Mar 31, 2018
INDEPENDENT AUDITORâS REPORT To The Members of RESONANCE SPECIALTIES LIMITED Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of RESONANCE SPECIALTIES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information.
2. Managementâs 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 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India. 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.
3. Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
In conducting 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 and the Order issued under section 143(11) of the Act.
We conducted our audit of the standalone 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 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. 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 believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
4. Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
5. Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit 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 including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow 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 Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
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, as amended, 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. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on longterm contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor''s Report) Order,
2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
Annexure A to the Independent Auditorsâ Report
(Referred to paragraph (9) under âReport on other legal and regulatory requirements'' of our report of even date to the member of resonance specialties limited on the Ind AS financial statements for the year ended March 31, 2018)
i. In respect of Fixed Assets :
a. The Company has maintained proper records showing full particulars, including quantitative details and situation, of fixed assets.
b. The fixed assets have been physically verified by the management in a phased manner, designed to cover all items over a period of three years , which in our opinion, is reasonable having regard to the size of the Company and the nature of its business. Pursuant to the program, a portion of fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and the physical fixed asset have been noticed.
c. The title deeds of immovable properties are held in the name of the company.
ii. In respect of Inventories :
a. We are informed that the inventory have been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.
b. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to size of the Company and nature of its business.
c. On the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory. We are informed that the discrepancies noticed on verification between the physical stocks and the book records were not material in relation to the operations of the Company.
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. Accordingly, the provisions of clause 3(iii) (a) to (c) of the order are not applicable to the company and hence not commented upon.
iv. In our opinion and according to the information and explanation given to us, the company has complied with the provisions of Section 185 and 186 of the companies act, 2013 in respect of loan, investments, guarantees and security.
v. According to the information and explanations given to us, the company has not accepted any deposits from the public and hence the directives issued by the Reserve bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Act and Companies (Acceptance of deposit) Rule 2015 with regard to the deposits accepted from the public are not applicable.
vi. We have broadly reviewed the books of account and records maintained by the Company pursuant to the rules prescribed by the Central Government of India, the company is required to maintain cost records as specified under section 148(1) of the Companies Act, 2013 in respect of its products. We have broadly reviewed the same and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. The contents of these accounts and records have not been examined by us.
vii. In respect of statutory dues:
a. According to the information and Explanation given to us and records of the Company as produced and examined by us, in our opinion, there have been some delays in depositing undisputed statutory dues in respect of Provident Fund, Income-tax, Sales-tax, Service-tax, Excise Duty, Goods and Services Tax, cess and any other statutory dues with the appropriate authorities.
b. According to the information and explanations given to us and the records of the Company examined by us there are no dues of income tax, Sales Tax, Wealth Tax, Service tax, Custom Duty, Excise Duty , Goods and services Tax or cess which have not been deposited on account of any dispute except as mentioned below:
Name of statute |
Nature of the Dues |
Amount Rs.in lakhs |
Pending before |
Nature of Dispute |
Bombay Sales Tax Act / Maharashtra Value Added Tax |
Vat and CST for FY 2005-06 to 2009-10 |
2028.12 |
Remanded Back to Assessing authority, Deputy Commissioner of Palghar of the Sales tax |
Original order passed exports |
Income tax 1961 |
Income tax for the AY 2013-14 |
16.18 |
ITAT |
Additions of Sundry Balance W/off |
Income tax 1961 |
Penalty u/s 271(1)© |
28.55 |
CIT(Appeal) |
Penalty |
Central Excise Act |
Excise duty |
5.79 |
Joint Commissioner |
common input matter of INH CESTATE |
Central Excise Act |
Excise duty |
32.00 |
Commissioner of Appeal -Mumbai |
Appeal against the EA-1 Audit Order of Cenvat Credit a ailment on xerox copy and without documents |
vii. Based on our audit procedures and according to the information and explanations provided to us by the management, we are of the opinion that the Company has not defaulted in repayment of dues to financial institution and bank.
ix. Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
x. Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanation given to us and based on our examination of the records of the company, the company has paid and provided for managerial remuneration in accordance with the requisite approvals mandated by the provision of Section 197 read with schedule V to the act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards and Companies Act,2013.
xiv. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Annexure B to the Independent Auditorsâ Report
(Referred to in paragraph 5(f) of the Independent Auditors'' Report of even date to the members of Resonance Specialties Limited on the financial statements for the year ended March 31, 2018)
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 Resonance Specialties Ltd. (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs 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 Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). 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 Act.
Auditorsâ 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 the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act 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 ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the 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 limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on 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 V R BHABHRA & CO.
Chartered Accountants FRN: 112861W
Vimal R. Bhabhra
(Partner)
Membership No: - 046043
Place: Mumbai.
