Auditor Report of Reliance Chemotex Industries Ltd.
Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial Statement of Reliance Chemotex Industries Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Ind AS financial statements that give a true and fair view of the state of affairs(financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
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 Ind AS 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 Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit of the Ind AS financial statements 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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS 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 Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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 Ind AS 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matter
The comparative financial information of the Company for the year ended 31st March 2017 and the transition date opening Balance Sheet as at 1st April 2016 included in these Ind AS financial Statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rule, 2006 audited by G.P. Kejriwal & Co. Chartered Accountants for the year ended 31.03.2016 and 31.03.2017, whose reports dated 24.05.2016 and 27.05.2017 respectively expressed an unmodified opinion on those financial statements as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind As, which have been audited by us. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account
d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "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 Ind AS financial statements;
ii. As per information & explanation given to us the Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amount, required to be transferred to the investor education and protection fund by the company.
"Annexure A" to the Independent Auditors'' Report
Industries Limited (Referred to in Paragraph 1 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date)
i. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets;
(b) Fixed assets have been physically verified by the management according to the regular programme of periodical verification in phased manner designed to cover all items over a period of 3 years, which in our opinion is reasonable having regard to the size of the company and the nature of its fixed assets. No material discrepancies were noticed on such verification;
(c) The title deeds of immovable properties are held in the name of the company.
ii. The inventories of the Company at all its locations (except stock in transit) have been physically verified by the management at reasonable intervals and the discrepancies which were noticed on physical verification of inventory as compared to book records were not material;
iii. The Company has not granted any loan to companies, firms, or other parties covered in the Register maintained under section 189 of the Act. Therefore the provisions of clause 3 (iii) of the order are not applicable to the company and hence not commented upon.
iv. In our opinion and according to the information and explanations given to us, the company has complied with provisions of section 185 and 186 of the Companies Act, 2013 with respect of loans, investments, guarantees and securities. .
v. The Company has not accepted any deposit from public.
vi. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 148(1) of the Companies Act, 2013 and are of the opinion that, prima-facie, prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate and complete;
vii.(a) According to the information and explanations and records of the Company, the company is regular in depositing undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income tax, Sales tax, Service tax, Custom Duty, Excise Duty, Value Added Tax, Cess and other statutory dues with the appropriate authorities. There are no arrears of outstanding statutory dues for a period of more than six months from the date they became payable as on 31st March, 2018;
(b) According to the records and information and explanations given to us, there are no dues in respect of custom duty that have not been deposited on account of any dispute. In our opinion and according to the information and explanations given to us, the dues in respect of income tax or sales tax or service tax or excise duty or value added tax that have not been deposited with the appropriate authority on account of dispute and the forum where the dispute is pending are given below:
viii. The Company has not defaulted in repayment of loans or borrowings to a financial institution, banks or government.
ix. In our opinion the term loans have been applied for the purpose for which the loans were raised,
|
Nature of Statute |
Nature of dues |
Amount involved in Rs. |
Period to which it relates to (Year ended) |
Forum where dispute is pending |
|
Income Tax Act 1961 |
Income Tax |
1,54,33,480 |
F.Y. 2011-12 |
The Commissioner of Income Tax, Appeals Kolkata |
|
Income Tax Act 1961 |
Income Tax |
5,56,540 |
F.Y. 2013-14 |
The Commissioner of Income Tax, Appeals Kolkata |
|
Service Tax Act |
Service Tax |
2,40,837 |
16.07.2017 to 16.10.2018 |
The Asst. commissioner (Appeals ) Central Excise, Udaipur |
|
Central Excise Act |
Excise Duty |
23,567 |
F.Y 1979-80 |
The Asst. Commissioner Central Excise, Udaipur |
|
Central Excise Act |
Excise Duty |
60,73,552 |
F.Y 2012-13 to 2015-16 |
Commissioner (Appeals) Jodhpur |
x. Based upon the audit procedure performed and information and explanation given to us, we report that no fraud by the company or any fraud on the company by its officers or employees has been noticed or reported during the course of our audit.
xi. Managerial Remuneration has been paid or provided in accordance with the requisite approvals mandated by the provision of Section 197 read with schedule V of the Companies Act, 2013.
xii. Provision of Nidhi Company is not applicable to the Company..
xiii. According to the information and explanation give to us and based on our examination of the records of the company, all transactions with the related parties are in compliance with Section 177 and 188 of the Companies Act, 2013 and the details have been disclosed in the financial statements, etc as required by the applicable accounting standard.
xiv. The company has not made any preferential allotment or private placements of shares or fully or partly convertible debentures during the year under review.
xv. The company has not entered into any non-cash transaction with Directors or persons connected with him.
xvi. The company is not required to be registered under section 45-1A of the Reserve Bank of India Act 1934.
Annexure "B" To The Independent Auditor''s Report of Even Date on The Standalone Financial Statements of Reliance Chemotex Industries Limited.
Report on the Internal Financial Controls under Clause (i) of sub -section 3 of section 143 of the Companies Act, 2013
We have audited the internal financial controls over financial reporting of Reliance Chemotex Industries Limited. as at March 31,2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The company''s Management is responsible for establishing and maintaining internal financial controls based on the Internal Control over financial reporting criteria established by the Company considering the essential components of Internal control stated in the Guidance Note on Audit of "the Internal Financial Controls Over Financial Reporting issued by the institute of Chartered Accountants of India." These responsibilities include the design, implementation and maintenance of adequate Internal Financial Controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with Guidance note on Audit of Internal Financial Controls over Financial Reporting (the" Guidance Note" ) and the Standard on Auditing, issued by ICAI prescribed under section 143 (10) of the Companies Act 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those standards and the Guidance Note require that we Comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate Internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the Internal financial controls system over financial reporting and their operating effectiveness, our audit of internal financial controls over financial reporting included obtaining and understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s Internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable details, accurately and fairly reflect the transactions and disposition of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statement in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitation of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has in all material respect, an adequate internal financial controls systems over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on "the internal control over financial reporting criteria established by the Company Considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India"
For Jain Pramod Jain & Co.
Chartered Accountants
(Firm Registration No. 016746N)
Date: 17th May, 2018 (P.K.JAIN)
Place : Mumbai Partner
M No.010479
Mar 31, 2015
NOT AVAILABLE
Mar 31, 2014
We have audited the accompanying financial statements of Reliance
Chemotex IndustriesLimited ("the Company"), which comprise the Balance
Sheet as at March 31,2014, 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 give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act,1956(the Act)
read with the General Circular 15/2013 dated 13th September,2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act,2013 and in accordance with the accounting principles
generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in orderto design audit
proceduresthat are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation ofthefinancial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014.
