Mar 31, 2014
We have audited the accompanying financial statements of PREMIER PIPES
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"). This responsibility includes
the design, implementa- tion and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of lndia. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statement are free
from material misstatements.
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 judgement, including the assessment of
the risk 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
evaluating the appropriateness of accounting policies used and
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
explanation 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 Balance Sheet, of the state of affairs of the Company
as at March 31, 2014.
b) In the case of 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 purposes 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
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; and
e. on the basis of the 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 31 March, 2014
from being appointed as a Director in terms of clause (g) of
sub-section (1)of Section 274 of the Companies Act, 1956.
The Annexure referred to in our report to the members of Premier Pipes
Limited (''the Company'') for the year ended 31st March, 2014, We report
that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner. In
accordance with this programme, certain fixed assets were verified
during the year and no material discrepancies were noticed on such
verification. In our opinion, this periodicity of physical verification
is reasonable having regard to the size of the Company and the nature
of its assets.
(c) There was no disposal of fixed assets during the year, and
therefore, do not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable Intervals.
(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) In our opinion, and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancies were noticed on physical verification of
stocks by the management as compared to book records.
3. (a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
granted loans to four bodies corporate covered in the register
maintained under Section 301 of the Companies Act, 1956. The maximum
amount outstanding during the year was Rs. 1266.55 lacs and the year
end balance of such loan amounted to Rs. 706.77 lacs. Other than the
above, the Company has not granted any loans, secured or unsecured to
companies, firm or parties in the register maintained under section 301
of the Act.
(b) In our opinion, the rate of interest and other terms and conditions
on which the loans have been granted to the bodies corporate listed in
the register maintained under Section 301 of the Act are not,
prima-facie prejudicial to the interest of the Company.
(c) In the case of loans granted to the bodies corporate listed in the
register maintained under section 301 of the Act, the borrowers have
been regular in the payment of the interest as stipulated. The terms of
arrangement do not stipulate any repayment schedule and the loans are
repayable on demand. Accordingly, paragraph 4(iii)(c) of the Order is
not applicable to the Company in respect of repayment of the principal
amount.
(d) There are no overdue amounts of more than rupees one lakh in
respect of the loans granted to the bodies corporate listed in the
register maintained under section 301 of the Act.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of accounts, the Company has
taken loans from two bodies corporate and one other parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount outstanding during the year was Rs. 19.47 lacs and
the year end balance of such loan amounted to Rs. 4.38 lacs.
(f) In our opinion, the rate of interest and other terms and conditions
on which the loans have been taken from the bodies corporate and other
parties covered in the register maintained under Section 301 of the Act
are not, prima-facie, prejudicial to the interest of the Company.
(g) In respect of loans taken from the bodies corporate and other
parties covered in the register maintained under section 301 of the
Act, the Company has been regular in the payment of the interest as
stipulated. The terms of arrangement do not stipulate any repayment
schedule and he loans are repayable on demand. Accordingly, paragraph
4(iii)(g) of the Order is not applicable to the Company in respect of
repayment of the principal amount.
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
purchase of inventory and Fixed Assets and for the sale of goods.
During the course of our audit, no major instance of continuing failure
to correct any weaknesses in internal controls has been noticed.
5. (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered in to register maintained under Section 301 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 exceeding value of Rupees five lakhs have been entered
into during the financial year at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has not accepted deposits from the public.
7. As per information and explanation given by the management, the
Company has an adequate internal audit system commensurate with its
size and nature of its business.
8. As per information and explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause(d)of sub-section(1) of section 209 of the Act
and we are of the opinion that prima facie the prescribed accounts and
records has been made and maintained. We have not, however, made a
detailed examination of the same.
