Mar 31, 2016
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of RAINBOW PAPERS LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2016, 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 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 Standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Standalone 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 Standalone 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 Standalone financial statements.
We broadly believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Matter of Emphasis:
1. We draw attention to Note No. 37 of the accompanying Standalone Financial statements in respect of non-provision of interest on NPA accounts of banks of Rs 2858.69 Lakhs. The exact amounts of the said non provisions are not determined and accounted by the company.
2. We draw attention to Note No. 36 of the accompanying Standalone Financial Statement in respect of Winding up Notices and Notices under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act 2002).
3. We draw attention to Note No. 30(a) of the accompanying Standalone Financial Statement relating to third party balance confirmation.
4. We draw attention to Note No. 30(e) of the accompanying Standalone Financial Statement in respect of higher depreciation on account of revision of useful life, resulting into higher depreciation of Rs 5012.56 Lakhs for the year under consideration.
Opinion
In our opinion and to the best of our information and according to the explanations given to us read with the notes to accounts, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2016. Report on Other Legal and Regulatory Requirements
1.
As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, on the basis of information given to us by the company, we give in the Annexure A statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable for the year under consideration.
2. As required by Section 143 (3) of the Act, except otherwise stated, we broadly report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the directors as on 31 March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act; and
(f) With respect to adequacy of the internal financial controls over the financial reporting of the company and the operating effectiveness of such controls refers to our separate report in a Annexure-B
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone financial statements;
ii. There are no long term contracts including derivative contracts and accordingly no provision is required to be made for any loss from the same; and
iii. There is no fund which is pending to be transferred to the Investor Education and Protection Fund by the Company.
[ANNEXURE A REFERRED IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF RAINBOW PAPERS LIMITED, FOR THE YEAR ENDED ON 31ST MARCH, 2016]
i. (a) The Company maintain records showing full particulars, including quantitative details and situation, of fixed assets, however the company is in the process of updating the fixed assets register in respect of addition made during the year and deprecation for the year.
(b) As informed to us, the fixed assets are physically verified by the Management at regular intervals, however during the year no physical verification is undertaken by the company and therefore we are unable to comment on any discrepancies between the records and physical verification.
(c) As informed to us and on the basis of the records of the company, the title deeds of immovable properties, as disclosed in Note 12 on fixed assets to the Standalone financial statements, are held in the name of the Company.
ii. The physical verification of inventory has been conducted at reasonable intervals by the Management during the year. The various discrepancies noticed on physical verification of inventory as compared to book records were material and have been appropriately dealt with in the books of accounts.
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 Companies Act, 2013 (''the Act'') and accordingly the para iii (a), (b) and (c) of the Order are not applicable.
iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made, and guarantees and security provided by it during the year.
v. The Company has not accepted any deposits from the public (Other than exempted deposit) within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products and we have been informed that the same are maintained and the company is in process of updating the same.
vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is not regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, Pension Fund, income tax, service tax, duty of customs, duty of excise, cess and other material statutory dues, as applicable, with the appropriate authorities. There are undisputed amounts payable in respect of above dues which were in arrears as at 31st March 2016 for a period of more than six months from the date they became payable.
Name of the statute |
Nature of dues |
Rs. In Lacs* |
Periods to which amount relates |
Employee Provident Fund |
Provident Fund |
187.56 |
From October -14 to August 2015 |
Professional Tax |
Professional Tax |
8.42 |
From March-2015 to August 2015 |
Finance Act 1994 |
Service Tax |
63.63 |
May 2015 to August 2015 |
Central Sales Tax Act,1956 |
Central Sales Tax / |
27.63 |
2014-15 |
|
Value Added Tax |
1.48 |
April 2015 to August 2015 |
Commission of Electricity Board |
Electricity Duty Payable |
1000.87 |
From April 2012 to August 2015 |
Income Tax Act, 1961 |
Tax Deducted as Source |
73.91 |
March 2015 to August 2015 |
|
Dividend Distribution Tax |
72.21 |
Asstt. Year 2014-15 and Asstt. Year 2015-16 |
* In absence of evidence, if any, payments made during the year are apportioned on FIFO basis to determine the above outstanding liabilities. Further the amount of interest on the above outstanding amount and the penalty thereon are not included in the above amounts.
