Auditor Report of Sangam (India) Ltd.
Mar 31, 2023
Independent Auditor''s Report
To,
The Members of Sangam (India) Limited
REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
Opinion
We have audited the accompanying standalone financial
statements of Sangam (India) Limited ("the Company"),
which comprise the Standalone Balance Sheet as at 31st
March, 2023, the Standalone Statement of Profit and Loss
(including Other Comprehensive Income), the Standalone
Statement of Changes in Equity and the Standalone
Statement of Cash Flows for the year then ended, and notes
to the standalone financial statements, including a summary
of significant accounting policies and other explanatory
information (hereinafter referred to as "standalone financial
statements").
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
Companies Act, 2013 ("the Act") in the manner so required
and give a true and fair view in conformity with the Indian
Accounting Standards ("Ind AS") prescribed under Section
133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015 as amended and other accounting
principles generally accepted in India, of the state of affairs
of the Company as at 31 st March, 2023, and its profit
including other comprehensive income, changes in Equity
and its Cash Flows for the year ended on that date.
We conducted our audit of the Standalone Financial
Statements in accordance with the Standards on Auditing
("SAs") specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described
in the Auditorâs Responsibilities for the Audit of the
Standalone Financial Statements section of our report.
We are independent of the Company in accordance with
the Code of Ethics issued by the Institute of Chartered
Accountants of India ("ICAI") together with the ethical
requirements that are relevant to our audit of the standalone
financial statements under the provisions of the Act and the
Rules made thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and
the ICAIâs Code of Ethics. We believe that the audit evidence
obtained by us is sufficient and appropriate to provide a
basis for our opinion on the standalone financial statements.
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
Standalone Financial Statements for the financial year ended
31st March, 2023. These matters were addressed in the
context of our audit of the Standalone Financial Statements
as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. For each
matter below, our description of how our audit addressed the
matter is provided in that context.
We have determined the matters described below to be the
key audit matters to be communicated in our report. We
have fulfilled the responsibilities described in the Auditorsâ
responsibilities for the audit of the Standalone Financial
Statements section of our report, including in relation to these
matters. Accordingly, our audit included the performance of
procedures designed to respond to our assessment of the
risks of material misstatement of the Standalone Financial
Statements. The results of our audit procedures, including
the procedures performed to address the matters below,
provide the basis for our audit opinion on the accompanying
Standalone Financial Statements.
Information other than the financial statements and Auditor''s report thereon
The Companyâs Board of Directors is responsible for the other information. The other information comprises the information
included in the Companyâs annual report, but does not include the standalone financial statements and our auditorâs report
thereon. Our opinion on the standalone financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to
report in this regard.
Responsibility of Management and those charged with
Governance for the Standalone Financial Statements
The Companyâs Management and Board of Directors is
responsible for the matters stated in section 134(5) of 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 including other
comprehensive income, the Statement of Changes in
Equity and the Statement of Cash Flows of the Company
in accordance with the accounting principles generally
accepted in India, including Indian Accounting Standards
(Ind AS) specified under section 133 of the Act. This
responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding 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 standalone financial statements that give
a true and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing the standalone financial statements,
Management and Board of Directors are responsible
for assessing the Companyâs ability to continue as a
going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of
accounting unless management either intends to liquidate
the Company or to cease operations, or has no realistic
alternative but to do so. The Companyâs Board of Directors
is also responsible for overseeing the Companyâs financial
reporting process.
Auditorâs Responsibilities for the Audit of the Standalone
Financial Statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error,
and to issue an auditorâs report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance with
SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these standalone
financial statements.
As part of an audit in accordance with Standards on Auditing
(SAs), we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement
of the standalone financial statements, whether due
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or
the override of internal control.
Obtain an understanding of internal financial control
relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under
section 143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the company has
adequate internal financial controls system in place
and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
Conclude on the appropriateness of managementâs use
of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions
that may cast significant doubt on the Companyâs
ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to
draw attention in our auditor''s report to the related
disclosures in the Standalone Financial statements
or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditorâs report.
However, future events or conditions may cause the
Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content
of the Standalone Financial statements, including the
disclosures, and whether the Standalone Financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the
Standalone Financial statements that, individually or in
aggregate, makes it probable that the economic decisions of
a reasonably knowledgeable user of the Standalone Financial
statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of
our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in
the financial statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the standalone financial
statements of the current period and are therefore the key
audit matters. We describe these matters in our auditorsâ
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated
in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.
We have relied on the opening audited balances as at 1st
April 2022, the audit of which was conducted by the then
erstwhile auditors of the Company along with one of the
current joint auditor "O. P Dad & Co." who had issued an
unmodified opinion.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order,
2020 ("the Order"), issued by the Central Government of
India in terms of section 143(11) of the Act, we give in
the "Annexure A", a statement on the matters specified
in paragraphs 3 and 4 of the Order, to the extent
applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required
by law have been kept by the Company so far as it
appears from our examination of those books.
(c) The Standalone Balance Sheet, the Standalone
Statement of Profit and Loss including Other
Comprehensive Income, the Standalone
Statement of Changes in Equity and the
Standalone Statement of Cash Flows dealt with
by this Report are in agreement with the books of
account.
(d) In our opinion, the aforesaid standalone financial
statements comply with the Indian Accounting
Standards (IND AS) specified under Section 133
of the Act, read with Rule 7 of the Companies
(Accounts) Rule, 2015, as amended.
(e) On the basis of the written representations
received from the directors as on 31st March, 2023
taken on record by the Board of Directors, none
of the directors is disqualified as on 31 st March,
2023 from being appointed as a director in terms
of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal
financial controls over financial reporting of the
Company with reference to these Standalone
Financial Statements and the operating
effectiveness of such controls, refer to our
separate Report in "Annexure B" to this report.
(g) With respect to the other matters to be included
in the Auditorâs Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules,
2014, as amended in our opinion and to the best of
our information and according to the explanations
given to us.
