Mar 31, 2023
Independent Auditorâs Report
To the Members of Shalimar Paints Limited
Report on the Audit of the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of Shalimar Paints Limited (âthe Companyâ), which comprise
the Balance Sheet as at 31 March 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement
of Cash Flow and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements,
including a summary of the significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial
statements give the information required by the Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair
view in conformity with the Indian Accounting Standards (âInd ASâ) specified under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the
Company as at 31 March 2023, and its loss (including other comprehensive income), its cash flows and the changes in equity for
the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities
under those standards are further described in the Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India (âICAIâ) together with the ethical requirements that are relevant to our audit of the standalone
financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone
financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
5. We have determined the matters described below to be the key audit matters to be communicated in our report.
Information other than the Standalone Financial Statements and Auditorâs Report thereon
6. The Companyâs Board of Directors are responsible for the other information. The other information comprises the information
included in the Annual Report but does not include the standalone financial statements and our auditorâs report thereon. The
Annual Report is expected to be made available to us after the date of this auditorâs report.
Our opinion on the standalone financial statements does not cover the other information and we will not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified
above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the
standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the
matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
7. The accompanying standalone financial statements have been approved by the Companyâs Board of Directors. The Companyâs
Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation and presentation
of these standalone financial statements that give a true and fair view of the financial position, financial performance including
other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS specified under
section 133 of the Act and other accounting principles generally accepted in India. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant
to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
8. In preparing the standalone financial statements, the Board of Directors are responsible for assessing the Companyâs ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Board of Directors either intend to liquidate the Company or to cease operations, or has no realistic alternative
but to do so.
9. Those Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
10. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis
of these standalone financial statements.
11. As part of an audit in accordance with Standards on Auditing, specified under section 143(10) of the Act we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control;
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the Company
has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness
of such controls;
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management;
⢠Conclude on the appropriateness of Board of Directorsâ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditorâs report to the related disclosures in the standalone financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs
report. However, future events or conditions may cause the Company to cease to continue as a going concern;
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and
whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair
presentation;
12. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
13. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
14. From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these
matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such communication.
15. The standalone financial statements of the Company for the year ended 31 March 2022 were audited by the predecessor auditor,
A.K. DUBEY & Co., who have expressed an unmodified opinion on those standalone financial statements vide their audit report
dated 26 May 2022.
Report on Other Legal and Regulatory Requirements
16. As required by section 197(16) of the Act based on our audit, we report that the Company has paid remuneration to its directors
during the year in accordance with the provisions of and limits laid down under section 197 read with Schedule V to the Act.
17. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ) issued by the Central Government of India in terms of
section 143(11) of the Act we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order, to the
extent applicable.
18. Further to our comments in Annexure I, as required by section 143(3) of the Act based on our audit, we report, to the extent
applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purpose of our audit of the accompanying standalone financial statements;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books;
c) The standalone financial statements dealt with by this report are in agreement with the books of account;
d) in our opinion, the aforesaid standalone financial statements comply with Ind AS specified under section 133 of the Act;
e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of
the directors is disqualified as on 31 March 2023 from being appointed as a director in terms of section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company
as on 31 March 2023 and the operating effectiveness of such controls, refer to our separate Report in Annexure II wherein we
have expressed an unmodified opinion; and
g) With respect to the other matters to be included in the Auditorâs Report in accordance with rule 11 of the Companies (Audit and
Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given
to us :
i. the Company, as detailed in note 45 to the standalone financial statements, has disclosed the impact of pending litigations
on its financial position as at 31 March 2023;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material
foreseeable losses as at 31 March 2023;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the
Company during the year ended 31 March 2023;
iv. a. The management has represented that, to the best of its knowledge and belief, as disclosed in note 63(o) to the
standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or
securities premium or any other sources or kind of funds) by the Company to or in any person(s) or entity(ies),
including foreign entities (âthe intermediariesâ), with the understanding, whether recorded in writing or otherwise, that
the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Company (âthe Ultimate Beneficiariesâ) or provide any guarantee, security or the like
on behalf the Ultimate Beneficiaries;
b. The management has represented that, to the best of its knowledge and belief, as disclosed in note 63(p) to the
standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies),
including foreign entities (âthe Funding Partiesâ), with the understanding, whether recorded in writing or otherwise,
that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries; and
c. Based on such audit procedures performed as considered reasonable and appropriate in the circumstances, nothing
has come to our notice that has caused us to believe that the management representations under sub-clauses iv(a)
and iv(b) above contain any material misstatement.
v. The Company has not declared or paid any dividend during the year ended 31 March 2023 and;
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 requires all companies which use accounting software for
maintaining their books of account, to use such an accounting software which has a feature of audit trail, with effect from
the financial year beginning on 1 April 2023 and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors)
Rules, 2014 (as amended) is not applicable for the current financial year.