(b) According to the information and explanations given to us and the records of the Company produced for our verification, following are the details of outstanding dues in respect of followings, which have not been deposited on account of any dispute:-
Name of the statute |
Nature of dues |
Rs. In Lacs dispute not yet deposited As on 31st March, 2015 |
Periods to which the amount relates ( F.Y) |
Forum where the dispute is pending |
Income Tax Act, 1961 |
Income Tax |
1.92 |
Asstt. Year 2009-10 |
Hon''ble Income Tax |
|
|
|
2011-12 |
Appellate Tribunal |
Income Tax Act, 1961 |
Income Tax |
191.35 |
Asstt.Year 2012-13 |
Hon''ble Income Tax |
|
|
|
|
Appellate Tribunal |
Custom Act, 1975 |
Custom Duty |
238.96 |
F.Y. 2007-08, |
Office of the |
|
|
|
F.Y. 2008-09 & |
Commissioner |
|
|
|
F.Y. 2012-2013 |
of Customs |
viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has defaulted in repayment of loans or borrowings to financial institution and bank as at the balance sheet date. Details of which are as below:
Particulars |
Name of Lender Amount of Default as on 31/03/2016*(Rs in Lacs) |
Period of Default |
||
|
Principal |
Interest |
Total |
|
Financial |
IFCI Limited 600.00 |
1090.06 |
1690.06 |
Oct 2015 |
Institutions |
Tourism Finance 2000.00 Corporation of India Limited |
120.55 |
2120.55 |
Interest Default from Nov 2015 and Principal from March 2016 |
Banks |
Union Bank of India 600.00 |
0.00 |
600.00 |
Nov 2015 |
|
Indian Overseas Bank1600.00 |
225.09 |
1825.09 |
Interest from December 2015 and Principal from March 2016 |
|
Axis Bank 1536.00 |
344.87 |
1880.87 |
January 2016 |
|
Allahabad Bank 0.00 |
205.65 |
205.65 |
October 2015 |
Total |
6336.00 |
1986.22 |
8322.22 |
|
*The above table does not include the interest which bank has not provided after the account has been classified Non Performing Assets.
ix. In our opinion, and according to the information and explanations given to us during the year, company has not raised money by way of term loan. Accordingly, the provisions of Clause 3(ix) of the Order are not applicable to the Company.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi. The Company has paid / provided for managerial remuneration in accordance with provisions of section 197 of the Companies Act, 2013.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the Standalone financial statements as required under Accounting Standard (AS) 18, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any non cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For Mehta Lodha & Co.,
Chartered Accountants
Firm Regn No: 106250W
Place : Ahmedabad Prakash D. Shah
Date : 30th May 2016 (Partner)
Membership No:34363
Mar 31, 2015
We have audited the accompanying standalone financial statements of
RAINBOW PAPERS LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Profit and Loss Statement, 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 of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the 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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164(2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements  Refer Note 20(a) 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
4(d)(iii) to the financial statements;
iii. There has been no delay in transferring amounts, required to be
transferred to the Investor Education and Protection fund
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date.)
(i) In respect of its fixed assets :
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
(b) As explained to us, the Company has a phrased program of physical
verification of its fixed assets, which in our opinion, is reasonable
having regard to the size of the Company and the nature of its
business. During the year the Company has physically verified some of
the assets and no material discrepancies were noticed on such
verification.
(ii) In respect of its Inventories :
(a) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
(iii) During the year the Company has not given any loans secured or
unsecured to the companies, firms or other parties covered in the
register maintained under section 189 of the Companies Act, 2013. Hence
Clause (iii) (a) and (b) 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 systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system.
(v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit and hence the
provisions of Section 73 to 76 or any other relevant provisions of the
Companies Act and the Companies (Acceptance of Deposits) Rules, 2014,
with regard to the deposits accepted are not applicable to the Company.
Therefore, the provisions of clause (v) of paragraph 3 of the Order are
not applicable to the company. According to the information and
explanations given to us, no order has been passed by Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other Tribunal.
(vi) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Records and Audit) Rules, 2014
prescribed by the Central Government under section 148(1) of the
Companies Act, 2013 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the Cost Records with the view to
determine whether they are accurate or complete.
(vii) In respect of statutory dues:
(a) According to the records of the Company, the Company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including Provident Fund, Employees' State Insurance ,Income Tax,
Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise,
Value Added Tax, Cess and any other statutory dues applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid statutory dues
were in arrears as at 31st March,2015 for a period of more than six
months from the date they became payable.
(b) The disputed Statutory dues aggregating to Rs. 487.46 /- Lacs, that
have not been deposited on account of disputed statutory matters
pending before appropriate authorities are as under:
Name of
the statute Nature of dues Amt. under Periods to Forum where
dispute not which the the dispute
is pending
yet depo- amount
sited relates
As on 31st ( F.Y)
March 2015
Rs,In Lacs
Income Tax
Act, 1961 Assessment 93.08/- Income Tax
Proceedings 2011-12 Appellate
Tribunal
394.38/- 2012-13 Commissioner
of Income
Tax (Appeals)
Total 487.46/-
(c) The Company has transferred amount to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act,1956 (1 of 1956) and rules made there under.
(viii) The Company does not have any accumulated losses at the end of
the Financial year. The Company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(ix) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to the financial
institution or banks or debenture holders.
(x) 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.
(xi) According to the information and explanation given to us, the term
loans were applied for the purpose for which it is obtained.
(xii) Based on the audit procedures performed and representation
obtained from management we report that, no case of material fraud on
or by the Company has been noticed or reported for the year under
audit.
For P A R Y & Co
Chartered Accountants
(Firm Reg No:007288C)
Place : Ahmedabad (Sushil Goenka)
Date : 29th May, 2015 (Partner)
Mem No:115465
Mar 31, 2014
We have audited the accompanying financial statements of Rainbow Papers
Limited ("the Company"), which comprise the Balance Sheet as at 31st
March, 2014, and 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 gives a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September 2013
of the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013.This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal controls 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 Company''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 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") 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, Statement of Profit and Loss and
the Cash Flow Statement dealt with this Report comply with the
Accounting Standards notified under the Companies Act, 1956 read with
the General Circular 15/ 2013 dated 13 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 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956:
ANNEXURE TO IN DEPEN DENT AUDITOR''S REPORT
(Referred to in paragraph 1 under the heading of"Report on Other Legal
and Regulatory Requirements"of our report of even date.)
