Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of Sarda Plywood Industries Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information, in which are incorporated the Returns for the year ended on that date audited by the branch auditors of the Companyâs branch at Delhi.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind As financial statements that give a true and fair view of the state of affairs(financial position), profit or loss(financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation ofthe standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018, and its profit/loss (financial performance including other comprehensive income) ,its cash flows and the changes in equity or the year ended on that date.
Other Matters
I. The comparative financial information of the Company for the year ended 31st March, 2017 and the transition date opening balance sheet as at 1st April 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended 31st March 2017 and 31st March 2016 dated 30th May 2017 and 25th May 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
II. We did not audit the financial statements/information of Delhi branch included in the standalone Ind AS financial statements of the Company whose financial statements / financial information reflect total assets of Rs.2,298.68 Lakhs as at 31st March, 2018 and total revenues of Rs.7160.06 Lakhs for the year ended on that date. The financial statements/information of Delhi branch has been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of Delhi branch, is based solely on the report of such branch auditors.
Report on Other Legal and Regulatory Requirements
I. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of section 143(11) of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
II. As required by Section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of accounts as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.
c. The reports on the accounts of the branch offices of the Company audited under Section 143(8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report.
d. The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and the Statement of Change in Equity dealt with by this Report are in agreement with the books of account and with the returns received from the branches not visited by us.
e. In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133of the Act, read with relevant rules issued thereunder.
f. On the basis of the written representations received from the Directors as on 31st March 2018 taken on record by the Board ofDirectors, none ofthe Directors is disqualified as on31st March 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
g. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ;
h. With respect to the other matters to be included in the Auditorâs Report in accordance with amended Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements (Refer Note No. 34.3 to the financial statements).
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure -A to the Independent Auditorsâ Report
The Annexure referred to in our Independent Auditor''s Report to the members of Sarda Plywood Industries Limited (the Companyâ) on the financial statements for the year ended on 31st March 2018. We report that:
i. (a) The Company has maintained proper records showing full, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. According to the information and explanations given to us the inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable and no material discrepancies were noticed on physical verification.
iii. The Company has neither granted nor taken any loans, secured or unsecured to/from companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, Clauses (iii) (a), (iii) (b) and (iii) (c) of paragraph 3 of the order is not applicable.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of sections 185 and 186 of the Companies Act, 2013 in respect of loans and investments made.
v. The Company has not accepted any deposits from the public during the year.
vi. As per the information and explanations given to us by the management, maintenance of cost records prescribed by the Central Government under sub section (1) of section 148 of the Act is not applicable to the Company.
vii. According to the information and explanations given to us in respect of statutory dues:
(a) The Company has been regular in depositing undisputed statutory dues, including Provident Fund, Employees State Insurance, Income Tax, Service Tax, Sales Tax, Value Added Tax, Goods and Services Tax, duty of Custom, duty of Excise, Cess and other statutory dues with the appropriate authorities during the year. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March 2018 for a period ofmore than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no material dues of duty of customs, goods and services tax, value added tax which have not been deposited with the appropriate authorities on account of any dispute. However, according to information and explanations given to us, the following dues of income tax, sales tax, duty of excise, service tax have not been deposited by the Company on account of disputes:
Nature of the Statute |
Nature of dues |
Amount (Rs. In Lakhs) |
Period to which the matter pertains |
Forum where matter is pending |
Delhi Sales Tax Act, 1975 |
Sales Tax |
77.87 |
1990-91 |
Additional Commissioner of sales tax |
Central Sales Tax Act, 1956 |
Sales Tax |
47.52 |
1990-91 |
Additional Commissioner of sales tax |
Central Excise Act, 1944 |
Service Tax |
14.27 |
July, 2012 to Sep, 2013 |
Under Appeal Custom, Excise & Service Tax Appellate Tribunal |
Income Tax Act, 1961 |
Income Tax |
0.87 |
1985-86 |
Income Tax Appellate Tribunal |
Central Excise Act, 1944 |
Excise Duty |
1,198.78 |
April, 2010 to Dec, 2016 |
Assistant Commissioner of Central Excise |
viii. On the basis of records examined by us and the information and explanations given to us, the company has not defaulted in repayment of dues to Banks.
ix. The Company did not raise any money by way of initial public officer and further public offer (including debt instrument). To the best of our knowledge and belief and according to the information and explanations given to us, term loans availed by the company were applied for the purpose for which the loans were obtained. Accordingly, paragraph 3 (ix) of the Order is not applicable.
x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remunerations in accordance with the requisite approvals mandated by the provisions of Sec 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is notrequired to be registered under section 45-IA ofthe Reserve Bank ofIndia Act 1934.
Annexure - B to the Auditorsâ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Sarda Plywood Industries Limited to the extent records available with us in Conjunction with our audit of the financial statements of the company as of and for the year ended 31st March 2018, in which are incorporated the report of branch auditors for Internal financial control of Companyâs branch at Delhi.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial report is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company.