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
We draw attention to the following notes attached to the financial
statements. Our opinion is not qualified in respect of these matters:
Notes l(vi) (c), l(xii), 6and 8(i) (b) in Note 27 regarding the matters
referred to therein and likely financial implication thereof.
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 Section
227(4A) of the Act, and on the basis of such checks as we considered
appropriate and according to the information and explanations given to
us and the books and records as produced and examined by us in the
normal course of audit and to the best of our knowledge and belief, we
give in the attached Annexure a Statement on the matters specified in
paragraphs 4 and 5 of the said 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account, as submitted to us;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with Accounting Standards notified under the
Act read with the General Circular 15/2013 dated 13th September, 2013
of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013.
e. On the basis of written representations received from the Directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of thedirectors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT (Referred to in above Paragraph (1) on
Report on Other Legal and Regulatory Requirements of our Report of even
date of RELIANCE CHEMOTEX INDUSTRIES LIMITED asatandforthe year ended
31st March, 2014)
(b) In accordance with the programme of verifying the fixed assets once
in three years fixed assets have been physically verified by the
management at the year end. The periodicity of physical verification in
our opinion is reasonable having regard to the size of the Company and
the nature of its business.
(c) In our opinion and according to the information and explanations
given to us the fixed assets disposed off during the year were not
substantial part of fixed assets so as to effect the going concern
status of the Company.
(ii) (a) The inventories lying with the Company have been physically
verified by the management at the year end.
(b) In our opinion the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion the Company is maintaining proper records of
inventories and according to the records of the Company the
discrepancies noticed on physical verification of stocks as compared to
books records, which in our opinion were not material in relation to
the operation of the Company have been properly dealt with inthe books
ofaccounts.
(iii) (a) According to the information and explanations given to us the
Company has not during the year granted any loans, secured or unsecured
to companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956 and accordingly clauses
(Hi) (b) to (Hi) (d) of paragraph 4 of the aforesaid order are not
applicable to the Company.
(b) According to the information and explanations given to us, the
Company has not taken any fresh loans, secured or unsecured during the
year from Companies, firms or other parties covered in the register
maintained under section 301 of the Act except unsecured loans of
Rs.10,00,000/- from two Directors of the Company. However, unsecured
loans of Rs.5,53,00,000/- taken from Companies, firms or other parties
covered in the register maintained under such section till previous
year are continuing as on 31.03.2014.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of
unsecured loans as referred to under clause (b) above, taken by the
Company during the year are not, prima-facie, prejudicial to the
interest of the Company.
(d) In absence of stipulations for repayment of unsecured loans, as
referred to under clause (b) above, we have no comments to make as to
whether or not the Company is repaying the principal amount as
stipulated and is also regular in payment of interest.
(iv) In our opinion and according to the information and explanations
given to us and on the basis of test checks carried out by us, and
considering the explanations given by the management that alternative
sources not being available for certain OEM and other purchases, it
appears that there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to major purchases of inventory, fixed assets and
for the sale of goods and services. Further, on the basis of our
examination of the books and records of the Company, and according to
the information and explanations given to us, we have neither come
across nor have we been informed by the management and or the internal
auditors of the Company of any instance of major weakness in the
aforesaid internal control procedures, which would require major
corrective action.
(v) (a) According to the information and explanations given to us and
on the basis of our examination of the books of accounts, we are of the
opinion that the contracts or arrangements that need to be entered in
the register maintained in pursuance of section 301 of the Companies
Act 1956 have been entered in the said register.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts and
agreements entered in the register maintained under section 301 of the
Companies Act, 1956 and exceeding the value of Rupees five lacs in
respect of any party during the year, have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevanttime.
(vi) In our opinion and according to the Information and explanations
given to us, the Company has not accepted any deposits from the public
during the year under the provisions of section 58 A and 58AA or any
other relevant provisions of the Act.
(vii) In our opinion, the internal audit system is by and large
commensurate with the size of the Company and nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by the
Company pursuant to rules made by the Central Government for the
maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Act and are of the opinion that prima-facie, the
prescribed accounts and records have been maintained. However, we have
not made a detailed examination of the said records and accounts.
(ix) (a) According to the records of the Company, the Company has
generally regularly deposited during the year undisputed statutory dues
(to the extent applicable) including provident fund, investor education
and protection fund, Employees state insurance, income tax, VAT (Sales
Tax), wealth tax, service tax, custom duty, Excise Duty, Cess, and
other statutory dues with the appropriate authorities though there has
been slight delays in a few cases in depositing dues of works contract
tax and tax deducted at source. According to the information and
explanations given to us there are no arrears of such outstanding dues
which have remained outstanding as at 31st March, 2014 for a period of
more than six months from the date they became payable.
(b) On the basis of our examination of the documents produced to us and
according to the information and explanation given to us, the dues (to
the extent applicable) of income tax, sales tax, wealth tax, service
tax, custom duty, excise duty / cess which have not been deposited on
account of dispute and the forum where the dispute is pending are as
under.
Nature of the Nature Amount Period to which
statute of dues Involved it relates to
Rs. (Years ended)
Income Tax Act, Income 1,62,59,210 31-03-2011
1961 Tax
Central Excise Excise 23,567 31.03.80 to
Act Duty 31.03.92
Service Tax Act Service tax 47,63,158 31.03.2003 to
31.03.2007
Total 2,10,77,175
Nature of the statue Forum Where Dispute
Is pending
Income Tax Act
1961 The Commissioner of Income Tax,
Appeals, Kolkata
Central Excise
Act The Asst. Commissioner Central
Excise, Udaipur
Service Tax Act. The Asst. Commissioner(Appeals)
Central Excise Jaipur
We have been informed that except as stated above there are no other
amounts which have not been deposited on account of disputes.
(x) The Company has no accumulated losses as on 31-03-2014 and has not
incurred cash loss in the financial year ended on that date and in the
immediately preceding financial year.
(xi) According to the records of the Company and as per the information
and explanations given to us the Company has not defaulted in repayment
of dues to financial institutions orbanks.
(xii) According to the information and explanations given to us the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures andothersecurities.
(xiii) In our opinion, the provisions of any special statute applicable
to chit fund, nidhi / mutual benefit fund / societies are not
applicable to the Company.
(xiv) The Company is not dealing or trading in shares, securities,
debenture and other investments.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken byothersfrom
bankorfinancial institutionsduringtheyear.