(i) In respect of its fixed assets:
(a) The company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
(b) As explained to us, the Company has a phased program of physical
verification of its fixed assets, which in our opinion, is reasonable,
having regard to the size of the Company and nature of its business.
During the year, the company has physically verified some of the assets
and no material discrepancies were noticed on such verification.
(c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
ii) In respect of its Inventories:
(a) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) On the basis of our examination of the records of the Company, we
are of the opinion that the company is maintaining proper records of
inventories. As explained to us, there was no material discrepancies
noticed on physical verification of inventories as compared to the book
records.
(iii) In respect of the Loans, secured or unsecured, granted or taken
by the Company to / from companies, firms or other parties covered in
the register maintained under Section 301 of the Companies Act, 1956
(a) The Company has not given any Loan during the year to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Consequently, the requirements of
Paragraph 4 (iii) (b), (c) & (d) of the Order are not applicable.
(e) The Company has taken Loan from two parties. In respect of the said
loans, the maximum amount outstanding at any time during the year was
Rs. 7295 Lacs and year-end balance is Rs. 7295 Lacs.
(f) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans taken by the Company, are not prejudicial to the interest of the
Company.
(g) In respect of the said Loans and interest thereon, there are no
overdue amounts.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
(v) In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
(a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the 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
contracts/arrangements entered in the Register maintained under section
301 of the Companies Act, 1956 and exceeding the value of Rs. 5,00,000
in respect of each party during the year have been made at prices which
appear reasonable as per information available with the company.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
and hence the provisions of Section 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public are not applicable to the Company. Therefore, the provisions of
Clause (vi) of paragraph 4 of the Order are not applicable to the
Company.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(ix) In respect of statutory dues:
(a) According to the records of the company, the company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employee''s State Insurance, Income-Tax, Sales-Tax, Wealth-Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it. According to the information and explanations given
to us, no undisputed arrears of statutory dues were outstanding as at
31st March, 2014 for a period of more than six months from the date
they became payable.
(b) According to the records of the Company there are no dues of Value
added Tax, Income-tax Sales Tax, Wealth Tax, Custom Duty, Service Tax,
Excise Duty, Cess and other Statutory dues, etc which have not been
deposited on account of any dispute.
(x) The Company does not have any accumulated losses at the end of the
Financial year. The company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to the banks. The
Company does not have debentures.
(xii) In our opinion and according to explanations given to us and
based on the information available, no loans and advances have been
granted by company on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) The company is not a chit fund / nidhi / mutual benefit
fund/society. Therefore, the provisions of clause (xiii) of paragraph 4
of the Order are not applicable to the company.
(xiv) The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
(xiv) of paragraph 4 of the Order are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans, taken by others, from
banks or financial institutions. (xvi) The Company has raised new Term
Loans during the year. The term loans outstanding at the beginning of
the year and those raised during the year have been applied for the
purposes for which they were raise.
(xvii) According to information and explanation given to us and on an
overall examination of the financial statements and other records of
the company, we are of the opinion that funds raised on short term
basis have not been used for long term investments.
(xviii) During the year the company has issued 2,52, 000 Equity shares
at a price of Rs. 81 (Face Value Rs. 2) amounting to Rs. 204.12 lacs as
preferential allotment of the share to the company covered in the
register maintained u/s 301 of the Companies Act, 1956. The prices at
which such shares has been issued is not prejudicial to the interest of
the company.
(xix) During the year covered by our audit report, the Company has not
issued any debentures. Accordingly, the provisions of clause (xix) of
paragraph 4 of the Order are not applicable to the Company.
(xx) The Company has not raised any money by way of public issue during
the year. Accordingly, the provisions of clause (xx) of paragraph 4 of
the Order are not applicable to the Company.
(xxi) Based on the audit procedures performed and representation
obtained from management we report that, no case of material fraud on
or by the Company has been noticed or reported for the year under
audit.
For P A R Y & Co
Chartered Accountants
(Firm Reg No:007288C)
Place : Ahmedabad P. Vamshi Krishna Reddy
Date : 30/05/2014 (Partner)
Mem No:224674
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of RAINBOW PAPERS
LIMITED ("the Company"), which comprise th Balance Sheet as at March
31,2013, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended, an a summaryofsignificant 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 financia position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to i, sub-section (3C) of section 211
of the Companies Act, 1956("theAct").This responsibility includes the
design, implementatio, and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a tru< 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 i, accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India.Those Standards requin thatwe comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance aboutwhetherth, 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 o the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal contro relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures tha are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used anc the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of th. financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India: (a) In the case of the Balance Sheet, of
the state of affairs of the Company as at March 31,2013;
(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") 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 forthe
purposeofouraudit;
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 agreementwith 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 ofthe Companies Act,
1956;
e. On the basis of written representations received from the directors
as on March 31,2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 ofthe Companies Act, 1956.
