Mar 31, 2016
To the Members of M/s Sanco Industries Limited
Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of M/sSanco Industries Limited ("the Company"), which comprise the Balance Sheet as at 31stMarch 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.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (''the Act'') with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the 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 that 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 auditors'' 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. 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 31stMarch 2016 and its Profit and its Cash Flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor''s Report) Order, 2016 (''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, a statement on the matters specified in the paragraph 3 and 4 of the Order.
2) As required by Section 143 (3) of the Act, we report that:
i. 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.
ii. In our opinion, the Company has kept proper books of account as required by law so far as it appears from our examination of those books.
iii. The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in the agreement with the books of account.
iv. 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.
v. 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 of Section 164(2) of the Act.
vi. 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''; and
vii. with respect to the other matters to be included in the Auditor''s report in accordance with the 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:
1. The Company has disclosed the impact of pending litigations on its financial position in its Financial Statement- - Refer Note 40 (A) to the Financial Statement.
2. The Company did not have any long-term contracts, including derivative contracts, for which there were any material foreseeable losses.
3. There were no amounts that were pending to be transferred to the Investor Education and Provident Fund by the Company.
ANNEXURE-A TO INDEPENDENT AUDITORS'' REPORT
Referred to in Paragraph 1 under "Report on Other Legal and Regulatory Requirements" section of our report of even date of M/ s Sanco Industries Limited ("the Company"), for the year ended on 31st March, 2016, we report that:
I. In respect of Fixed Assets of the Company:
i. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
ii. The Fixed Assets have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such physical verification;
iii. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immoveable properties are held in the name of the company.
II. The inventory has been physically verified during the year by the management, at reasonable intervals and the discrepancies noticed on such physical verification of inventory, as compared to book records were not significant and were properly dealt with in the books of account.
III. The Company has not granted any loan, secured or unsecured to the companies or other parties covered in the register maintained under section 189 of the Act. Accordingly, the provisions of clause 3(iii) of the order are not applicable to the company.
IV. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to the guarantees and investments made.
V. The Company has not accepted any deposits, under the provisions of Sections 73 to 76 or any other relevant provisions of the Act, and the rules framed there under during the year under report.
VI. We have broadly reviewed the cost records maintained by the Company under Section 148(1) of the Act, and are of the opinion that prima- facie the prescribed records have been made and maintained.
VII. In respect of Statutory dues:
1. According to the records of the Company, undisputed statutory dues including Provident Fund, Employee''s State Insurance, and Income Tax, Sales Tax, Service Tax, Custom Duty, Value Added Tax, and other applicable statutory dues have been generally deposited regularly with the appropriate authorities except in certain cases where Provident Fund, Employee''s State Insurance, Tax deducted at source, Sales Tax and Service tax where there have been delays in deposit.
2. According to the information and explanation given to us, there are no dues of custom duty, sales tax and service tax that have not been deposited on account of any dispute. However, following amount are involved (Gross of amount deposited under protest, if any) with under-mentioned forums, in respect of the disputed statutory dues:
Aggregate Income Tax of Rs. 8.94 Lacs, pending before CIT (Appeals).
VIII. Based on the audit procedure and according to the information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of loans or borrowings to financial institutions, banks or dues to debenture holders.
IX. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments). Accordingly, the provisions of clause 3(ix) of the order are not applicable to the company and hence not commented upon.
X. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
XI. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions 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.
XIV. According to the information and explanations given 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. Accordingly, paragraph 3(xiv) of the Order is not applicable.
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. In our opinion, The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Accordingly, paragraph 3(xvi) of the Order is not applicable.
ANNEXURE-B TO THE INDEPENDENT AUDITORS'' REPORT
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (''the Act'')
We have audited the internal financial controls over financial reporting of M/s Sanco Industries Limited (''the Company'') as of 31stMarch 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
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 the 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 Companied Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the ''Guidance Note'') and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companied 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 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 were 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 auditors'' 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:
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 the 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
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 31stMarch 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 ICAI.
For VJ M & Associates
Chartered Accountants
Firm''s Regn. No.:027535N
Sd/-
CA. Kavit Vijay
(Partner)
Membership No. 517015
Date: 30th May, 2016
Place: Delhi
Mar 31, 2015
1) REPORT ON THE STANDALONE FINANCIAL STATEMENTS:
We have audited the accompanying Standalone Financial Statements of
SANCO INDUSTRIES 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 the
Significant Accounting Policies and other explanatory information.
2) 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 Standard
specified under section 133 of the Act, read with the 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;
selections 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.
3) AUDITOR'S REPONSIBILITY:
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
thereunder.
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 and fair presentation of the financial statements that give
a true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls, An audit also includes evaluating the
appropriateness of 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.