(xvi) On the basis of review of utilization of Term Loans on overall
basis as on 31.03.2014, related information, explanations and
statements as mode available to us and as represented to us by the
management, the term loans were applied for the purpose for which the
loans were obtained.
(xvii) On the basis of review of utilization of funds on overall basis
as on 31.03.2014, related information, explanations and statements as
made available to us and as represented to us by the management, funds
available as short term has not been used for long term application.
(xviii) During the year the Company has made preferential allotment of
Equity and Preference Shares to parties and companies covered in the
register maintained under Section 301 of the Companies Act, 1956 at the
price which is not prejudicial to the interest of the Company.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public
issueduringtheyear.
(xxi) During the course of our examination of the books of account 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 on or by the Company, noticed or reported during the
year nor have we been informed of such case by the management and or
the internal auditors of the Company.
Above Laxmi Dharm Kanta, For: G.P. Kejriwal & Co.
Hawa Sadak, 22 Godown, Chartered Accountants
Jaipur - 302 006 Firm Reg. No. 001036 C
(C.P. JAIN)
Dated : 30th May, 2014 Partner
Camp : Mumbai M.N. 70156
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Reliance
Chemotex Industries Ltd. ("the Company"), which comprise the Balance
Sheet as at 31.03.2013 and the Statement of Profit and Loss and cash
flow statement for the year ended and a summary of significant
accounting policies and other explanatory information. Management''s
Responsibility for the Rnancial Statements Management is responsible
for the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Companies Act,
1956 ("the Act"). This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error. Auditors Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the standards on auditing issued by 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 statement, whether due to fraud or error.
In making those risk assessments the auditor considers internal control
relevant to the Companies preparation and fair presentation of the
financial statement in order to design audit procedure that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statement. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the act in the manner so required and subject to Clause no.
1 (xii) B (c) of Note 26 regarding accounting treatment of
premium/discount on forward contract, give a true and fair view in
conformity with the accounting principle 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 Statement of Profit and Loss, of the profit/loss for
the year ended on that date, and
(c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Emphasis of Matter
Without qualifying our report, we draw attention to Note 3 regarding
reclassification of unsecured loans and Clause 6 of note 26 regarding
temporarily lending of funds of the Company. 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 Companies Act 1956. We give in the
Annexure a '' statement on the matters specified in Paragraph 4 and 5 of
the order
2. As required by section 227(3) of the Act, we report that:
a. We have obtained ail the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. Inouropinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of the
books.
c. The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d. In our opinion The Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement subject to Clause no. 1 (xii) B (c) of Note 26
regarding accounting treatment premium/discount on forward contracts,
comply with the accounting standards referred to in sub-section (3C) of
section 211 of the Companies Act 1956.
e. On the basis of Written Representation received from the Directors
as on 3191 March, 2013 and taken on record by the Board of Directors,
none of the Directors is disqualified as on 31st March, 2013 from being
appointed as a Director in terms'' of clause (g) of sub-section (1) of
section 274 of the Companies Act. 1956 .
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
(Referred to in Paragraph (1) of our Report of even date of RELIANCE
CHEMOTEX INDUSTRIES LTD. as at and for the year ended 31sl March, 2013)
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
i. (a) The Company is in our opinion maintaining proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) In accordance with the programme of verifying the fixed assets once
in three years Fixed Assets are reported to have been physically
verified by the management during the year ended 31.03.2011. The
periodicity of physical verification in our opinion is reasonable
having regard to the size of the Company and the nature of its
business.
(c) In our opinion and according to the information and explanations
given to us the fixed assets have been disposed off during the year
were not substantial part of fixed assets so as to effect the going
concern status of the Company.
ii. (a) The inventories lying with the Company are reported to have
been physically verified by the management at the year end.
(b) In our opinion the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion the Company is maintaining proper records of
inventories and according to the records of the Company the
discrepancies noticed on physical verification of stocks as compared to
books records, which in our opinion were not material in relation to
the operation of the Company which have been properly dealt with in the
books of accounts.
iii (a) (i) According to the information and explanation given to us
the Company has not granted any loans, secured or unsecured to
Companies firm or other Parties covered in the register maintained
under section 301 of the Companies Act, 1956 and accordingly clauses
(iii)(b) of paragraph 4 of the aforesaid order are in our opinion not
applicable to the Company.
(ii) According to the information and explanations given to us the
Company has during the year taken unsecured loan of Rs. 795.00 lacs
from a party covered in the register maintained under section 301 of
the Companies act 1956.
(b) In our opinion and according to the information and explanation
given to us, the rates of interest and other terms and conditions of
unsecured loans taken by the Company during the year are not,
prima-facie, prejudicial to the interest of the Company.
(c) In absence of stipulation for repayment of unsecured loans to
certain parties, we have no comments to make as to whether or not the
Company repaying the principal amount as stipulated and is also regular
in payment of interest and whether or not there is any overdue amount
more than one lacs for which steps need to be taken by the Company for
payment of principal amount and interest there on. iv) In our opinion
and according to the information and explanations given to us and on
the basis of test checks carried out by us, and considering the
explanations given by the management that alternative sources not being
available for certain OEM and other purchases, it appears that there
are adequate internal control procedures commensurate with the size of
the Company and the nature of its business with regard to major
purchases of inventory, Fixed Assets and for the Sale of goods and
services. Further, on the basis of our-examinations of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across nor have we been
informed by the management or the Internal Auditors of the Company of
any instance of major weakness in the aforesaid interna! control
procedures, which would require major corrective action. v) (a)
According to the information and explanations given to us and on the
basis of our examination of the books of accounts, we are of the
opinion that the contracts or arrangements that need to be entered in
the register maintained in pursuance of section 301 of the Companies
Act 1956 have been entered in the said register. (b) in our opinion
and according to the information and explanations given to us, the
transactions made in pursuance of such contracts and agreements entred
in the register maintained under section 301 of the Companies Act, 1956
and exceeding the value of Rupees five lacs in respect of any party
during the year, have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time. vi) In
our opinion and according to the Information and explanations given to
us, the Company has not accepted any deposits from the Public during
the year under the provisions of section 58 A and 58AA or any other
relevant provisions of the Act. Therefore the provisions of clause (vi)
of the aforesaid order are not applicable to the Company.
vii) In our opinion, the internal audit system is by and large
commensurate with the size of the Company and nature of its business
except that formal internal audit systems need to be introduced at
Mumbai branch with proper scope and adequate coverage.
viii) We have broadly reviewed the books of accounts maintained by the
Company pursuant to rules made by the central government for the
maintenance of cost record under clause (d) of the sub-section (1) of
section 209 of the Companies act 1956 and are of the opinion that
prima-facie, the prescribed accounts and record have been maintained.