For S. K. AGRAWAL & CO.
Chartered Accountants
Firmâs Registration No. 306033E
(CA VIVEK AGARWAL)
Place: Kolkata Partner
Date: 28th May, 2018 Membership No. 301571
Mar 31, 2016
Independent Auditorsâ Report to the Members
Report on the standalone financial statements
We have audited the accompanying standalone financial statements of Sarda Plywood Industries Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement (in which are incorporated the accounts of Companyâs branch at Delhi audited by other Auditors), and a summary of the significant accounting policies and other explanatory information for the year then ended.
Managementâs responsibility for the standalone financial statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs 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 Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs 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 the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31st March, 2016 and its loss and its cash flows for the year ended on that date.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
i. 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.
ii. 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.
iii. 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.
iv. In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
v. On the basis of the written representations received from the directors as at 31st March, 2016 and taken on record by the Board of Directors, none of the directors is disqualified as at 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
vi. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
vii. 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, in our opinion and to the best of our information and according to the explanations given to us:
a. The Company has disclosed the impact of pending litigations on its financial position in its financial statements -Refer Note No. 28.2 to the financial statements.
b. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
c. There is no amount outstanding in the Investor Education and Protection Fund.
Statement referred to in paragraph âReport on Other Legal and Regulatory Requirementsâ of our report of even date to the members of Sarda Plywood Industries Limited on the standalone financial statements for the year ended 31st March, 2016.
(i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.
b) The fixed assets were physically verified during the year by the management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The inventories (excluding stocks with third parties) have been physically verified during the year by the management at reasonable intervals and no material discrepancies were noticed on such physical verification.
(iii) The Company has not granted any loan, secured or unsecured, to companies, firms, and limited liability partnerships or other parties covered in the register maintained under section 189 of the Act. Therefore, clauses (iii) (a), (b) and (c) of paragraph 3 of the said order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, there are no guarantees and securities granted in respect of which provisions of Section 185 and 186 of the Companies Act 2013 are applicable. Based on our audit procedures performed and according to information and explanations given by the management, the Company has complied with provisions of Section 186 of the Act in respect of loans granted and investments.
(v) The Company has not accepted any deposit within the meaning of section 73 to 76 or any other relevant provisions of the Act and the rules framed there under. The directives issued by the Reserve Bank of India are not applicable to the Company.
(vi) As per the information and explanations given to us by the management, maintenance of cost records prescribed by the Central Government under sub-section (1) of section 148 of the Act is not applicable to the Company.
(vii) a) On the basis of our examination, the Company is regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues, to the extent applicable, with appropriate authorities and no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2016 for a period of more than six months from the date of becoming payable.
b) The disputed statutory dues aggregating to Rs, 844.37 Lakhs that have not been deposited on account of matters pending before appropriate authorities are as under: -
Sl. No. |
Name of the statute |
Nature of dues |
Amount (Rs,) |
Period to which the amount relate |
Forum where the dispute is pending |
1. |
Delhi Sales Tax Act, 1975 |
Sales Tax |
77,86,548 |
1990-91 |
Addl. Commissioner of Sales Tax |
2. |
Central Sales Tax Act, 1956 |
Sales Tax |
47,51,800 |
1990-91 |
Addl. Commissioner of Sales Tax |
3. |
Central Excise Act, 1944 |
Excise Duty |
20,71,205 |
20011-12 |
Under Appeal Commissioner, Rajkot |
4. |
Central Excise Act, 1944 |
Service Tax |
14,46,353 |
Julyâ12 to Septâ13 |
Under Appeal Custom, Excise & Service Tax Appellate Tribunal |
5. |
Income Tax Act, 1961 |
Income Tax |
87,429 |
1985-86 |
Income Tax Appellate Tribunal |
6. |
Central Excise Act, 1944 |
Excise Duty |
6,82,93,531 |
Aprilâ 10 to Febâ15 |
Asst. Commissioner of Central Excise. |
TOTAL |
8,44,36,866 |
(viii) The Company has not defaulted in repayment of loans or borrowings to financial institutions or banks or Government. The Company has not issued any debentures.
(ix) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. On the basis of our examination and according to the information and explanations given to us, money raised by way of term loans have been applied for the purpose for which the loans were obtained.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi Company. Therefore, clause (xii) of paragraph 3 of the said order are not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, clause (xv) of paragraph 3 of the said order is not applicable to the Company.
(xvi) According to the information and explanations given to us, the provisions of Section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
âAnnexure Bâ to the Independent Auditorâs Report of Even Date on the Standalone Financial Statements of Sarda Plywood Industries Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Sarda Plywood Industries Limited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, to the extent applicable to an audit of internal financial controls, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
For G.P. Agrawal & Co.