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:
I) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
II) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
III) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5) REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:
I) 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 the paragraph 3 and 4 of the
order, to the extent applicable.
II) As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations,
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books;
c. The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d. In our opinion, the aforesaid Standalone Financial Statement comply
with the Accounting Standards -specified under section 133 of the Act
read with rule 7 of the Companies (Accounts) Rules, 2014 except
Accounting Standard 15 - 'Employees Benefit Expenses' ( Refer to Note
No. 33);
e. On the basis of written representations received from the
directors, as on 31st March, 2015 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164(2) of the
Act;
III) With respect to other matters to be included in the Auditors'
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 and as
confirmed by the management of the company:-
i) The Company has disclosed the impact of pending litigations as at
31st March, 2015 on its financial position in its Financial Statements-
Refer Note 20 to the Financial Statements;
ii) The company does not have any long -term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii) There are no amounts, required to be transferred, to the Investor
Education and Protection Fund by the company.
The Annexure referred to in paragraph 5(I) of our Independent Auditors'
Report to the members of SANCO INDUSTRIES LIMITED on the standalone
Financial Statements for the year ended 31st March, 2015.
Based on test checks and other generally accepted auditing procedures
carried on by us and according to the information and explanations given
to us, we report that:-
i) In respect of its Fixed Assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its major fixed assets
other than Furniture Fixtures and Office Equipments.
b) All the assets have not been physically verified by the Management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
verification of certain assets done during the year.
ii) In respect of its Inventories:
a) As explained to us, physical verification of inventory has been
conducted at reasonable intervals by the management.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and nature of its business.
c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii) The Company has not granted any loans to companies, firms or other
parties covered in the register maintained under section 189 of the
Companies Act, 2013 ("the Act").
iv) There are adequate internal control procedures commensurate with
the size of the company and the nature of its business with regard to
purchases of inventory, fixed assets and with regard to the sale of
goods which needs more strengthening. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal control system of the Company.
v) The company has not accepted any deposits from the public,
therefore, the provisions the Companies (Auditor's Report ) Order,
2015, are not applicable to the company.
vi) We have broadly reviewed the books of account maintained by the
Company, pursuant to the Companies (Cost Records and Audit) Amendment
Rules, 2014 made by the Central Government for maintenance of cost
records under section 148 of the Companies Act, 2013 and we are of the
opinion that prima-facie the prescribed accounts and records have been
maintained.
vii) According to the information and explanations given to us, in
respect of statutory and other dues:
a) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Duty of Custom, Duty of Excise, Value Added Tax, Cess and any
other Statutory Dues applicable to it.
According to the information and explanations given to us , no
undisputed amounts payable in respect of Provident fund, Employees State
Insurance, Income Tax , Sales Tax, Wealth Tax, Service Tax, Duty of
Custom, Duty of Excise, Value Added Tax, Cess and other material
Statutory Dues were in arrear as at 31st March,2015 for a period more
than six months from the date they become payable.
b) There are no dues of Income Tax, Wealth Tax, Service Tax, Custom
Duty, Sales Tax, Excise Duty and other material statutory dues which
have not been deposited on account of any dispute.
c) According to the information and explanations given to us there are
no amounts which were required to be transferred to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 ( 1 of 1956) and Rules made there
under.
viii) The company does not have accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and during the immediately preceding
financial year
ix) In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to
banks and there are no debenture holders.
x) The company has not given any guarantee for loans taken by others,
from banks or financial institutions.
xi) The Company had not taken any Term Loan during the year.
xii) No material fraud on or by the Company has been noticed or
reported during the course of our audit.
For V.P. ADITYA & COMPANY
Chartered Accountants
(FRN: 000542C)
Sd/-
(CA S.B.SINGH)
Place: Delhi Partner
Dated: 29.05.2015 Membership No. 070859
Mar 31, 2014
1. We have audited the accompanying financial statementsof SANCO
INDUSTRIES 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
2. Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 (the
Act) read with the General Circular 15/2013 dated 13th September, 2013
of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013 and in accordance with the accounting principles
generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards onAuditing 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.
4. 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. 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 Profit and Loss Account, of the profit/ loss 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.
Reporton Other Legal and Regulatory Requirements
7. 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 theAct, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
8. As required by section 227(3) of theAct, 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 purposeofour
audit;
(b) In our opinion proper books of account as required by law have been
kept by the Companys of ar 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 notified
under the Act read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013.
(e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g)ofsub-section
(1)ofsection 274ofthe CompaniesAct, 1956.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its
FixedAssets.
(b) As per the information and explanations given to us, there is a
phased programme of physical verification of fixed assets adopted by
the company and no materials discrepancies were noticed on such
verification. In our opinion, the frequency of verification is
reasonable, having regard to the size of the company and nature of its
business.