Chartered Accountants
Firmâs Registration No.: 001076N/N500013
Partner
Place: Gurugram Membership No.: 508685
Date: 27 May 2023 UDIN: 23508685BGYCRF9052
Mar 31, 2018
Managementâs Responsibility for the Standalone Ind AS 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 financial position, 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
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 controls 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 of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone 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 and the Ind AS, of the state of affairs of the Company as at 31st March, 2018, and its loss, total comprehensive income, its cash flows and the changes in equity for 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 statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by previous auditors whose reports for the year ended 31st March, 2017 and 31st March, 2016 dated 24th May, 2017 & 28th May, 2016,respectively, expressed an unmodified opinion on those standalone financial statements. The said financial statements as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS have been audited by us.
(ii) As per information and explanation furnished to us, the insurance claims of loss for damage of immovable & movable assets due to fire in Companyâs plants/units located at Howrah & Nasik, are yet to be assessed by the Insurer & claim have been accounted for on estimated basis (Note 52 of standalone financial statements).
(iii) Some of the financial assets & liabilities including trade receivables, trade payables & advances are pending confirmation /reconciliation, and their impact on financial statements, if any, is unascertained.( Note 58 of standalone financial statements)
Our opinion on the standalone Ind AS financial statements and our report on Other Legal and Regulatory Requirements below is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit, we report, to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company, and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements.( Note 40 to the standalone Ind AS financial statements)
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund.
2. As required by the Companies (Auditorsâ Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
(Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ Section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting 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 Shalimar Paints Limited (âthe Companyâ) as of 31st March, 2018 in conjunction with our audit of the standalone Ind AS 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 company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the 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) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 auditors'' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial controls 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 companyâs internal financial controls 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 controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31stMarch, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets.
(b) Due to fire in Companyâs Howrah Plant/unit during financial year 2013-14 & Nasik Plant/unit during financial year 2016-17, there has been significant damage its fixed assets comprising Building, Plant & Machineries, etc situated therein. The Company has a regular programme/policy of physical verification of its fixed assets included in Property, Plant & Equipmentâs (PPE) by which all fixed assets are verified in a phased manner. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. As per the policy ,certain fixed assets, excluding damaged, as stated above, were physically verified by the Management during the year. 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 the records examined by us on test basis, we report that, the title deeds in respect of freehold immovable properties of land and buildings, are held in the name of the Company as at the Balance Sheet date. In respect of leasehold immovable properties, the lease agreements are in the name of the Company.
ii. The inventory, (except goods-in-transit, stocks lying with third parties & stock, burnt/damaged due to fire in Howrah & Nasik Plants), have been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. For stocks lying with third parties at the year end, written confirmations, obtained by the management have been verified by us, on test basis. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been dealt with in books of account.
iii. The Company is to receive '' 699.90 lakh (previous year '' 672.74 lakh) is from its subsidiary, Shalimar Adhunik Nirman Limited( SANL) which is shown under the head âLoans (Non-current) under sub head Loan to Related partiesâ in Note 9 of the Financial Statement. The said Loan includes '' 492.00 lakh (Note 50), being consideration money for transfer of Land by the Company to SANL, and the same is interest free. The terms and conditions of said advances are not prejudicial to the Company''s interest.
As per information & explanation given to us the repayment schedule is being adhered to so far as it relates to payment of principal & interest whenever, they fall due. There is no overdue amount of loan & interest.
Except loan and advances to the aforesaid subsidiary, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnership or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
iv. In our opinion and according to information and explanations given to us, in respect of loans, investments, guarantees, and security, the Company has complied with the provisions of section 185 & 186 of the Companies Act, 2013, to the extent applicable.
v. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit from the public in accordance with the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder. Accordingly, Clause 3(v) of the Order is not applicable to the Company.
vi. The Central Government has prescribed maintenance of Cost Records under Section 148(1) of the Companies Act, 2013 in respect of certain manufacturing activities of the Company. We have broadly reviewed the accounts and records of the Company in this connection, and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
vii. According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues in arrears as at 31st March, 2018 for a period of more than six months from the date they became payable, except as tabled below:-.
Sl. No |
Nature of dues |
Amount due ('', lakh) |
1 |
Value Added Tax (VAT) |
185.28 |
2 |
Central Sales Tax(CST) |
6.08 |
3 |
Entry Tax |
7.20 |
198.56 |
(c) Details of dues of Income Tax, Sales Tax, Service Tax, Excise Duty, and Value Added Tax which have not been deposited as on 31st March, 2018 on account of disputes are given below:
Name of Statute |
Nature of dues |
Forum where dispute is pending |
Amount Involved ('' Lakh) |
Excise Act |
Excise Duty |
Various Assessing, Appellate & Tribunal Authorities |
855.95 |
Income Tax Act |
Income Tax |
Various Assessing, Appellate, Tribunal Authorities |
62.73 |
Sales Tax Act |
Central Sales Tax & VAT |
Various Assessing, Appellate, Tribunal & Revision Board Authorities |
1636.51 |
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted during the year in repayment of dues to its financial institutions, bankers and government, except as stated in Note 25 of the standalone Ind AS financial statements. The Company did not have any outstanding debentures during the year.
