of such checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us during the course of the audit, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order to the extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion and in so far as it appears from our examination of
those books, proper books of account as required by law have been kept
by the Company
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956, to the extent applicable.
e) On the basis of written representation received from the directors,
as on 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the directors are disqualified as on 31st March,
2012, from being appointed as a director in terms of clause (g) of sub
section (1) of Section 274 of the Companies Act, 1956;
f) In our opinion, and to the best of our information and according to
the explanations given to us, they said accounts and read together with
the notes thereon, give the information required by the Companies Act,
1956, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India
:-
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012,
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date, and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors' Report
(REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE TO THE MEMBERS
OF PRAKASH STEELAGE LIMITED FOR THE YEAR ENDED MARCH 31, 2012)
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year. In our opinion, the frequency of verification of fixed
assets by the management, as informed to us, is at reasonable
intervals, having regard to the size of the Company and the nature of
the assets physically verified and as explained to us no material
discrepancies were noticed on such verification.
(c) During the year, the Company has not disposed off any substantial
part of its fixed assets.
ii) (a) Inventory have been physically verified by the management at
reasonable intervals. 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 inventory
followed by the management are generally reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory.
Discrepancies noticed on verification by management between the
physical stocks and the book records were not material and same have
been properly dealt with in the books of account.
iii) (a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to any company,
firm or other parties listed in the register maintained under Section
301 of the Companies Act, 1956. Accordingly, provisions of clause 4
(iii) (b) (c) (d) are not applicable to the Company.
(b) According to the information and explanations given to us, the
Company has not taken any loan during the year from companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Accordingly, provisions of clause 4 (iii) (f)
(g) are not applicable to the Company.
iv) 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 the purchase of inventory, fixed assets and for sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
v) (a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements, referred to
in section 301 of the Companies Act, 1956, have been entered in the
register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956, have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi) In our opinion and according to information and explanations given
to us, no public deposits under the provisions of Section 58A and 58AA
of the Companies Act, 1956 and rules framed have been accepted by the
Company. According to the information and explanations given to us, no
order under the aforesaid sections 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 on the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) According to information and explanations given to us, the
Company has maintained books of account and records required to be
maintained pursuant to the rule prescribed by the central government
for the maintenance of cost records under section 209 (1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. The
contents of these accounts and records have not been examined by us.
ix) (a) Undisputed Statutory Dues including Employees' Provident Fund,
Employees' State Insurance (ESIC), Value Added Tax, Central Sales Tax,
Tax Deducted at Source, Income Tax, Wealth Tax, Service Tax, and
Profession Tax have generally been regularly deposited with the
appropriate authorities, however, there have been some delays in
depositing such dues. According to the information and explanations
given to us, there were no undisputed statutory dues which have
remained outstanding as at 31st March, 2012 for the period of more than
six months from the date they became payable.
(b) According to the information and explanations given to us, and the
records examined by us, dues in respect of Sales-Tax, Income-Tax,
Customs Duty, Wealth Tax, Service Tax, Entry Tax, Value Added Tax,
Central Sales Tax, Excise Duty, Cess as at 31st March, 2012 that have
not been deposited with the appropriate authority on account of any
disputes and the forum where the dispute is pending are as under:-
Sr. Name of Nature of Period to which Amount Forum where
dispute
No. the Statute the Dues the amount
relates (Rs.) is pending
1 Bombay Sales Sales Tax 1994-95 1,19,669/- Dy. Comm.
Sales Tax
Tax Act
(Appeal)
IV, Mumbai
2 Bombay Sales Sales Tax 1995-96 69,317/- Dy. Comm.
Sales Tax
Tax Act
(Appeal)
IV, Mumbai
3 Central
Sales Central 1995-96 2,90,360/- Dy. Comm.