Chartered Accountants
Firmâs Registration No. - 302082E
(CA. Rakesh Kumar Singh)
Place of Signature: Kolkata Partner
Date: 25th May, 2016 Membership No. 066421
Mar 31, 2015
We have audited the accompanying financial statements of Sarda Plywood
Industries Limited ("the Company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement(in which are incorporated the accounts of Company's branch at
Delhi audited by other Auditors), and a summary of significant
accounting policies and other explanatory information for the year then
ended.
Management's responsibility for the financial statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's responsibility
Our responsibility is to express an opinion on these 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 controls relevant to the Company's preparation of
the financial statements that give a true and fair view in order to
design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on whether the Company has
in place an adequate internal financial controls system over financial
reporting and the operating effectiveness of such controls. An audit
also includes evaluating the appropriateness of accounting policies
used and the reasonableness of the accounting estimates made by
Company's Directors, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at 31st March, 2015 and its profit and its cash flows for the year
ended on that date.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
i. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
ii. 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.
iii. 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.
iv. 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.
v. On the basis of the written representations received from the
directors as at 31st March, 2015and taken on record by the Board of
Directors, none of the directors is disqualified as at 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
vi. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
a. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 28.2 to the
financial statements.
b. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
c. There is no amount outstanding in the Investor Education and
Protection Fund.
Annexure to the Auditor's Report
Statement referred to in our report of even date to the members of
Sarda Plywood Industries Limited on the financial statements for the
year ended 31st March, 2015.
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) The fixed assets were physically verified during the year by the
management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(ii) a) The inventories(excluding stocks with third parties) have been
physically verified during the year by the management at reasonable
intervals. In respect of inventories lying with third parties
confirmation has been obtained from them.
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of stocks followed
by the management is reasonable and adequate in relation to the size of
the Company and nature of its business.
c) On the basis of our examination, we are of the opinion that the
Company is maintaining proper records of inventory. No material
discrepancies were noticed on verification between the physical stocks
and the book records.
(iii) The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 189 of the Act.Therefore, clauses (iii) (a) and (iii)(b)
of paragraph 3 of the said order are not applicable to the Company.
(iv) On the basis of the information and explanation given to us, we
are of the opinion that the Company has an adequate internal control
system commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. Further, on the basis of our examination
and according to the information and explanations given to us, we have
neither come across nor have we been informed of any instance of major
weaknesses in the aforesaid internal control system.
(v) The Company has not accepted any deposit within the meaning of
section 73 to 76 or any other relevant provisions of the Act and the
rules framed there under. The directives issued by the Reserve Bank of
India are not applicable to the Company.
(vi) We have broadly reviewed the books of account maintained by the
Company in respect of products where pursuant to the rules made by the
Central Government, the maintenance of Cost records has been prescribed
under section 148(1) of the Act and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. We, however, as not required, have not made a detailed
examination of such records.
(vii) a) On the basis of our examination, the Company is regular in
depositing undisputed statutory dues including provident fund,
employees' state insurance, income tax, sales tax, wealth tax, service
tax, duty of custom, duty of excise, value added tax, cess and other
statutory dues, to the extent applicable, with appropriate authorities
and no undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2015 for a period of more than six months
from the date of becoming payable.
b) The disputed statutory dues aggregating to Rs. 770.48 lacs that have
not been deposited on account of matters pending before appropriate
authorities are as under:
Sl. Name of the statute Nature of Amount
No. dues (Rs.)
1. Delhi Sales Tax Act, 1975 Sales Tax 77,86,548
2. Central Sales Tax Act, 1956 Sales Tax 47,51,800
3. Central Excise Act, 1944 Excise Duty 20,71,205
4. Central Sales Tax Act, 1956 Sales Tax 11,25,516
5. Income Tax Act, 1961 Income Tax 87,429
6. Central Excise Act, 1944 Excise Duty 6,12,25,380
TOTAL 7,70,47,878
Sl. Name of the statute Period to which the Forum where the dispute
No. amount relate is pending
1. Delhi Sales Tax Act, 1975 1990-91 Addl. Commissioner of
Sales Tax
2. Central Sales Tax Act, 1990-91 Addl. Commissioner of
1956 Sales Tax
3. Central Excise Act, 1944 2007- 10 Under Appeal
Commissioner, Rajkot
4. Central Sales Tax Act, 2009-10 Chairman Board of
1956 revenue (Govt. of Assam)
5. Income Tax Act, 1961 1985-86 Income Tax Appellate
Tribunal
6. Central Excise Act, 1944 April' 10 to Sep'14 Asst. Commissioner
of Central Excise.
c) The amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under has been
transferred to such fund within time.
(viii) The Company does not have accumulated losses exceeding 50% of
its net worth at the end of the financial year and has not incurred any
cash loss during the year covered by our audit but has incurred cash
loss in the immediately preceding financial year.
(ix) The Company has not defaulted in payment of dues to financial
institutions or banks. The Company has not issued any debentures.