ix. The Company has not raised money by way of initial public offer or further public offer (including debt instruments) According to information & explanation given to us, the term loans are applied for the purposes for which those are raised.
x. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or on the Company by the officers and employees of the Company has been noticed or reported during the year.
xi. According to the information and explanations given by the management ,the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act 2013.
xii. According to the information and explanations given to us, the Company is not a Nidhi Company & accordingly, reporting under Clause (xii) of the Order is not applicable to the Company.
xiii. According to the information and explanations given to us, all transactions with the related parties are in compliance with Section 177 and 188 of Act, where applicable; and the details have been disclosed in the Financial Statements as required by the applicable Indian Accounting Standards.
xiv. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures; hence, reporting under Clause (xiv) of the Order is not applicable to the Company.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him ; hence, provisions of Section 192 of the Companies Act, 2013 & Clause (xv) of the Order are not applicable.
xvi. According to information and explanations given to us, the Company is not required to be registered under Section 45 IA of the Reserve Bank of India Act, 1934. Hence, Clause (xvi) of the Order are not applicable.
For A K Dubey & Co.
Chartered Accountants
Firm Registration No. 329518E
Place : Gurugram
Date : 23rd May, 2018.
Arun Kumar Dubey
Partner
Membership No.- 057141
Mar 31, 2016
To the Members of Shalimar Paints Limited Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Shalimar Paints Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The 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 and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
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 on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2016 and its profit and its cash flows for the year ended on that date.
Emphasis of Matters
(i) The Company has resolved to de-commission its Chennai Plant, due to technical reasons, with effect from 06th April 2015, and depreciation after de-commissioning, has not been charged to revenue. The said assets will be put to use once the plant restarts & depreciation thereon will be charged thereafter.( Note 2.43 of audited accounts)
(ii) The Company, on the basis of external expert opinion, has not provided for income tax for the reasons stated in Note 2.44 of audited accounts.
(iii) The insurance claim of loss for damage of building & inventories due to fire in Howrah Plant is yet to be assessed by the Insurer. Fixed assets and inventories, except the said damaged assets, have been verified & valued fairly during the year by the Company as per its accounting policy with no material discrepancy. (Note 2.45 of audited accounts)
(iv) Some of the debtors, creditors & advances are pending confirmation /reconciliation, and impact of the same, if any, is unascertained.( Note 2.46 of audited accounts) Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2015 (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 the paragraph 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) on the basis of the written representations received from the directors as on 31 March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure-Bâ
g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 2.28 to the financial statements;
ii) The Company did not have any long term contracts including derivation contracts for which there are any material foreseeable losses.
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in our Independent Auditorsâ Report to the members of Shalimar Paints Limited (the Company) on the standalone financial statements for the year ended 31 March 2016, we report that:
(i) (A) Fire in Howrah factory of the Company during financial year 2013-14 has damaged its fixed assets comprising Building and Plant & Machineries situated therein. The fixed assets register was also destroyed in fire. Re-construction of fixed assets registers on showing full particulars, including quantitative details and situation of fixed assets. Hence, we are unable to comment on para 3(i)(a) of the âOrderâ.
(b) Except damaged fixed assets as stated above, other fixed assets of the Company have been verified periodically by the management during the year in a phased manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. Since the complete fixed assets register could not be made available to us for the reason stated in 1(a) above, we are unable to comment on Para 3(1) (b) of the âOrderâ -whether any material discrepancies on physical verification existed as compared to fixed assets register .
(c) According to information and explanations given to us, and on the test basis examination of records of the Company, the title deeds of immovable properties are held in the name of the company.
(ii) The inventories (except damaged due to fire in Howrah factory) have been physically verified by the management at regular intervals during the year. There were no material discrepancies noticed on physical verification of inventory as compared to the book records.
(iii) The Company is to receive balance consideration money of Rs. 621.21lacs (previous year Rs.499.16 lac) from its subsidiary, Shalimar AdhunikNirman Limited, for transfer of its assets, advances made to the subsidiary & expenses incurred on behalf of the said subsidiary. Till the previous year, advances made /recoverable from subsidiary were non-interest bearing. The Company has decided to charge interest on loans &advances given during the year to its subsidiary.
As per information & explanation given to us there is no schedule of repayment of loan & advances comprising principal and interest thereon. As confirmed by the Company, such loans & advances are repayable on demand, and there is no overdue amount.
Except loan and advances to the aforesaid subsidiary, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnership or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
(iv). In our opinion and according to information and explanations given to us, the Company has complied with the provisions of section 185 & 186 of the Companies Act, 2013 with respect to loans and advances made.
(v) The Company has not accepted any deposits from the public; and hence, para 3(v) of the Order is not applicable.
(vi). The Central Government has prescribed maintenance of Cost Records under Section 148(1) of the Companies Act in respect of certain manufacturing activities of the Company. We have broadly reviewed the accounts and records of the Company in this connection and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
(vii) (A) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, amounts deducted / accrued in the books of account in respect of 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 material statutory dues, as applicable, have been regularly deposited during the year by the Company to the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of aforesaid statutory dues were in arrears on 31 March 2016 for a period of more 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 income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax which have not been deposited with the appropriate authorities on account of any dispute, except the following disputed statutory dues aggregating Rs1033.00lacs (Note- 2.28).