(i) The company has disclosed the impact of
pending litigations as on 31 st March, 2023
on its financial position under note no. 52 of
standalone financial statements.
(ii) The Company has made provision as at 31st
March 2023 as required under the applicable
Law or Accounting Standards for foreseeable
losses on long-term contracts including
derivative contracts.
(iii) There has been no delay in transferring
amounts, required to be transferred to the
Investor Education and Protection Fund by
the Company.
(iv)
(a) The management has represented to us that,
to the best of its knowledge and belief, other
than as disclosed in the notes to the accounts,
no funds have been advanced or loaned or
invested (either from borrowed funds or
share premium or any other sources or kind
of funds) by the Company to or in any other
persons or entities, including foreign entities
("Intermediaries"), with the understanding,
whether recorded in writing or otherwise,
that the Intermediary shall, whether, directly
or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever
by or on behalf of the Company ("Ultimate
Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate
Beneficiaries;
(b) The management has represented that,
to the best of its knowledge and belief,
as disclosed in the notes of accounts, no
funds have been received by the Company
from any person(s) or entity(ies), including
foreign entities ("Funding Parties"), with
the understanding, whether recorded in
writing or otherwise, that the Company shall,
whether, directly or indirectly, lend or invest
in other persons or entities identified in any
manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries); and
(c) Based on such audit procedures that we
considered reasonable and appropriate in
the circumstances, nothing has come to our
notice that has caused us to believe that the
representation given by the management
under paragraph (3) (g) (iv) (a) and (b)
contain any material misstatement.
(v) With regard to dividend declared and paid
during the year by the Company:
(a) The Company has paid '' 890.93 lakhs as
dividend during the year in respect of the
dividend declared for the previous financial
year ended 31st March 2022 and the same is
in accordance with Section 123 of the Act, to
the extent it applies to payment of dividend.
(b) The Board of Directors of the Company have
proposed dividend @ 20 % on equity shares
for the year ended 31st March 2023 which is
subject to the approval of the members at
the ensuing Annual General Meeting. The
amount of dividend declared is in accordance
with section 123 of the Act to the extent it
applies to declaration of dividend. (Refer note
no. 64)
3. With respect to the matter to be included in the Auditorsâ
Report under section 197(16):
The remuneration paid by the Company to its directors
during the current year is within the limit as laid down
in section 197 of the Act, based on the legal opinion
obtained by the Company for not including sweat
equity shares issued to one of the whole time directors,
in the managerial remuneration.
For R KABRA & CO LLP For O. P. Dad & Co.
Chartered Accountants Chartered Accountants
(Firm Registration No: Firm Registration No:
104502W/W100721) 002330C
Deepa Rathi O. P. Dad
Partner Partner
Membership No:104808 Membership No. 035373
UDIN: 23104808BGTSXJ3598 UDIN: 23035373BGXMMY5890
Place: Bhilwara Place: Bhilwara
Dated: 28th April, 2023 Dated: 28th April, 2023
Mar 31, 2015
We have audited the accompanying financial statements of M/s. SANGAM
(INDIA) LIMITED, which comprise the Balance Sheet as at 31st March,
2015 and the Statement of Profit and Loss and Cash Flow Statements for
the year then ended 31st March, 2015, and a summary of significant
accounting policies and other explanatory information.
MANAGEMENT's Responsibility For The Financial statements
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material 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 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 Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other LEGAL AND Regulatory Requirements
1) As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in 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.
2) As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters included in the Auditor's Report
and to our 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 33 to the
financial statements.
ii. The Company does 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 and Education and Protection Fund by the
Company.
Annexure referred to in Point 1 of the Auditors' Report of even date to
the members of Sangam (India) Limited for the year ended as on March
31, 2015.
On the basis of such checks as considered appropriate and in terms of
the information and explanations given to us, we state as under:
(i) a. The Company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
assets.
b. As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased program of verification adopted by the company and no material
discrepancies were noticed on such verification.
(ii) a. As per the information and explanation given to us, the
inventories (excluding stock, materials and work in progress, which are
in transit & stock lying with third parties) have been physically
verified during the year by the management. In our opinion, having
regard to the nature and location of stocks, the frequency of the
physical verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the company and the nature of its business.
c. In our opinion, and according to the information and explanations
given to us, the Company is maintaining proper records of inventory and
no material discrepancies were noticed on verification of inventory.
(iii) a. As per the information and explanation given to us, the
company has not granted unsecured loans to companies covered in the
register maintained under section 189 of the Companies Act, 2013. The
number of such parties involved are NIL and the maximum balance during
the year is NIL and the closing balance as on year end is NIL.
b. The receipt of principal amount and interest are on demand basis.
c. The overdue amount is not more than Rs.1 lakh, since the payment is
on demand basis & Clause (iii)c is not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and nature of its business
with regard to purchase of inventory and fixed assets and for the sales
of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls.
(v) In our opinion and according to the information and explanation
given to us, the company has not accepted deposits from the
Shareholders/directors and the directives issued by the Reserve Bank of
India and the provisions of sections 73 to 76 or any other relevant
provisions of the Act and the rules framed there under.
(vi) The Central Government has prescribed maintenance of the cost
records U/S 148(1)of the Companies Act, 2013 in respect to the
company's products. We have broadly reviewed the books of accounts &
records maintained by the company in this connection and are of the
opinion that prima facie, the prescribed accounts and records have been
made & maintained. We have however, not made a detailed examination of
the records with a view to determining whether they are accurate or
complete.