(x) On the basis of our examination and according to the information
and explanations given to us, the Company has not given any guarantee
for loan taken by others from banks or financial institutions.
(xi) On the basis of our examination and according to the information
and explanations given to us, the term loans have been applied for the
purpose for which the loans were obtained.
(xii) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year that causes the financial statements materially
misstated.
For G.P. AGRAWAL & CO.
Chartered Accountants
Firm's Registration No. - 302082E
(CA. RAKESH KUMAR SINGH)
Place of Signature: Kolkata Partner
Date: 27th May, 2015 Membership No. 66421
Mar 31, 2014
We have audited the attached Balance Sheet of SARDA PLYWOOD INDUSTRIES
LIMITED as at 31st March, 2014, the Statement of Profit and Loss and
the Cash Flow Statement for the year ended on that date (in which are
incorporated the accounts of Company''s branch at Delhi audited by other
Auditors) 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 flow of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September, 2013
of the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by the management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case 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 loss for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards notified under
the Companies Act, 1956 read with the General Circular 15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013;
e) on the basis of written representations received from the Directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the Directors is disqualified as on March 31,2014, from being
appointed as a Director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT
Statement referred to in our report of even date to the members of
SARDA PLYWOOD INDUSTRIES LIMITED on the financial statements for the
year ended 31st March, 2014.
(i) a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) The fixed assets have been physically verified by the Management
during the year. To the best of our knowledge, no material
discrepancies were noticed on such verification.
c) The Company has not disposed of substantial part of fixed assets
during the year and the going concern status of the Company is not
affected.
(ii) a) The inventories (excluding stocks with third parties) have been
physically verified during the year by the Management at reasonable
intervals. In respect of inventories lying with third parties
confirmation has been obtained from them.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
c) On the basis of our examination, we are of the opinion that the
Company is maintaining proper records of inventory. No material
discrepancies were noticed on verification between the physical stocks
and the book records.
iii) a) The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Act.
b) As the Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in register maintained under
section 301 of the Act, clauses (iii)(b) to (iii)(d) of paragraph 4 of
the said order are not applicable to the Company.
c) The Company has not taken any loan, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of Act.
d) As the Company has not taken any loan, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Act, clauses (iii)(f) to (iii)(g) of paragraph
4 of the said order are not applicable to the Company.
(iv) On the basis of information and explanation given to us, we are of
the opinion that the Company has an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. Further, on the basis of our examination
and according to the information and explanation given to us, we have
neither come across nor have we been informed of any instances of major
weaknesses in the aforesaid internal control systems.
v) a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register maintained
under that section 301.
b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposit within the meaning of
section 58A, 58AA or any other relevant provisions of the Act and the
Rules framed thereunder.
(vii) In our opinion, the internal audit system of the Company is
commensurate with the size of Company and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where pur- suant to the rules made by
the Central Government, the maintenance of cost records has been
prescribed under section 209(1)(d) of the Act and are of the opinion
that, prima facie, the prescribed accounts and records have been made
and maintained. We, however, as not required, have not made a detailed
examination of such records.
(ix) a) According to the records, the Company is regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees'' State Insurance, Income Tax, Wealth
Tax, Service Tax, Sales Tax, Custom Duty, Excise Duty, Cess and other
statutory dues with appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March,
2014 for a period of more than six months from the date of becoming
payable. b) The disputed statutory dues aggregating to '' 668.68 lacs
that have not been deposited on account of mat- ters pending before
appropriate authorities are as under:
Sl. Name of the statute Nature of Amount(Rs.)
No. dues
1. Delhi Sales Tax Act, 1975 Sales Tax 77,86,548
2. Central Sales Tax Act, 1956 Sales Tax 47,51,800
3. Central Sales Tax Act, 1956 Sales Tax 45,07,370
4. Central Sales Tax Act, 1956 Sales Tax 11,25,516
5. Income Tax Act, 1961 Income Tax 87,429
6. Central Excise Act, 1944 Excise Duty 4,86,09,103
TOTAL 6,68,67,766
Sl. Name of the statute Period to Forum where the
No. which the dispute is pending
amount relate
1. Delhi Sales Tax Act, 1975 1990-91 Addl. Commissioner
of Sales Tax
2. Central Sales Tax Act, 1956 1990-91 Addl. Commissioner
of Sales Tax
3. Central Sales Tax Act, 1956 2008-09 Chairman Board of
revenue (Govt. of
Assam
4. Central Sales Tax Act, 1956 2009-10 Chairman Board of
revenue (Govt. of
Assam
5. Income Tax Act, 1961 1985-86 Income Tax Appellate
Tribunal
6. Central Excise Act, 1944 April'' 10 Asst. Commissioner
to Dec'' 13 of Central Excise.
TOTAL
(x) The Company does not have accumulated losses but has incurred cash
loss during the year covered by our audit and in the immediate
preceding financial year.