Sl No. |
Name of the statute |
Nature of Dues |
Forum where dispute is pending |
Amount (Rs.in lacs) |
01. |
Central Excise Act, 1944 |
Excise Duty |
Various Assessing, Appellate & Tribunal Authorities |
302.59 |
02. |
Sales Tax Act |
Sales Tax |
Various Assessing, Appellate, Tribunal & Revision Board Authorities |
676.73 |
03 |
Income Tax Act, 1961 |
Income Tax |
Various Assessing, Appellate, Tribunal Authorities |
53.68 |
TOTAL: |
1033.00 |
viii) As per the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to a financial institution, bank, government or dues to debenture holders.
ix) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) and term loan ; hence Para 3 (ix) of the Order is not applicable.
x) Based on the audit procedures performed for reporting on the true & fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud by the Company or fraud on the Company on or by the Company by its officers / employees has been noticed or reported during the year under audit.
xi) Managerial remuneration has been paid / provided by the Company in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
xii) The Company is not a Nidhi Company; hence Para 3 (xii) of the Order is not applicable.
xiii) Transactions with the related parties are in compliance with Section 177 and 188 of Companies Act, 2013, and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards. The company has not made any preferential allotment / private placement of shares or fully or partly convertible debentures during the year under review; hence Para 3 (xiv) of the Order is not applicable.
xiv) The company has not entered into any non-cash transactions with directors or persons connected with him; hence Para 3 (xv) of the Order is not applicable.
xv) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934; hence Para 3 (xvi) of the Order is not applicable.
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 Shalimar Paints Limited (âthe Companyâ) as of 31 March 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 the 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, both issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note which are applicable to an audit of internal financial controls ,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 auditorsâ 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 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 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 authorizations of the Management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized 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, and adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 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 Institute of Chartered Accountants of India.
For Chaturvedi & Partners Chartered Accountants (Firm Reg. No. 307068E)
Place: New Delhi Anup Kumar Dubey Date: 28th May, 2016 Partner
Mem. No. 054975
Mar 31, 2015
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of
Shalimar Paints Limited ('the Company'), which comprise the balance
sheet as at 31 March 2015, the statement of profit and loss and the
cash flow statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ('the Act') with respect
to the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31 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 the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) the balance sheet, the statement of profit and loss and the cash
flow statement dealt with by this Report are in agreement with the
books of account;
d) in our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) on the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) the Company has disclosed the impact of pending litigations on its
financial position in its financial statements Refer Note 2.28 to the
financial statements;
ii) The Company did not have any long term contracts including
derivation contracts for which there are any material foreseeable
losses.
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
The Annexure referred to in our Independent Auditors' Report "Report on
Other Legal and Regulatory Requirements" to the members of Shalimar
Paints Limited (the Company) on the standalone financial statements for
the year ended 31 March 2015, we report that:
(i) (a) There has been fire during previous year in the Howrah factory
of the Company resulting in damage to its fixed assets comprising
Building and Plant & Machineries. The fixed assets register was also
destroyed in fire. The Company has commenced the reconstruction of
fixed assets register showing full particulars, including quantitative
details and situation of fixed assets. Hence , we are unable to comment
on para 3(i)(a) of the 'Order'.
(b) Except damaged fixed assets above, other fixed assets of the
Company have been verified periodically by the management during the
year in a phased manner, which in our opinion is reasonable, having
regard to the size of the Company and nature of its assets. Since the
complete fixed assets register could not be made available to us for
the reason stated in 1(a) above, we are unable to comment on para 3(1)
(b) of the 'Order' - whether any material discrepancies on physical
verification existed as compared to fixed assets register .
(ii) (a) The inventories(except damaged due to fire in previous year)
have been physically verified by the management at Regular intervals
during the year.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventory. There were
no material discrepancies noticed on physical verification of inventory
as compared to the book records.
(iii) The Company is to receive balance consideration money of Rs
499.16 lacs [ Note 2.13(ii)] from its subsidiary, Shalimar Adhunik
Nirman Limited, for transfer of its assets & expenses incurred on
behalf of the said subsidiary. The said due amount is not interest
bearing and shown as loan & advances to related party. There is no
stipulation as regard repayment schedule , and such loans & advances,
as informed , are repayable on demand. Except this, the Company has not
granted any loans, secured or unsecured , to companies, firms or other
parties covered in the register maintained under section 189 of the
Companies Act, 2013. Hence, paragraph 3 (iii) (a) & (b) of the Order,
are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and sale of goods and
services. We have not observed any major weakness in the internal
control system during the course of the audit.
(v) The Company has not accepted any deposits from the public; and
hence, para 3(v) of the Order is not applicable.