(vii) a. According to the information and explanations given to us and
the records examined by us, the company is generally regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees' state insurance, income-tax, sales- tax, wealth-tax, service
tax, custom-duty and excise duty, cess and other statutory dues with
appropriate authorities wherever applicable. According to the
information and explanations given to us, no undisputed arrears of
statutory dues were outstanding, as at 31st March 2015 for a period of
more than 6 months from the date they became due.
b. According to the record of the company, the dues of sales-tax,
income-tax, customs, wealth-tax, excise-duty, service tax which have
not been deposited on account of disputes and the forum where the
dispute is pending are given here-under:
Disputed Matters with the various forum
sl. Name Nature Amount
No. of the statute of the dues (Rs.In Lacs)
Gross Net of
Deposited
1 Income Tax Act, 1961 Income Tax 21.00 21.00
2 Income Tax Act, 1961 Income Tax 8.00 8.00
3 Rajasthan Stamp Act, Stamp Duty 108.91 88.91
1998
4 Rajasthan Value Added Value Added 166.59 149.93
Tax, 2003 Tax
5 Electricity Act, 2003 Power Factor 54.28 7.96
Incentive
6 Rajasthan Tax into Entry Tax and 468.18 394.81
entry of Goods into Interest
Local Area Act, 1999
7 Central Excise Act, Excise Duty 1.80 1.31
1994
8 Central Excise Act, Excise Duty 15.80 Nil
1994
9 Service Tax Service Tax 16.25 5.24
10 Service Tax Service Tax 38.53 3.93
11 Electricity Act, 2003 Fixed Charges 19.57 14.57
Recovery
12 Rajasthan Value Added Value Added 341.10 313.73
Tax, 2003 Tax with RIPS
Incentive on
Exports
ToTAL 1260.01 1009.39
Name period to which the Forum where
amount relates (F.y.) Dispute is
pending
Income Tax Act, 1961 2003 - 04 ITAT, Mumbai
Income Tax Act, 1961 2011 - 12 Commissioner
of Income tax
(Appeals)
Mumbai
Rajasthan Stamp Act, 1998 2006 - 07 Rajasthan High
Court Jodhpur
Rajasthan Value Added 2012 - 13 Tax Board Ajmer
Tax, 2003
Electricity Act, 2003 2007 - 08 to Rajasthan High
2013 - 14 Court Jodhpur
Rajasthan Tax into 2007 - 04 to Special Leave
entry of Goods into 2014 - 15 Petition with
Local Area Act, 1999 Supreme Court
Central Excise Act, 1994 2007 - 08,2008-09 Commissioner of
& 2013 - 14 Excise (Appeals)
Central Excise Act, 1994 2007 - 08 to CESTAT - (Delhi)
2012 - 12
Service Tax Service 2010 - 11 to Commissioner
2013-14 (Appeal)
Service Tax 2005 - 06 to CESTAT - Delhi
2011 - 12
Electricity Act, 2003 2009 - 10 to Rajasthan High
2010 - 11 Court, Jodhpur
Rajasthan Value Added 2010 - 11 to C.T.O.Bhilwara
Tax, 2003 2012 - 13
c) According to the information and explanations given to us the
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 there under has been
transferred to such fund within time.
(viii) The Company does not have any accumulated losses during the year
and it has not incurred cash losses in current financial year and in
the immediately preceding financial year.
(ix) Based on our audit procedures and the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to financial institutions and banks.
There are no debenture holders of the company.
(x) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xi) According to the information and explanations given to us, the
term loans raised during the year have been applied for the purpose for
which they were raised.
(xii) During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanation given to us, we have neither came across any instances of
fraud on o by the company noticed or reported during the year, nor we
have been informed or such case by the management.
For and on behalf of For and on behalf of
R. Kabra & Co. B.L. Chordia & Co.
Chartered Accountants Chartered Accountants
Registration No.104502W Registration No.000294C
(R.L. Kabra) (B.L. Chordia)
Partner Partner
M. Ship No.016216 M.Ship No.010882
Camp: Bhilwara Place: Bhilwara
Date: May 02, 2015 Date: May 02, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Sangam (India)
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 referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required subject to Note No 31
regarding amounts reflected in the financial statements of jointly
controlled entities are unaudited and based on Management
certifications 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"), as amended issued by the Central Government of India in terms
of sub- section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 read with the
General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act ;
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 The AUDITORS'' REPORT
(Referred to in our report of even date)
Annexure referred to in Point 1 of the Auditors'' Report of even date to
the members of Sangam (India) Limited for the year ended as on March
31, 2014.
On the basis of such checks as considered appropriate and in terms of
the information and explanations given to us, we state as under:
(i) a. The Company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
assets.
b. As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased programme of verification adopted by the company and no material
discrepancies were noticed on such verification.
c. In our opinion and according to the information and explanations
given to us, during the year the company has not disposed off any
substantial parts of Fixed Assets and therefore does not affect the
going concern assumption
(ii) a. As per the information and explanation
given to us, the inventories (excluding stock, materials and work in
progress, which are in transit & stock lying with third parties) have
been physically verified during the year by the management. In our
opinion, having regard to the nature and location of stocks, the
frequency of the physical verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the company and the nature of its business.
c. In our opinion, and according to the information and explanations
given to us, the Company is maintaining proper records of inventory and
no material discrepancies were noticed on verification of inventory.
(iii) a. As per the information and explanation given to us, the
company has granted unsecured loans to companies covered in the
register maintained under section 301 of the Companies Act, 1956. The
number of such parties involved is one and the maximum balance during
the year is Rs. 4900 Lacs and the closing balance as on year end is
Nil.
b. The rate of interest and other terms and conditions of loan given by
the company are prima facie not prejudicial to the interest of the
company
c. The receipt of principal amount and interest are on demand basis.
d. In our opinion and as per the information and explanations given to
us, the company has not taken unsecured loans from companies, firms or
other parties covered in the register maintained under section 301 of
the Act. Therefore the clause iii (e), iii (f) & iii (g) are not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and nature of its business
with regard to purchase of inventory and fixed assets and for the sales
of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls.
(v) (a) In our opinion and according to the information and explanation
given to us the particulars of 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) In our opinion and according to the information and explanation
given to us, the company has not accepted deposits from the
Shareholders/directors and the directives issued by the Reserve Bank of
India and the provisions of sections 58A, 58AA or any other relevant
provisions of the Act and the rules framed there under.
(vii) In our opinion, the company has an internal audit system through
internal control system, which is carried out by the internal audit
department, the scope and coverage of which is commensurate with size &
nature of the business of the company.