(xi) The Company has not defaulted in payment of dues to a financial
institution or bank. Debentures have not been issued by the Company.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and similar securities.
(xiii) The provisions of any special statue applicable to Chit Fund,
Nidhi or Mutual Benefit Society are not applicable to this Company.
(xiv) The Company is not dealing or trading in shares, securities,
debentures or other investments. However, the in- vestments made by the
Company in shares and other securities have been held by the Company in
its own name.
(xv) According to the records of the Company and the information and
explanations given to us, the Company has not given any guarantee for
loans taken by others from bank or financial institutions.
(xvi) On the basis of our examination and according to the information
and explanation given to us, the term loans have been applied for the
purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that funds raised on the short term basis have not been used for long
term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Act.
(xix) The Company has not issued any secured debentures.
(xx) The Company has not raised any moneys by public issue during the
period covered by our audit report.
(xxi) To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the Company
has been noticed or reported during the year that causes the financial
statements materially misstated.
For G.P. AGRAWAL & CO.
Chartered Accountants
F.R. No. 302082E
7A, Kiran Shankar Ray Road (CA. AJAY AGRAWAL)
Kolkata - 700 001 Partner
The 26th May 2014 Membership No. 17643
Mar 31, 2013
Report on the financial statements
We have audited the attached Balance Sheet of SARDA PLYWOOD INDUSTRIES
LIMITED as at 31st March, 2013, the Statement of Profit and Loss and
the Cash Flow Statement for the year ended on that date (in which are
incorporated the accounts of Company''s branch at Delhi audited by
other Auditors) 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.
Auditor''s responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment
of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by the management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case 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 loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
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 274 of the Companies Act, 1956.
For G.P. AGRAWAL & CO.
Chartered Accountants
F.R. No. 302082E
7A, Kiran Shankar Ray Road (CA. RAKESH KUMAR SINGH)
Kolkata - 700 001 Partner
The 29th May 2013 Membership No. 66421
ANNEXURE TO THE AUDITOR''S REPORT ,
Statement referred to in our report of even date to the members of S
ARDA PLYWOOD INDUSTRIES LIMITED on the financial statements for the
year ended 31st March, 2013.
(i) a) The Company is maintaining proper records showing Ml particulars
including quantitative details and situation of its fixed assets.
b) The fixed assets have been physically verified by the Management
during the year. To the best of our knowledge, no material
discrepancies were noticed on such verification.
c) The Company has not disposed of substantial part of fixed assets
during the year and the going concern status of the Company is not
affected.
(ii) a) The inventories (excluding stocks with third parties) have been
physically verified during the year by the Management at reasonable
intervals. In respect of inventories lying with thud parties
confirmation has been obtained from them.
b) In our opinion and according to the information and explanations
given to us, die procedures of physical '' verification of stocks
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
c) On the basis of our examination, we are of the opinion that the
Company is maintaining proper records of inventory. No material
discrepancies were noticed on verification between the physical stocks
and the book records.
(iii) a) The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Act.
b) As the Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in register maintained under
section 301 of the Act, clauses (iii)(b) to (iiiXd) of paragraph 4 of
the said order are not applicable to the Company.
c) The Company has not taken any loan, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of Act.
d) As the Company has not taken any loan, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Act, clauses (iii)(f) to (iiiXg) of paragraph
4 of the said order are not applicable to the Company.
(iv) On the basis of information and explanation given to us, we are of
the opinion that the Company has an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. Further, on the basis of our , examination
and according to the information and explanation given to us, we have
neither come across nor have we been informed of any instances of major
weaknesses in the aforesaid internal control systems.
(v) a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register maintained
under that section 301. ;
b) In our opinion and according to information and explanations given
to us, the transactions made in i pursuance of such contracts or
arrangements have been made at prices which are reasonable having J ,
regard to prevailing market prices at the relevant time. j
(vi) The Company has not accepted any deposit within the meaning of
section 58A, 58AA or any other relevant  provisions of the Act and
the Rules framed there under.
(vii) In our opinion, the internal audit system of the Company is
commensurate with the size of Company and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where pursuant to the rules made by the
Central Government, the maintenance of cost records has been prescribed
under section 209(1)(d) of the Act and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. We, however, as not required, have not made a detailed
examination of such records.
(ix) a) According to the records, the Company is regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees'' State Insurance, Income Tax, Wealth
Tax, Service Tax, Sales Tax, Custom Duty, Excise Duty, Cess and other
statutory dues with appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March,
2013 for a period of more than six months from the date of becoming
payable,
b) The disputed statutory dues aggregating to Rs. 528.28 lacs that have
not been deposited on account of matters pending before appropriate
authorities are as under:
SI. Name of the
statute Nature
of dues Amount (Rs.) Period to
which the Forum where
the dispute
is pending
amount
relate
1. Delhi
Sales Tax
Act, 1975 Sales Tax 77,86,548 1990-91 Addl.