(vi) The Central Government has prescribed maintenance of Cost Records
under Section 148(1) of the Companies Act in respect of certain
manufacturing activities of the Company. We have broadly reviewed the
accounts and records of the Company in this connection and are of the
opinion, that prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the same.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted / accrued in the books of account in respect of undisputed
statutory dues including provident fund, Employees' State Insurance,
income tax, sales tax, wealth tax, service tax, duty of customs, duty
of excise , value added tax, cess and other material statutory dues, as
applicable, have been regularly deposited during the year by the
Company with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid statutory dues were
in arrears as at 31 March 2015 for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us, there
are no material dues of income tax or sales tax or wealth tax or
service tax or duty of customs or duty of excise or value added tax or
cess which have not been deposited with the appropriate authorities on
account of any dispute, except the following disputed statutory dues
aggregating Rs. 917.70 lacs.
Sl Name of the statute Nature of
dues Forum where dispute
is pending Amount
No. (Rs. in
lacs)
01. Central Excise
Act, 1944 Excise Duty Various Assessing,
Appellate & 293.71
Tribunal Authorities
02. Sales Tax Act Sales Tax Various Assessing,
Appellate, 576.04
Tribunal & Revision
Board Authorities
03. Income Tax Act, 1961 Income Tax Various Assessing,
Appellate, 47.95
Tribunal Authorities
TOTAL: 917.70
(c) According to the information and explanations given to us, the
amount which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules thereunder, has been
transferred to such fund within time.
(viii) The Company does not have any accumulated losses at the end of
the financial year, and has incurred cash losses in the financial year;
however, in the immediately preceding financial year, there were no
cash loss.
(ix) As per the information and explanations given to us , the Company
has not defaulted in repayment of dues to financial institutions and
banks.
(x) According to the information and the explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xi) The Company has availed term loans, and the same were applied for
intended purposes.
(xii) Based on the audit procedures performed for reporting on the true
& fair view of the financial statements , and as per the information
and explanations given by the management, we report that no fraud on or
by the Company has been noticed or reported during the year under
audit.
For CHATURVEDI & PARTNERS
Chartered Accountants
Firm Reg No-307068E
Anup Kumar Dubey
Place: New Delhi Partner
Dated: 30th May , 2015 Membership No: 054975
Mar 31, 2014
We have audited the accompanying financial statements of Shalimar
Paints Limited (''the Company''), which comprise the Balance Sheet as at
March 31, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards 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 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 profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards 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.
The Annexure referred to in our report to the members of Shalimar
Paints Limited (''the Company'') for the year ended 31st March, 2014
1. In respect of its fixed assets :
a) There has been fire during the year under audit in the Howrah
factory of the Company resulting in damage to its fixed assets
comprising Building and Plant & Machineries. Fixed assets register of
the Company, as a whole, are reported to be destroyed, and the same are
being reconstructed giving full particulars including quantitative
details and situation of fixed assets. Hence, we are unable to comment
on para 4 (1) (a) of the ''Order''.
b) The extent of damage (with financial implication there of) to
affected fixed assets are being surveyed by insurer. However, the
Company has made its own estimation of loss due to fire to the extent
of Rs. 26.01 lacs (Plant & Machinery) & Rs. 49.92 lacs (Building), and
the said amount has been shown as claim receivable. The actual loss can
be determined only on receiving report from insurer.
Except above, other fixed assets of the Company have been verified
periodically by the management during the year in a phased manner,
which in our opinion is reasonable, having regard to the size of the
Company and nature of its assets. Since the assets register could not
be made available to us for the reason stated in 1(a) above, we are
unable to comment on para 4(1) (b) of the ''Order'' - whether any
material discrepancies (on physical verification) existed as compared
to fixed assets register.
c) The Company has not disposed of substantial part of fixed assets
during the year under audit and the going concern status of the Company
is not affected.
2. In respect of its inventories:
a) The inventories have been physically verified by the management at
regular intervals during the year.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventory. Due to fire,
as reported in (1)(a) above, there has been loss of Rs. 1456.32 lacs on
account of damage inventory. The said loss has been estimated by the
management which may change on surveyor''s report of insurer. Except
this, there were no material discrepancies noticed on physical
verification of inventory as compared to the book records.
3. The Company is to receive balance consideration money of Rs. 499.16
lacs [Note 2.17(i)] from its subsidiary, Shalimar Adhunik Nirman
Limited, for transfer of its assets & expenses incurred on behalf of
the said subsidiary. The said due amount is not interest bearing and
shown as loan & advances to related party. Except this, the Company has
not granted any loan to companies, firms or other parties covered in
the register maintained under section 301of the Companies Act, 1956.
Hence, Clauses 4(iii) (a) to (d) of the Order, are not applicable to
the Company.
4. The Company has not taken loan, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Hence, Clauses 4(iii) (e), (f) and (g) of
the Order, are not applicable to the Company.
5. In our opinion, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventories, fixed assets and also for the
sale of goods & services. During the course of our audit, we have not
observed any major weaknesses in internal control system relating to
these areas.