Sales Tax
Tax Act
Sales Tax
(Appeal) IV,
Mumbai
4 Income
Tax Act Income Tax 2003-04 2,70,898/- Comm.of
Income Tax
(Appeal)-37
Mumbai
5 Income
Tax Act Income Tax 2007-08 15,20,795/- Comm.of
Income Tax
(Appeal)-37
Mumbai
6 Income
Tax Act Income Tax 2008-09 66,52,232/- Comm.of
Income Tax
(Appeal)-37
Mumbai
x) The Company has no accumulated losses at the end of the financial
year and has not incurred cash loss in the current financial year or in
the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank.
xii) Based on the information and explanations given to us, the Company
has not granted any loans and/or advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii) The Company is not a chit fund or nidhi / mutual benefit fund /
society.
xiv) In our opinion and according to the information and explanations
given to us, the Company has not done any dealing or trading in shares,
securities, debentures and other investments during the year under
audit.
xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks or financial institutions.
xvi) In our opinion and according to the information and explanations
given to us, the term loans raised during the year have been applied
for the purpose for which they were raised.
xvii) According to the information and explanations given to us and on
an examination of the Balance Sheet of the Company, we report that, on
an overall basis, funds raised on short-term basis have, prima facie,
not been used during the year for long-term investment.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) In our opinion and according to the information and explanations
given to us, the Company has not issued any debentures during the year
or in earlier years.
xx) The Management has disclosed the end-use of the money raised by the
public issue of shares (Refer Note 28 to the Financial Statements). The
same has been verified by us.
xxi) 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 Khandelwal Jain & Co. For D. C. Bothra & Co.
Chartered Accountants Chartered Accountants
Firm Registration No: 105049W Firm Registration No: 112257W
Narendra Jain Pawan Bothra
Partner Partner
Membership No. 048725 Membership No. 031215
Place : Mumbai
Date : 28th May, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of PRAKASH STEELAGE
LIMITED as at 31ST March, 2011, the Profit and Loss Account and the
Cash Flow Statement for the year ended on that date, both annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of sub
section (4A) of Section 227 of the Companies Act, 1956 and on the basis
of such checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us during the course of the audit, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order to the extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion and in so far as it appears from our examination of
those books, proper books of account as required by law have been kept
by the Company
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956, to the extent applicable.
e) On the basis of written representation received from the directors,
as on 31ST March, 2011 and taken on record by the Board of Directors,
we report that none of the directors are disqualified as on 31ST March,
2011, from being appointed as a director in terms of clause (g) of sub
section (1) of Section 274 of the Companies Act, 1956;
f) Note No.9 of Schedule P (II) to the accounts, regarding
non-provision of penalty under the Income Tax Act 1961 on income
declared at the time of search operation carried out by the income tax
authorities during the year 2008-09, as the same has not yet been
quantified, the resulting impact on the accounts is not ascertainable.
g) In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts subject to our comment
in Paragraph (f) above and read together with the significant
accounting policies and notes thereon, give the information required by
the Companies Act, 1956, in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India :- a) in the case of the Balance Sheet, of the state
of affairs of the Company as at 31ST March, 2011,
b) in the case of Profit and Loss Account, of the profit for the year
ended on that date, and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors Report
(REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE TO THE MEMBERS
OF PRAKASH STEELAGE LIMITED FOR THE YEAR ENDED 31ST MARCH, 2011)
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year. In our opinion, the frequency of verification of fixed
assets by the management, as informed to us, is at reasonable
intervals, having regard to the size of the Company and the nature of
the assets physically verified and as explained to us no material
discrepancies were noticed on such verification.
(c) During the year, the Company has not disposed off any substantial
part of its fixed assets.
ii) (a) Inventory have been physically verified by the management at
reasonable intervals. 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 inventory
followed by the management are generally reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory.
Discrepancies noticed on verification by management between the
physical stocks and the book records were not material and same have
been properly dealt with in the books of account.
iii) (a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to any company,
firm or other parties listed in the register maintained under Section
301 of the Companies Act, 1956. Accordingly, provisions of clause 4
(iii) (b) (c) (d) are not applicable to the Company.
(b) The Company has taken unsecured loans from four parties covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs.178,700,000 /- and
the year end balance of loans taken from such parties was Rs. Nil/-.
(c) In our opinion and according to the information and explanations
given to us the rate of interest and other terms and conditions on
which these loans have been taken are not prima facie prejudicial to
the interest of the Company.