However, we have not made a detailed examination of the said records
and accounts.
ix (a) According to the records of the Company has regularly deposited
during the year undisputed statutory dues (to the extent applicable)
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, VAT (Sales Tax), Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess, and other statutory dues
with the appropriate authorities though there has been some delays in
depositing dues of Works Contract Tax TDS and ESI.
According to the information and explanations given to us there are no
undisputed amounts payable in respect of such statutory dues which have
remained outstanding as at 31st March, 2013 for a period more than 6
months from the date they become payable. (b) On the basis of our
examination of the document produced to us and according to the
information and explanations given to us the dues (to the extent
applicable) of Excise Duty and Service Tax which have not been
deposited on account of dispute and the forum where the dispute is
pending are as under:
Nature of Nature of Amount Period to Forum where
the statute the dues involved which it dispute is
Rs. relates to pending
(years
ended)
Central Excise duty 23,567 31.03.80 The Asst Commr-
Excise issioner, Central
Act 31.03.92 Excise, Udaipur
Service Service 47,63,158 31.03.03 The Asst Commi-
Tax Act Tax issioner(Appeals),
31.03.07 Central Excise,
Total 47,86,7251 Jaipur
We have been informed that except as stated above no other amounts
which have not been deposited on account of disputes.
(x) The Company has no accumulated losses as on 31-03-2013 and has not
incurred cash loss in the financial year ended on that date and in the
immediately preceding financial year.
(xi) According to the records of the Company as per the information and
explanations give to us the Company has not defaulted in repayment of
dues to financial institution or banks.
(xii) According to the information and explanations given to us the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares debentures and other securities.
(xiii) In our opinion the provisions of any special statute applicable
to Chit Fund, Nidhi or Mutual Benefit Fund/Societies are not applicable
to the Company.
(xiv) The Company is not dealing or trading in shares, securities,
debenture and other investment.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions during the year.
(xvi) In our opinion and according to information and explanations
given to us on an overall basis, the Term Loan have been applied for
the purpose for which they were obtained.
(xvii) On the basis of review of utilization of fund on overall basis
as on 31.03.2013 and related information explanation and statement as
made available to us and as represented to us by the management no
funds raised on short term basis have been used for long term
application.
(xviii) During the year the Company has made preferential allotment of
Equity and Preference Shares at the price of Shares which is not
prejudicial to the interest of the Company to parties covered fn the
register maintained under section 301 of the Companies act 1956.
(xix) The Company has neither issued nor had any outstanding debentures
during the year.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) During the course of our examination of the books of account and
records of the Company, carried out according 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 on or by the Company notice and reported during the
year nor have we been informed of such case by the management or the
Internal Auditors of the Company.
Above Laxmi Dharam Kanta, For G.P. KEJRIWAL & CO.
Hawa Sadak, 22 Godown, Chartered Accountants
Jaipur - 302 006 Firm Reg. No. 001036C
Dated : 25th May, 2013 (C. P. JAIN)
Camp: Mumbai Partner
M.N. 70156
Mar 31, 2012
1. We have audited the attached Balance Sheet of Reliance Chemotex
industries Ltd. as at 31.03,2012 , and also the Statement of Profit and
Loss and the. cash flow; statement; for the year ended On the 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 disclosure in the financial statement. An audit also
include assessing the accounting principle used and significant
estimate made by Management, as well as evaluating the overall
financial statement presentation, we believe that pur 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)(Amended) Order, .2004
(together the "Order") issued by the Central Government of India in
terms of Section 227(4A) of the Companies Act 1956 on the basis books
and records examined by us in the norrnal course of audit and on the
basis of such checks as we considered appropriate and according to the
information and explanation given to us and to the best of our:
Knowledge and belief. We set out in the attached Annexure a statement
On the matters specified in paragraph 4 and 5 of the said order.
4. The aggregate impact on matters as referred to in Para 1 (vii), 1
(ix) of note 26 on result for the year and year end assets and
liabilities have not been ascertained and stated.
5. Attention is drawn to note no. 1 (xvii) of attached Note 26 as per
which unsecured loans of Rs. 12,88,50,000/- have been considered as
long term borrowings within the meaning of the provision of revised
schedule VI of the Companies Act., .1956, inspite of the fact that part
of these loans were repaid during the year and , there were no
stipulations regarding repayment of such unsecured loans as mentioned
in para 111(C) to the Annexure to the Audit Report: As these loans have
been considered as long term borrowings; the short term borrowings have
been understated and long term borrowings have been overstated by the
aforesaid amount.
6. Subject to our comments in the Annexure stated in paragraph 3 & 5
above.
(i) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(ii) In our opinion subject to note 1(ix) in note 26 proper books of
account as required by law have been kept by the Company so far as it
appears from our examination of the books.
(iii) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account as submitted to us.
(iv) In our Opinion subject to Para 1 (ix) in note 26. The Balance
Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with
by this report comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Companies Act 1956.
(v) On the basis of Written Representation received from the Directors
as on 31st March 2012 and taken on record by the Board of Directors, we
report that none of the Director is disqualified as on 31st March2011-12
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 subject to and read
together with the note 26 and the "NOTES" and "OBSERVATION" thereon
and-attached thereto 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 principle 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 Statement of Profit and Loss of the profit for the
year ended on that date;
and
c) In the ease 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 (1) of our Report of even date of RELIANCE
CHEMOTEX INDUSTRIES LTD. as at and for the year ended 31st March,
2012),
i. (a) The Company is in our opinion maintaining proper records,
showing full particulars including quantitative details and situation
of fixed assets.
(b) In accordance with the programme of verifying the fixed assets once
in three years Fixed Assets are reported to have been physically
verified by the Management during the year ended 31.03.2012, the
periodicity of physical verification in our opinion is reasonable
having regard to the size of the Company and the nature' of it's
business. "
(c) In our opinion and according to the information and explanation
given to us the fixed assets disposed off during the year were not
substantial part of fixed assets so as to effect the going concern
status of the Company.
ii. (a) The inventories lying with the Company are reported to have
been physically verified by the Management at the year end.