6. According to information & explanation furnished to us, we are of
the opinion that there are no contracts or arrangements referred to in
section 301 of the Companies Act, 1956 that need to be entered into the
register maintained under that section. Hence, Clauses 4(v) (a) & (b)
of the Order, are not applicable to the Company.
7. The Company has not accepted any deposits from public & accordingly
Clause 4(vi) of the Order is not applicable to the Company.
8. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
9. The Central Government has prescribed maintenance of Cost Records
under Section 209 (1) (d) of the Companies Act, 1956 in respect of
certain manufacturing activities of the Company. We have broadly
reviewed the accounts and records of the Company in this connection and
are of the opinion, that prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, made a
detailed examination of the same.
10. In respect of statutory dues:
a) The undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
other statutory dues have been regularly deposited with the appropriate
authorities. 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 on account of income tax, sales tax,
wealth tax, service tax, custom duty, excise duty and cess, as
applicable, aggregating to Rs. 758.57 lacs, that have not been
deposited on account of matters pending before appropriate authorities
are as under:
Sl Name of the Nature of dues Forum where dispute Amount
No. statute is pending (Rs.in lacs)
01. Central Excise Excise Duty Various Assessing, 315.33
Act, 1944 Appellate & Tribu-
nal Authorities
02. Central Sales Sales Tax Various Assessing, 432.18
Tax Act and Appellate, Tribunal
Sales Tax Act & Revision Board
of various Authorities
states
03. Income Tax Act, Income Tax Various Assessing, 11.06
1961 Appellate, Tribunal
Authorities
TOTAL: 758.57
11. The Company has no accumulated loss, and has not incurred any cash
loss during the financial year covered by our audit or in the
immediately preceding financial year.
12. Based on the audit procedures and as per the information &
explanation given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
13. According to information & explanation given to us, no loan or
advance has been granted by the Company on the basis of security by way
of pledge of shares, debentures and other securities.
14. The Company is not a chit fund or a nidhi or a mutual benefit
fund/society. Therefore, clause 4(xiii) of the Order is not applicable
to the Company.
15. The Company has not dealt or traded in shares, securities, and
hence clause 4 (xiv) of the Order is not applicable.
16. According to information & explanation given to us, the Company has
not given any guarantee for loans taken by others from banks or
financial institutions.
17. The Company has availed term loans, and the same has been utilized
for intended purposes.
18. On an overall examination of the balance sheet of the Company, we
report that funds raised on short-term basis have not been used for
long-term investment.
19. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956.
20. The Company has not raised any money by way of public issue or
issued debentures during the year under audit.
21. Based on the audit procedures performed for reporting on the true &
fair view of the financial statements and as per the information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year under audit
causing the financial statements to be materially misstated.
For CHATURVEDI & PARTNERS
Chartered Accountants
Firm Reg No-307068E
Anup Kumar Dubey
Place : New Delhi Partner
Dated : May 30, 2014 Membership No: 054975
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Shalimar
Paints Limited (''the Company''), which comprise the Balance Sheet as at
March 31, 2013, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("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
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
f) since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956, nor has it issued any Rules under the said
section, prescribing the manner in which such cess is to be paid, no
cess is due and payable by the Company.
The Annexure referred to in our report to the members of Shalimar
Paints Limited (''the Company'') for the year ended March 31, 2013
1. In respect of its fixed assets :
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The fixed assets have been verified periodically by the management
during the year in a phased manner, which in our opinion is reasonable,
having regard to the size of the Company and nature of its assets. No
material discrepancies were noticed on such physical verification.
c) The Company has not disposed of substantial part of fixed assets
during the year under audit and the going concern status of the Company
is not affected.
2. In respect of its inventory:
a) The inventories have been physically verified by the management at
regular intervals during the year.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventory. There were
no material discrepancies noticed on physical verification of inventory
as compared to the book records.
3. The Company has not granted any loan to companies, firms or other
parties covered in the register maintained under section 301of the
Companies Act, 1956. Hence, Clauses 4(iii) (a) to (d) of the Order, are
not applicable to the Company.
4. The Company has not taken loan, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Act . Hence, Clauses 4(iii) (e), (f) and (g)
of the Order, are not applicable to the Company.
5. In our opinion, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventories, fixed assets and also for the
sale of goods & services. During the course of our audit, we have not
observed any major weaknesses in internal control system relating to
these areas.
6. According to information & explanation furnished to us, we are of
the opinion that there are no contracts or arrangements referred to in
section 301 of the Companies Act, 1956 that need to be entered into the
register maintained under that section. Hence, Clauses 4(v) (a) & (b)
of the Order, are not applicable to the Company.
7. The Company has not accepted any deposits from public & accordingly
Clause 4(vi) of the Order is not applicable to the Company.
8. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
9. The Central Government has prescribed maintenance of Cost Records
under Section 209(1)(d) of the Companies Act, 1956 in respect of
certain manufacturing activities of the Company. We have broadly
reviewed the accounts and records of the Company in this connection and
are of the opinion, that prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, made a
detailed examination of the same.
