Mar 31, 2016
INDEPENDENT AUDITORâS REPORT
To the Members of Salora International Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of SALORA INTERNATIONAL LIMITED (the âCompanyâ), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
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 and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,
2014 This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls of the entity''s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016 and its loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor''s Report) Order, 2016 (âthe Order'''') issued by the Central Government of India, in exercise of powers conferred by sub-section 11 of section 143 of the Act, we give in the âAnnexure Aâ attached hereto our comments on the matters specified in the paragraphs 3 and 4 of the said Order.
2) As required by sub-section 3 of Section 143 of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Account) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms section 164 (2) of the Companies Act, 2013.
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, and
g) With respect to the 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 35 to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
THE ANNEXURE A REFERRED TO IN INDEPENDENT AUDITORSâ REPORT TO THE MEMBERS OF THE COMPANY ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH, 2016, WE REPORT THAT:
1. a. The Company has maintained proper records, showing full particulars including quantitative details and situation of fixed assets.
b. Major fixed assets have been physically verified by the management during the year. As explained to us, no discrepancy were noticed on such verification.
c. According to the information and explanation given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the company, except the following-
- Lease hold land at D-13/4 Okhla Industrial Area, Phase
II, New Delhi is in the Company''s old name.
2. Inventories has been physically verified by the management during the year except service spares and goods/ material in
Name of the Statute |
Nature of the dues |
Dispute Amount (R /Lacs ) |
Amount Deposited (R /Lacs ) |
Amount not Deposited (R /Lacs ) |
Period to which the amount relates to various years covering the period |
Forum where pending |
Income Tax Act, |
Income Tax |
37.88 |
37.88 |
0 |
2002-2003 |
Appellate Authority - High Court |
1961 |
Income Tax |
7.12 |
2.55 |
4.57 |
2009-2010 |
Appellate Authority - CIT (A) |
Sales Tax Law |
Sales Tax |
42.21 |
16.18 |
26.03 |
2000-2004 |
Appellate Authority - Supreme Court |
Sales Tax |
38.21 |
8.32 |
29.89 |
1995-2002 |
Appellate Authority - High Court |
|
Sales Tax |
808.35 |
166.62 |
641.73 |
2000-2012 |
Appellate Authority - Sales Tax Commissioner |
bond, transit or with third party. In our opinion, the frequency of physical verification is reasonable.
3. According to the information and explanation given to us, the Company''s has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties listed in the register maintained under section 189 of the Companies Act 2013 and hence sub clause (a) (b) (c) are not applicable.
4. According to the information and explanation given to us, In respect of loans, investments, guarantees and security the provisions of section 185 and 186 of the Companies Act, 2013 have been complied with.
5. The company has not accepted any deposits from the public in accordance with the provisions of sections 73 to 76 of the Act and the Rules framed there under.
6. We have broadly reviewed the books of account maintained by the company pursuant to the Rules made by the Central Government of India, maintenance of cost records has been prescribed under sub section (1) of section 148 of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records are being made and maintained.
7. a. According to the records of the Company and
information and explanations given to us, Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Custom Duty, Cess, Excise Duty, Service Tax, Value added tax, and other material statutory dues have been deposited regularly during the period with the appropriate authorities. According to the records of the Company and information and explanations given to us there were no arrears of outstanding statutory dues as at 31st March, 2016 for a period of more than six months from the date they became payable.
b. According to the records of the Company and information and explanations given to us the following are the particulars of disputed amounts payable in respect of Income tax, Sales Tax, Custom Duty, Excise Duty and Service tax as at the last day of the period ending 31st March, 2016 are as follows:
8. According to the information and explanation given to us by the management, the Company has not defaulted in the repayment of dues to banks. The company did not have any debenture holders during the year.
Finance Act, 1994 |
Service Tax on Royalty |
1.97 |
0 |
1.97 |
2002-2003 |
Appellate Authority - Excise Commissioner |
Custom Act, 1962 |
Custom Duty |
Not ascertained |
20 |
0 |
1994-1995 |
Appellate Authority - Tribunal |
Custom Duty |
20.14 |
20.14 |
0 |
2015-2016 |
Commissioner |
|
Central Excise Act, 1944 |
Excise Duty |
2435.21 |
300.00 |
2135.21 |
1993-1994 to 2003-2004 |
Appellate Authority - Tribunal |
Excise Duty |
89.23 |
0 |
89.23 |
2000-2011 |
Appellate Authority - Tribunal |
|
Excise Duty |
7.66 |
7.66 |
0 |
2006-2007 |
Assistant Commissioner |
|
Excise Duty |
1.78 |
2.00 |
0 |
1995-1996 |
Commissioner |
|
Excise Duty |
41.65 |
4.20 |
37.45 |
2009-2010 |
Appellate Authority - Tribunal |
|
Penalty |
2435.22 |
0 |
2435.22 |
1993-1994 to 2003-2004 |
Appellate Authority - Tribunal |
9. Term loans were applied for the purpose for which they were raised. The company has not raised any money by way of Initial public offer or further public offer (Including debt instrument) during the year.
10. To the best of our knowledge and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, its officers or employees, noticed or reported during the year, nor have we been informed of such case by the management.