(c) During the year, the company has not disposed off substantial part
offixed assets.
(ii) (a) As per the information furnished, the inventories have been
physically verified by the management at reasonable intervals during
the year. In our opinion, having regard to the nature and location
ofthe stocks, the frequency ofphysical verification is reasonable.
(b) In our opinion and according to the information and explanation
given to us, the procedures of the physical verification of stocks
followed by the management are reasonable and adequate in relation to
the size of the company and nature of business.
(c) The company is maintaining proper records of inventory. In our
opinion, the discrepancies noticed on physical verification of stocks
were not material in relation to the size of the company and the same
have been properly dealt with the books of accounts.
(iii) Inrespect to loans:
(a) According to the information given to us, the company has not
granted any loans, secured or unsecured, to companies, firms and other
parties covered in the register maintained under section 301 of
Companies Act, 1956. Accordingly, paragraph 4(iii)(b), (c) and (d) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company for the current year.
(b) According to information and explanation given to us, the company
has not taken Loans from any parties coveredinthe register maintained
u/s 301ofthe CompaniesAct, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of assets and for the sale and purchase of
inventory fixed assets and for the sale of goods. During the course of
our audit, no major weakness has been noticed in the internal controls.
(v) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that during the year, transactions that needed to be entered
into the registered maintained under section 301of the companies Act,
1956, has been duly entered.
(vi) The Company has not accepted any deposits from the public within
the meaning of the provision of Section58Aand58AAofthe companiesAct,
1956.
(vii) In our opinion the Company has an internal audit system
commensurate with the size of the Company and the natureofits business.
(viii)The maintenance of cost records under section 209 (1) (d) of the
Companies Act, 1956 are applicable to the co and as per the information
provided by the management the prescribed accounts and records have
been made and maintained. We have not however, made a detailed
examination of these records with a view to determine whether they are
accurate or complete.
(ix) (a) In our opinion and according to the information and
explanations given to us and records examined by us, the Company is in
general regular in depositing, with the appropriate authorities,
undisputed statutory dues including income tax, wealth tax, custom
duty, cess, and other material statutory dues applicable to it except
TDS of Rs. 806678.00, which has not been has not deducted & deposited
and due Advance Income Tax.
(b) According tothe information and explanation given tous there is
disputed amount payable in respect of income tax, wealth tax, sales
tax, custom duty, excise duty and cess for the period of more than six
months from the date they become payable, except for Income Tax Demand
of Rs.59,160 (A/Y 2009-10), Rs. 38,970 (A/Y 2010-11), and Rs.
72,42,280.00 (For A/Y 2012-13, against which company has deposited Rs.
64,14,172.00 as self assessment tax) for which rectification
application has been filed.
(c) According to the information and explanation giventous, there are
no un disputed amounts outstanding over six months in respect of income
tax, wealth tax, sales tax, custom duty, excise duty and cess for the
period of more than six months from the date they become payable except
Income tax demandofRs.1,105.00(previous assessment years).
(x) In our opinion, since the company has neither any accumulated loss
nor incurred losses in the current financial year and immediately
preceding financial year, the clause 4(x) of the Companies (Auditors
Report) order 2003isnot applicable.
(xi) In our opinion and according to information and explanations given
to us, the company has not defaulted in repayment of dues to any
financial institution or bank. The company has not issued any
debenture.
(xii) On the Basis of our examination of the records and information
and explanation given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii)As per the information and explanations given to us the
provisions of any Special Statute applicable to Chit Fund do not apply
to the Company. The Company is also not a nidhi / mutual benefit fund
/society.
(xiv)In our opinion and according to explanations given to us, the
company is not engaged in dealing or trading in shares, securities,
debentures and other investments. Accordingly the clause 4(xiv) of the
Companies (Auditors Report) order 2003isnot applicable.
(xv) According to explanations given to us, the company has not given
guarantee for loans taken by others from banks or financial
institutions.
(xvi) In our opinion and according to information and explanations
given to us, (on an overall basis) the term loans have been applied
forwhich they were obtained.
(xvii) In our opinion and according to information and explanations
given to us and on an overall examination of the balance sheet of the
Company, we report that neither any short-term funds have been used for
longterm investments.
(xviii)According to information and explanation given to us, the
company has not made a preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
(xix)The company has not issued any debenture during the year
covered by our audit report.
(xx) The company has raised Rs. 4, 32, 00,000.00 by public issue during
the year covered by our audit report. (24,00,000 equity share of Rs.10
each at a premium of Rs.8per share)
(xxi)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 information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of any such case by the Management.
For VIJAY MUKESH & CO.
Place: Delhi Chartered Accountants
Date:19/06/2014 FRN: 014554N
Sd/-
CA SUNIL JAIN
(Partner) M. No.: 094673
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