Date: 30th May, 2018
Mar 31, 2016
INDEPENDENT AUDITORS'' REPORT
To
The Members Of,
RESONANCE SPECIALTIES LIMITED,
Report on the Financial Statements
1. We have audited the accompanying financial statements of RESONANCE SPECIALTIES LIMITED ("the company"), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial
Statements
2. 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 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 the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 control, 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
3. Our responsibility is to express an opinion on these financial statements based on our audit.
4. We have taken into account the provisions of the Act, and 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.
5. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act and other applicable authoritative pronouncements 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.
6. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the company as at 31 March 2016 and its profit and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
9. As required by ''the Companies (Auditor''s Report) Order, 2016 ("the order") issued by the Central Government of India in term of sub- section (11) of the section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
10. 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 appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement dealt with by this Reports are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards Specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors as on 31 March, 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.
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. In our opinion and to the best of our information and according to the explanations given to us, the Company has disclosed the impact, if any, pending litigation as at March31, 2016 on its financial position in its financial statements (Refer note no. 29 to the financial statement).
ii. There are amounts need to be provided as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts
iii. The provisions to transfer the amounts to the Investor Education and Protection Fund by the Company are not applicable (Refer note no. 34e to the financial statement).
Annexure A to the Independent Auditors'' Report
(Referred to paragraph (9) under ''Report on other legal and regulatory requirements'' of our report of even date to the member of resonance specialties limited on the financial statements for the year ended March 31, 2016)
i. In respect of Fixed Assets :
a. The Company has maintained proper records showing full particulars, including quantitative details and situation, of fixed assets.
b. The fixed assets have been physically verified by the management in a phased manner, designed to cover all items over a period of three years , which in our opinion, is reasonable having regard to the size of the Company and the nature of its business. Pursuant to the program, a portion of fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and the physical fixed asset have been noticed.
c. The title deeds of immovable properties are held in the name of the company.
ii. In respect of Inventories :
a. We are informed that the inventory have been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.
b. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to size of the Company and nature of its business.
c. On the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory. We are informed that the discrepancies noticed on verification between the physical stocks and the book records were not material in relation to the operations of the Company.
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. Accordingly, the provision of clause 3(iii) (a) to (c) of the order are not applicable to the company and hence not commented upon.
iv. In our opinion and according to the information and explanation given to us, the company has complied with the provisions of Section 185 and 186 of the companies act, 2013 in respect of loan, investments, guarantees and security.
v. According to the information and explanations given to us, the company has not accepted any deposits from the public and hence the directives issued by the Reserve bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Act and Companies (Acceptance of deposit) Rule 2015 with regard to the deposits accepted from the public are not applicable.
vi. We have broadly reviewed the books of account and records maintained by the Company pursuant to the rules prescribed by the Central Government of India, the company is required to maintain cost records as specified under section 148(1) of the Companies Act, 2013 in respect of its products. We have broadly reviewed the same and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. The contents of these accounts and records have not been examined by us.
vii. In respect of statutory dues:
a. According to the information and Explanation given to us and records of the Company as produced and examined by us, in our opinion, there have been some delays in depositing undisputed statutory dues in respect of Provident Fund, Income-tax, Sales-tax, Service-tax, Excise Duty, cess and any other statutory dues with the appropriate authorities.
Compiled by: Dion Global Solutions Limited
b. According to the information and explanations given to us, there were no undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees'' State
_ 27th Annual Report 2015-16
Insurance, Income-tax, Sales-tax, Wealth-tax, Service tax, Custom Duty, Excise Duty, cess and any other statutory dues were outstanding as at 31st March, 2016 for a period of more than six months from the date they became payable.
c. According to the information and explanations given to us and the records of the Company examined by us there are no dues of income tax, Sales Tax, Wealth Tax, Service tax, Custom Duty, Excise Duty or cess which have not been deposited on account of any dispute except as mentioned below:
Name of statute |
Nature of the Dues |
Amount Rs. in lakhs |
Pending before |
Nature of Dispute |
Bombay Sales Tax Act / Maharashtra Value Added Tax |
Vat and CST for FY 2005-06 to 2009-10 |
2001.44 |
Commissioner of Sales Tax (Appeal) Various |
Original order passed exports |
Finance Act 1994 |
Service Tax |
27.11 |
Commissioner of Central Excise (Appeal) |
Service tax Charged on Export of services |
Income tax 1961 |
Income tax for the AY 2013-14 |
16.18 |
Commissioner of Income Tax (Appeal) |
Unilateral additions |
viii. Based on our audit procedures and according to the information and explanations provided to us by the management, we are of the opinion that the Company has not defaulted in repayment of dues to financial institution and bank.