11. According to the information and explanation given to us and to best of our knowledge, we are of the opinion that the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
12. According to the information and explanation given to us, the provisions of any Special Statute applicable to Nidhi Companies are not applicable to the Company, so the provisions of this clause is not applicable to the Company.
13. According to the information and explanation given to us and based on our examination of the records, all the transactions with related parties are in compliance with section 177 and 188 of the Companies Act, 2013 and all the details have been disclosed in the financial statements as per Accounting Standard-18.
14. According to the information and explanation given to us and to the best of our knowledge, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the period under review.
15. According to the information and explanation given to us and to the best of our knowledge, the Company has not entered into any non-cash transactions during the period with directors or persons connected with him.
16. 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 AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF SALORA INTERNATIONAL LIMITED.
Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of SALORA INTERNATIONAL LIMITED (âthe Companyâ) 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.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on âthe 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 (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
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, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining 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 years 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, 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 K. PRASAD & COMPANY
CHARTERED ACCOUNTANTS FRN: 002755N
Place : New Delhi. (R. S. GUPTA)
Date : 27th May 2016. PARTNER.
Membership No.: 072666
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Salora International Limited ("the Company"), which comprise the
Balance Sheet as at 31 March 2015, and the Statement of Profit and Loss
and 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 Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in section 134(5) of the Companies Act, 2013 ("the Act') with
respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes 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 standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and operating effectiveness of
such controls. 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the standalone financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at 31st March 2015, its profit and its cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters Specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a. we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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 aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. on the basis of the written representations received from the
directors as on 31 March 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; and
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 no. 35 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 Independent Auditors' Report The Annexure referred to
in our Independent Auditor's Report to the members of the Company on
the standalone financial statements for the year ended 31 March 2015,
we report that :
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Major Fixed assets have been physically verified by the management
during the year. As explained to us no material discrepancies were
noticed on such verification.
(ii) (a) Inventories have been physically verified by the management
during the year except goods / material in bond, transit and with third
parties. In our opinion, the frequency of physical verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company has maintained proper records of inventories and no
material discrepancies were noticed on physical verification.
(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.
(iv) In view of above sub-clauses a & b of the order, are not
applicable.
In our opinion and according to the information and explanations given
to us, there are adequate internal control systems 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 and
services.
During the course of our audit, we have not observed any major weakness
in internal control system.
Nature of the Nature of the Disputed Amount Amount not
Statute dues Amount Deposited Deposited
(Rs/Lacs) (Rs./Lacs) (Rs./Lacs)
Income Tax Act, Income Tax 37.88 37.88 NIL
1961
Income Tax 12.57 12.57 NIL
Income Tax 7.12 2.55 4.57
Sales Tax Laws Sales Tax 16.59 16.18 0.41
Sales Tax 38.21 8.32 29.89
Sales Tax 264.22 61.09 203.13
Sales Tax 339.21 92.56 246.65
Finance Act, 1994 Service Tax 1.97 - 1.97
on Royalty
Customs Act, 1962 Custom Duty Not ascer- 20.00 -
tained
Central Excise
Act, Excise Duty 2435.21 300.00 2135.21
1944
Excise Duty 89.23 - 89.23
Excise Duty 7.66 7.66 -
Excise Duty 1.78 2.00 -
Penalty 2435.22 - 2435.22
Nature of the
Statute Period to which the Forum where pending
amount relates to
various years
covering the period
Income Tax Act,
1961 2002 - 2003 Appellate Authority
- High court
2008 - 2009 Appellate Authority
- ITAT
2009 - 2010 Appellate Authority
- CIT (A)
Sales Tax Laws 2000 - 2004 Appellate Authority
- Supreme Court
1995 - 2002 Appellate Authority
- High Court
2003 - 2010 Appellate Authority
- Sales Tax Tribunal
2000 - 2012 Appellate Authority
- Sales Tax Commissioner
Finance Act, 1994 2002 - 2003 Appellate Authority
- Excise Commissioner
Customs Act, 1962 1994 - 1995 Appellate Authority
- Tribunal
Central Excise Act,
1944 1993 -1994 to 2003-2004 Appellate Authority
- Tribunal
2000-2011 Appellate Authority
Tribunal
2006-2007 Assistant Commissioner
1995-1996 Commissioner
1993 -1994 to 2003-2004 Appellate Authority
- Tribunal
(v) The company has not accepted any deposits from the public during
the year.
(vi) To the best of our knowledge and as explained to us, the Central
Government has not prescribed the maintenance of cost records under sub
section (1) of section 148 of the Act, in respect of Company's products
for the year 2014-15. Accordingly, the provisions of clause 3 (vi) of
the Order are not applicable to the Company.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the books of accounts, the company
has been regular in depositing undisputed statutory dues including
Provident Fund, Employees' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax,
Cess and any other statutory dues with the appropriate authorities
during the year. No undisputed amounts payable in respect of the
aforesaid statutory dues were outstanding as at the last day of the
financial year for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, the
following are the particulars of dues on account of Income Tax, Sales
Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax and Cess,
that have not been deposited on account of any dispute as on 31st
March, 2015. There is no dues on account of Wealth Tax.