Commissioner of
Sales Tax
2. Central
Sales Tax
Act, 1956 Sales Tax_ 47,51,800 1990-91 Addl.
Commissioner of
Sales Tax
3. Value
Added Tax
Act, 2003 Sales Tax 1,16,47,430 2005-06 Dy.Commissioner
of Sales Tax
4. Central
Sales Tax
Act, 1956 Sales Tax 70,769 2005-06 Dy.Commissioner
of Sales Tax
5. Central
Sales Tax
Act, 1956 Sales Tax 45,07,370 2008-09 Dy.Commissioner
of Sales Tax
6. Value
Added Tax
Act, 2003 Sales Tax 1,58,360 2008-09 Addl.Commis
sioner of Sales
Tax
7. Income
Tax Act,
1961 Income Tax 87,429 1985-86 Income Tax
Appellate Tri
bunal
8. Central
Sales Tax
Act, 1956 Sales Tax 13,99,318 2007-08
to 2010-11 Gujrat Sales Tax
Tribunal,
Ahmedabad.
9. Value
Added Tax
Act, 2003 Sales Tax 99,760 2010-11 Gujrat Sales
Tax Tribunal,
Ahmedabad.
10. Central
Excise
Act, 1944 Excise
Duty 2,20,86,729 April 10
to
April''12 Asst. Commis
sioner of
Central Excise.
11. Assam
Electri
city Duty
Act, Electri
city Dues 2,32,590 Sep''05 to
Mar''12 Dy. Commissioner
of Taxes
(Appeals)
1964 .
(interest)_
TOTAL 5,28,28,103
(x) The Company does not have accumulated losses but has incurred cash
loss during the year covered by our audit and in the immediate
preceding financial year.
(xi) The Company has not defaulted in payment of dues to a financial
institution or bank. Debentures have not been issued by the Company.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and similar securities.
(xiii) The provisions of any special statue applicable to Chit Fund,
Nidhi or Mutual Benefit Society are not applicable to this Company.
(xiv) The Company is not dealing or trading in shares, securities,
debentures or other investments. However, the investments made by the
Company in shares and other securities have been held by the Company in
its own name. ''
(xv) According to the records of the Company and the information and
explanations given to us, the Company has not given any guarantee for
loans taken by others from bank or financial institutions.
(xvi) On the basis of our examination and according to the information
and explanation given to us, the term loans have been applied for the
purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that funds raised on the short term basis have not been used for long
term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Act.
(xix) The Company has not issued any secured debentures.
(xx) The Company has not raised any moneys by public issue during the
period covered by our audit report.
(xxi) To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the Company
has been noticed or reported during the year that causes the financial
statements materially misstated.
For G.P. AGRAWAL & CO.
Chartered Accountants
F.R. No. 302082E
7A, Kiran Shankar Ray Road (CA. RAKESH KUMAR SINGH)
Kolkata - 700 001 Partner
The 29th May 2013 Membership No. 66421
Mar 31, 2012
1. We have audited the attached Balance Sheet of SARDA PLYWOOD
INDUSTRIES LIMITED as at 31st March, 2012 and also the Statement of
Profit and Loss and the Cash Flow Statement for the year ended on that
date (in which are incorporated the accounts of Company's branch at
Delhi audited by other Auditors), annexed thereto. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order. 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956 (the Act), we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) 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 and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us. The Branch
Auditors Reports have been forwarded to us and have been appropriately
dealt with in this report.
(iii) 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;
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Act;
(v) On the basis of written representations received from the
Directors, as on 31st March, 2012, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Act;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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 31st March, 2012.
b) in the case of the Statement of Profit & Loss, of the PROFIT for the
year ended on that date, and
c) In the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date to the Members of
SARDA PLYWOOD INDUSTRIES LIMITED on the accounts for the year ended
31st March. 2012.
(i) a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) The fixed assets have been physically verified by the Management
during the year. To the best of our knowledge, no material
discrepancies were noticed on such verification.
c) The Company has not disposed of substantial part of fixed assets
during the year and the going concern status of the Company is not
affected.
(ii) a) The inventories (excluding stocks with third parties) have been
physically verified during the year by the Management at reasonable
intervals. In respect of inventories lying with third parties
confirmation has been obtained from some of the parties.
b) In our opinion and according to the information and explanations
given to us. the procedures of "physical verification of stocks
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
c) On the basis of our examination, we are of the opinion that the
Company is maintaining proper records of inventory. No material
discrepancies were noticed on verification between the physical stocks
and the book records.
iii) a) The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Act.
b) As the Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in register maintained under
section 301 of the Act. clauses (iii)(b) to (iii)(d) of paragraph 4 of
the said order are not applicable to the Company.
c) The Company has not taken any loans secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of Act.
d) As the Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Act. clauses (iii)(f) to (iii)(g) Of paragraph
4 of the said order are not applicable to the Company.