ix. Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
x. Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
xi According to the information and explanation given to us and based on our examination of the records of the company, the company has provided/paid for managerial remuneration in accordance with the requisite approvals mandated by the provision of Section 197 read with schedule V to the act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
Resonance Specialties Limited
xiv. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Annexure B To The Independent Auditors'' Report
(Referred to paragraph (10) (f) under ''Report on other legal and regulatory requirements'' of our report of even date to the member of resonance specialties limited on the financial statements for the year ended March 31, 2016)
Report on the Internal Financial Controls under Clause (i) of Sub - section 3 of Section 143 of the Act
1. We have audited the internal financial controls over financial reporting of Resonance Specialties Limited (''the Company'') as of March 31, 2016 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
2. 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 Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountant of India (ICAI). 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 fraud and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditor''s Responsibility
3. 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 the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act 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 ICAI. 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.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exits, 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 judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error.
5. 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 systems over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. 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 statement for external purpose in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
i. Pertain to the maintenance of records that , in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
ii. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
iii. 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
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all materials respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For V.R. BHABHRA & CO.
Chartered Accountants
FRN: 112861W
Vimal R. Bhabhra
Place: Mumbai. Proprietor
Date: May 30, 2016. Membership No: - 046043
Mar 31, 2015
We have audited the accompanying financial statements of RESONANCE
SPECIALTIES LIMITED ("the company"), which comprise the Balance Sheet
as at 31st March 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the 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 internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made 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 mis-statement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India;
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
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,2015 ("the
Order") issued by the central government of India in term of sub-
section (11) of the section 143 of the Act, we give in the Annexure 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 appears from our examination of those
books
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Reports are in agreement with the books of
account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
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 30 to the
financial statements.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Auditors' Report
(Referred to paragraph (1) under 'Report on other legal and regulatory
requirements' of our report of even date) i. In respect of Fixed
Assets :
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. The Company has a regular programme of verification of its fixed
assets which, in our opinion, is reasonable having regard to the size
of the Company and the nature of its fixed assets. We have been
informed that no material discrepancies were noticed on such
verification as compared to book records.
c. Based on the information and explanation given by the management
and on the basis of audit procedures performed by us, we are of the
opinion that the Company has not disposed off substantial part of its
fixed assets during the year and hence the going concern assumption is
not affected.
ii. In respect of Inventories :
a. We are informed that the inventory have been physically verified by
the management during the year. In our opinion, the frequency of
verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
size of the Company and nature of its business.
c. On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. We are informed that the discrepancies noticed on
verification between the physical stocks and the book records were not
material in relation to the operations of the Company.
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 Company has not taken
any loans, secured or unsecured, from the parties covered in the
register maintained under section 189 of the Companies Act, 2013.
iv. In our opinion and according to the information and explanations
given to us, internal control system need to be strengthened to make it
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets, and for the
sale of goods. However, during the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system.
v. According to the information and explanations given to us, the
company has not accepted any deposits from the public within the
meaning of Section 73 to 76 and any other relevant provisions of the
Companies Act, 2013 and accordingly, paragraph 3(v) of the Order is not
applicable.
vi. We have broadly reviewed tha books of account and records
maintained by the Company pursuant to the rules prescribed by the
central government for the maintenance of cost records under section
148(1) of the Companies Act, 2013 in respect of all its manufacturing
and construction activities and are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. The
contents of these accounts and records have not been examined by us.
a. To the best of our information and according to the information and
explanations provided to us by the management, the particulars of
contracts or arrangements referred to in Section 301 of the Companies
Act, 1956 have been entered in the Register required to be
maintained under that Section.
vii. In respect of Statutory dues.
a. According to the information and Explanation given to us and
records of the Company as produced and examined by us, in our opinion,
there have been some delays in depositing undisputed statutory dues in
respect of Provident Fund, Income-tax, Sales-tax, Service-tax, Excise
Duty, cess and any other statutory dues with the appropriate
authorities. According to the information and explanations given to us,
there were no undisputed amounts payable in respect of Provident Fund,
Investor Education and Protection Fund, Employees' State Insurance,
Income-tax, Sales-tax, Wealth-tax, Service tax, Custom Duty, Excise
Duty, cess and any other statutory dues were outstanding as at 31st
March, 2015 for a period of more than six months from the date they
became payable
b. According to the information and explanations given to us and the
records of the Company examined by us there are no dues of income tax,
Sales Tax, Wealth Tax, Service tax, Custom Duty, Excise Duty or cess
which have not been deposited on account of any dispute except as
mentioned below:
Name of statute Nature of
the Due Amount Rs.
in lacs Pending before Natureof
Dispute
Bombay Sales
Tax Act /Vat and 2001.44
CST for FY Commissioner
of Sales Original
order
passed
Maharashtra
Value Added 2005-06 to
2009-10 Tax(Appeal)
Various
exparte
Tax
Finance Act
1994 Service Tax 27.11 Commissioner
of Central Service tax
Charged on
Excise
(Appeal) Export of
services
viii. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
ix. Based on our audit procedures and according to the information and
explanations provided to us by the management, we are of the opinion
that the Company has not defaulted in repayment of dues to financial
instition, bank and debenture holders.
x. In our opinion and according to the information and explanations
provided to us, the Company has not given any guarantee for loan taken
by others from banks or financial institutions.
xi. According to the records of the Company the term loan raised were
applied by the company for the purposes for which it was obtained.
xii. 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 by the management, we have neither come across
any instances of material fraud on or by the Company, noticed or
reported during the year, nor have we been informed of such case by
management.