9. (a) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, undisputed
statutory dues including provident fund, investor education and
protection fund, employees state insurance, income tax, sales tax,
wealth tax, service tax, customs duty, cess to the extent applicable
and other statutory dues have generally been regularly deposited with
the appropriate authorities. According to the information and
explanations given to us there were no outstanding statutory dues as on
31st March, 2013for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, the dues
of Employees State Insurance, Sales Tax, Income Tax, Customs Duty,
Wealth Tax, Excise Duty and Cess which have not been deposited on
account of any dispute and the forum where the dispute is pending are
as under
Name of the Nature of dues Amount Forum where dispute
Statute (Rupees) is pending
ESI Act, 1948 Damages and Interest 135617.00 Civil Judge (Senior)
ESI, Court,
Kanpur Nagar
10. The Company does not have any accumulated losses as at the year
end,and has not incurred any cash losses during the financial year and
the immediately preceding financial year.
11. Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
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. 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 (as amended) are not
applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in shares,
securities, debentures, and other investments.
The investments have been held by the Company in its own name.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. The Company did not have any term loans outstanding during the
year.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short-term basis have been used for long-term
investment.
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 did not have any debentures during the year.
20. The Company has not raised any money by Public issue during the
year.
21. According to the information and explanations given to us, we
report that no fraud on or by the Company has been noticed or reported
during the year, nor have we been informed of such case by the
management.
Place : Kanpur For C. L. Kanodia & Co.
Date : 30.05.2014 Firm''s Registration No. :001002C
Chartered Accountants
Sd/-
(C. L. Kanodia)
Prop.
Membership No. 11427
Mar 31, 2012
We have audited the attached Balance Sheet of PREMIER PIPES LIMITED as
at 31st March, 2012 and also the Profit and Loss Account and the Cash
Flow Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We have 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.
1. 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 we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order to the extent applicable.
2. Further to our Comments in the Annexure referred to in paragraph 1
above, we report that :-
a. we have obtained all the information and explanations which to the
best of our knowledge and belief where necessary for the purposes of
our audit.
b. in our opinion, proper books of Account as required by law have
been kept by the Company, so far as appears from our examination of the
books.
c. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
d. in our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
e. on the basis of the written representations 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 is 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 explanation given to us, the said accounts, read with notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view :-
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31.03.2012 and ii) in the case of the Profit and Loss
Account, of the Profit for the year ended on that date. iii) in the
case of the cash flow statement, of the cash flows for the year ended
on that date.
ANNEXURE TO THE AUDITOR'S REPORT (Referred to in Paragraph (1) of our
Report of even date)
1. (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
according to the program of periodical verification which in our
opinion is reasonable having regard to the size of the company and
nature of its fixed assets. The discrepancies noticed on such physical
verification were not material.
(c) In our opinion, and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
2. (a) As explained to us, management has carried out physical
verification of the inventory at reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion, and according to the information and explanations
given to us, the Company has maintained proper records of its
inventory, and discrepancies noticed on physical verification of
inventory as compared to the books records, were not material and have
been properly dealt with in the books of accounts
3. (a) During the year, the Company has taken unsecured loans of Rs.
108.68 lacs from companies listed in the register
maintained under section 301 of the Companies Act, 1956. The year end
balance of the loan from companies and other party is Rs. 38.02 lacs.
The company has granted loans to companies listed in the register
maintained under section 301 of the Companies Act, 1956, having year
end balance of Rs. 623.04 lacs.
(b) The rate of Interest and other terms and conditions of the loan
taken or granted by the Company covered under sub-para (a) above are
not, phma-facie prejudicial to the interest of the Company.
(c) In our opinion and according to the information and explanations
given to us, the company is regular in repayment of the Principal
amount as per stipulations.
(d) In our opinion and according to the information given to us, there
are no overdue amounts for payment of principal.
4. In our opinion, and according to the information and explanations
given to us, the Company has adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and Fixed Assets and for the
sale of goods services. During the course of audit, we have not
observed any continuing failure to correct major weaknesses in internal
controls system.
5. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need
to be entered into the register maintained under Section 301 of the
Companies Act, 1956, have been so entered. (b) In respect of
transactions made in pursuance of such contracts or arrangements
exceeding value of rupees five lacs entered into during the financial
year, at price which are reasonable having regard to the prevailing
market prices at the relevant time.
6. As explained to us, the Company has not accepted deposits from the
public under Sections 58A and 58AA of the Companies Act, 1956.
7. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company pursuant to the Rules made by the Central Government for
maintenance of cost records u/s 209(1)(d)of the Companies Act, 1956, in
regard to its products. We are of the opinion that prima- facie the
prescribed accounts and records have been maintained. We have not,
however, made a detailed examination of the records.
9. (a) According to the information and explanations given to us and
on the basis of our examination of the books of
account, the Company has been regular in depositing during the year
undisputed statutory dues including provident fund, employees state
insurance, income tax, sales tax, and other statutory dues with
appropriate authorities. As inform to us, there are no undisputed dues
in arrears as at 31st March, 2012 for a period of more that six months
from the date they become payable.
(b) According to the information and explanations given to us, the dues
of Employees Estate Insurance, Sales Tax, Income Tax, Customs Duty,
Wealth Tax, Excise Duty and Cess which have not been deposited on
account of any dispute and the forum where the dispute is pending are
as under :-
Name of the Nature of dues Amount Forum where dispute
Statute (Rupees) is pending
Civil Judge (Senior)
ESI Act, 1948 Damages and
Interest 135617.00 ESI Court KanpurNagar
10. The Company does not have any accumulated losses as at the year
end, and has not incurred any cash losses during the financial year and
the immediately preceding financial year.
11. In our opinion and based on the information and explanations given
to us, the Company has not defaulted in repayment of dues to the Bank
and financial institutions, during the above year.
12. Based on our examination of documents and records, we are of the
opinion that 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) are
not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures, and other investments. The investments have
been held by the Company in its own name.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to theinformationandexplanationsgiventous.no term loan
has been taken by the Company during the year.
17. In our opinion, and and according to the information and
explanations given to us, the Company has not prima-facie, used the
funds borrowed on short term basis during the year for long term
investments and vies versa.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and Companies covered in the Register maintained under Section 301 of
the Companies Act, 1956.
19. According to the information and explanations given to us, 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. Based on the audit procedures performed and on the basis of
information and explanations given to us by the management, no fraud on
or by the Company has been noticed or reported during the course of our
audit.
For C. L. Kanodia & Co
Chartered Accountant
(C. L. Kanodia)
Place : Kanpur Prop.
Date : 30.05.2012 Membership No. 11427
Mar 31, 2011
We have audited the attached Balance Sheet of PREMIER PIPES LIMITED
(formerly known as QST Limited), as at 31st March, 2011 and also the
Profit and Loss Account and the Cash Flow Statement of the Company for
the year ended on that date annexed thereto. These financial statements
are the responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
We have 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.
1. 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 the matters specified in paragraphs 4 and 5 of the said
Order to the extent applicable.
2. Further to our Comments in the Annexure referred to in paragraph 1
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 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 the
books.
c. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
d. in our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this
report comply with the accounting standards referred to in sub-section
(3C) of Section 211 of the Companies Act, 1956.
e. on the basis of the written representations 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 is 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. in our opinion and to the best of our information and according to
the explanation given to us, the said accounts, read with notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view :-
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31.03.2011 and
ii) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date.
iii) in the case of the cash flow statement, of the cash flows for
the year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in Paragraph (1) of our Report of even date)
1. (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) As explained to us, the Fixed Assets of the Company are physically
verified by the management at reasonable intervals and no material
discrepancies have been noticed on such verification.
(c) In our opinion, and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year and accordingly going concern is not
effected.
2. (a) As explained to us, management has carried out physical
verification of the inventory at reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion, and according to the information and explanations
given to us, the Company has maintained proper records of its
inventory, and no discrepancies noticed on physical verification of
inventory as compared to the book records.
3. (a) During the year, the Company has taken unsecured loans of Rs.
170.00 lacs from companies and Other parties listed in the register
maintained under section 301 of the Companies Act, 1956.
(b) The rate of Interest and other terms and conditions of the loan
taken or granted by the Company covered under sub-para (a) above are
not, prima-facie prejudicial to the interest of the Company.
(c) In our opinion and according to the information and explanations
given to us, the company is regular in repayment of the Principal
amount as per stipulations.
(d) In our opinion and according to the information given to us, there
are no overdue amounts for payment of principal.