(c) The amount required to be transferred to investor education and
protection fund has been transferred to such fund within time.
(viii) The company does not have any accumulated losses at the end of
the financial year and has not incurred cash loss in such financial
year and in the immediately preceding financial year.
(ix) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to Banks. The Company
does not have any debenture holders.
(x) The company has not given any Guarantee for loans taken by others
from bank or financial institution.
(xi) Term loans raised during the year have been applied for the
purpose for which they are obtained.
(xii) To the best of our knowledge & belief and according to the
information & explanations given to us, no material fraud on or by the
company was noticed or reported during the year.
For K. PRASAD & COMPANY
CHARTERED ACCOUNTANTS
FRN: 002755N
Place : New Delhi. (R. S. GUPTA)
Date : 2nd July 2015. PARTNER.
Membership No.: 072666
Mar 31, 2014
We have audited the accompanying financial statements of Salora
International Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2014, and the Statement of profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notifed under the Companies Act, 1956 ("the
Act") read with General Circular 15/2013 dated 13 September 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor''s judgment,
including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to
the Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the 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 suffcient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") 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 notifed under
the Companies Act, 1956 read with General Circular 15/2013 dated 13
September 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013; and
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to Independent Auditors'' Report of even date (Refer to in
paragraph 1 thereof)
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Major Fixed assets have been physically get verifed by the
management during the year. As explained to us no material
discrepancies were noticed on such verifcation.
(c) The company has not made substantial disposals of fixed assets
during the year.
(ii) (a) Inventories have been physically verifed by the management
during the year except goods / material in bond, transit and with third
parties. In our opinion, the frequency of physical verifcation is
reasonable.
(b) The procedures of physical verifcation of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company has maintained proper records of inventories and no
material discrepancies were noticed on physical verifcation.
(iii) (a) 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 Act.
(b),(c) Since the company has not granted loan, hence & (d) the sub
clauses (b),(c) and (d) are not applicable.
(e) The company has taken unsecured loans repayable on demand amounting
to Rs. 849 lacs in last year from two companies and Rs 13 lacs during
the year from one out of those companies covered in the register
maintained u/s 301 of the Act.
(f) The rate of interest and other terms and conditions of unsecured
loans taken by the company are not prima facie prejudicial to the
interest of the company.
(g) There is no comment on the payment of the principal and the
interest since the same are repayable on demand. There is repayment of
principal of Rs 472 Lacs and the company is regular in interest
payment.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal
control systems 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 and services. In our opinion and according to
the information and explanations given to us, there were no major
weaknesses in internal control systems.
(v) (a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in Section 301 of
the Act have been entered in the register required to be maintained
under that section.
(b) As explained to us, transactions made in pursuance of such
contracts or arrangements have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) The company has not accepted any deposits from the public.
(vii) The company has an internal audit system commensurate
with its size and the nature of its business.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the books of accounts, the company
has been regular in depositing
Nature of the Nature of the Disputed Amount Amount not
Statute dues Amount Deposited Deposited
(Rs./Lacs) (Rs./Lacs) (Rs./Lacs)
Income Tax Act, Income Tax 37.88 37.88 NIL
1961
Income Tax 12.57 12.57 NIL
Income Tax 7.12 2.55 4.57
Sales Tax Laws Sales Tax 16.59 16.18 0.41
Sales Tax 38.21 8.32 29.89
Sales Tax 277.46 65.44 218.02
Sales Tax 237.86 72.97 164.89
Service Tax
Act, Service Tax on 3.74 2.00 1.74
1994 Royalty
Customs Act,
1962 Custom Duty Not ascer
-tained 20.00 -
Central Excise
Act, Excise Duty 2435.21 300.00 2135.21
1944
Excise Duty 67.37 19.79 47.58
Penalty 2435.22 NIL 2435.22
Nature of the Period to which the amount Forum where pending
Statue relates to various years
covering
the period
Income Tax Act,
1961 2002 Â 2003 Appellate Authority
- High court
2008 Â 2009 Appellate Authority
 ITAT
2009 Â 2010 Appellate Authority
 CIT (A)
Sales Tax Laws 2000 Â 2004 Appellate Authority
-Supreme Court
1995 Â 2002 Appellate Authority
-High Court
1999 Â 2010 Appellate Authority
- Sales Tax Tribunal
2000 Â 2012 Appellate Authority
-Sales Tax
Commissioner
Service Tax Act,
1994 1995 Â 2003 Appellate Authority
- Excise
Commissioner
Customs Act, 1962 1994-1995 Appellate Authority
 Tribunal
Central Excise Act,
1944 1993 -1994 to 2003-2004 Appellate Authority
- Tribunal
1997 -1998 to 2006-2007 Appellate Authority
Tribunal
1993 -1994 to 2003 Â 2004 Appellate Authority
- Tribunal
undisputed statutory dues including 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 with the appropriate authorities during the year. No
undisputed amounts payable in respect of the aforesaid statutory dues
were outstanding as at the last day of the financial year for a period
of more than six months from the date they became payable except of
professional tax of R 0.83 lacs. due to registration number not
obtained.