For V R BHABHRA & CO.
Chartered Accountants
FRN: 112861W)
Sd/-
Vimal R. Bhabhra
Place: Mumbai Proprietor
Date: May 30, 2015 Membership No: 046043
Mar 31, 2014
We have audited the accompanying financial statements of RESONANCE
SPECIALTIES LIMITED("the Company"), which comprise the Balance Sheet as
at 31stMarch 2014 and the statement of profit & Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Afairs 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 and opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the efectiveness of the entity''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 sufcient 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, thefinancial 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 afairs of the
Company as at 31March 2014;
b) In the case of the statement of profit and Loss, of the profit for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") 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, Statement of profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub- section (3C) of section 211 of the Companies Act, 1956 read with
the General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Afairs in respect of Section 133 of the Companies Act, 2013;
and
e) On the basis of written representations received from the directors
as on 31March 2014, and taken on record by the Board of Directors, none
of the directors is disqualifed as on 31March 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 AUDITORS'' REPORT
The annexure referred to in Paragraph I of the Auditors'' Report to the
members of Resonance Specialties Limited (the Company) for the year
ended 31st March 2014. We report that: i. In respect of Fixed Assets :
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. The Company has a regular programme of verifcation of its fixed
assets which, in our opinion, is reasonable having regard to the size
of the Company and the nature of its fixed assets. We have been informed
that no material discrepancies were noticed on such verifcation as
compared to book records.
c. Based on the information and explanation given by the management
and on the basis of audit procedures performed by us, we are of the
opinion that the Company has not disposed of substantial part of its
fixed assets during the year and hence the going concern assumption is
not afected.
ii. In respect of Inventories :
a. We are informed that the inventory have been physically verifed by
the management during the year. In our opinion, the frequency of
verifcation is reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verifcation of inventory
followed by the management are reasonable and adequate in relation to
size of the Company and nature of its business.
c. On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. We are informed that the discrepancies noticed on
verifcation between the physical stocks and the book records were not
material in relation to the operations of the Company.
iii. 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. The Company has not taken
any loans, secured or unsecured, from the parties covered in the
register maintained under section 301 of the Companies Act, 1956
iv. In our opinion and according to the information and explanations
given to us, internal control system need to be strengthened to make it
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets, and for the
sale of goods. However, 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. To the best of our information and according to the information and
explanations provided to us by the management, the particulars of
contracts or arrangements referred to in Section 301 of the Companies
Act, 1956 have been entered in the Register required to be
maintainedunder that Section.
b. According to the information and explanations provided to us by the
management, the transactions made in pursuance of contracts or
arrangements entered in the Register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5,00,000 in
respect of any party during the year are reasonable having regard to
prevailing market prices at the relevant time as per information
available with the Company. However, for some products there are no
similar transactions with any other party, hence we are not able to
express an opinion on the same.
vi. According to the information and explanations given to us, the
company has not accepted any deposits from the public within the
meaning of provisions of sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and rules made there under.
vii. In our opinion, the scope and coverage of internal audit and
periodicity of the audit reports needs to be widened /increased to make
the internal audit system commensurate with the size of the Company and
the 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 books and records of the Company as produced and
examined by us and according to the information and explanations
provided to us, there have been delays in depositing undisputed
statutory dues in respect of Provident Fund, , Income Tax, Service Tax,
with the appropriate authorities.
b. According to the information and explanations provided to us, no
undisputed amounts payable in respect of Provident Fund, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess and
any other statutory dues were outstanding as at 31st March, 2014 for a
period of more than six months from the date they became payable except
as mentioned below:
NAME OF THE
STATUTE NATURE OF
THE DUES AMOUNT
(Rs.) PERIOD TO WHICH THE DUE
DATE DATE OF
PAYMENT
AMOUNT RELATES
Bombay Sales
Tax Act/ Erroneous
refund of
Sales 1,66,89,316 Various Various
Dates Not Paid
MVAT Act Tax &
Sales Tax
Deferral
Loan
c. According to the information and explanations provided to us, there
are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty or cess which have not been deposited on account of
any dispute.