ANNEXURETO INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 1 under the heading o"Report on Other Legal
and Regulatory Requirements''of our report of even date.)
(i) In respect of its fixed assets:
(a) The company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
(b) As explained to us, the Company has a phased program of physical
verification of its fixed assets, which in our opinion, is reasonable,
having regard to the size of the Company and nature of its business.
During the year, the company has physically verified some of the assets
and no material discrepancies were noticed on such verification.
(c) In ouropinion, the Company has not disposed off a substantial
partof its fixed assets during the year and the going concern status of
the Company is not affected.
(ii) In respect of its Inventories:
(a) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) On the basis of our examination of the records of the Company, we
are of the opinion that the company is maintaining proper records of
inventories. As explained to us, there was no material discrepancies
noticed on physical verification of inventories as compared to the book
records.
(iii) In respect of the Loans, secured or unsecured, granted or taken
by the Company to / from companies, firms or other parties covered in
the register maintained under Section 301 of the Companies Act, 1956
(a) The Company has not given any Loan during the year to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Consequently, the requirements of
Paragraph 4 (iii) (b), (c) & (d) of the Order are not applicable
(e) The Company has taken Loan from two parties. In respect of the said
loans, the maximum amount outstanding at any time during the year was Rs.
7295 Lacs and year-end balance is Rs. 7295 Lacs.
(f) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans taken by the Company, are not prejudicial to the interest of the
Company.
(g) In respect of the said Loans and interest thereon, there are no
overdue amounts.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
(v) In respect ofthe contracts or arrangements referred to in Section
301 ofthe Companies Act, 1956:
(a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the 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
contracts/arrangements entered in the Register maintained under section
301 of the Companies Act, 1956 and exceeding the value ofRs. 5,00,000 in
respect of each party during the year have been made at prices which
appear reasonable as per information available with the company.
(vi) In ouropiniorvand according to the information and explanations
given to us, the Company has not accepted any deposit from the public
and hence the provisions of Section 58Aand 58AAorany other relevant
provisions ofthe Companies Act, 1956and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public are not applicable to the Company.Therefore, the provisions of
Clause (vi) of paragraph 4 of the Order are not applicable to the
Company.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting
Records) Rules, 2011 prescribed by the Central Government under Section
209(1 )(d) of the Companies Act, 1956and are of the opinion that prima
facie the prescribed cost records have been maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
(ix) In respect of statutory dues:
(a) According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employee''s State Insurance, Income- Tax, Sales-Tax, Wealth-Tax,
ServiceTax, Custom Duty, Excise Duty, Cess and other material statutory
dues applicable to it. According to the information and explanations
given to us, no undisputed arrears of statutory dues were outstanding
as at 31 - March, 2013 for a period of more than six months from the
date they became payable.
(b) According to the records of the Company there are no dues of Value
added Tax, Income-tax Sales Tax, Wealth Tax, Custom Duty, ServiceTax,
Excise Duty, Cess and other Statutory dues, etc which have not been
deposited on account ofanydispute:
(x) The Company does not haveany accumulated losses atthe end ofthe
Financial year. The company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to the banks.The Company
does not have debentures.
(xii) In our opinion and according to explanations given to us and
based on the information available, no loans and advances have been
granted by company on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) The company is not a chit fund / nidhi/ mutual benefit
fund/society. Therefore, the provisions of clause (xiii) of paragraph 4
of the Order are not applicable to the company.
(xiv) The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
(xiv) of paragraph 4 of the Order are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans, taken by others, from
banks or financial institutions.
(xvi) The Company has raised new Term Loans during the year. The term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purposes for which they were raise.
(xvii)According to information and explanation given to us and on an
overall examination of the financial statements and other records of
the company, we are of the opinion that funds raised on short term
basis have not been used for long term investments.
(xviii) During the year the company has issued 60,00,000 Equity shares
at a price ofRs. 61 (Face Value Rs. 2) and 1 5,00,000 Equity shares at a
price of Rs. 81 (Face Value Rs. 2) amounting to Rs. 4875 lacs as preferential
allotment of the share to the company covered in the register
maintained u/s 301 of the Companies Act, 1 956The prices at which such
shares has been issued is not prejudicial to the interest of the
company.
(xix) During the year covered by our audit report, the Company has not
issued any debentures. Accordingly, the provisions of clause (xix) of
paragraph 4 of the Order are not applicable to the Company.
(xx) The Company has not raised any money by way of public issue during
the year. However, we have verified the end use of money initially
raised through GDR issue.The same is disclosed in the notes to the
Financial Statements (Refer Note No. 3(e)).
(xxi) Based on the audit procedures performed and representation
obtained from management we report that, no case of material fraud on
or by the Company has been noticed or reported for the year under
audit.
For Talati & Talati
Chartered Accountants
Firm Regn No:110758W
Place :Ahmedabad Anand Sharma
Date : 09/05/2013 (Partner)
Membership No:129033
Mar 31, 2012
1. We have audited the attached Balance Sheet of RAINBOW PAPERS
LIMITED as at 31st March 2012, and also the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date
annexed thereto. These Financial Statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these Financial Statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the companies (Auditor's Report) (Amendments) Order 2004
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.