10. In respect of statutory dues :
a) The undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
other statutory dues have been regularly deposited with the appropriate
authorities. 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 on account of income tax, sales tax,
wealth tax, service tax, custom duty, excise duty and cess, as
applicable, aggregating to Rs.569.46 lacs, that have not been deposited
on account of matters pending before appropriate authorities are as
under:
Sl Name of the statute Nature of dues
No.
01. Central Excise Act, 1944 Excise Duty
02. Central Sales Tax Act and Sales Tax
Sales Tax Act of various
states
03. Income Tax Act, 1961 Income Tax
Name of the Statute Forum where dispute is pending Amount
(Rs. in lacs)
Central Excise Act 1944 Various Assessing, Appellate & 209.20
Tribunal Authorities
Central Sales Tax Act
and Sales Tax Act of
Various States Various Assessing, Appellate, 354.81
Tribunal & Revision Board
Authorities
Income Tax Act 1961 Various Assessing, Appellate, 5.45
Tribunal Authorities
TOTAL: 569.46
11. The Company has no accumulated loss and has not incurred any cash
loss during the financial year covered by our audit or in the
immediately preceding financial year.
12. Based on the audit procedures and as per the information &
explanation given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
13. According to information & explanation given to us, no loan or
advance has been granted by the Company on the basis of security by way
of pledge of shares, debentures and other securities.
14. The Company is not a chit fund or a nidhi or a mutual benefit
fund/society. Therefore, clause 4(xiii) of the Order is not applicable
to the Company.
15. The Company has not dealt or traded in shares, securities and
hence clause 4 (xiv) of the Order is not applicable.
16. According to information & explanation given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
17. The Company has availed of term loan and the same has been
utilized for intended purposes.
18. On an overall examination of the balance sheet of the Company, we
report that funds raised on short-term basis have not been used for
long-term investment.
19. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956.
20. The Company has not raised any money by way of public issue or
issued debentures during the year under audit.
21. Based on the audit procedures performed for reporting on the true
& fair view of the financial statements and as per the information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year under audit
causing the financial statements to be materially misstated.
For CHATURVEDI & PARTNERS
Chartered Accountants
Firm Reg No-307068E
A K Dubey
Place : New Delhi Partner
Dated : May 25, 2013 Membership No: 054975
Mar 31, 2012
1. We have audited the attached Balance Sheet of Shalimar Paints
Limited as at 31st March, 2012, the Statement of Profit & Loss and also
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
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 of
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended), hereinafter, referred to as the 'Order' issued by the Central
Government of India in terms of sub-section (4A) of section 227 of the
Companies Act, 1956, we enclose in the annexure a statement based on
the information and explanations given to us on the matters specified
in paragraph 4 and 5 of the said Order.
4. Further to our comments in annexure referred to in paragraph 3
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 purpose 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;
iii) The Balance Sheet, Statement of Profit & 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 & Loss and
Cash Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred in sub-section (3C) of Section 211 of the
Companies Act, 1956;
v) On the basis of written representation received from directors and
taken on record by the Board of Directors, we report that none of the
directors are disqualified as on 31st March, 2012 from being appointed
as directors in terms of clause (g) of sub-section (1) of Section 274
of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the annexed accounts read together with
Disclosure of Accounting Policies & Notes to Account in Point 1 & 2,
respectively, give the information required by the Companies Act, 1956,
in the manner so required, and present a true and fair view, in
conformity with the accounting principles generally accepted in India:
(a) in so far as it relates to Balance Sheet, of the state of affairs
of the Company as at 31st March, 2012;
(b) in so far as it relates to the Statement of Profit and Loss, of the
profit of the Company for the year ended on that date ; and
(c) in so far as it relates to the Cash Flow Statement, of the cash
flows of the Company for the year ended on that date.
Annexure to the Auditors' Report Referred to paragraph 3 of our report
of even date
1. In respect of its fixed assets :
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The fixed assets have been verified periodically by the management
during the year in a phased manner, which in our opinion is reasonable,
having regard to the size of the Company and nature of its assets. No
material discrepancies were noticed on such physical verification.
c) The Company has not disposed of substantial part of fixed assets
during the year under audit and the going concern status of the Company
is not affected.
2. In respect of its inventory:
a) The inventories have been physically verified by the management at
regular intervals during the year.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventory. There were
no material discrepancies noticed on physical verification of inventory
as compared to the book records.
3. The Company has not granted any loan to companies, firms or other
parties covered in the register maintained under section 301of the
Companies Act, 1956. Hence, clauses 4(iii) (b), (c) and (d) of the
Order are not applicable to the Company.
4. The Company has not taken loan, secured or unsecured, from
companies ,firms or other parties covered in the register maintained
under section 301 of the Act .
5. In our opinion, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of Inventory, fixed assets and also for the
sale of goods & services. During the course of our audit, we have not
observed any major weaknesses in internal control system relating to
these areas.
6. According to information & explanation furnished to us, we are of
the opinion that there are no contracts or arrangements referred to in
section 301 of the Companies Act, 1956 that need to be entered into the
register maintained under that section.