(iv) On the basis of information and explanation given to us, we are of
the opinion that the Company has an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. Further, on the basis of our examination
and according to the information and explanation given to us, we have
neither come across nor have we been informed of any instances of major
weaknesses in the aforesaid internal control systems.
v) a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register maintained
under that section 301.
b) In our opinion and according to information and explanations given
to us. the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposit within the meaning of
section 58A, 58AA or any other relevant provisions of the Act and the
Rules flamed thereunder.
(vii) In our opinion, the internal audit system of the company is
commensurate with the size of Company and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company in respect of products where pursuant to the rules made by the
Central Government, the maintenance of cost records has been prescribed
under section 209(l)(d) of the Act and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. We. however, as not required, have not made a detailed
examination of such records.
(ix) a) According to the records, the Company is regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees' State Insurance, Income Tax, Wealth
Tax, Service Tax, Sales Tax, Custom Duty, Excise Duty, Cess and other
statutory dues with appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March, 2012
for a period of more than six months from the date of becoming
payable.
b) The disputed statutory dues aggregating to Rs. 376.41 lacs that have
not been deposited on account of matters pending before appropriate
authorities are as under:
SI Name of the Nature Amount
No Statute of dues (Rs. )
1. Delhi Sales Tax Act, 1975 Sales Tax 77,86,548
2. Central Sales Tax Act, 1956 Sales Tax 47,51,800
3. Value Added Tax Act, 2003 Sales Tax 1,16,47,430
4. Central Sales Tax Act,1956 Sales Tax 70,769
5, Income Tax Act, 1961 Income Tax 87,429
6. Central Sales Tax Act, 1956 Sales Tax 13,99,318
7. Value Added Tax Act, 2003 Sales Tax 99,760
8. Central Excise Act, 1994 Excise Duty 41,58,216
9. Central Excise Act, 1994 Excise Duty 78,39,306
TOTAL 3,76,40,576
SI Name of the Period to Forum where the
No Statute which the dispute is pending
amount
relate
1. Delhi Sales Tax Act, 1975 1990-91 Addl. Commissioner
of Sales Tax
2. Central Sales Tax Act, 1956 1990-91 Addl. Commissioner
of Sales Tax
3. Value Added Tax Act, 2003 2005-06 Dy. Commissioner of
Sales Tax
4. Central Sales Tax Act,1956 2005-06 Dy. Commissioner of
Sales Tax
5. Income Tax Act, 1961 1985-86 Income Tax Appellate
Tribunal
6. Central Sales Tax Act, 1956 2007-08 to Apple Tribunal,
2010-11 Ahmedabad.
7. Value Added Tax Act, 2003 2010-11 Apple Tribunal,
Ahmedabad.
8. Central Excise Act, 1994 April 10 to Asst. Commissioner
Sept' 10 of Central Excise
9. Central Excise Act, 1994 April 10 to Asst. Commissioner
Sept' 10 of Central Excise
(x) The Company does not have accumulated losses but has incurred cash
loss during the year covered by our audit.
(xi) The Company has not defaulted in payment of dues to a financial
institution or bank. Debentures have not been issued by the Company.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and similar securities.
(xiii) The provisions of any special statue applicable to Chit Fund.
Nidhi or Mutual Benefit Society are not applicable to this Company.
(xiv) The Company is not dealing or trading in shares, securities,
debentures or other investments. However, the investments made by the
Company in shares and other securities have been held by the Company in
its own name.
(xv) According to the records of the Company and the information and
explanations given to us. the Company has not given any guarantee for
loans taken by others from bank or financial institutions.
(xvi) On the basis of our examination and according to the information
and explanation given to us, the term loans have been applied for the
purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that funds raised on the short term basis have not been used for long
term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Act.
(xix) The Company has not issued any secured debentures.
(xx) The Company has not raised any moneys by public issue during the
period covered by our audit report.
(xxi) To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the Company
has been noticed or reported during the year that causes the financial
statements materially misstated.
For GP. AGRAWAL & CO.
Chartered Accountants
(F. R. No. 302O82E)
CA. RAKESH KUMAR SINGH
(Membership No. 66421)
Partner
7A, Kiran Shanker Ray Road
Kolkata - 700 001
The 29th May 2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of SARDA PLYWOOD
INDUSTRIES LIMITED as at 31st March. 2010 and also the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date (in
which are incorporated the accounts of Companys branch at Delhi
audited by other Auditors), 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 auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956 (the Act), we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) 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 and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us. The Branch
Auditors Report have been forwarded to us and have been appropriately
dealt with in this report.
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Act;
(v) On the basis of written representations received from the
Directors, as on 31s1 March, 2010, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31sl March. 2010 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Act;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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 31st March, 2010,
b) in the case of the Profit & Loss Account, of the PROFIT for the year
ended on that date, and
c) In the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in Auditors Report of even date to the Members of SARDA
PLYWOOD INDUSTRIES LIMITED on the Accounts for the year ended 31st March
2010.