4. In our opinion, and according to the information and explanations
given to us, the Company has adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and Fixed Assets and for the
sale of goods. During the course of audit, we have not observed any
continuing failure to correct major weaknesses in internal controls
with regard to purchase of inventory and fixed assets and for the sale
of goods.
5. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered
into the register maintained under Section 301 of the Companies
Act, 1956, have been so entered.
(b) In respect of transactions made in pursuance of such contracts or
arrangements exceeding value of rupees five lacs entered into during
the financial year, because of absence of any comparable prices, we
are unable to comment whether the transactions were made at prevailing
market prices at the relevant time.
6. As explained to us, the Company has not accepted deposits from the
public under Sections 58A and 58AA of the Companies Act, 1956.
7. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company pursuant to the Rules made by the Central Government for
maintenance of cost records u/s 209(1)(d)of the Companies Act, 1956, in
regard to its products. We are of the opinion that prima- facie the
prescribed accounts and records have been maintained. We have not,
however, made a detailed examination of the records.
9. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has been regular in depositing during the year undisputed statutory
dues including provident fund, employees state insurance, income tax,
sales tax, and other statutory dues with appropriate authorities. As
inform to us, there are no undisputed dues in arrears as at 31st
March, 2011 for a period of more that six months from the date they
become payable.
(b) According to the information and explanations given to us, the
dues of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Excise Duty
and Cess which have not been deposited on account of any dispute and
the forum where the dispute is pending are as under:-
Name of the Nature of dues Amount Forum where dispute
Statute (Rupees) is pending
Civil Judge (Senior)
ESI Act, 1948 Damages and 135617.00 ESI, Court, Kanpur Nagar
Interest
10. The Company does not have any accumulated losses as at the year
end, and has not incurred any cash losses during the financial year and
the immediately preceding financial year.
11. In our opinion and based on the information and explanations given
to us, the Company has not defaulted in repayment of dues to the Bank
and financial institutions, during the above year.
12. Based on our examination of documents and records, we are of the
opinion that the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
13. As explained to us, the provisions of any special statutes
applicable to Chit Fund, Nidhi, Mutual Benefit fund or society are not
applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures, and other investments. The investments have
been held by the Company in its own name.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, no term
loan has been taken by the Company during the year.
17. In our opinion, and on the basis of our explanation and according
to the information and explanations given to us, the Company has not
prima-facie, used the funds borrowed on short term basis during the
year for long term investments and vice versa.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and Companies covered in the Register maintained under Section 301 of
the Companies Act, 1956.
19. According to the information and explanations given to us, the
Company has not issued any debentures during the year.
20. In our opinion and according to the information and explanations
given to us, the Company has not raised any money by Public issue
during the year.
21. To the best of our knowledge and belief and according to the
information and explanations given to us by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
For C. L. Kanodia & Co.
Chartered Accountants
(C. L. Kanodia)
Prop.
Membership No. 11427
Place : Kanpur
Date : 27.05.2011
Mar 31, 2009
We have audited the attached Balance Sheet of QST LIMITED, as at 31st
March 2009 and also the Profit and Loss Account and the Cash Flow
Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We have 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.
1. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227of the Companies Act, 1956 we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order to the extent applicable.
2. Further to our Comments in the Annexure referred to in paragraph 1
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 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 examinations of the Books.
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
e. On the basis of the written representations received from the
Directors as on 31st March 2009 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2009 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations give to us, the said accounts, read with notes
thereon, Subject to the note No. 3 regarding non - provision of
interest on Bank Loans, give the information required by the Companies
Act, 1956 in the manner so required and give a true and fair view :-
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31.03.2009 and
ii) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date.
iii) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
1. (a) The Company is maintaining proper records
showing full particulars including quantitative details and situation
of Fixed Assets.
(b) As explained to us, the Fixed Assets of the Company are physically
verified by the management at reasonable intervals and no material
discrepancies have been noticed on such verification.
(c) In our opinion, and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year and accordingly going concern is not
effected.
2. (a) As explained to us, management has carried our physical
verification of the inventory at reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion, and according to the information and explanations
given to us, the Company has maintained proper records of its
inventory, and no discrepancies noticed on physical verification of
inventory as compared to the book records.