(viii) The Central Government has prescribed maintenance of the cost
records U/S 209(l)(d) of the Companies Act, 1956 in respect to the
company''s products. We have broadly reviewed the books of accounts &
records maintained by the company in this connection and are of the
opinion that prima facie, the prescribed accounts and records have been
made & maintained. We have however, not made a detailed examination of
the records with a view to determining whether they are accurate or
complete.
(ix) a. According to the information and explanations given to us and
the records examined by us, the company is generally regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees'' state insurance, income-tax, sales-tax, wealth- tax, service
tax, custom-duty and excise duty, cess and other statutory dues with
appropriate authorities wherever applicable. According to the
information and explanations given to us, no undisputed arrears of
statutory dues were outstanding, as at 31st March 2014 for a period of
more than 6 months from the date they became due.
b. According to the record of the company, the dues of sales-tax,
income-tax, customs, wealth-tax, excise-duty, service tax which have
not been deposited on account of disputes and the forum where the
disputes are pending since the financial year ended 31st March 2004
till the financial year ended 31st March 2014 are given here- under:
Disputed Matters with the various forum
(Rs. in Lacs)
Amount (Rs. in Lacs)
S. Net of
No. Name of the Nature of Deposited
Statute the dues Gross
1. Income Tax Act,
1961 Income Tax 21.00 21.00
Act, 1998 Stamp Duty 108.91 88.91
3. Rajasthan Value Value
Added Tax Act, 2003 Added Tax 71.74 65.61
4. Electricity Act, Power
2003 Factor 54.28 54.28
Incentive
5. Rajasthan Tax on
Entry of Goods Entry Tax 352.21 283.54
into Local Area Act, and Interest
1999
6. Central Excise Act,
1944 Excise Duty 1.39 Nil
7. Central Excise Act,
1944 Excise Duty 15.80 Nil
8. Service Tax Service Tax 12.53 1.79
9. Service Tax Service Tax 30.44 3.93
10. Electricity Act, Fixed
2003 Charges 19.57 14.57
Recovery
(Rs. in Lacs)
Period
to which the
amount
relates Forum
S. (Financial where dispute
No. Name of the Year) is pending
Statute
1. Income Tax Act,
1961 2003-04 Commissioner
of Income
Tax(Appeals)
2. Rajasthan Stamp
Act, 1998 2006-07 Rajasthan High
Court, Jodhpur
3. Rajasthan Value
Added Tax Act, 2003 2011-12 Tax Board, Ajmer
and Dy. Comm.
Appeals.
4. Electricity Act,
2003 2007-08 to Rajasthan High
2013-14 Court, Jodhpur
5. Rajasthan Tax on
Entry of Goods 2003-04 to Rajasthan High
into Local Area Act, 2013-14 Court,Jodhpur
1999
6. Central Excise Act,
1944 2007-08 to Commissioner of
2008-09 Excise (Appeals)
7. Central Excise Act,
1944 2007-08 to CESTAT - Delhi
2011-12
8. Service Tax 2010-11 Commissioner
(Appeal)
9. Service Tax 2005-06 to CESTAT - Delhi
2011-12
10. Electricity Act,
2003 2009-10 to Rajasthan High
2010-11 Court, Jodhpur
(x) The Company does not have any accumulated losses during the year
and it has not incurred cash losses in current financial year and in
the immediately preceding financial year.
(xi) Based on our audit procedures and the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to financial institutions and banks.
There are no debenture holders of the company.
(xii) Based on our examination of the records and the information and
explanations given to us, the company has not granted any loans and/ or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) The company is not a chit fund company or nidhi/ mutual benefit
fund/society.
(xiv) According to the information and explanations given to us, the
company has maintained proper records of the transactions & contracts
in respect of investments held by the company with timely entries and
they are held in its own name.
(xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) According to the information and explanations given to us, the
term loans raised during the year have been applied for the purpose for
which they were raised.
(xvii) In our opinion and according to the information and explanation
given to us, on an overall examination of the Balance Sheet and cash
flow of the company during the year we report that no funds raised on
short-term basis have been used for Long Term Investment.
(xviii) The company has not made 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 debentures, so the question of
security or charge created does not arise in respect of debentures
issued.
(xx) The company has not raised money through public issue during the
year.
(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 the information and
explanation given to us, we have neither came across any instances of
fraud on or by the company noticed or reported during the year, nor we
have been informed or such case by the management.
For R. Kabra & Co. For B.L. Chordia & Co.
Chartered Accountants Chartered Accountants
(Registration No.104502W) (Registration No.000294C)
(R.L. Kabra) (B.L. Chordia)
Partner Partner
M. Ship No.016216 M.Ship No.010882
Camp: Bhilwara Place:Bhilwara
Date: April 30, 2014 Date: April 30, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Sangam (India)
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2013, and the Statement of Profit and Loss and Cash Flow Statement
for the year ended and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub- section (3C) of section
211 of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required subject to Note No 31
regarding amounts reflected in the financial statements of jointly
controlled entities are unaudited and based on Management
certifications and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("theOrder") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
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 disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 2 74 of the Companies Act, 1956.
(Referred to in our report of even date)
Annexure referred to in Point 1 of the Auditors'' Report of even date to
the members of Sangam (India) Limited for the year ended as on March
31, 2013.
On the basis of such checks as considered appropriate and in terms of
the information and explanations given to us, we state as under:
(i) a. The Company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
assets.
b. As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased programme of verification adopted by the company and no material
discrepancies were noticed on such verification.
c. In our opinion and according to the information and explanations
given to us, during the year the company has not disposed off any
substantial parts of Fixed Assets and therefore does not affect the
going concern assumption
(ii) a. As per the information and explanation given to us, the
inventories (excluding stock, materials and work in progress, which are
in transit & stock lying with third parties) have been physically
verified during the year by the management. In our opinion, having
regard to the nature and location of stocks, the frequency of the
physical verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the company and the nature of its business.
c. In our opinion, and according to the information and explanations
given to us, the Company is maintaining proper records of inventory and
no material discrepancies were noticed on verification of inventory.