(i) a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) The fixed assets have been physically verified by the Management
during the year. To the best of our knowledge, no material
discrepancies were noticed on such verification.
c) The Company has not disposed of substantial part of fixed assets
during the year and the going concern status of the Company is not
affected.
(ii) a) The inventories (excluding stocks with third parties) have been
physically verified during the year by the Management at reasonable
intervals. In respect of inventories lying with third parties
confirmation has been obtained from some of the parties.
b) In our opinion and according to the information and explanations
given to us. the procedure of physical verification of stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
c) On the basis of our examination, we are of the opinion that the
Company is maintaining proper records of inventory. No material
discrepancies were noticed on verification between the physical stocks
and the book records.
(iii) a) The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Act.
b) As the Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in register maintained under
section 301 of the Act, clauses (iii)(b) to (iii)(d) of paragraph 4 of
the said order are not applicable to the Company.
c) The Company has not taken any loans secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
d) As the Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Act, clauses (iii)(f) to (iii)(g) of paragraph
4 of the said order are not applicable to the Company.
(iv) On the basis of information and explanation given to us, we are of
the opinion that the Company lias an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. Further, on the basis of our examination
and according to the information and explanation given to us, we have
neither come across nor have we been informed of any instances of major
weaknesses in the aforesaid internal control systems.
(v) a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register maintained
under that section 301.
b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposit within the meaning of
section 58A. 58AA or any other relevant provisions of the Act and the
Rules framed thereunder.
(vii) In our opinion, the internal audit system of the company is
commensurate with the size of Company and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company in respect of products where pursuant to the rules made by the
Central Government, the maintenance of cost records has been prescribed
under section 209(1 )(d) of the Act and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. We, however, as not required, have not made a detailed
examination of such records.
(ix) a) According to the records, the Company is regular in depositing
undisputed statutory dues including Provident Fund. Investor Education
and Protection Fund, Employees State Insuance. Income Tax. Wealth Tax.
Service Tax, Sales Tax, Custom Duty. Excise Duty. Cess and other
statutory dues with appropriate authorities. According to the
information and explanations given to us. no undisputed amounts paable in respect of the aforesaid dues were outstanding as at 31s
March, 2010 for a period of more than six months from the date of
becoming payable.
b) The disputed statutory dues aggregating to Rs. 243.85 lacs that have
not been deposited on account of matters pending before appropriate
authorities are as under:
Sl Name of the Nature Amount Period to
which Forum where the
No Statute of dues (Rs.) the amount
relate dispute is
pending
1. Delhi Sales
Tax Act. 1975 Sales Tax 77,86,548 1990-91 Addl.
Commissioner
of Sales Tax
2. Central Sales
Tax Act, 1956 Sales Tax 47,51,800 1990-91 Addl.
Commissioner
of Sales Tax
3. West Bengal
Sales Tax Sales Tax 41,063 2000-01 Appellate &
Revisional
Board
Act,1994
4.Value Added
Tax Act. 2003 Sales Tax 1,16,47,430 2005-06 Dy.Commissioner
of Sales Tax
5.Central Sales
Tax Act, 1956 Sales Tax 70,769 2005-06 Dy.Commissioner
of Sales Tax
6.Income fax
Act, 1961 Income Tax 87,429 1985-86 Income fax
Appellate
Tribunal
(x) The Company does not have accumulated losses and has not incurred
any cash loss during the year covered by our audit. However, Cash loss
incurred during the immediately preceding financial year has been set
off with the brought forward balance in the Profit & Loss Account.
(xi) The Company has not defaulted in payment of dues to a financial
institution or bank. Debentures have not been issued by the Company.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and similar securities.
(xiii) The provisions of any special statue applicable to Chit Fund,
Nidhi or Mutual Benefit Society are not applicable to this Company.
(xiv) The Company is not dealing or trading in shares, securities,
debentures or other investments. However, the investments made by the
Company in shares and other securities have been held by the Company in
its own name.
(xv) According to the records of the Company and the information and
explanations given to us, the Company has not given any guarantee for
loans taken by others from bank or financial institutions.
(xvi) On the basis of our examination and according to the information
and explanation given to us, the term loans have been applied for the
purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that funds raised on the short term basis have not been used for long
term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Act.
(xix) The Company has not issued any secured debentures.
(xx) The Company has not raised any moneys by public issue during the
period covered by our audit report.
(xxi) To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the Company
has been noticed or reported during the year that causes the financial
statements materially misstated.
For G.P. AGRAWAL & CO.
Chartered Accountants
(CA. SUNITA KED1A)
7A, Kiran Shankar Ray Road Membership No. 60162
Kolkata - 700 001 Partner
The 27th May 2010 F. R. No. 302082E
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