However, Other Non Current liability includes Rs. 1.67 Crores being the
amount received during the earlier years from Sales Tax department (net
of repaid Rs. 1.40 Crore) which will be repaid after ascertaining the
complete facts from the concerned consultant and Sales tax department.
x. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
xi. Based on our audit procedures and according to the information and
explanations provided to us by the management, we are of the opinion
that the Company has not defaulted in repayment of dues to financial
institution, bank and debenture holders.
xii. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
xiii. In our opinion, the Company is not a chit fund / nidhi / mutual
benefit fund / society.
xiv. In our opinion, the company is not dealing in or trading in
Shares, Securities, Debentures and other investments.
xv. In our opinion and according to the information and explanations
provided to us, the Company has not given any guarantee for loan taken
by others from banks or financial institutions.
xvi. According to the records of the Company the term loan raised were
applied by the company for the purposes for which it was obtained.
xvii. On the basis of review of utilization of funds, which is based
on an overall examination of the Balance Sheet of the Company and
related information as made available to us and as represented to us by
the management, funds raised on short-term basis have not been used for
long-term purposes.
xviii. 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 during the period
covered by this report.
xx. During the year, the Company has not raised money through public
issue.
xxi. Based upon the audit procedures performed and the information and
explanations provided to us by the management, we report that no
material fraud on or by the Company has been noticed or reported during
the year under audit.
For V R BHABHRA & CO.
Chartered Accountants
FRN: 112861W)
Sd/-
Vimal R. Bhabhra
Place: Mumbai Proprietor
Date: May 30, 2014 Membership No: 046043
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of RESONANCE
SPECIALTIES LIMITED ("the Company"), which comprise the Balance Sheet
as at 31st March 2013 and the statement of Profit & Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
ofthe 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case ofthe Balance Sheet, ofthe state of affairs ofthe
Company as at 31st March 2013;
b) In the case of the Profit and Loss Statement, 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 ofthe Companies Act, 1956;
e) On the basis of written representations received from the directors
as on 31st March 2013, and taken on record by the Board of Directors,
none ofthe 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 ofthe Companies Act, 1956.
Annexure to the Auditors'' Report
The annexure referred to in Paragraph I of the Auditors'' Report to the
members of Resonance Specialties Limited (the Company) for the year
ended 31st March 2013. We report that:
i. In respect of Fixed Assets :
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. The Company has a regular programme of verification of its fixed
assets which, in our^binion, is reasonable having regard to the size of
the Company and the nature of its fixed assets. We have been informed
that no material discrepancies were noticed on such verification as
compared to book records.
c. Based on the information and explanation given by the management
and on the basis of audit procedures performed by us, we are of the
opinion that the Company has not disposed off substantial part of its
fixed assets during the year and hence the going concern assumption is
not affected.
ii. In respect of Inventories :
a. We are informed that the inventory have been physically verified by
the management during the year. In our opinion, the frequency of
verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
size of the Company and nature of its business. "
c. On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. We are informed that the discrepancies noticed on
verification between the physical stocks and the book records were not
material in relation to the operations of the Company.
iii. 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. The Company has not taken
any loans, secured or unsecured, from the parties covered in the
register maintained under section 301 of the Companies Act, 1956
iv. In our opinion and according to the information and explanations
given to us, internal control system need to be strengthened to make it
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets, and for the
sale of goods. However, 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. To the best of our information and according to the information and
explanations provided to us by the management, the particulars of
contracts or arrangements referred to in Section 301 of the Companies
Act, 1956 have been entered in the Register required to be maintained
under that Section.
b. According to the information and explanations provided to us by the
management, the transactions made in pursuance of contracts or
arrangements entered in the Register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5,00,000 in
respect of any party during the year are reasonable having regard to
prevailing market prices at the relevant time as per information
available with the Company. However, for some products there are no
similar transactions with any other party, hence we are not able to
express an opinion on the same.
vi. According to the information and explanations given to us, the
company has not accepted any deposits from the public within the
meaning of provisions of sections 58A and 58AAor any other relevant
provisions of the Companies Act, 1956 and rules made there under.
Therefore, the provisions of Clause (vi) of paragraph 4 of the Order
are not applicable to the company.
vii. In our opinion, the scope and coverage of internal audit and
periodicity of the audit reports needs to be widened / increased to
make the internal audit system commensurate with the size of the
Company and the 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 books and records of the Company as produced and
examined by us and according to the information and explanations
provided to us, there have been delays in depositing undisputed
statutory dues in respect of Provident Fund, Income Tax, Service Tax,
with the appropriate authorities.