(d) The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest wherever
stipulated.
iv) 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 the purchase of inventory, fixed assets and for sale of
goods and services. During the course of our audit, we
have not observed any continuing failure to correct major weakness in
internal control system.
v) (a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements, referred to
in section 301 of the Companies Act, 1956, have been entered in the
register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956, have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi) In our opinion and according to information and explanations given
to us, no public deposits under the provisions of Section 58A and 58AA
of the Companies Act, 1956 and rules framed have been accepted by the
Company. According to the information and explanations given to us, no
order under the aforesaid sections 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 on the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) According to information and explanations given to us, the
Company has maintained books of account and records required to be
maintained pursuant to the rule prescribed by the central government
for the maintenance of cost records under section 209 (1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. The
contents of these accounts and records have not been examined by us.
ix) (a) Undisputed Statutory Dues including Employees Provident Fund,
Employees State Insurance (ESIC), Value Added Tax, Central Sales Tax,
Tax Deducted at Source, Income Tax, Wealth Tax, Service Tax, and
Profession Tax have been regularly deposited with the appropriate
authorities, however, there have been some delays in depositing such
dues. According to the information and explanations given to us, there
were no undisputed statutory dues which have remained outstanding as at
31st March, 2011 for the period of more than six months from the date
they became payable.
(b) According to the information and explanations given to us, and the
records examined by us, dues in respect of Sales-Tax, Income-Tax,
Customs Duty, Wealth Tax, Service Tax, Entry Tax, Value Added Tax,
Central Sales Tax, Excise Duty, Cess as at 31st March, 2011 that have
not been deposited with the appropriate authority on account of any
disputes and the forum where the dispute is pending are as under-
Sr Name of Nature of Period to which Amount Forum where dispute
No the Statue the Dues the amount
relates (Rs.) is pending
1 Bombay
Sales Sales Tax 1994-95 1,19,669/- Dy. Comm. Sales Tax
Tax Act (Appeal) IV, Mumbai
2 Bombay
Sales Sales Tax 1995-96 69,317/- Dy. Comm. Sales Tax
Tax Act (Appeal) IV, Mumbai
3 Central
Sales Central 1995-96 2,90,360/- Dy. Comm. Sales Tax
Tax Act Sales Tax (Appeal) IV, Mumbai
4 Bombay
Sales Sales Tax 2004-05 9,04,730/- Dy. Comm. Sales Tax
Tax Act
5 Central
Sales Central 2004-05 25,32,191/- Dy. Comm. Sales Tax
Tax Act
Sales Tax
6 Gujarat
Sales Entry Tax 2009-10 16,23,702/- Commercial Tax
Tax Act Officer (3)
Interest
on 2009-10 3,08,997/- Commercial Tax
Entry Tax Officer (3)
7 Gujarat
Sales Entry Tax 2010-11 1,50,47,060/- Commercial Tax
Tax Act Officer (3)
Interest on 2010-11 14,31,930/- Commercial Tax
Entry Tax Officer (3)
x) The Company has no accumulated losses at the end of the financial
year and has not incurred cash loss
in the current financial year or in the immediately preceding financial
year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not
defaulted in repayment of dues to a financial institution or bank.
xii) Based on the information and explanations given to us, the Company
has not granted any loans and/or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii) The Company is not a chit fund or nidhi / mutual benefit fund /
society.
xiv) In our opinion and according to the information and explanations
given to us, the Company has not done
any dealing or trading in shares, securities, debentures and other
investments during the year under audit.
xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans
taken by others from banks or financial institutions.
xvi) In our opinion and according to the information and explanations
given to us, the term loans raised during the year have been applied
for the purpose for which they were raised.
xvii) According to the information and explanations given to us and on
an examination of the Balance Sheet of the Company, we report that,
on an overall basis, funds raised on short-term basis have,
prima facie, not been used during the year for long-term investment.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) In our opinion and according to the information and explanations
given to us, the Company has not issued any debentures during the
year or in earlier years.
xx) The Management has disclosed the end-use of the money raised by the
public issue of shares (Refer Note 13 of Schedule P (II) to the
Financial Statement). The same has been verified by us.
xxi) 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 Khandelwal Jain & Co. For D. C. Bothra & Co.