(b) In our opinion the procedures of physical verification of
inventories followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion the Company is maintaining proper records of
inventories and according to the records of the Company the
discrepancies noticed on physical verification of stocks as compared to
books records, which in our opinion were not material in relation to
the operation of the Company have been properly dealt with in the books
of accounts.
iii. (a) (i) According to the information and explanation given to us
the Company has hot granted any loans, secured or unsecured to
Companies, firms or other parties' covered in the register maintained
under Section 301 of the Companies Act, 1956 and accordingly Clauses
(iii)(b) of paragraph 4 of the aforesaid order are in our opinion not
applicable.
(ii) According to the information and explanations given to us the
Company has during the year taken unsecured loan of Rs.795.00, lacs
from a party covered in the register maintained under Section 301 of
the Companies Act, 1956.
(b) In our opinion and according to the information arid explanation
given to us, the rates of interest and other terms and conditions of
unsecured loans taken by the Company during the year are not,
prima-facie, prejudicial to the interest of the Company.
(c) In absence of stipulation for repayment of unsecured loans to
concerned parties, we have no comments to make whether or not the
Company is repaying the principal amount whether or not is regular in
payment of Interest and whether or not there is any over due amount
more than one lakh for which steps need to be taken by the Company for
payment of principal amount and interest thereon.
iv) In our opinion and according to the information and explanation
given to us and on the basis of test checks carried out by us, and
considering the explanations given by the Management that alternative
sources not being available, for certain OEM and other purchases, it
appears that there are adequate Internal control procedures
Commensurate with the size of the Company and the nature of its
business with regard to major purchases of inventory, Fixed Assets and
for the Sale of goods and services/ Further, on the basis of our
examinations of the books and records of the Company, and according to
the information and explanations given to us, we have neither come
across nor have we been informed by the Management or the internal
Auditors of the Company of any instance of major weakness in the
aforesaid internal control procedures, which would require major
corrective action.
v) (a) According to the .information and explanations given to us and
on the basis of our examination of the books of accounts, we are of the
opinion that the contracts or arrangements that need to be entered in
the register maintained in pursuance of Section 301 of the Companies
Act 1956 have been entered in the said register.
(b) According to the information and explanations given to us, the
Company has. not entered into any transactions exceeding the value of
five lacs rupees in respect of any party during the year that need to
be entered in the register in pursuance of Section.301 of the Companies
Act, 1956 and therefore, Clause v (b) of paragraph 4 of the aforesaid
order, is in bur opinion, hot applicable to the Company for the current
year.
vi) In pur opinion-and according to the Information and explanations
given to us, the Company has not accepted any deposits from the Public
during the year under the provisions of Section 58A, 58AA or any other
relevant provisions of the Act. Therefore the provisions of Clause (vi)
of the aforesaid order are not applicable to the Company.
vii) in our opinion, the internal audit system is by and
large,commensurate with the size of the Company. and nature of its
business except that formal internal audit systems need to be
introduced at Mumbai branch with proper scope and adequate coverage.
viii) On. the basis of the records produced, we are ol the opinion that
prima-facie the cost accounts and records as prescribed by. the Central
Government under Clause (d) of sub-section (1) of Section 209 of the
Companies Act, 1956. However we have not carried out a detailed
examination of the said accounts and records.
ix {a) According to the records of the Company has regularly deposited
during the year undisputed statutory dues (to the extent applicable)
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, VAT (Sales Tax), Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess, other statutory dues with
the appropriate authorities though there has been delays in depositing
dues of Works Contract Tax, TDS, and ESI.
According to the information and explanations given to us there are no
undisputed amounts payable in respect of such statutory dues which æ
have remained outstanding as at 31st March, 2012 for a period more than
6 months from the date the become payable. (b) On the basis of our
examination of the document produced to us and according to. the
information and explanation given to us the dues (to the extent
applicable) of Income Tax/ Sale Tax/ Wealth Tax/Excise Duty/Custom
Duty/Cess which,have not been deposited on account of dispute and the
forum where the dispute is pending are as under:
Nature of Nature of Amount Period to Forum where
the statute the dues involved which it dispute is
Rs. relates to pending
(years
ended)
Central Excise duty. 23,567 31.03.80 The Asst Commi-
Excise to issioner, Centra
Act 31.03.92 Excise, Udaipur
Service Service 2,40,837 31.03.03 The Asst. Commi-
Tax Act Tax 45,22,321 to issioner (Appeals)]
31,03.07 Central Excise,
Jaipur
We have been informed that except as stated above no other amounts
which have not been deposited on account of disputes.
(x) The Company has no accumulated losses as on 31-03-2012 and has not
incurred cash loss in the financial year ended on that date and in the
immediately proceeding the financial year.
(xi) According to the records of the Company as per the information and
explanation give to us the Company has not defaulted in repayment of
dues to financial institution or bank or debenture holders.
(xii) According to the information and explanation given to us the
Company has not; granted any loans and advances on the basis of
security by way of pledge of shares debentures and other securities:
(xiii) In our opinion the provisions of any special statute applicable
to Chit Fund, Nidhi or Mutual Benefit Fund /Societies are not
applicable to the Company.
(xiv) The Company is not dealing or trading in shares, securities,
debenture and other investment.
(xv) According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial Institutions during the year.
(xvi) On the basis of review of utilization of funds pertaining to term
loans overall basis as on 31.03.2012 and related information,
explanations and statements as made available to us and as represented
to us by the Management, that no long term loans taken by the Company
during the year. .
(xvii) On the basis of review of utilization of fund on overall basis
as on 31.03,2012 and related information explanation and statement as
made available to us and as represented to us by the Management no
funds raised on short term basis have been used for long term
application.
(xviii) During the year the Company has not made Preferential Allotment
of Shares to parties; covered in the register maintained under Section
301 of the Companies Act, 1956.
(xix) The Company has not issued any debenture during the year. .,'æ"æ
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) During the course of our examination of the books of account and
records of the Company, carried out according with the generally
accepted auditing practices in India and according to the information
and explanation-given to us we have neither come across any instance of
material fraud on or by the Company notice and reported during the year
nor have we been informed of such case by the Management or the
Internal Auditors of the Company.
Above Laxmi Dharam Kanta, For G.P. KEJRIWAL & CO.
Hawa Sadak, 22 Godown, Chartered Accountants
Jaipur - 302 006 Firm Reg. No. 001036C
Dated :26th May, 2012 (C.P.JAIN)
Camp: Mumbai Partner
M.N. 70156
Mar 31, 2011
1. We have audited the attached Balance Sheet of Reliance Chemotex
Industries Limited, as at 31st March, 2Q11 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) (Amendment) Order, 2004
(together the "Order") issued by the Central Government of India in
terms of section 227 (4A) of the Companies Act, 1956 and on the basis
of books and records examined by us in the normal course of audit and
on the basis of such checks as we considered appropriate and according
to the information and explanation &given to us and to the best of our
knowledge and belief, we set out in the attached Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said order.