4. Further to our comments in the Annexure referred to in Paragraph 3
above, we report that;
i. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of
our audit.
ii. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
iv. In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement dealt with this Report comply with the
Accounting Standards referred to in Sub-section (3C) of Section 211 of
the Companies Act, 1956;
vi. On the basis of 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;
vii. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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
gives 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.
(c) In the case of the 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)
i) a. The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. As explained to us, the Company has a phased program of physical
verification of its fixed assets, which in our opinion, is reasonable,
having regard to the size of the Company and nature of its business.
During the year, the company has physically verified some of the assets
and no material discrepancies were noticed on such verification.
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and hence the going concern status of the
Company is not affected.
ii) a. The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. On the basis of our examination of the records of the Company, we
are of the opinion that the company is maintaining proper records of
inventories. As explained to us, there was no material discrepancies
noticed on physical verification of inventories as compared to the book
records.
iii) In respect of the Loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a) The Company has not given any Loan during the year to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Consequently, the requirements of
Clause 4 (iii) (b), (c)&(d) of the Order are not applicable.
e) The Company has taken Loan from one party. In respect of the said
loans, the maximum amount outstanding at any time during the year was Rs.
2745 Lacs and year-end balance is Rs.2745 Lacs.
f) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans taken by the Company, are not prejudicial to the interest of the
Company.
g) In respect of the said Loans and interest thereon, there are no
overdue amounts.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system & procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and also with
regard to the sale of goods and services. Duringthe course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system
v) In our opinion and according to the information and explanations
given to us, there were no transactions exceeding Rs. 5 Lacs with any
party covered under section 301 of the Companies Act, 1956 that needs
to be entered into the register maintained under the said section.
Hence clause 4 (v)
(b) of the Order is not applicable.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
and hence the provisions of Section 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public are not applicable to the Company.
vii) The Company has appointed a firm of Chartered Accountants as its
Internal Auditor for the year under audit. The internal audit for the
year is therefore carried out by the said firm. In our opinion, the
Company has an internal audit system commensurate with the size of the
company and nature of its business.
viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209(l)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
ix) a. According to the information & explanations given to us,
undisputed statutory dues including Provident Fund, Employee State
Insurance, Income Tax, Sales tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other dues have been generally regularly
deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March,
2012 for a period of more than six months from the date of becoming
payable.
b. According to the information and explanations given & the records
of the Company examined by us, the details of disputed dues not paid
are as follows:
Name of the Nature of Forum where Total Amount Period to
Statue Dues Pending Amount paid
under which it
Rs. protest relates
Revenue Dept, Additional Gujarat
Revenue 37.56
Lacs 18.78 lacs 2003
Gujarat State premium Tribunal, Interest
on Land Ahmedabad **
** The Tribunal has cancelled the order regarding additional premium on
Land and the matter is again referred to The Collectors, Mehsana for
re-valuation of premium amount.
x) The Company does not have any accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
xi) Based on our audit procedures and on the basis of information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to the banks. The
company does not have any debentures.
xii) In our opinion and according to the explanations given to us, the
Company has not granted any loans against security by way of pledge of
shares, debentures and other securities. Therefore the provisions of
this clause 4 (xii) of the Order are not applicable to the Company.
xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/ society. Therefore, clause4(xiii) of the Order is not
applicable to the Company.
xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Order are not applicable to the
Company.
xv) 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.
xvi)In our opinion and according to the information and explanations
given to us, the Term Loans availed by the Company have been applied
for the purpose for which they were obtained
xvii) According to information and explanation given to us and on an
overall examination of the financial statements and other records of
the company, we are of the opinion that funds raised on short term
basis have not been used for long term investment. Further we report
that unsecured loans raised from one bank are not considered as short
term loans, as the said borrowings are rolled over and considered by
the company available for long term period and the amount raised is
used for long term purposes.
xviii)During the year, the Company has issued 40,00,000 Equity Shares
at a price of Rs. 61/- (face value Rs. 2/- each) amounting to Rs. 2,440 Lacs
as preferential allotment of shares to the company covered in the
register maintained u/s 301 of the Companies Act, 1956. The price at
which such shares has been issued is not prejudicial to the interest of
the Company.
xix) During the year covered by our audit report, the Company has not
issued any debentures. Accordingly, the provision of clause (xix) of
the Order are not applicable to the Company.
xx) The Company has not raised any money by way of public issue during
the year. However, we have verified the end use of money initially
raised through GDR issue. The same is disclosed in the notes to the
Financial Statements (Refer Note No. 3(e)).
xxi) Based on the audit procedures performed and representation
obtained from management we report that, no case of fraud on or by the
Company has been noticed or reported for the year under audit.
For Talati & Talati
Chartered Accountants
Firm Reg No:110758W
Anand Sharma
Place: Ahmedabad Partner
Date: May 24th 2012 Membership No: 129033
Mar 31, 2011
1. We have audited the attached Balance Sheet of RAINBOW PAPERS
LIMITED as at 31st March 2011, and also the Profit and Loss Account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These Financial Statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these Financial Statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
Financial Statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the Financial Statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the companies (Auditor's Report) (Amendments) Order 2004
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.