Chartered Accountants Chartered Accountants
Firm Registration No: 105049W Firm Registration No: 112257W
Narendra Jain Pawan Bothra
Partner Partner
Membership No. 048725 Membership No. 031215
Place : Mumbai
Date : 28TH May, 2011
Mar 31, 2009
1. We have audited the attached Balance Sheet of PRAKASH STEELAGE
LIMITED as at 31 st March, 2009, the Profit and Loss Account and the
Cash Flow Statement for the year ended on that date, both annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of sub
section (4A) of Section 227 of the Companies Act, 1956, and on the
basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us during the course of the audit, we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the said Order to the extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit; except for information pertaining to declaration of income as
stated in Note no. 9 of Schedule P- II to the accounts.
b) In our opinion and in so far as it appears from our examination of
those books, proper books of account as required by law have been kept
by the Company subject to the extent of the records relating to the
inventories, other income & prior period income, declared, as stated in
Note no.9 of Schedule P-llto the accounts.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956, to the extent applicable.
e)On the basis of written representation received from the directors,
as on 31 St March, 2009, and taken on record by the Board of Directors,
we report that none of the directors are disqualified as on 31 st
March, 2009, from being appointed as a director in terms of clause (g)
of sub section (1) of Section 274 of the Companies Act, 1956.
f) (i) Note No. 3 of Schedule P (II) to the accounts, regarding some of
the balances of Sundry
Debtors, Deposits, Loans & Advances, Unsecured Loan taken and Sundry
Creditors are subject to confirmation from the respective parties and
consequential reconciliation/adjustment arising there from, if any
(ii) Note No. 4 of Schedule P (II) to the accounts, regarding non
ascertainment of Creditors falling under Micro, Small and Medium
Enterprises Development Act,2006 and consequent non- provision of
Interest on amounts due to such creditors, the resulting impact thereof
on the accounts is not ascertainable.
(iii)Note No.9 of Schedule P (II) to the accounts, regarding
declaration of income of Rs. 7,10,97,351/- at the time of search
operations on the Company carried out by the Income Tax Department
which could not be verified by us in the absence of relevant records
and non- provision of penalty on taxes payable on such declared income
as the same has not been quantified, the resulting impact of both on
the accounts is not ascertainable.
g) In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts Subject to our comments
in Paragraph (f) above, the consequential cumulative impact whereof on
the financial statements is not ascertainable, and read together with
the significant accounting policies and notes thereon, give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India :-
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2009,
b) In the case of Profit and Loss Account, of the profit for the year
ended on 31st March, 2009 and
c) In the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT (REFERRED TO IN PARAGRAPH (3) OF OUR
REPORT OF EVEN DATE TO THE MEMBERS OF PRAKASH STEELAGE LIMITED FOR THE
YEAR ENDED MARCH 31, 2009)
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year. In our opinion, the frequency of verification of fixed
assets by the management, as informed to us, is at reasonable
intervals, having regard to the size of the Company and the nature of
the assets physically verified and as explained to us no material
discrepancies were noticed on such verification.
(c) During the year, the Company has not disposed off any substantial
part of its fixed assets.
ii) (a) Inventory have been physically verified by the management at
reasonable intervals. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management in relation to the size of the
Company and the nature of its business needs improvement in view of the
note No. 9 of Schedule P- II to the accounts.
(c) In our opinion, maintenance of records of inventory needs to be
further improved, in view of the note No.9 of Schedule P- II to the
accounts. Discrepancies noticed on verification during the course of
Search Operation carried out by income tax authorities between the
physical stocks and the book records were material and same have been
dealt with in the books of account.
iii) (a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to any company,
firm or other parties listed in the register maintained under Section
301 of the Companies Act, 1956. Accordingly, provisions of clause 4
(iii) (b) (c) (d) are not applicable to the Company.
(b) The Company has taken unsecured loans from eight parties covered in
the register maintained under section 301 of the Companies Act 1956.
The maximum amount involved during the year was Rs.43,06,87,742/- and
the year end balance of loans taken from such parties was
Rs.16,29,99,742/-.
(c) In our opinion and according to the information and explanation
given to us the rate of interest and other terms and conditions on
which these loans have been taken are not prima facie prejudicial to
the interest of the Company.
(d) The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest wherever
stipulated.
iv) In our opinion, the internal control system needs to be
strengthened so as to make it commensurate with the size of the
Company and the nature of its business, with regard to the purchase
of inventory, fixed assets and for sale of goods and services, in view
of the note No. 9 of Schedule P- II to the accounts. Subject to this,
during the course of our audit, we have not observed any continuing
failure to correct major weakness in internal control system.
v) (a) In our opinion and according to the information and explanation
given to us, the particulars of contracts or arrangements, referred to
in section 301 of the Companies Act, 1956, have been entered in the
register required to be maintained under that section.