However, Other Non Current liability includes Rs. 1.67 Crores being the
amount received during the earlier years from Sales Tax department (net
of repaid Rs. 1.40 Crore) which will be repaid after ascertaining the
complete facts from the concerned consultant and Sales tax department.
x. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
xi. Based on our audit procedures and according to the information and
explanations provided to us by the management, we are of the opinion
that the Company has not defaulted in repayment of dues to financial
institution, bank and debenture holders.
xii. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
xiii. In our opinion, 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. In our opinion, the company is not dealing in or trading in
Shares, Securities, Debentures and other investments. Accordingly, the
provision of clause (xiv) of paragraph 4 of the Order, are not
applicable to the company.
xv. In our opinion and according to the information and explanations
provided to us, the Company has not given any guarantee for loan taken
by others from banks or financial institutions.
xvi. According to the records of the Company the term loan raised were
applied by the company for the purposes for which it was obtained.
xvii. On the basis of review of utilization of funds, which is based
on an overall examination of the Balance Sheet of the Company and
related information as made available to us and as represented to us by
the management, funds raised on short-term basis have not been used for
long-term purposes.
xviii. The Company has not made any preferential allotment of shares
to parties and companies covered in the Register maintained under
section 301 ofthe Companies Act, 1956.
xix. The Company has not issued any debentures during the period
covered by this report.
xx. During the year, the Company has not raised money through public
issue.
xxi. Based upon the audit procedures performed and the information and
explanations provided to us by the management, we report that no
material fraud on or by the Company has been noticed or reported during
the year under audit.
For V R BHABHRA & CO.
Chartered Accountants
FRN: 112861W)
Sd/-
Vimal R. Bhabhra
Proprietor
Membership No: 046043
Place: Mumbai
Date: May 30, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of Resonance Specialties
Limited as at 31st March 2012, the Statement of Profit and Loss and
Cash Flow Statement of the Company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We 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 misstatements. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
I. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4a) of
Section 227 of the Companies Act 1956, and on the basis of such checks
of the books and records as we considered appropriate and according to
the information and explanations given to us, we annex hereto a
statement on the matters specified in Paragraphs 4 and 5 of the said
Order, to the extent applicable to the Company.
II. Further to our comments 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 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the Statement of Profit and Loss and Balance Sheet
comply with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956 to the extent they are
applicable to the Company.
(e) On the basis of the written representations received from the
directors of the Company as on 31st March 2012, and taken on record by
the Board of Directors of the Company, we report that none of the
Directors is disqualified as on 31st March 2012 from being appointed as
a director in terms of clause (g) of sub-section (1) of Section 274 of
the Companies Act, 1956;
(f) mentioned in Note- 35(a), information about micro, small and medium
enterprise creditors is not available,
(g) 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 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, 2012;
(ii) In the case of the Statement of Profit and Loss, of the Loss of
the Company for the year ended on that date; and
(iii) In case of Cash Flow Statement, of the cash flows of the Company
for the year ended on that date.
Annexure to the Auditors' Report
The annexure referred to in Paragraph I of the Auditors' Report to the
members of Resonance Specialties Limited (the
Company) for the year ended 31st March 2012. We report that:
i. In respect of Fixed Assets :
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. The Company has a regular programme of verification of its fixed
assets which, in our opinion, is reasonable having regard to the size
of the Company and the nature of its fixed assets. We have been
informed that no material discrepancies were noticed on such
verification as compared to book records.
c. Based on the information and explanation given by the management
and on the basis of audit procedures performed by us, we are of the
opinion that the Company has not disposed off substantial part of its
fixed assets during the year and hence the going concern assumption is
not affected.
ii. In respect of Inventories :
a. We are informed that the inventory have been physically verified by
the management during the year. In our opinion, the frequency of
verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
size of the Company and nature of its business.
c. On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. We are informed that the discrepancies noticed on
verification between the physical stocks and the book records were not
material in relation to the operations of the Company.
iii. In respect of 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. During the year the Company has not accepted any loan from parties
covered in the Register maintained under Section 301 of the Companies
Act, 1956. According to the information and explanations given to us
the company has not granted any loans to party covered in the Register
maintained under Section 301.
b. As the Company has granted interest free unsecured loan to a
company covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount outstanding at any time during
the year in respect of the said loan is Rs 15,21,718/-. Since there is
no stipulation as to repayment, we are unable to comment as to whether
the said loans are not prejudicial to the interest of the company.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets, and for the sale of goods.
However, during the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system. However internal control required to be strengthened.
v. In respect of the contracts or arrangements referred to in section
301 of the Companies Act, 1956 :
a. To the best of our information and according to the information and
explanations provided to us by the management, the particulars of
contracts or arrangements referred to in Section 301 of the Companies
Act, 1956 have been entered in the Register required to be maintained
under that Section.
b. According to the information and explanations provided to us by the
management, the transactions made in pursuance of contracts or
arrangements entered in the Register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of ' 5,00,000 in
respect of any party during the year are reasonable having regard to
prevailing market prices at the relevant time as per information
available with the Company. However, for some products there are no
similar transactions with any other party, hence we are not able to
express an opinion on the same.
vi. According to the information and explanations given to us, the
company has not accepted any deposits from the public within the
meaning of provisions of sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and rules made there under.