4. Further to our comments in the Annexure referred to above, we
report that;
i. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
ii. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this Report are in agreement with the books of account;
iv. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this Report comply with the Accounting
Standards referred to in Sub-section (3C) of Section 211 of the
Companies Act, 1956;
v. On the basis of written representations received from the Directors,
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;
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011.
(b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date.
(c) In the case of the Cash Flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT (Referred to in paragraph (3) of our
Report of even date)
i) a. The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. The Company has a phased program of physical verification of its
fixed assets, which in our opinion, is reasonable, having regard to the
size of the Company and nature of its business. During the year, the
company has physically verified some of the assets and no material
discrepancies were noticed on such verification.
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and hence the going concern status of the
Company is not affected.
ii) a. The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. On the basis of our examination of the records of the Company, we
are of the opinion that the company is maintaining proper records of
inventory. As explained to us, there was no material discrepancies
noticed on physical verification of inventories as compared to the book
records.
iii) a. According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms & other parties listed in the register maintained u/s. 301 of the
Companies Act, 1956. Accordingly, clause 4 (iii) (b), (c) & (d) of the
Order are not applicable.
e. According to information and explanation given to us, the Company
has not taken any Loans, secured or unsecured, from companies, firms or
other parties covered in the Register maintained u/s 301 of the
Companies Act, 1956. Consequently, clause 4 (iii) (f) and (g) of the
Order are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and also with
regard to the sale of goods and services. During the course of our
audit, no major weaknesses have been noticed in the internal controls.
v) In our opinion and according to the information and explanations
given to us, there were no transactions exceeding Rs. 5 Lacs with any
party covered under section 301 of the Companies Act, 1956 that needs
to be entered into the register maintained under the said section.
Hence clause 4 (v) (b) of the Order is not applicable.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
and hence the provisions of Section 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public are not applicable to the Company.
vii) The Company has appointed a firm of Chartered Accountants as its
Internal Auditor for the year under audit. The internal audit for the
year is therefore carried out by the said firm. In our opinion, the
Company has an internal audit system commensurate with the size of the
company and nature of its business.
viii) The Central Government has prescribed maintenance of Cost Records
under Section 209 (1) (d) of the Companies Act, 1956 in respect of the
product of the Company. We have broadly reviewed the accounts and
records of the Company in this connection and are of the opinion, that
prima facie, the prescribed accounts and records have been made and
maintained. We have not, however, made a detailed verification of the
records with a view to determine whether they are accurate or complete.
ix) a. According to the information & explanations given to us,
undisputed statutory dues including Provident Fund, Employee State
Insurance, Income Tax, Sales tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other dues have been generally regularly
deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March,
2011 for a period of more than six months from the date of becoming
payable.
b. According to the information and explanations given & the records
of the Company examined by us, the details of disputed dues not paid
are as follows:
Name of Nature of Dues Forum where Total Amount
paid Period
to which
the Statue pending Amount under
protest it
relates
Revenue Dept, Additional Gujarat 37.56
Lacs 18.78
lacs 2003
Gujarat State premium on
Land Revenue Interest
Tribunal,
Ahmedabad **
** The Tribunal has cancelled the order regarding additional premium on
Land and the matter is again referred to The Collectors, Mehsana for
re-valuation of premium amount.
x) The Company does not have any accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
xi) Based on our audit procedures and on the basis of information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to the banks. The
company does not have any debentures.
xii) In our opinion and according to the explanations given to us, the
Company has not granted any loans against security by way of pledge of
shares, debentures and other securities. Therefore the provisions of
this clause 4 (xii) of the Order are not applicable to the Company.
xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/ society. Therefore, clause 4(xiii) of the Order is not
applicable to the Company.
xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Order are not applicable to the
Company.
xv) 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.
xvi) In our opinion and according to the information and explanations
given to us, the Term Loans availed by the Company during the year were
prima facie applied for the purpose for which they were obtained.
xvii)According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that funds raised on short-term basis have prime facie not
been used for long term investment.
xviii) During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained u/s 301 of the Companies Act, 1956. (Refer Note No. 9 of
schedule 18 B)
xix) During the year covered by our audit report, the Company has not
issued any debentures. Accordingly, the provision of clause (xix) of
the Order are not applicable to the Company.
xx) The Company has not raised money through public issue during the
year. However, we have verified the end use of money initially raised
through GDR issue. The same is disclosed in the notes to the Financial
Statements (Refer Note No. 10 of Schedule 18 B).
xxi) Based on the audit procedures performed and representation
obtained from management we report that, no case of fraud on or by the
Company has been noticed or reported for the year under audit.