(b) To the best of our knowledge and belief and according to the
information and explanations given to us, having regard to the
explanations that some of the items purchased are of special nature and
suitable alternative sources do not exist for obtaining comparable
quotations, the other transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 have been made at prices & other terms which
are reasonable having regard to the prevailing market prices at the
relevant time.
vi) In our opinion and according to information and explanation given
to us, no public deposits under the provisions of Section 58A and 58AA
of the companies act, 1956 and rules framed have been accepted by the
Company. According to the information and explanations given to us, no
order under the aforesaid Sections 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 on the Company.
vii) The Company has an internal audit system, the scope of which in
our opinion, needs to be enlarged to be able to plug the weakness in
the internal control system as cited in para (iv) above, to make it
commensurate with the size and nature of its business.
viii)According to information and explanation given to us, the Company
has maintained books of account and records required to be maintained
pursuant to the rule prescribed by the central government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. The contents of
these accounts and records have not been examined by us.
ix) (a) Undisputed Statutory Dues including Employees Provident Fund,
Employees State
Insurance,(ESIC), Tax Deducted at Source, Service tax and Profession
Tax have not been regularly deposited with the appropriate authorities
as there have been some delay in depositing such statutory dues.
Details of the arrears of undisputed statutory dues as on 31st March,
2009 which are outstanding for more than six months from the date they
became payable are as given below.
Sr. Nature of Amount Year to which
No Dues amount relates
1 Service tax 41,430/- 2008-2009
(b) According to the information and explanations given to us, and the
records examined by us, dues in respect of sales-tax, income-tax,
custom duty, wealth-tax, service tax, excise duty, cess as at 31st
March, 2009 that have not been deposited with the appropriate authority
on account of any disputes and the forum where the dispute is pending
are as under :-
Sr. Name of the Nature of Period to Amount Forum where
No. Statute the Dues which the (Rs.) dispute is
amount
relates pending
1 Bombay Sales Sales Tax 1994-95 1,19,669/- Dy. Comm.
Tax Act Sales Tax
(Appeal) IV,
Mumbai
2 Bombay Sales Sales Tax 1995-96 69,317/- Dy. Comm.
Tax Act Sales Tax
(Appeal) IV,
Mumbai
3 Central Sales Central 1995-96 2,90,360/- Dy. Comm.
Tax Act Sales Tax Sales Tax
(Appeal) IV,
Mumbai
4 Income Tax Act Income Tax 2005-06 8,16,415/- Comm. of
Income Tax
(Appeal),
Mumbai
x) The Company has no accumulated tosses as at the end of the financial
period and has not incurred cash loss in the current financial period
or in the immediately preceding financial period.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank.
xii) Based on the information and explanations given to us, the Company
has not granted any loans and/or advances on the basis of security by
way of pledge of shares, debentures and other securities,
xiii) The Company is not a Chit Fund Company or nidhi/mutual benefit
fund/society.
xiv) In our opinion and according to the information and explanations
given to us, the Company has not done any dealing or trading in shares,
securities, debentures and other investments during the year under
audit.
xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks or financial institutions.
xvi) In our opinion and according to the information and explanations
given to us, the term loans raised during the period have been applied
for the purpose for which they were raised.
xvii) According to the information and explanations given to us and on
an examination of the Balance Sheet of the Company, we report that, on
an overall basis, funds raised on short-term basis have, prima facie,
not been used during the period for long-term investment.
xviii) The Company has not made any preferential allotment of shares
during the period.
xix) In our opinion and according to the information and explanations
given to us, the Company has not issued any debentures during the year
or in earlier years.
xx) During the period covered by our Audit Report the Company has not
raised any money by public issues.
xxi) 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 during the year.
For KHANDELWAL JAIN & CO. For D.C. BOTHRA & CO.
Chartered Accountants Chartered Accountants
(NARENDRA JAIN) (PAWAN BOTHRA)
PARTNER PARTNER
Membership No. 048725 Membership No. 31215
Place : Mumbai
Dated : 2nd September, 2009
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