(iii) a. As per the information and explanation given to us, the
company has granted unsecured loans to companies covered in the
register maintained under section 301 of the Companies Act, 1956. The
number of such parties involved are one and the maximum balance during
the year is Rs. 4,530 lacs and the closing balance as on year end is Rs.
4,530 lacs.
b. The rate of interest and other terms and conditions of loan given
by the company are prima facie not prejudicial to the interest of the
company
c. The receipt of principal amount and interest are on demand basis.
d. In our opinion and as per the information and explanations given to
us, the company has taken unsecured loans from companies, firms or
other parties covered in the register maintained under section 301 of
the Act. There is one such party and the maximum balance outstanding
during the year is Rs. 2,000 lacs & the closing balance as on year end is
currently debit balance as mentioned in Point No. iii a. The clause iii
f & iii g are not applicable, since the payment has been done.
(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 nature of its business
with regard to purchase of inventory and fixed assets and for the sales
of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls.
(v) (a) In our opinion and according to the information and explanation
given to us the particulars of 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) In our opinion and according to the information and explanation
given to us, the company has not accepted deposits from the
Shareholders/directors and the directives issued by the Reserve Bank of
India and the provisions of sections 58A, 58AA or any other relevant
provisions of the Act and the rules framed there under.
(vii) In our opinion, the company has an internal audit system through
internal control system, which is carried out by the internal audit
department, the scope and coverage of which is commensurate with size &
nature of the business of the company.
(viii) The Central Government has prescribed maintenance of the cost
records U/S 209(1)(d) of the Companies Act, 1956 in respect to the
company''s products. We have broadly reviewed the books of accounts &
records maintained by the company in this connection and are of the
opinion that prima facie, the prescribed accounts and records have been
made & maintained. We have however, not made a detailed examination of
the records with a view to determining whether they are accurate or
complete.
(ix) a. According to the information and explanations given to us and
the records examined by us, the company is generally regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees'' state insurance, income-tax, sales- tax, wealth-tax, service
tax, custom-duty and excise duty, cess and other statutory dues with
appropriate authorities wherever applicable. According to the
information and explanations given to us, no undisputed arrears of
statutory dues were outstanding, as at 31st March 2013 for a period of
more than 6 months from the date they became due.
(x) The Company does not have any accumulated losses during the year
and it has not incurred cash losses in current financial year and in
the immediately preceding financial year.
(xi) Based on our audit procedures and the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to financial institutions and banks.
There are no debenture holders of the company.
(xii) Based on our examination of the records and the information and
explanations given to us, the company has not granted any loans and/ or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) The company is not a chit fund company or nidhi/ mutual benefit
fund/society.
(xiv) According to the information and explanations given to us, the
company has maintained proper records of the transactions & contracts
in respect of investments held by the company with timely entries and
they are held in its own name.
(xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) According to the information and explanations given to us, the
term loans raised during the year have been applied for the purpose for
which they were raised.
(xvii) In our opinion and according to the information and explanation
given to us, on an overall examination of the Balance Sheet and cash
flow of the company during the year we report that no funds raised on
short-term basis have been used for Long Term Investment.
(xviii) The company has not made 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 debentures, so the question of
security or charge created does not arise in respect of debentures
issued.
(xx) The company has not raised money through public issue during the
year.
(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 the information and
explanation given to us, we have neither came across any instances of
fraud on or by the company noticed or reported during the year, nor we
have been informed or such case by the management.
For R. Kabra & Co. For B.L. Chordia & Co.
Chartered Accountants Chartered Accountants
(Registration No.104502W) (Registration No.000294C)
(R.L. Kabra) (B.L. Chordia)
Partner Partner
M. Ship No.016216 M.Ship No.010882
Camp: Bhilwara Place: Bhilwara
Date: April 25, 2013 Date: April 25, 2013
Mar 31, 2012
1) We have audited the attached Balance Sheet of SANGAM (INDIA) LIMITED
as at 31st March.2012, the Statement of Profit and Loss and the Cash
Flow statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these fi
nancial statements based on our audit.
2) We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the fi
nancial 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 a reasonable
basis for our opinion.
3) In accordance with the provisions of Section 227 of the Companies
Act, 1956, we report that; as required by the Companies (Auditor's
Report) Order, 2003 issued by the Central Government in terms of
section 227 (4A) of The Companies Act, 1956 and on the basis of such
checks as considered appropriate and in terms of the information and
explanations given to us, we give in the annexure, a statement on the
matters specified in paragraph 4 & 5 of the said Order to the extent
applicable to the company.
4) Further to our comments in the annexure referred to above, we report
that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of accounts, as required by law, have
been kept by the company, so far as appears from our examinations of
those books;
c. The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d. In our opinion the Balance Sheet, Statement of Profit and Loss and
the Cash Flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
e. On the basis of written representation received from the directors
as on 31 March, 2012 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31 March, 2012
from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956.
f. In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon subject to note no. 31 regarding amounts reflected in
the financial statements of jointly controlled entities are unaudited
and based on Management certifications 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 principals generally
accepted in India:
i) In the case of Balance Sheet, of the state of affairs of the company
as at 31 March, 2012; ii) In the case of Statement of Profit and Loss,
of the Profit for the year ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure referred to in paragraph 3 of the Auditors' Report of even
date to the members of Sangam (India) Limited for the year ended as on
March 31, 2012.
On the basis of such checks as considered appropriate and in terms of
the information and explanations given to us, we state as under:
(i) a. The Company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
assets.
b. As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased programme of verification adopted by the company and no
material discrepancies were noticed on such verification.
c. During the year the company has not disposed off any substantial
parts of Fixed Assets.
(ii) a. As per the information and explanation given to us, the
inventories (excluding stock, materials and work in progress, which are
in transit & stock lying with third parties) have been physically
verifi ed during the year by the management. In our opinion, having
regard to the nature and location of stocks, the frequency of the
physical verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the company and the nature of its business.
c. In our opinion, and according to the information and explanations
given to us, the Company is maintaining proper records of inventory and
no material discrepancies were noticed on verification of inventory.