(b) According to the information and explanations given to us, the
following are the particulars of dues on account of Income Tax, Sales
Tax, Service Tax, Custom Duty, Excise Duty and Cess, that have not been
deposited on account of any dispute as on 31st March, 2014. There is no
dues on account of Wealth Tax.
(x) The company does not have any accumulated losses
at the end of the financial year and has not incurred cash loss in such
financial year and in the immediately preceding financial year.
(xi) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to Banks. The Company
does not have any debenture holders.
(xii) According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, clause 4 (xiii) of the order is not applicable.
(xiv) According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
(xv) The company has not given any Guarantee for loans taken by others
from bank or financial institution.
(xvi) Term loans raised during the year have been applied for the
purpose for which they are obtained.
(xvii) To the best of our knowledge and belief and according to the
information and explanations given to us, funds raised on short-term
basis have not been used for long term investment.
(xviii) The company has not made any preferential allotment of shares
to parties and companies covered in register maintained under Section
301 of the Act.
(xix) The company has not issued any debentures, so no security or
charge has been created.
(xx) The company has not raised any money by Public Issue during the
year.
(xxi) To the best of our knowledge & belief and according to the
information & explanations given to us, no material fraud on or by the
company was noticed or reported during the year.
For K. PRASAD & COMPANY
CHARTERED ACCOUNTANTS
FRN: 002755N
Place : New Delhi. (R. S. GUPTA)
Date : 24th May, 2014. PARTNER.
Membership No.: 072666
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying fnancial statements of Salora
International Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2013, and the Statement of Proft and Loss and Cash Flow
Statement for the year then ended, and a summary of signifcant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for preparation of these fnancial statements
that give a true and fair view of the fnancial position, fnancial
performance and cash fows of the Company in accordance with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the fnancial 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 fnancial
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 fnancial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the fnancial
statements. The procedures selected depend on the auditor''s judgment,
including the assessment of the risks of material misstatement of the
fnancial 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 fnancial
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 fnancial statements.
We believe that the audit evidence we have obtained is suffcient 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 fnancial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Proft and Loss Account, of the proft for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash fows 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 specifed 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 Proft 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 Proft and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualifed as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to the Auditors'' Report of even date (Refer to in paragraph 1
thereof)
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fxed
assets.
(b) Major Fixed assets have been physically verifed by the management
during the year. As explained to us no material discrepancies were
noticed on such verifcation.
(c) The company has not made substantial disposals of fxed assets
during the year.
(ii) (a) Inventories have been physically verifed by the management
during the year except goods / material in bond, transit and with third
parties. In our opinion, the frequency of physical verifcation is
reasonable.
(b) The procedures of physical verifcation of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company has maintained proper records of inventories and no
material discrepancies were noticed on physical verifcation.
(iii) (a) The company has not granted any loans secured or unsecured to
companies, frms or other parties covered in the register maintained
under section 301 of the Act.
(b),(c) Since the company has not granted loan, hence the & (d) sub
clauses (b),(c) and (d) are not applicable.
(e) The company has taken unsecured loans repayable on demand amounting
to R 703 lacs in last years and R 654 lacs during the year from two
companies covered in the register maintained u/s 301 of the Act.
(f) The rate of interest and other terms and conditions of unsecured
loans taken by the company are not prima facie prejudicial to the
interest of the company.
(g) There is no comment on the payment of the principal and the
interest since the same are repayable on demand and there is repayment
of principal of R 508 Lacs to two companies and interest of R 49.02
Lacs for the last year to one company during the year.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business, for the
purchase of inventory and fxed assets and for sale of goods and
services. In our opinion and according to the information and
explanations given to us, there were no major weaknesses in internal
control systems.
(v) (a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in Section 301 of
the Act have been entered in the register required to be maintained
under that section.
(b) As explained to us, transactions made in pursuance of such
contracts or arrangements have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) The company has not accepted any deposits from the public.
(vii) The company has an internal audit system commensurate with its
size and the nature of its business.
(viii) It has been explained that the cost records and accounts
prescribed by the Central Government of India under Section 209 (1) (d)
of the Act, are being made up and maintained. However, we have not made
a detailed examination of the cost records with a view to determine
whether they are accurate or complete. undisputed statutory dues
including 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 with
the appropriate authorities during the year except professional tax. No
undisputed amounts payable in respect of the aforesaid statutory dues
were outstanding as at the last day of the fnancial year for a period
of more than six months from the date they became payable except
professional tax of R 1.02 lacs due to registration number not
obtained.
(b) According to the information and explanations given to us, the
following are the particulars of dues on account of Income Tax, Wealth
Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty and Cess, that
have not been deposited on account of any dispute as on 31st March,
2013.
(x) The company does not have any accumulated losses at the end of the
fnancial year and has not incurred cash loss in such fnancial year but
has incurred cash loss in the immediately preceding fnancial year.
(xi) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to Banks. The Company
does not have any debenture holders.
(xii) According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The company is not a chit fund, nidhi, mutual beneft fund or a
society. Accordingly, clause 4 (xiii) of the order is not applicable.
(xiv) According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
(xv) The company has not given any Guarantee for loans taken by others
from bank or fnancial institution.