4. The aggregate impact on matters as referred to in Note 1(ix) in
Schedule 23, on results for the year and year end Assets and
Liabilities have not been ascertained and stated.
5. The Managing Director has not signed the attached Balance Sheet,
Profit and Loss Account alongwith Schedules and the Cash flow Statement,
as he is reported to have been not present within the territory of
India at the relative time and had not attended the Board Meeting in
which such Accounts were approved. The Company has been advised that
the Managing Director need not sign the Accounts if he is not present
within the territory of India at the necessary time of signing the
Accounts and does not attend the relative Board Meeting. The Accounts
have been authenticated by two Directors of the Company and the Company
has been advised that the same is sufficient compliance of the
provisions of section 215 of the Companies Act 1956, as long as a
statement is appended to the Balance Sheet, and the Profit and Loss
account explaining the reason for the absence of the Managing Director.
6. Attention is drawn to Note 7(xiv) in schedule 23 regarding
declaration and payment of Interim Dividend only on part of Redeemable
Preference Shares.
7. Further to our comments in the Annexure referred to in paragraph 3
above.
(i) We have obtained all the information and explana- tions which to
the best of our knowledge and belief were necessary for the purposes of
our audit.
(ii) In our opinion subject to Note 1(ix) in schedule 23, proper books
of account, as required by law, have been kept by the Company so far as
it appears from our examination of the 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 as submitted to us; -
(iv) in our opinion subject to Notes 1(ix), 1(xii) and '. 7(xiv) in
Schedule 23 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 representation received from the Directors,
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the Directors 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
trie explanations given to us, the said accounts subject to and read
together with the NOTES in schedule 23, Notes (b) to (f) in Schedule
"1" of share capital regarding issue and redemption of preference
shares and the "NOTES" and "OBSERVATIONS" thereon and attached thereto,
give the information required by the Companies Act, T956, in the manner
so required and, give a true and fair view in conformity with the
accounting principles generally accepted in India.
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
b) in the case of Profit and Loss account, of the profit for the year
ended on that date; and
c) in the case of the Cash Flow statement, of the cash flows for the
year ended on that date.
ANNEXURETOTHE AUDITORS' REPORT
(Referred to in Paragraph (1) of our Report of even date of RELIANCE
CHEMOTEX INDUSTRIES LTD. as at and for the year ended 31st March, 2011)
i. (a) The Company is, in our opinion, maintaining proper records
showing full particulars, including quantitative details and situation
of fixed assets.
(b) In accordance with a programme, of verifying the Fixed Assets once
in three years, Fixed Assets are reported to have been physically
verified by the Management during the year ended 31.3.2011 and the
discrepancies noticed on such physical verification, which in our
opinion, were not material, in relation to the operations of the
Company, had been properly dealt with in the books of accounts. The
periodicity of physical verification, in our opinion, is reasonable
having regard to the size of the Company and the nature of its
business.
(c) In our opinion and according to the information and explanations
given to us, the fixed assets disposed off during the year were not
substantial part of fixed assets so as to effect the going concern
status of the Company.
ii. (a) The inventories lying with the Company are reported to have
been physically verified by the management at the year end.
(b) In our opinion the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion, the Company is maintaining proper records of
inventories and according to the records of the Company, the
discrepancies noticed on physical verification of stocks as compared to
book records, which in our opinion, were not material, in relation to
the operations of the Company, have been properly dealt with in the
books of accounts.
iii (a) (i) According to the information and explanations given to us ,
the Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956 and accordingly clauses
(iii)(b) to (d) of paragraph 4 of the aforesaid order, are in our
opinion, not applicable.
(ii) According to the information and explanations given to us, the
Company has during the year taken unsecured loans of Rs.1,073.50 Lacs
from a party covered in the register maintained under section 301 of
the Companies Act, 1956.
(b) In our opinion, and according to the information and explanations
given to us, the rates of interest and other terms and conditions of
unsecured loans taken by the Company during the year are not, prima-
facie, prejudicial to the interest of the Company.
(c) In absence of stipulations, we have no comments to make as to
whether or not the Company is repaying the principal amount as
stipulated and is also regular in payment of interest and whether there
is any overdue amount of more than one lakh for which steps need to be
taken by the Company for payment of the principal amount and interest
thereon.
iv) In our opinion and according to the information and explanations
given to us and on the basis of test checks carried out by us, and
considering the explanations given by the management that alternative
sources not being available for certain OEM and other purchases, it
appears that there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to major purchases of inventory, Fixed Assets and
for the sale of goods and services. Further, on the basis of our
examination of the books and records of the Company, and according to
the information and explanations given to us, we have neither come
across nor have we been informed by the management or the Internal
Auditors of the Company of any instance of major weaknesses in the
aforesaid internal control procedures, which would require major
corrective action.
v) (a) According to the information and explanations given to us and on
the basis of our examination of the books of accounts, we are of the
opinion that the contracts or arrangements that need to be entered in
the register maintained in pursuance of section 301 of the Companies
Act 1956 have been entered in the said register.
(b) According to the information and explanations given to us, the
Company has not entered into any transactions exceeding the value of
five lakh rupees in respect of any party during the year that need to
be entered in the register in pursuance of section 301 of the Companies
Act, 1956 and therefore, Clause v (b) of paragraph 4 of the aforesaid
order, is in our opinion, not applicable to the Company for the current
year.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the Public
during the year under the provisions of sections 58A, 58AA or any other
relevant provisions of the Act. Therefore the provisions of clause (vi)
of the aforesaid order are not applicable to the Company.
vii) In our opinion, the internal audit system is by and large
commensurate with the size of the Company and nature of its business
except that formal internal audit system need to be introduced at
Mumbai branch with proper scope and adequate coverage.
viii) On the basis of the records produced, we are of the opinion that
prima-facie, the cost accounts and records as prescribed by the Central
Government under Clause (d) of Sub-Section (1) of Section 209 of the
Companies Act, 1956. However, we have not carried out a detailed
examination of the said accounts and records.
ix (a) According to the records of the Company, the Company has
regularly deposited during the year undisputed statutory dues (to the
extent applicable) including Provident Fund, Investor Education and
Protection Fund, Employees' State Insurance, Income Tax, VAT (Sales
Tax), Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other statutory dues with the appropriate authorities though there has
been delays in depositing dues of Service Tax, Works Contract Tax and
Dividend Tax.