For Talati and Talati
Chartered Accountants
Firm Reg No: 110758W
Anand Sharma
Place : Ahmedabad Partner
Date : May 7th 2011 Membership No: 129033
Mar 31, 2010
1. We have audited the attached Balance Sheet of RAINBOW PAPERS
LIMITED, AHMEDABAD as at 31st March, 2010, the Profit and Loss Account
and Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
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 from any material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended by Companies (Auditors Report) (amendment) Order 2004 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 hereto a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(a) We have obtained all the information and 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 examination of
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 ana Cash
Flow Statement dealt with by this report, comply with the Accounting
Standards referred 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 31,03.2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31.03.2010 from being appointed as Director in terms of clause (g) of
Sub-section (1) ot Section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
explanations given to us, the aforesaid financial statements read with
Significant Accounting Policies and Notes to accounts mentioned in
Schedule 19 thereon, give the information required by the Companies
Act, 1956. in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
ii) in the case of the Profit and Loss Account, of the PROFIT of the
Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph (3) of our
Report of even da*ei
i) a. The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. The Company has a phased program of physical verification of its
fixed assets, which in our opinion, is reasonable, having regard to the
size of the Company and nature of its business. During the year, the
company has physically verified some of the assets and no material
discrepancies were noticed on such verification.
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
ii) a. As explained to us, the management has physically verified
inventories (excluding those in transit) at reasonable intervals during
the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company is maintaining proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
iii) a. According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to Companies,
Firms & other parties listed in the register maintained u/s. 301 of the
Companies Act, 1956. Accordingly, clause (iii) (b), (c) & (d) of the
order are not applicable.
b. According to the information & explanations given to us, the
Company has taken interest free loan from a Company listed in the
register maintained u/s. 301 of the Companies Act, 1956. As at the
year-end the outstanding balance of such loan taken is Rs. Nil and the
maximum amount involved during the year was Rs 1252.5 Lacs.
c. In our opinion, terms and conditions on which loan has been taken
from the Company listed in the register maintained u/s. 301 of the
Companies Act, 1956 are not prima facie prejudicial to the interest of
the Company.
d. As regards the loan taken as stated in para (b) above, has already
been paid during the year.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control procedure commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and also for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in internal controls.
v) In our opinion and according to the information and explanations
given to us, there were no transactions exceeding Rs. 5 Lacs with any
party covered under section 301 of the Companies Act, 1956 that need to
be entered into the register maintained under the said section. Hence
clause (V) (b) of the order is not applicable.
vi) The Company has not accepted any deposit from the public.
vii) In our opinion, the coverage of Internal Audit functions carried
out by a firm of Chartered Accountants appointed by the management is
commensurate with the size of the Company and nature of its business.
viii) The Centra! Government has prescribed maintenance of Cost Records
under Section 209 (1) (d) of the Companies Act, 1956 in respect of the
product of the Company. We have broadly reviewed the accounts and
records of the Company in this connection and are of the opinion, that
prima facie, the prescribed accounts and records have been made and
maintained. We have not, however, made a detailed verification of the
records with a view to determine whether they are accurate or complete.
ix) a. According to the information & explanations given to us,
undisputed statutory dues including Provident Fund, Employee State
Insurance, Income Tax, Sales tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other dues have been generally regularly
deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March,
2010 for a period, of more than six months from the date of becoming
payable.
b. According to the information and explanations given & the records
of the Company examined by us, the details of disputed dues not paid
are as follows:
Nature of Nature of Dues Forum where Total
the Statue pending Amount
Revenue Dept, Additional premium Gujarat Revenue 37.56 Lacs
Gujarat State on Land Tribunal, + Interest
Ahmedabad **
Nature of Amount paid Period to which
the Statue under protest it relates
Revenue Dept, 18.78 lacs 2003
Gujarat State
** The Tribunal has cancelled the order regarding additional premium on
Land and the matter is again referred to The Collectors, Mehsana for
re-valuation of premium amount.
x) The Company has no accumulated losses as on 31st March, 2010 and has
not incurred any cash losses during the financial year covered by our
audit or in the immediately preceding financial year.
xi) Based on our audit procedures and according to the information and
explanations given to us, the Company has not defaulted in repayment of
dues to banks except marginal delays. The Company has no Debentures.
xii) In our opinion and according to the information and explanations
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii) In ouropinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/ society. Therefore, clause 4(xiii) of the Companies
(Auditors Report) Order 2003 is not applicable to the Company.
xiv) In our opinion, the Company is not dealing or trading in shares,
securities, Debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
xv) 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.
xvi) In our opinion and according to the information and explanations
given to us, the Term Loans availed by the Company during the year were
prima facie applied for the purpose for which they were obtained.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that funds raised on short-term basis have prime facie not
been used for long term investment.
xviii) During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained u/s 301 of the Companies Act, 1956.
xix) The Company has not issued any debentures and therefore the
question of creating security in respect thereof does not arise. Ã
xx) No money has been raised by the Company through public issue during
the year. However, we have verified the end use of money raised by GDR
issue as disclosed in the notes to the Financial Statements (Refer note
no. 14 of Schedule 19 B),
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 course of our audit.
FOR, PRAVIN M. SHAH & CO.
CHARTERED ACCOUNTANTS
PROPRIETOR
Place : AHMEDABAD. M. NoF-14199
Date : 28th May , 2010 F.R.No.108168 W
Mar 31, 2009
1. We have audited the attached Balance Sheet ofRAINBOW PAPERS
LIMITED, AHMEDABAD as at 31st March, 2009, the Profit and Loss Account
and Cash Flow Statement for the year ended on that date annexed thereto
which we have signed under reference to this report. These financial
statements are the responsibility of the Companys management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from any material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended by Companies (Auditors Report) (amendment) Order 2004 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 hereto a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Furthertoourcomments in the Annexure referred to in Paragraph I
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
ouraudit.