3. (a) During the year, the Company has taken
unsecured loans Rs 494.00 lacs from Companies and other parties listed
in the register maintained under Section 301 of the Companies Act,
1956. The Company has not granted any loans to firms, Companies and
other parties listed in the register maintained u/s 301 of the
Companies Act, 1956. (b) The rate of Interest and other terms and
conditions of the loan granted by the Company covered under sub-para
(a) above are not prima- facie prejudicial to the interest of the
Company.
4. In our opinion, and according to the information and explanations
given to us, the Company has adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and Fixed Assets and for the
sale of goods. During the course of audit, we have not observed any
continuing failure to correct major weakness in internal controls with
regard to purchase of inventory and fixed assets and for the sale of
goods.
5. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under Section 301 of the Companies Act, 1956,
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956, and exceeding rupees five lacs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. As explained to us, the Company has not accepted deposits from the
public under Sections 58A and 58AA of the Companies Act, 1956.
7. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company pursuant to the Rules made by the Central Government for
maintenance of cost records u/s 209(1)(d) of the Companies Act, 1956,
in regard to its products. We are of the opinion that prima- facie the
prescribed accounts and records have been maintained. We have not,
however, made a detailed examination of the records.
9. (a) According to the information and explanations given
to us and on the basis of our examination of the books of accounts, the
Company has been regular in depositing during the year undisputed
statutory dues including provident fund, employees state insurance,
income tax, sales tax and other statutory dues with appropriate
authorities. As informed to us, there are no undisputed dues in arrears
as at 31st March 2009 for a period of more than six months from the
date they became payable. (b) According to the information and
explanations given to us, the dues of Sales Tax, Income Tax, Customs
Duty, Wealth Tax, Excise Duty and Cess which have not been deposited on
account of any dispute and the forum where the dispute is pending are
as under:-
Name of the Nature of dues Amount Forum where dispute
Statute (Rupees) is pending
Income Tax 2000-2001 on account of 2781962.00 CIT (A)-ll, Kanpur
Act, 1961 Additions on Assessment
Income Tax 2001-2002 on account of 2632641.00 CIT (A)-ll, Kanpur
Act, 1961 Additions on Assessment
ESI Act,1948 Damages and Interest 135617.00 Civil Judge (Senior)
ESI Court,
Kanpur Nagar
10. The Company does not have any accumulated losses at the year end,
and has not incurred any cash losses during the financial year and the
preceding financial year.
11. In our opinion and based on the information and explanations given
to us, the Company has defaulted in repayment of dues to the Bank of
Baroda. The Banks have categorized the accounts as NPA on 31. 05. 2002.
The Company has compromised with Bank of Baroda under one time
settlement. The Amount payable to Bank of Baroda is Rs. 337.00 Lacs
under one time settlement excluding interest payable from 01.10.2008.
12. Based on our examination of documents and records, we are of the
opinion that the Company has not granted loans and advances on the
basis of security by was of pledge of shares, debentures and other
securities.
13. As explained to us the provisions of any special statutes
applicable to Chit Fund, Nidhi, Mutual Benefit fund or society are not
applicable to the Company,
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures, and other investments. The invest- ments have
been held by the Company in its own name.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial Institutions.
16. According to the information and explanations given to us, no term
loan has been taken by the Company during the year.
17. In our opinion, and on the basis of our explanation and according
to the information and explanations given to us, the Company has not
prima facie, used the funds borrowed on short term basis during the
year for long term investments and vice versa.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and Companies covered in the Register maintained under Section 301 of
the Companies Act, 1956.
19. According to the information and explanations given to us, the
Company has not issued any debentures during the year.
20. In our opinion and according to the information and explanations
given to us, the Company has not raised any money by Public issue
during the year.
21. To the best of our knowledge and belief and
according to the information and explanations given to us by the
management, we report that no fraud on or by the Company has been
noticed or reported during the year.
For C. L. Kanodia & Co.
Chartered Accountants
(C. L. Kanodia)
Prop.
Membership No. 11427
Place: Kanpur
Date : 20.06.2009
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