(xvi) The Company has not raised new term loans during the year.
(xvii) To the best of our knowledge and belief and according to the
information and explanations given to us, funds raised on short-term
basis have not been used for long term investment.
(xviii) The company has not made any preferential allotment of shares
to parties and companies covered in register maintained under Section
301 of the Act.
(xix) The company has not issued any debentures, so no security or
charge has been created.
(xx) The company has not raised any money by Public Issue during the
year.
(xxi) To the best of our knowledge & belief and according to the
information & explanations given to us, no material fraud on or by the
company was noticed or reported during the year.
For K. PRASAD & COMPANY
CHARTERED ACCOUNTANTS
FRN: 002755N
Place : New Delhi. (R. S. GUPTA)
Date : 30th May, 2013. PARTNER.
Membership No.: 072666
Mar 31, 2012
We have audited the attached Balance Sheet of SALORA INTERNATIONAL
LIMITED as at 31st March, 2012, Statement of Profit & Loss and the Cash
Flow Statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Company's Management.
Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with the Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides the reasonable basis
for our opinion.
1. As required by the Companies (Auditors' Report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 (hereinafter referred to as the "Act"), we enclose
in the Annexure, a statement on the matters specified in paragraphs 4
and 5 of the said order.
2. Further to our comments in the annexure referred to in paragraph 1
above, we report that- (a) We have obtained all the information and
explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit.
(b) In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(d) In our opinion the Balance Sheet, Statement of Profit & Loss and
Cash flow statement dealt with by this report comply with the Accounting
Standards as referred to in Sub Section 3C of Section 211 of the
Companies Act, 1956.
(e) On the basis of written representations received from the
directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the directors are disqualified from
being appointed as a director in terms of Clause (g) of Sub Section (1)
of Section 274 of the Companies Act, 1956.
3. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read with Significant
Accounting Policies and notes thereon give the information required by
the Companies Act, 1956, in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India;
(a) in the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March 2012;
(b) in the case of the Statement of Profit and loss, of the "Loss" of
the Company for the year ended on that date.
(c) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Annexure to the Auditors' Report of even date
(Refer to in paragraph 1 thereof)
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Major fixed assets have been physically verified by the management
during the year. As explained to us no material discrepancies were
noticed on such verification.
(c) The company has not made substantial disposals of fixed assets
during the year.
(ii) (a) Inventories have been physically verified by the management
during the year except goods/material in bond, transit and with third
parties. In our opinion, the frequency of physical verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company has maintained proper records of inventories and no
material discrepancies were noticed on physical verification.
(iii) (a) 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 Act.
(b),(c) Since the company has not granted loan, hence the & (d) sub
clauses (b),(c) and (d) are not applicable.
(e) The company has taken unsecured loans repayable on demand amounting
to R 565 lacs during the year from two companies covered in the
register maintained u/s 301 of the Act.
(f) The rate of interest and other terms and conditions of unsecured
loans taken by the company are not prima facie prejudicial to the
interest of the company.
(g) There is no comment on the payment of the principal and the
interest since the same are repayable on demand and there is repayment
of principal of R 115.70 Lacs and interest of R 68.15 Lacs for the year
to two companies during the year.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems 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 and
services. In our opinion and according to the information and
explanations given to us, there were no major weaknesses in internal
control systems.
(v) (a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in Section 301 of
the Act have been entered in the register required to be maintained
under that section.
(b) As explained to us, transactions made in pursuance of such
contracts or arrangements have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) The company has not accepted any deposits from the public.
(vii) The company has an internal audit system commensurate with its
size and the nature of its business.
(viii) It has been explained that the cost records and accounts
prescribed by the Central Government of India under Section 209 (1) (d)
of the Act, are being made up and maintained.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the books of accounts, the company
has been regular in depositing undisputed statutory dues including
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 with the
appropriate authorities during the year except of professional tax. No
undisputed amounts payable in respect of the aforesaid statutory dues
were outstanding as at the last day of the financial year for a period
of more than six months from the date they became payable except of
professional tax of Rs. 0.78 lacs.
(b) According to the information and explanations given to us, the
following are the particulars of dues on account of Income Tax, Wealth
Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty and Cess, that
have not been deposited on account of any dispute as on 31st March,
2012.