(b) In our opinion, the Company has kept proper books of accounts as
required by law, so far as appear from ourexamination 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 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 31.03.2009 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31.03.2009 from being appointed as 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
explanations given to us, the aforesaid financial statements read with
note no. 7 of Schedule 19-B regarding change in method of depreciation,
the statement on Significant Accounting Policies and other notes to
accounts thereon, give the information required by the Companies Act,
1956, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India.-
I) in the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2009;
ii) in the case of the Profit and Loss Account, of the PROFIT of the
Company 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 AUDITORS REPORT
(Referred to in paragraph (3) of our Report of even date)
i) a. The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information.
b. The Company has a phased program of physical verification of its
fixed assets, which in our opinion, is reasonable, having regard to the
size of the Company and nature of its business. During the year, the
Company has physically verified some of the assets and no material
discrepancies were noticed on such physical verification.
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
ii) a. As explained to us, the management has physically verified
inventories (excluding those in transit) at reasonable intervals during
the year!
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company is maintaining proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
iii) a. According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to Companies,
Firms & other parties listed in the register maintained u/s. 301 of the
Companies Act, 1956. Accordingly, clause (iii) (b), (c) & (d) of the
order are not applicable.
b. . According to the information & explanations given to us, the
Company has taken interest free loans from a
Company listed in the register maintained u/s. 301 of the Companies
Act, 1956. As at the year-end the outstanding balance of such loan
taken is Rs. 1252.5 Lacs and the maximum amount involved during the
year was Rs. 1252.5 Lacs.
c. In our opinion, terms and conditions on which loan has been taken
from the Company listed in the register maintained u/s. 301 of the
Companies Act, 1956 are not prima facie prejudicial to the interest of
the Company.
d. As regards the loan taken as stated in para b above, the term of
repayment have not been stipulated.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control procedure commensurate
with the size of the Company and the nature of .its business for the
purchase of inventory, fixed assets and also for the sale of goods
and services. During the course of our audit, we have not observed any
major weaknesses in internal controls.
v) In our opinion and according to the information and explanations
given to us, there were no transactions exceeding Rs. 5 Lacs with any
party covered under section 301 of the Companies Act, 1956 that need to
be entered into the register maintained under the said section. Hence
clause (V) (b) of the order is not applicable.
vi) The Company has not accepted any deposits from the public.
vii) In our opinion, the coverage of Internal Audit functions carried
out by a firm of Chartered Accountants appointed by the management is
commensurate with the size of the Company and nature of its business.
viii) The Central Government has prescribed maintenance of Cost Records
under Section 209 (1) (d) of the Companies Act, 1956 in respect of the
product of the Company, We have broadly reviewed the accounts and
records of the Company in this connection and are of the opinion, that
prima facie, the prescribed accounts and records have been made and
maintained. We have not, however, made a detailed examination of the
records with a view to determine whether they are accurate or complete.
ix) a. According to the information & explanations given to us,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Income Tax, Sales tax. Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other dues have been generally
regularly deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March,
2009 for a period of more than six months from the date of becoming
payable. b. According to information and explanations given & the
records of the Company examined by us, the details of disputed dues not
paid are as follows :
Nature of the Nature of Forum where Total
Statue Dues Pending Amount
Income Tax IT Demand CIT (Appeals)- Rs. 6.56 lacs
Act, 1962 Ahmedabad
Revenue Additional Gujarat Revenue 37.56 lacs
Dept, Gujarat Premium Tribunal, + Interest
State on Land Ahmedabad
Nature of the Amount paid Period to
Statue under protest which it relates
Income Tax
Act, 1962 NIL AY 07-08
Revenue
Dept, Gujarat
State 18.78 lacs 2003
x) The Company has no accumulated losses as on 31.3.2009 and has not
incurred any cash losses during the financial year covered by our audit
or in the immediately precedingfinancial year.
xi) Based on our audit procedures and according to the information and
explanations given to us, the Company has not defaulted in repayment of
dues to bank except marginal delays. The Company has no Debentures.
xii) In our opinion and according to the information and explanations
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4 (xiii) of the Companies
(Auditors Report) Order 2003 is not applicable to the Company.
xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of clause 4 (xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks orfinancial institutions.
xvi) In our opinion and according the information and explanations
given to us, the Term loans avaiied by the company during the year were
prima facie applied for the purpose for which they were obtained.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance sheet of the Company, we are of
the opinion that funds raised on short-term basis have prima facie not
been used during the year for longterm investment.
xviii) During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956
xix) The Company has not issued any debentures and therefore the
question of creating security in respect thereof does not arise.
xx) The Company has not raised any money by way of 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 course of our audit.
FOR, PRAVIN M. SHAH & CO.
CHARTERED ACCOUNTANTS
(PRAVIN M. SHAH)
PLACE : AHMEDABAD PROPRIETOR
DATE : 30th JUNE. 2009 M.No. F-14199