(iii) a. In our opinion and according to the information and
explanation given to us, the company has not granted unsecured loans to
companies, fi rms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
b. The clause (iii) (b), (c), (d) of the order is not applicable to
the company, as the company has not given any unsecured loan.
c. As per the information and explanations given to us, the company
has taken unsecured loans from companies, fi rms or other parties
covered in the register maintained under section 301 of the Act, the
terms of which are not prima facie prejudicial to the interests of the
company. There is one such party and the outstanding amount at the end
of the year is Rs. 2000 lacs (maximum outstanding during the year was Rs.
2000 lacs ), which is payable on demand.
d. There are no interest free loans taken by the company.
(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 nature of its business
with regard to purchase of inventory and fixed assets and for the
sales of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls.
(v) (a) In our opinion and according to the information and explanation
given to us the particulars of 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) In our opinion and according to the information and explanation
given to us, the company has not accepted deposits from the
Shareholders/directors and the directives issued by the Reserve Bank of
India and the provisions of sections 58A, 58AA or any other relevant
provisions of the Act and the rules framed there under.
(vii) In our opinion, the company has an internal audit system through
internal control system, which is carried out by the internal audit
department, the scope and coverage of which is commensurate with size &
nature of the business of the company.
(viii) The Central Government has prescribed maintenance of the cost
records U/S 209(1)(d) of the Companies Act, 1956 in respect to the
company's products. We have broadly reviewed the books of accounts &
records maintained by the company in this connection and are of the
opinion that prima facie, the prescribed accounts and records have been
made & maintained. We have however, not made a detailed examination of
the records with a view to determining whether they are accurate or
complete.
(ix) a. According to the information and explanations given to us and
the records examined by us, the company is generally regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees' state insurance, income-tax, sales-tax, wealth-tax, service
tax, custom-duty and excise duty, cess and other statutory dues with
appropriate authorities wherever applicable. According to the
information and explanations given to us, no undisputed arrears of
statutory dues were outstanding, as at 31st March 2012 for a period of
more than 6 months from the date they became due.
b. According to the record of the company, the dues of sales-tax,
income-tax, customs, wealth-tax, excise-duty, service tax which have
not been deposited on account of disputes and the forum where the
dispute is pending are given here-under:
Disputed Matters with the various forum
Nature Amount Forum where
S.No. Name of the Statute of the dues (Rs. in Lacs) dispute is
pending
Commissioner
of Income Tax
1. Income Tax Act, 1961 Income tax 21.00 (Appeals)
Rajasthan Tax on
Entry of Goods Entry Tax and
2. 210.24 Rajasthan
High Court,
Jodhpur
into Local Area Act, 1999 Interest
(x) The Company does not have any accumulated losses during the year
and it has not incurred cash losses in current financial year and in
the immediately preceding financial year.
(xi) Based on our audit procedures and the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to financial institutions and banks.
There are no debenture holders of the company.
(xii) Based on our examination of the records and the information and
explanations given to us, the company has not granted any loans and/ or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) The company is not a chit fund company or nidhi/ mutual benefit
fund/society
(xiv) According to the information and explanations given to us, the
company has maintained proper records of the transactions & contracts
in respect of investments held by the company with timely entries and
they are held in its own name.
(xv) According to the information and explanations given to us, the
term loans raised during the year have been applied for the purpose for
which they were raised.
(xvi) In our opinion and according to the information and explanation
given to us, on an overall examination of the Balance Sheet and cash fl
ow of the company during the year we report that no funds raised on
short-term basis have been used for Long Term Investment.
(xvii) The company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
(xviii) The Company has not issued debentures, so the question of
security or charge created does not arise in respect of debentures
issued.
(xix) The company has not raised money through public issue during the
year.
(xx) During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanation given to us, we have neither came across any instances of
fraud on or by the company noticed or reported during the year, nor we
have been informed or such case by the management.
For R. Kabra & Co. For B.L. Chordia & Co.
Chartered Accountants Chartered Accountants
(Registration No. 104502W) (Registration No. 000294C)
(R.L. Kabra) (B.L. Chordia)
Partner Partner
M.Ship No. 016216 M.Ship No. 010882
Camp : Bhilwara Place : Bhilwara
Date : May 18,2012 Date: May 18,2012
Mar 31, 2011
1) We have audited the attached Balance Sheet of SANGAM (INDIA) LIMITED
as at 31st March.2011, the Profit & Loss Account and also 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 opin- ion on these
financial statements based on our audit.
2) We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstate- ment. An audit
includes examining, on a test basis, evidence sup- porting 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 be- lieve that our audit provides a
reasonable basis for our opinion.
3) In accordance with the provisions of Section 227 of the Compa- nies
Act, 1956, we report that; as required by the Companies (Au- ditor's
Report) Order, 2003 issued by the Central Government in terms of
section 227 (4A) of The Companies Act, 1956 and on the basis of such
checks as considered appropriate and in terms of the information and
explanations given to us, we give in the an- nexure, a statement on the
matters specified in paragraph 4 & 5 of the said Order to the extent
applicable to the company.
4) Further to our comments in the annexure referred to above, we report
that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the pur- pose 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 examina- tions of
those books;
c. The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. In our opinion the Balance Sheet, Profit and Loss Account and the
Cash Flow statement dealt with by this report comply with the ac-
counting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
e. On the basis of written representation received from the directors
as on 31 March, 2011 and taken on record by the Board of Direc- tors,
we report that none of the directors is disqualified as on 31 March,
2011 from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956.
f. In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon subject to point no 12 III regarding amounts reflected in
the financial statements of the jointly controlled entities are
un-audited and based on management certifications 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 principals
generally accepted in India:
i) In the case of Balance Sheet, of the state of affairs of the com-
pany as at 31 March, 2011;
ii) In the case of Profit and Loss Account, of the profit for the year
ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORTS
(Referred to in our report of even date)
Annexure referred to in paragraph 3 of the Auditors' Report of even
date to the members of Sangam (India) Limited for the year ended as on
March 31, 2011.