Nature of the Nature of the Disputed Amount Amount not
Statute dues Amount Deposited Deposited
(Rs./Lacs) (Rs./lacs) (Rs./lacs)
Income Tax Act, Income Tax 88.51 88.51 NIL
1961
Income Tax 21.31 19.42 1.89
Income Tax 12.44 12.57 (0.13)
Income Tax 7.12 - 7.12
Sales Tax Laws Sales Tax 16.59 16.18 0.41
Sales Tax 38.21 8.32 29.89
Sales Tax 132.63 113.61 19.02
Sales Tax 480.75 261.98 218.77
Service Tax
Act, Service Tax on 3.74 2.00 1.74
1994 Royalty
Customs Act,
1962 Custom Duty Not 20.00 -
ascert
-ained
Central Excise
Act, Excise Duty 1142.77 300.00 842.77
1944
Excise Duty 1411.32 19.79 1391.53
Penalty 1142.77 NIL 1142.77
Nature of Statute Period to which the Forum where pending
amount relates to
various years covering
the period
2002 - 2003 Appellate Authority
- High court
2004-2005 Appellate Authority
- Tribunal
2008-2009 Appellate Authority
-CIT(A)
2009 - 2010 Appellate Authority
-CIT(A)
Sales Tax Laws 2000 - 2004 Appellate Authority
-Supreme Court
1995-2002 Appellate Authority
-High Court
1999 - 2007 Appellate Authority
- Sales Tax Tribunal
2000 - 2012 Appellate Authority
Sales Tax Commissioner
Service Tax Act,
1994 1995-2003 Appellate Authority
- Excise Commissioner
Customs Act,1962 1994-1995 Appellate Authority
- Tribunal
Central Excise Act, 2002 -2003 to
1944 2003-2004 Appellate Authority
- Tribunal
1994 -1995 to
2001-2002 Appellate Authority
Tribunal
2002 -2003 to
2003-2004 Appellate Authority
- Tribunal
(x) The company does not have any accumulated losses at the end of the
financial year and has incurred cash losses in such financial year and in
the immediately preceding financial year.
(xi) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to Financial
Institutions & Banks. The Company does not have any debenture holders.
(xii) According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, clause 4 (xiii) of the order is not applicable.
(xiv) According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
(xv) The company has not given any Guarantee for loans taken by others
from bank or financial institution.
(xvi) The Company has not raised new term loans during the year. Term
loan at beginning of the year has been repaid during the year.
(xvii) To the best of our knowledge and belief and according to the
information and explanations given to us, funds raised on short-term
basis have not been used for long term investment.
(xviii) The company has not made any preferential allotment of shares
to parties and companies covered in register maintained under Section
301 of the Act.
(xix) The company has not issued any debentures, so no security or
charge has been created.
(xx) The company has not raised any money by Public Issue during the
year.
(xxi) To the best of our knowledge & belief and according to the
information & explanations given to us, no material fraud on or by the
company was noticed or reported during the year.
For K. PRASAD & COMPANY
Chartered Accountants
FRN: 002755N
(R. S. GUPTA)
Place : New Delhi. Partner
Date : 29th May, 2012 Membership No. : 072666
Mar 31, 2011
We have audited the attached Balance Sheet of Salora International
Limited as at 31st March, 2011 and also the Profit & Loss Account and
the Cash Flow Statement for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
Company's Management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with Auditing Standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides the
reasonable basis for our opinion.
1. As required by the Companies (Auditors' Report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 (hereinafter referred to as the "Act"), we enclose
in the annexure, a statement on the matters specified in paragraphs 4
and 5 of the said order.
2. Further to our comments in the annexure referred to in paragraph 1
above, we report that-
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
those books.
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(d) In our opinion the Balance Sheet, Profit & Loss Account and Cash
flow statement dealt with by this report comply with the Accounting
Standards as referred to in Sub Section 3C of Section 211 of the
Companies Act, 1956.
(e) On the basis of written representations received from the
directors, as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the directors are disqualified from
being appointed as a director in terms of Clause (g) of Sub Section (1)
of Section 274 of the Companies Act, 1956.
3. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read with Significant
Accounting Policies and Notes on Accounts in Schedule "U" give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
(a) in the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March 2011;
(b) in the case of the Profit & Loss Account, of the "Loss" of the
Company 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.
ANNEXURE TO THE AUDITORS' REPORT OF EVEN DATE (REFER TO IN PARAGRAPH 1
THEREOF)
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Major fixed assets have been physically verified by the management
during the year. As explained to us, no material discrepancies were
noticed on such verification.
(c) The company has not made substantial disposals of fixed assets
during the year.
(ii) (a) Inventories have been physically verified by the management
during the year except goods / material in bond, transit and with third
parties. In our opinion, the frequency of physical verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company has maintained proper records of inventories and no
material discrepancies were noticed on physical verification.
(iii) (a) 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 act.
(b),(c) Since the company has not granted loan, hence the & (d) sub
clauses (b),(c) and (d) are not applicable.
(e) The company has taken unsecured loans repayable on demand amounting
to Rs. 542.70 lacs from two companies covered in the register
maintained u/s 301 of the Act.
(f) The rate of interest and other terms and conditions of unsecured
loans taken by the company are not prima facie prejudicial to the
interest of the company.
(g) There is no comment on the payment of the principal and the
interest since the same are repayable on demand and there is repayment
of principal of Rs. 289 Lacs and interest of Rs. 8.16 Lacs for the year
to two companies during the year.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems 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 and
services. In our opinion and according to the information and
explanations given to us, there were no major weaknesses in internal
control systems.
(v) (a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in Section 301 of
the Act have been entered in the register required to be maintained
under that section.
(b) As explained to us, transactions made in pursuance of such
contracts or arrangements have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) The company has not accepted any deposits from the public.
(vii) The company has an internal audit system commensurate with its
size and the nature of its business.