According to the information and explanations given to us, there are no
undisputed amounts payable in respect of such statutory dues, which
have remained outstanding as at 31.03.2011 for a period of more than
six months from the date they became payable.
(b) On the basis of our examination of the documents produced to us and
according to the information and explanations given to us, the dues (to
the extent applicable) of income tax/ sales tax/ wealth tax/ service
tax/ customs duty/ excise duty/ cess which have not been deposited on
account of disputes and the forum where the dispute is pending are as
under;
Nature of Nature Amount Period Forum where
the of the involved to dispute is
statute dues Rs. which pending
it
relates
to
(years
ended)
Central Excise 23,567 31.03.80 The Asst.
Excise Act. duty Comm-
31.03.92 issioner.
Central Excise,
Udaipur
Service 2,40,837 31.03.03 The Asst.
Tax Commissioner
45.22,321 31.03.07 Appeals,
Central Excise,
Jaipur
Rajsthan Various, 90,300 31.03.02 Tax Tribunal,
Sales Tax additional Ajmer
Act sales tax
demands
Income F.B.T. 1,10,830 31.03.08 Deputy
Tax Act Commissioner
1961 of income tax,
Kolkata
Income 7,20,58,480 31.3.08 Commissioner
Tax of L Tax
Appeals XII
Calcutta
We have been informed that except as stated above there are no other
amounts which have not been deposited on account of disputes.
(x) The Company has no accumulated losses as on 31.03.2011 and has not
incurred cash losses in the financial year ended on that date and in
the immediately preceding financial year.
{xi) According to the records of the Company and as per the information
and explanations given to us, the Company has not defaulted in
repayment of dues to financial institution or bank or debenture
holders.
(xii) According to the information and explanations given to Us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the provisions of any special statute applicable
to Chit Fund, Nidhi or mutual benefit fund/societies are not applicable
to the Company.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions during the year.
(xvi) On the basis of review of utilisation of funds pertaining to term
loans on overall basis as on 31/ 03/2011 and related information,
explanations and statements as made available to us and as represented
to us by the management, the term loans taken by the Company during the
year were applied during the year for the purpose for which the loans
were obtained.
(xvii) On the basis of review of utilisation of funds on overall basis
as on 31/03/2011, related information, explanations and statements as
made available to us and as represented to us by the management, no
funds raised on Short Term basis have been used for Long Term
application.
(xviii) The Company has made preferential allotment of Preference
Shares to parties and Companies covered in the register maintained
under Section 301 of the Act during the year and according to the
information and explanations given to us, the price at which such
Preference Shares have been issued are not prejudicial to the interest
of the Company.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issues
during the year.
(xxi) During the course of our examination of the books of account 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 on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management or the
Internal Auditors of the Company.
Above Laxmi Dharam Kanta, For G. P. KEJRIWAL & CO.
Hawa Sadak, 22 Godown, Chartered Accountants
Jaipur - 302 006 Firm Reg. No. 001036C
Dated: 26th May, 2011 (C. P. JAIN)
Camp: Mumbai Partner
M.N. 70516
Mar 31, 2010
1) We have audited the attached Balance Sheet of Reliance Chemotex
Indstries Limited, as at 31st march, 2010 and also the Profit and Loss
account and the Cahs Flow statment for the year ended on that date
annexed thereto. These financial statements are the resposibility of
the Companys. management Our respondiblity is to expresss an oplion on
these financial stements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepled 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 lest basle. eyidence supporting the amounts
and disclousres in the financial statments An audit also Includes
nisessing the accounting principles used and sinificant estlthetes made
by management, as well as evaluating the overal financial statement
presention. 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 the Companies (Auditors Repprt) (Amondment) Order, 2004
(together the "Order") lssued by the Central Govenment of India In
torms of section 227 (4A) of the Companies. Act 1956 and on the basis
of books and records examined by us in the nothei vourse of audit and on
the basis of such checks as we considered appropirate and neeording to
the Information and explantions given to us and to the bost of our
knowledge and belraf, we set out In the attached Annexure a statment on
the matters specified In prahraphs 4 and 5 of the sald order.
4. Further to our comments In the Annexure referred to In paragraph 3
above.
(i) We have obtained all the inforthetion and explanations which to the
best of our knowfedge and beilef were necessary for the purposes of our
audit.
(ii) In our opinlon subject to Note 1(x) in schedule 23 proper books of
account, as requred by law, have beem le[t by the Company so far as it
appears from our examination of the 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 as submitted to us:
(iv) In our opinion subhect to Notes 1(ix) , 1(xii) and 7 (xiii) in
Schedule 23 the Balance Sheet, Profit and Loss account and Cash Flow
statement deait with by this report comply with the accounting
standards referred to in sub section (3C) of section 211 of the
Copanies Act, 1956;
(v) On the basis of writen representation received from the Directrs,
as on 31st March, 2010 and taken on record by the Board of Directors,
we report that none of the Directors is disqualfied as on 31st march,
2010 from eing appolinted as a Director in terms of clause (g) of
sub section (1) of section 274 of the Companles Act, 1956;
(vi) In our ipinion and to the best of our inforthetion and according to
the explanations given to us, the said accounts subject to and rad
together with the NOTES in schiedule 23 and the attached thereto, give
the inforthetions 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 2010;
b) In the cast of Profit and Loss account, of the profit for the year
ended on that date; and
c) In the cast of the Cash Flow staterment, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPPORT
(Referred in Paragraph (1) of our Report of even date of RELIANCE
CHEMOTEX INDUSTMIES LTD. as at and for the year anded 31st therch, 2010)
1. (a) The Company Rs. In our opinion, maintaining proper records
showing full parficulars, Including quntiative deails and situation of
fixed anssets.
(b) In accordance with a programme, at verifying the Fixed Assers once
In threa years, Fixed Assets are reported to have been physically
venified by the management at the year end and the disorepancies noiced
on such phusical verification, which In our opinion, were not material,
In relation to the operations of the Company, have been properly deait
with in the books of accounts The peilodicly of physical benfication,
In our opinion, is reasonable having regard to the size of the Company
and the nature of its business.
(c) In our opinion and according ot the Inforthention and explanations
given to us, the fixed assets disposed off during the year were not
subsiantial part of fixed assets so as to effect the going conern
status of the Company,
ii) (a) The inventories lying with the Company are reported to have
been physically verfied by the management at the year end.
(b) In our opinion the procedures of physical berrfication of
invenriories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of is business.