Therefore, the provisions of Clause (vi) of paragraph 4 of the Order
are not applicable to the company.
vii. In our opinion, the scope and coverage of internal audit and
periodicity of the audit reports needs to be widened / increased to
make the internal audit system commensurate with the size of the
Company and the nature of its business.
viii. According to the information given to us, Central Government has
not prescribed the maintenance of cost records under section 209 (1)
(d) of the Companies Act, 1956, in case of the Company.
ix. In respect of Statutory dues :
a. According to the books and records of the Company as produced and
examined by us and according to the
information and explanations provided to us, there have been slight
delays in few cases in depositing undisputed statutory dues in respect
of Provident Fund, Income Tax, Service Tax, with the appropriate
authorities.
b. According to the information and explanations provided to us, no
undisputed amounts payable in respect of Provident Fund, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess and
any other statutory dues were outstanding as at 31st March, 2012 for a
period of more than six months from the date they became payable except
as mentioned below:
NAME
OF THE NATURE OF AMOUNT PERIOD TO
WHICH DUE DATE DATE OF
STATUTE THE DUES THE AMOUNT
RELATES PAYMENT
Income
Tax Act,
1961 Tax Deducted
at source 24,416 April -11
To August 11 Various dates Not paid
Bombay
Sales Sales Tax 1,66,89,316 Various Various Dates Not Paid
Tax Act/
MVAT Act
c. According to the information and explanations provided to us, there
are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty or cess which have not been deposited on account of
any dispute.
x. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
xi. Based on our audit procedures and according to the information and
explanations provided to us by the management, we are of the opinion
that the Company has not defaulted in repayment of dues to financial
institution, bank and debenture holders.
xii. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
xiii. In our opinion, 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. In our opinion, the company is not dealing in or trading in
Shares, Securities, Debentures and other investments. Accordingly, the
provision of clause (xiv) of paragraph 4 of the Order, are not
applicable to the company.
xv. In our opinion and according to the information and explanations
provided to us, the Company has not given any guarantee for loan taken
by others from banks or financial institutions.
xvi. According to the records of the Company the term loan raised were
applied by the company for the purposes for which it was obtained.
xvii. On the basis of review of utilization of funds, which is based
on an overall examination of the Balance Sheet of the Company and
related information as made available to us and as represented to us by
the management, funds raised on short-term basis have not been used for
long-term purposes.
xviii. 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 during the period
covered by this report.
xx. During the year, the Company has not raised money through public
issue.
xxi. Based upon the audit procedures performed and the information and
explanations provided to us by the management, we report that no
material fraud on or by the Company has been noticed or reported during
the year under audit.
For V R BHABHRA & CO.
Chartered Accountants
(Firm Registration No: 112861W)
sd/-
Vimal Bhabhra
Proprietor
Membership No: 046043
Place: Mumbai
Date: 31st August, 2012
Mar 31, 2010
We have audited the attached Balance Sheet of Resonance Specialties
Limited as at 31st March 2010, the Profit and Loss Account and Cash
Flow Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We 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 misstatements. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
I. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub section (4A) of
Section 227 of the Companies Act 1956, and on the basis of such checks
of the books and records as we considered appropriate and according to
the information and explanations given to us, we annex hereto a
statement on the matters specified in Paragraphs 4 and 5 of the said
Order, to the extent applicable to the Company.
II. Further to our comments 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 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, Profit and Loss Account and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the Profit and Loss Account and the Balance Sheet
comply with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956 to the extent they are
applicable to the Company.
(e) On the basis of the written representations received from the
directors of the Company as on 31st March 2010, and taken on record by
the Board of Directors of the Company, we report that none of the
Directors is disqualified as on 31st March 2010 from being appointed as
a director in terms of clause (g) of sub-section (1) of Section 274 of
the Companies Act, 1956;
(f) As mentioned in Note 2 in Schedule 18, information about Micro,
Small and Medium Enterprise creditors is not available.
(g) 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 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)ln case of Cash Flow Statement, of the cash flows of the Company
for the year ended on that date.