(viii) It has been explained that the cost records and accounts
prescribed by the Central Government of India under Section 209 (1) (d)
of the Act, are being made up and maintained.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the books of accounts, the company
has been regular in depositing undisputed statutory dues including
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 with the
appropriate authorities during the year except of professional tax and
some delays of ESI. No undisputed amounts payable in respect of the
aforesaid statutory dues were outstanding as at the last day of the
financial year for a period of more than six months from the date they
became payable except of professional tax of Rs. 0.82 lacs.
(b) According to the information and explanations given to us, the
following are the particulars of dues on account of Income Tax, Sales
Tax, Service Tax, Custom Duty, Excise Duty and Cess, that have not been
deposited on account of any dispute as on 31st March, 2011. There is no
dues of Wealth Tax that has not been deposited on account of any
dispute.
Nature of the Nature of the Disputed Amount Amount
Statue dues Amount Deposited not
(Rs./Lacs) (Rs./Lacs) Deposi-
ted
(Rs/
Lacs)
Income Tax Act, 1961 Income Tax 88.51 88.51 NIL
Income Tax 31.16 6.77 24.39
Income Tax 65.57 85.27 -
Income Tax 30.24 30.24 Nil
Sales Tax Laws Sales Tax 16.59 16.18 0.41
Sales Tax 37.77 7.70 30.07
Sales Tax 107.58 90.90 16.68
Sales Tax 560.95 287.03 273.92
Service Tax Act, 1994 Service Tax
on Royalty 7.07 NIL 7.07
Customs Act, 1962 Custom Duty Not
ascertained 20.00 -
Central Excise
Act, 1944 Excise Duty 1142.77 300.00 842.77
Excise Duty 1420.17 21.79 1398.38
Penalty 1142.77 NIL 1142.77
Nature of the Period to which the amount Forum where pending
statute relates to Various years
covering the period
Income Tax Act, 1961 2002 - 2003 Appellate Authority
- High court
2004 - 2005 Appellate Authority
- Tribunal
2006 - 2007 Appellate Authority
- CIT (A)
2008 - 2009 Appellate Authority
- CIT (A)
Sales Tax Laws 2000 - 2004 Appellate Authority
-Supreme Court
1995 - 2002 Appellate Authority
-High Court
1999 - 2007 Appellate Authority
- Sales Tax Tribunal
2000 - 2010 Appellate Authority
- Sales Tax
Commissioner
Service Tax Act, 1994 1997 - 2003 Appellate Authority
- Excise
Commissioner
Customs Act, 1962 1994-1995 Appellate Authority
- Tribunal
Central Excise Act,
1944 1994 & 2003 Appellate Authority
- Tribunal
1995 -2009 Appellate Authority
Excise Commissioner
1994 & 2003 Appellate Authority
- Tribunal
(x) The company does not have any accumulated losses at the end of the
financial year and has incurred cash losses in such financial year and
in the immediately preceding financial year.
(xi) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to Financial
Institutions & Banks. The Company does not have any debenture holders.
(xii) According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, clause 4 (xiii) of the order is not applicable.
(xiv) According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
(xv) The company has not given any Guarantee for loans taken by others
from bank or financial institution.
(xvi) Term loan taken was applied for the purpose for which the loan
was obtained.
(xvii) To the best of our knowledge and belief and according to the
information and explanations given to us, funds raised on short-term
basis have not been used for long term investment.
(xviii) The company has not made any preferential allotment of shares
to parties and companies covered in register maintained under Section
301 of the Act, during the year.
(xix) The company has not issued any debentures, so no security or
charge has been created.
(xx) The company has not raised any money by Public Issue during the
year.
(xxi) To the best of our knowledge & belief and according to the
information & explanations given to us, no fraud on or by the company
was noticed or reported during the year.
For K. PRASAD & COMPANY
Chartered Accountants
FRN 002755 N
R.S. Gupta
Partner
Membership No. : 072666
Place : New Delhi.
Date : 30th May, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of Salora International
Limited as at 31st March, 2010 and also the Profit & Loss Account and
the Cash Flow Statement for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
Companys Management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with Auditing Standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides the
reasonable basis for our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 (hereinafter referred to as the "Act"), we enclose
in the Annexure, a statement on the matters specified in paragraphs 4
and 5 of the said order.
2. Further to our comments in the Annexure referred to in paragraph 1
above, we report that-
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
those books.
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(d) In our opinion the Balance Sheet, Profit & Loss Account and Cash
flow statement dealt with by this report comply with the Accounting
Standards as referred to in Sub Section 3C of Section 211 of the
Companies Act, 1956.
(e) On the basis of written representations received from the
directors, as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the directors are disqualified from
being appointed as a director in terms of Clause (g) of Sub Section (1)
of Section 274 of the Companies Act, 1956.
3. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read with Significant
Accounting Policies and Notes on Accounts in Schedule T give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
(a) in the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2010;
(b) in the case of the Profit & Loss Account, of the Loss of the
Company 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.
ANNEXURE TO THE AUDITORS REPORT OF EVEN DATE (REFER TO IN PARAGRAPH 1
THEREOF)
(i) (a) TThe company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Major fixed assets have been physically verified by the management
during the year. As explained to us, no material discrepancies were
noticed on such verification.
(c) The company has not made substantial disposals of fixed assets
during the year.