On the basis of such checks as considered appropriate and in terms of
the information and explanations given to us, we state as under:
(i) a. The Company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
assets.
b. As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased programme of verification adopted by the com- pany and no
material discrepancies were noticed on such verification.
c. During the year the company has not disposed off any sub- stantial
parts of fixed assets.
(ii) a. As per the information and explanation given to us, the in-
ventories (excluding stock, materials and work in progress, which are
in transit) have been physically verified during the year by the
management. In our opinion, having regard to the nature and location of
stocks, the frequency of the physical verification is reasonable.
b. In our opinion and according to the information and expla- nations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the company and the nature of its business.
c. In our opinion, and according to the information and explana- tions
given to us, the Company is maintaining proper records of inventory and
no material discrepancies were noticed on verification of inventory.
(iii) a. In our opinion and according to the information and explana-
tion given to us, the company has not granted unsecured loans to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
b. The clause (iii) (b), (c), (d) of the order is not applicable to
the company, as the company has not given any unsecured loan.
c. As per the information and explanations given to us, the com- pany
has taken unsecured loans from companies, firms or other parties
covered in the register maintained under section 301 of the Act, the
terms of which are not prima facie preju- dicial to the interests of
the company. The number of parties are two and the outstanding amount
at the end of the year is Rs. 2000.00 lacs (maximum outstanding during
the year was Rs. 2180.60 lacs), which is payable on demand.
d. The interest free loans taken are not prejudicial to the inter- ests
of the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures com-
mensurate with the size of the company and nature of its business with
regard to purchase of inventory and fixed assets and for the sales of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal controls.
(v) (a) In our opinion and according to the information and explana-
tion given to us the particulars of 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) In our opinion and according to the information and explanation
given to us, the company has not accepted deposits from the
Shareholders/directors and the directives issued by the Reserve Bank of
India and the provisions of sections 58A, 58AA or any other relevant
provisions of the Act and the rules framed there under.
(vii) In our opinion, the company has an internal audit system through
internal control system, which is carried out by the internal audit
department, the scope and coverage of which is commensurate with size &
nature of the business of the company.
(viii) The Central Government has prescribed maintenance of the cost
records U/S 209(1)(d) of the Companies Act, 1956 in respect to the
company's products. We have broadly reviewed the books of accounts &
records maintained by the company in this connection and are of the
opinion that prima facie, the prescribed accounts and records have been
made & maintained. We have however, not made a detailed examination of
the records with a view to determining whether they are accurate or
complete.
(ix) a. According to the information and explanations given to us and
the records examined by us, the company is generally regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees' state insurance, income-tax, sales-tax, wealth-tax, service
tax, custom-duty and excise duty, cess and other statutory dues with
appropriate authori- ties wherever applicable. According to the
information and explanations given to us, no undisputed arrears of
statutory dues were outstanding, as at 31st March 2011 for a period of
more than 6 months from the date they became due.
b. According to the record of the company, the dues of sales- tax,
income-tax, customs, wealth-tax, excise-duty, service tax which have
not been deposited on account of disputes and the forum where the
dispute is pending are given here-under:
DISPUTED MATTERS WITH THE FORUM
Name of the Statute Nature of Amount Forum where
the dues Rs. in Lacs) dispute is pending
Income Tax Act, Income 21.00 Commissioner of
1961 tax Income Tax
(Appeals)
(x) The Company does not have any accumulated losses during the year
and it has not incurred cash losses in current financial year and in
the immediately preceding financial year.
(xi) Based on our audit procedures and the information and explana-
tions given by the management, we are of the opinion that the company
has not defaulted in repayment of dues to financial in- stitutions and
banks. There are no debenture holders of the com- pany.
(xii) Based on our examination of the records and the information and
explanations given to us, the company has not granted any loans and/ or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) The company is not a chit fund company or nidhi/ mutual benefit
fund/society
(xiv) According to the information and explanations given to us, the
company has maintained proper records of the transactions & contracts
in respect of investments held by the company with timely entries and
they are held in its own name.
(xv) According to the information and explanations given to us, the
term loans raised during the year have been applied for the pur- pose
for which they were raised.
(xvi) In our opinion and according to the information and explanation
given to us, on an overall examination of the Balance Sheet and cash
flow of the company during the year we report that no funds raised on
short-term basis have been used for Long Term Invest- ment.
(xvii) The company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
(xviii) The Company has not issued debentures, so the question of se-
curity or charge created does not arise in respect of debentures
issued.
(xix) The company has not raised money through public issue during the
year.
(xx) During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India and according to the informa- tion and
explanation given to us, we have neither came across any instances of
fraud on or by the company noticed or reported during the year, nor we
have been informed or such case by the management.
For R. Kabra & Co. For B. L. Chordia & Co.
Chartered Accountants Chartered Accountants
(Reg. No.104502W) (Reg. No.000294C)
(R.L. Kabra) (B. L Chordia)
Partner Partner
M.Ship No. 016216 M.Ship No. 010882
Camp: Bhilwara Place: Bhilwara
Date: April 27, 2011 Date: April 27, 2011
Mar 31, 2010
1) We have audited the attached Balance Sheet of SANGAM (INDIA) LIMITED
as at 31st March, 2010, the Profit & Loss Account and also 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.
2) We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3) In accordance with the provisions of Section 227 of the Companies
Act, 1 956, we report that; as required by the Companies (Auditors
Report) Order, 2003 issued by the Central Government in terms of
section 227 (4A) of The Companies Act, 1956 and on the basis of such
checks as considered appropriate and in terms of the information and
explanations given to us, we give in the annexure, a statement on the
matters specified in paragraph 4 & 5 of the said Order to the extent
applicable to the company.