Annexure to the Auditors Report
The annexure referred to in Paragraph I of the Auditors Report to the
members of Resonance Specialties Limited (the Company) for the year
ended 31st March 2010. We report that:
i. In respect of Fixed Assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets however
certain additions are yet to be allocated to appropriate assets.
b. The Company has a regular programme of verification of its fixed
assets which, in our opinion, is reasonable having regard to the size
of the Company and the nature of its fixed assets. We have been
informed that no material discrepancies were noticed on such
verification as compared to book records.
c. Based on the information and explanation given by the management
and on the basis of audit procedures performed by us, we are of the
opinion that the Company has not disposed off substantial part of its
fixed assets during the year and hence the going concern assumption is
not affected.
ii. In respect of Inventories :
a. We are informed that the inventory have been physically verified by
the management during the year. In our opinion, the frequency of
verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
size of the Company and nature of its business.
c. On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. We are informed that the discrepancies noticed on
verification between the physical stocks and the book records were not
material in relation to the operations of the Company.
iii. In respect of 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. During the year the Company has not accepted any loan from parties
covered in the Register maintained under Section 301 of the Companies
Act, 1956. According to the information and explanations given to us
the company has not granted any loans to party covered in the Register
maintained under Section 301.
b. As the Company has neither granted or taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956, sub
clauses (b), (c), (d), (f) and (g) of clause (iii) of paragraph 4 of
the Order are not applicable.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets, and for the sale of goods.
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. To the best of our information and according to the information and
explanations provided to us by the management, the particulars of
contracts or arrangements referred to in Section 301 of the Companies
Act, 1956 have been entered in the Register required to be maintained
under that Section.
b. According to the information and explanations provided to us by the
management, the transactions made in pursuance of contracts or
arrangements entered in the Register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees Five Lakhs in
respect of any party during the year are reasonable having regard to
prevailing market prices at the relevant time as per information
available with the Company. However, for some products there are no
similar transactions with any other party, hence we are unable to
express an opinion on the same.
vi. According to the information and explanations given to us, the
company has not accepted any deposits from the public within the
meaning of provisions of sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and rules made there under.
Therefore, the provisions of Clause (vi) of paragraph 4 of the Order
are not applicable to the company.
vii. In our opinion, the scope and coverage of internal audit and
periodicity of the audit reports needs to be widened /strengthened to
make it commensurate with the size of the Company and the nature of its
business.
viii. According to the information given to us, Central Government has
not prescribed the maintenance of cost records under section 209 (1)
(d) of the Companies Act, 1956, in case of the Company.
ix. In respect of Statutory dues :
a. According to the books and records of the Company as produced and
examined by us and according to the information and explanations
provided to us, there have been delays in depositing undisputed
statutory dues in respect of Provident Fund, Investor Education &
Protection Fund, Income Tax, Sales Tax, Service Tax, cess with the
appropriate authorities.
b. According to the information and explanations provided to us, no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess and
any other statutory dues were outstanding as at 31st March, 2010 for a
period of more than six months from the date they became payable except
as mentioned below:
NAME OF THE NATURE OF THE AMOUNT (Rs)
STATUTE DUES
Companies Act, Unclaimed Debenture 4,93,962
1956 Principal and Interest
Bombay Sales Tax Deferral 49,79,025
Sales Tax Act/ Loan
MVAT Act
MLW Deducted from salary 324
PERIOD TO WHICH DUE DATE DATE OF
THE AMOUNT PAYMENT
RELATES
Companies Act, 1994-1998 Various dates Not Paid
1956
Bombay Various Various Dates Not Paid
Sales Tax Act/
MVAT Act
MLW June 2009 15th July 2009 Not Paid
c. According to the information and explanations provided to us, there
are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty or cess which have not been deposited on account of
any dispute.
x. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
xi. Based on our audit procedures and according to the information and
explanations provided to us by the management, we are of the opinion
that the Company has not defaulted in repayment of dues to financial
institution, bank and debenture holders. However, old debenture matured
long time back has not been en-cashed and relevant fund is lying with
the bank which is yet to be transferred to Investors Protection Fund,
amounting to 7 4,93,962.
xii. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
xiii. In our opinion, 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. In our opinion, the company is not dealing in or trading in
Shares, Securities, Debentures and other investments. Accordingly, the
provision of clause (xiv) of paragraph 4 of the Order, are not
applicable to the company.
xv. In our opinion and according to the information and explanations
provided to us, the Company has not given any guarantee for loan taken
by others from banks or financial institutions.
xvi. According to the records of the Company the term loan raised were
applied by the company for the purposes for which it was obtained.
xvii. On the basis of review of utilization of funds, which is based on
an overall examination of the Balance Sheet of the Company and related
information as made available to us and as represented to us by the
management, funds raised on short-term basis have not been used for
long-term purposes.
xviii. 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 during the period
covered by this report.
xx. During the year, the Company has not raised money through public
issue.
xxi. Based upon the audit procedures performed and the information and
explanations provided to us by the management, we report that no
material fraud on or by the Company has been noticed or reported during
the year under audit.
For S. H. BATHIYA & ASSOCIATES
Chartered Accountants
(Registration No: 101046W)
Sd/-
Vinod K. Shah
Partner
Membership No: 32348
Place: Mumbai
Date: June 30, 2010