(ii) (a) Inventories have been physically verified by the management
during the year except goods / material in bond, transit and with third
parties. In our opinion, the frequency of physical verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company has maintained proper records of inventories and no
material discrepancies were noticed on physical verification.
(iii) (a) The company has granted unsecured loans amounting to
Rs.1470.00 lacs repayable on demand to two companies covered in the
register maintained under Section 301 of the Act.
(b) The rate of interest and other terms & conditions of loans given by
the company are not prima facie prejudicial to the interest of the
Company.
(c) Principal and interest has been recovered during the year.
(d) There is no overdue amount at the end of the year.
(e) The company has not taken any loan, secured or unsecured from
companies, firms or other parties covered in the register maintained
u/s 301 of the Act.
(f) & (g) Since the Company has not taken loan, hence the sub-clauses
(f) & (g) are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems 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 and
services. In our opinion and according to the information and
explanations given to us, there were no major weaknesses in internal
control systems.
(v) (a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in Section 301 of
the Act have been entered in the Register required to be maintained
under that section.
(b) As explained to us, transactions made in pursuance of such
contracts or arrangements have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) The company has not accepted any deposits from the public.
(vii) The company has an internal audit system commensurate with its
size and the nature of its business.
(viii) It has been explained that the cost records and accounts
prescribed by the Central Government of India under Section 209 (1) (d)
of the Act, are being maintained.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the books of accounts, the company
has been regular in depositing undisputed statutory dues including
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 with the
appropriate authorities during the year. No undisputed amounts payable
in respect of the aforesaid statutory dues were outstanding as at the
last day of the financial year for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us, the
following are the particulars of dues on account of Income Tax, Sales
Tax, Service Tax, Custom Duty, Excise Duty and Cess, that have not been
deposited on account of any dispute as on 31st March, 2010. There is no
dues of Wealth Tax that has not been deposited on account of any
dispute.
Nature of the Nature of the Disputed Amount Amount
statute dues Amount Deposited not Deposited
(Rs/Lacs) (Rs/Lacs) (Rs/Lacs)
Sales Tax Laws Sales Tax 55.31 16.18 39.13
Sales Tax 37,44 7.56 29.88
Sales Tax 107.58 90.90 16.68
Sales Tax 543.82 274.58 269.24
Income Tax
Act, 1961 Income Tax 88.51 88.51 NIL
Income Tax 31.16 6.77 24.39
Income Tax 65.57 85.27 (-) 19.70
Customs Act,
1962 Custom Duty Not ascertained 20.00 --
Central Excise
Act, 1944 Excise Duty 1142.77 300.00 842.77
Excise Duty 67.38 19.79 47.59
Penalty 1109.71 NIL 1109.71
Modvat 1.78 2.00 (0.22)
Service Tax
Act, 1994 Service Tax on
Royalty 7.07 NIL 7.07
Name of the Period to which the amount Forum where pending
Statue relates to Various years
covering the period
Sales Tax Laws 2000 - 2004 Appellate Authority
-Supreme Court
1995-2001 Appellate Authority
- High Court
1999 - 2007 Appellate Authority
- Tribunal
1995 - 2010 Appellate Authority
-Commissioner
Income Tax Act, 1961 2002 - 2003 Appellate Authority
- High Court
2004 - 2005 Appellate Authority
- Tribunal
2006 - 2007 Appellate Authority
- CIT (A)
Customs Act, 1962 1994 -1995 Appellate Authority
-Tribunal
Central Excise Act,
1944 1994 & 2003 Appellate Authority
- Tribunal
2004 - 2007 Appellate Authority
- Commissioner
1994 & 2003 Appellate Authority
- Tribunal
1995 -1996 Appellate Authority
- Commissioner
Service Tax Act, 1994 1997 - 2003 Appellate Authority
- Excise
Commissioner
(x) The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in such financial year
and in the immediately preceding financial year.
xi) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to Financial
Institutions & Banks. The Company does not have any debenture holders.
(xii) According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The company is not a chit fund, nidhi, mutual benefit fund or a
society. Hence, clause 4 (xiii) of the order is not applicable.
(xiv) According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments. Hence, clause 4(xiv) of the order is not applicable.
(xv) The company had given Corporate Guarantee of Rs.250.00 lacs for
cash credit facility taken by a company under the same management from
bank to assist in borrowing for working capital against which loan has
been repaid by that company during the year.
(xvi) According to the information and explanations given to us, the
company has not taken term loans during the year.
(xvii) To the best of our knowledge and belief and according to the
information and explanations given to us, funds raised on short-term
basis have not been used for long term investment.
(xviii) The company has not made any preferential allotment of shares
to parties and companies covered in register maintained under Section
301 of the Act, during the year.
(xix) The company has not issued any debentures, so no security or
charge has been created.
(xx) The company has not raised any money by Public Issue during the
year.
(xxi) To the best of our knowledge & belief and according to the
information & explanations given to us, no fraud on or by the company
was noticed or reported during the year.
For K. PRASAD & COMPANY
Chartered Accountants
FRN 002755 N
R.S. Gupta
Place : New Delhi. Partner
Date : 29th May, 2010 Membership No.: 072666
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