4) Further to our comments in the annexure referred to above, we report
that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of accounts, as required by law, have
been kept by the company, so far as appears from our examinations of
those books;
c. The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. In our opinion the Balance Sheet, Profit and Loss Account and the
Cash Flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1 956.
e. On the basis of written representation received from the directors
as on 31 March, 2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31 March, 2010
from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1 956.
f. In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon give the information required by the Companies Act, 1 956
in the manner so required and give a true and fair view in conformity
with the accounting principals generally accepted in India:
i) In the case of Balance Sheet, of the state of affairs of the company
as at 31 March, 2010;
ii) In the case of Profit and Loss Account, of the profit for the year
ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in our report of even date)
Annexure referred to in paragraph 3 of the Auditors Report of even
date to the members of Sangam (India) Limited for the year ended as on
March 31, 2010.
On the basis of such checks as considered appropriate and in terms of
the information and explanations given to us, we state as under: (i) a.
The Company has maintained proper records showing full particulars,
including quantitative details and situations of fixed assets.
b. As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased programme of verification adopted by the company and no material
discrepancies were noticed on such verification.
c. During the year the company has not disposed off any substantial
parts of fixed assets.
(ii) a. As per the information and explanation given to us, the
inventories (excluding stock, materials and work in progress, which are
in transit) have been physically verified during the year by the
management. In our opinion, having regard to the nature and location of
stocks, the frequency of the physical verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the company and the nature of its business.
c. In our opinion, and according to the information and explanations
given to us, the Com pany is maintaining proper records of inventory
and no material discrepancies were noticed on verification of
inventory.
(iii) a. In our opinion and according to the information and
explanation given to us, the company has not granted unsecured loans to
companies, firms or other parties covered, in the register maintained
under section 301 of the Companies Act, 1 956.
b. Tne clause (iii) (b), (c), (d) of the order is not applicable to
the company, as the company has not given any unsecured loan.
e. As per the information and explanations given to us, the
company has taken unsecured loans from companies, firms
or other parties covered in the register maintained under
section 301 of the Act, the terms of which are not prima
facie prejudicial to the interests of the company. The number
of parties are four and the outstanding amount at the end of
the year is Rs.21 80.60 lacs (maximum outstanding during the
year was Rs. 4835.85 lacs), which is payable on demand.
f. The interest free loans taken are not prejudicial to the interests
of the company.
(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 nature of its business with regard to
purchase of inventory and fixed assets and for the sales of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal controls.
(v) (a) In our opinion and according to the information and explanation
given to us the particulars of 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) In our opinion and according to the information and explanation
given to us, the company has not accepted deposits from the
Shareholders/directors and the directives issued by the Reserve
Bank of India and the provisions of sections 58A, 58AA or any other
relevant provisions of the Act and the rules framed there under.
(vii) In our opinion, the company has an internal audit system through
internal control system, which is carried out by the internal audit
department, the scope and coverage of which is commensurate
with size & nature of the business of the company.
(viii) The Central Government has prescribed maintenance of the cost
records U/S 209(1 )(d) of the Companies Act, 1956 in respect to
the companys products. We have broadly reviewed the books of
accounts & records maintained by the company in this connection
and are of the opinion that prima facie, the prescribed accounts
and records have been made & maintained. We have however,
not made a detailed examination of the records with a view to
determining whether they are accurate or complete.
(ix) a. According to the information and explanations given to us and
the records examined by us, the company is generally regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income-tax, sales- tax, wealth-tax, service
tax, custom-duty and excise duty, cess and other statutory dues with
appropriate authorities wherever applicable. According to the information
and explanations given to us, no undisputed arrears of statutory dues were
outstanding, as at 31st March, 2010 for a period of more than 6 months
from the date they became due. b. According to the record of the
company, the dues of sales-tax, income-tax, customs, wealth-tax,
excise-duty, service tax which have not been deposited on account of
disputes and the forum where the dispute is pending are given
here-under:
Disputed Matters with the various forum
S.No. Name of the Nature of the Amount Forum where
Statute dues (Rs. in dispute is
Lacs) pending
1. Central Excise Excise Duty 3.89 CESTAT
Act, 1 944
2. Income Tax Act, Income tax 21.00 Commissioner
1961 of Income Tax
(Appeals)
(x) The Company does not have any accumulated losses during the year
and it has not incurred cash losses in current financial year and in
the immediately preceding financial year.
(xi) Based on our audit procedures and the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to financial institutions and banks.
There are no debenture holders of the company.
(xii) Based on our examination of the records and the information and
explanations given to us, the company has not granted any loans and/ or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) The company is not a chit fund company or nidhi/ mutual benefit
fund/society.
(xiv) According to the information and explanations given to us, the
company has maintained proper records of the transactions & contracts
in respect of investments held by the company with timely entries and
they are held in its own name.
(xv) According to the information and explanations given to us, the
term loans raised during the year have been applied for the purpose for
which they were raised.
(xvi) In our opinion and according to the information and explanation
given to us, on an overall examination of the Balance Sheet and cash
flow of the company during the year we report that no funds raised on
short-term basis have been used for Long Term Investment.
(xvii) The company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
(xviii) The Company has not issued debentures, so the question of
security or charge created does not arise in respect of debentures
issued.
(xix) The company has not raised money through public issue during the
year.
(xx) During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanation given to us, we have neither came across any instances of
fraud on or by the company noticed or reported during the year, nor we
have been informed or such case by the management.
For R. Kobra & Co. For B. L. Chordia & Co.
Chartered Accountants Chartered Accountants
(Registration No.l 04502W) (Registration No.000294C)
(R.L Kabra) (B. L. Chordia)
Partner Partner
M.Ship No. 01621 6 M.Ship No. 010882
Camp: Bhilwara Place: Bhilwara
Date: May 27, 2010 Date : May 27, 201 0
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Sangam (India) Ltd.
-
Sangam (India) Ltd. Tools
- Bulk Deals
- Block Deals
-
Sangam (India) Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- Rights
- BSE Price History
- NSE Price History
-
Sangam (India) Ltd. Key Financial Ratios
- Ratios
-
Sangam (India) Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Sangam (India) Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Sangam (India) Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Sangam (India) Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