(c) In our opinion,of the Company is the lntatining proper records of
inventiries and according to the records of the Company, the
discrepancies noticed on physical verication of sticks as comparad to
book records, which In our opinlion were not material, in relation to
the operations of the Company, have been properly dealt with in the
bocks of accounts.
iii (a) (I) According to the information and expinanations given to us,
the Company has not granted any loans, secured or unsecured, to
Companies, films or other parlies convered In the regRster theintained
under section 301 of the Companies, Act, 1956 and accoudingly clauses
(iii) (b) to (d) of paragraph 4 of the aforesald order, are in our
opinion, not applicable.
(ii) According to the Information and explanation given to us, the
Company has during the year taken unsecured loans of Rs. 83 Lacs from a
Director of the Company and of Rs. 131 Lacs from a party convered in
the register maintained under section 301 of the Companies Act, 1956
(b) In our opinion and according to the information and explanations
given to us, the rates of interest and other terms and conditions of
unsecrured lans taken by the Company during the year are not,
primafal., proludical to the interest of the Company.
(c) In abence of stipulations, we have no corrments to make as to
whether or not the Company is repaying the principal amount as
siputated and is also reguar in payment of interos and whether there is
any everdue amount of more than one laks for which steps need to be
taken by the Cothepny for payment of the principal amount and interest
thereeon.
iv) In our opinion and accorfing to the information and explanations
given to us and on the basis of test checks carried out by us, and
considering the explanations given by the management that attemative
souces not being abailable for ceration OEM and other purchases it
appears that there are adequate internal Cothepny and the Sature of its
businoss with tegard to major purchases of internal control proccedures
commentiate with the size of the Company and the sature of its business
with regard to thejor purchases of inventory, Fixed Asseats and for the
sale of goods, Further, on the basis of our examination of the books
and records of the Cothepny and according to the inforthetion and
explanations given to us, we have neither come across nor have we been
informed by the management of the internal Auditors of the Company of
any instance of thejor weakness as in the aforesald internal control
procedures, which would required major correcitive acrion.
v) (a) According to the Information and expianations given to us and
on the basis of our examination of the books of accounts, we are of
the opinion that the contracts or arrangements that need to be entned
in the register maintained in pursuance of section 301 of the Companies
Act, 1956 have been entered in the said register.
(b) According ot the information and explanations given to us, the
Company has not entered into any transactions exceeding the value of
five taken rupees in resepct of any party during the year that need ot
be entered in the register in pursuance of section 301 of the
Cothepnies Act, 1956 and uneredore, Clause V (b) of paragraph 4 of the
aforesald order, is in our opinion not applicable to the Cothepny for
the current year.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accapted any devisits from the Pubic
during the year under the provisions of sections 5BA, 58AA or any
previsions of clause (vi) of the aforeeald order are not applicable to
the Company.
vii) In our opinlon the internal audit system is by and large
commensurate with the size of hte Company and nature of its business.
viii) On the basis of the records produced, we are of the opinion that
prithe-facie, the cost accounts and records as prescibed by the Central
Goverment under Clauss (d) of Sub-Section (1) of Section 209 of the
Companies Act, 1956 have been thede and maintained However, we have not
carried out a detalled examination of the subit amounts and records.
ix (a) According to the records of the Company, the Company has
regusarly depesited during hte year undisputed statutory deposited
during the year undispited statutoury dues (to the exient applicable)
Incloking Provedent Fund, Incerstor Education and Protection Fund,
Employees State Insurance, Income Tax, VAT (Sales Tax), Wealth Tax,
Scrvice Tax, Custorms Dury, ExcRse Duty, Cess andother statutory dues
with the apporprlate authourilles though dues with the approprlate
authouttles though there has been delays In depositing dues of Service
Tax, VAT and Tax deducted at source. According to the information and
explanations given to us, there are no undisputed amounts, payable In
respect of such statutory dues, which have remained outstanding as at
31.03.2010 for a period of more than. siz months from the date they
becaries payabie.
(b) On the basis of our examination of the doucuments produced to us
and according to the informations and explantions given to us, the dues
(to the extent applicable ) of Income fax/sales tax/wealth tax/service
tax.customs duty/excRse duty/cess which have not been deposited on
account of disputes and the forrum where the dispute is pending are as
under.
Tabal is a not visible
We have been informed that except as stated above there are no ohter
amounts which have not been deposited on sccount of disputes.
(x) The Company has no accummlated losses as on 31.03.2010 and has not
incurred cash losses in the financial year ended on that date and in
the immediately proceding finacial year.
(xi) According to the records of the Company and as pan the information
and explanations given to us, the Company has not detaulted In
repayment of dues to financial institution or bank or debenture holders.
(xii) According to the information and explanations given to us. the
Company has not granted any loans or advances on the basis of decunity
by way of pledge of shareth debentutes and other securities.
(xiii) In our opinlon, the provisions of any special statues applicable
to Chit Fund, Niahl or mutual beneit fund societal are not applicable
to the Company.
(xiv) The Company as not dealing or trading in shares, securifies,
debentures and other investments.
(xv) Accarding to the information and explantions given to us, the
Company has not given any guarantee for loand taken by others from bank
or finacial insitutions during the year.
(xvi) On the basRs of review of utlasation at funds pertaining ot term
loars on overall basis as on 31/03/2010 and ralated information,
Explanaions and statements as made avilable to us and as represented to
us by the management, the term loans taken by the Company during the
year were appried during the year for the purpose for which the loans
were obtained.
(xvii) On the basis of rebiew of utalasation of funds on eberall basis
as on 31/03/2010, realted information. explanations and statements as
thede avillable to no funds raised on Short Term basis have been used
for Long Term application.
(xviii) The Company has not the any preferential allotment of
Shareas to parites and Companies covered in the register maintaned
under Setion 301 of the Act. During the year.
(xix) The Company has not raised any money by way of public issuas
during the year.
(xxi) During the coutse of our examination of the books of account and
records of the Company. carried out in accordance with the generally
accepted auditing pactces in india, and according to the information and
explanations given to us, we have nether come across any instance of
material fraud on or by the Company, noticed or reportod during the
year, not have we been informed of such case by the management or the
internel Auditors of the Compnay.
Above laxthel Dharam Kanta, For G.P KEJRIWAL & CO.
Hawa Sadak.22 Godown, Charlered Accountants
Jhipar 302 005 Film Reg No 00 1036C
Date: 19th they,2010 (K.K, SINGHAL)
Camp: Mumbai Partner
M.N. 050 140
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