Hence, Clause 4(v) (b) of the Order is not applicable to the Company.
7. The Company has not accepted any deposits from public & accordingly
Clause 4(vi) of the Order is not applicable to the Company.
8. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
9. The Central Government has prescribed maintenance of Cost Records
under Section 209 (1) (d) of the Companies Act, 1956 in respect of
certain manufacturing activities of the Company. We have broadly
reviewed the accounts and records of the Company in this connection and
are of the opinion, that prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, made a
detailed examination of the same.
10. In respect of statutory dues :
a) The undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other statutory dues have been regularly deposited with the appropriate
authorities. 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 on account of Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess, as
applicable, aggregating to Rs.604.09 lacs, that have not been deposited
on account of matters pending before appropriate authorities are as
under:
Sl Name of the statute Nature of Forum where dispute Amount
No. dues is pending (Rs.in lacs)
01.Central Excise Act,
1944 Excise Duty Various Assessing, 292.40
Appellate & Tribunal
Authorities
02.Central Sales Tax
Act and Sales Tax Various Assessing, 311.69
Sales Tax Act of Appellate,Tribunal
various states & Revision Board
Authorities
TOTAL: 604.09
11. The Company has no accumulated loss and has not incurred any cash
loss during the financial year covered by our audit or in the
immediately preceding financial year.
12. Based on the audit procedures and as per the information &
explanation given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
13. According to information & explanation given to us, no loan or
advance has been granted by the Company on the basis of security by way
of pledge of shares, debentures and other securities.
14. The Company is not a chit fund or a nidhi or a mutual benefit
fund/society. Therefore, clause 4(xiii) of the Order is not applicable
to the Company.
15. The Company has not dealt or traded in shares, securities, and
hence clause 4 (xiv) of the Order is not applicable.
16. According to information & explanation given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
17. The Company has availed of term loan and the same has been
utilized for intended purposes.
18. On an overall examination of the Balance Sheet of the Company, we
report that funds raised on short- term basis have not been used for
long-term investment.
19. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956.
20. The Company has not raised any money by way of public issue or
issued debentures during the year under audit.
21. Based on the audit procedures performed for reporting on the true
& fair view of the financial statements and as per the information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year under audit
causing the financial statements to be materially misstated.
For CHATURVEDI & PARTNERS
Chartered Accountants
Firm Reg No-307068E
A K Dubey
Place: New Delhi
Partner
Dated: May 07, 2012 Membership No: 054975
Mar 31, 2011
1. We have audited the attached Balance Sheet of Shalimar Paints
Limited as at 31st March, 2011, the Profit and Loss Account and also
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
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 of
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended), hereinafter, referred to as the ÃOrder' issued by the Central
Government of India in terms of sub-section (4A) of section 227 of the
Companies Act, 1956, we enclose in the annexure a statement based on
the information and explanations given to us on the matters specified
in paragraph 4 and 5 of the said Order.
4. Further to our comments in annexure referred to in paragraph 3
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 purpose 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;
iii) The Balance Sheet, Profit & 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 & Loss Account and Cash
Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred in sub-section (3C) of Section 211 of the
Companies Act, 1956;
v) On the basis of written representation received from directors, as
on 31st March, 2011 and taken on
record by the Board of Directors, we report that none of the directors
are disqualified as on 31st March, 2011 from being appointed as
directors in terms of clause (g) of sub-section (1) of Section 274 of
the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the annexed accounts, read together with
Notes on Account in Schedule 19, give the information required by the
Companies Act, 1956, in the manner so required, and present a true and
fair view, in conformity with the accounting principles generally
accepted in India:
(a) in so far as it relates to the Balance Sheet, of the state of
affairs of the Company as at 31st March, 2011;
(b) in so far as it relates to the Profit and Loss Account, of the
profit of the Company for the year ended on that date; and
(c) in so far as it relates to the Cash Flow Statement, of the cash
flows of the Company for the year ended on that date.
Annexure to the Auditors' Report
Referred to paragraph 3 of our report of even date
1. In respect of its fixed assets :
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The fixed assets have been verified periodically by the management
during the year in a phased manner, which in our opinion is reasonable,
having regard to the size of the Company and nature of its assets. No
material discrepancies were noticed on such physical verification.
c) The Company has not disposed of substantial part of fixed assets
during the year under audit and the going concern status of the Company
is not affected.
2. In respect of its inventory:
a) The inventories have been physically verified by the management at
regular intervals during the year.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventory. There were
no material discrepancies noticed on physical verification of inventory
as compared to the book records.
3. The Company has not granted any loan to companies, firms or other
parties covered in the register maintained under section 301of the
Companies Act, 1956. Hence, clauses 4(iii) (b), (c) and (d) of the
Order are not applicable to the Company.
4. The Company has not taken loan, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Act.
5. In our opinion, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of Inventory, fixed assets and also for the
sale of goods & services. During the course of our audit, we have not
observed any major weaknesses in internal control system relating to
these areas.
6. According to information & explanation furnished to us, we are of
the opinion that there are no contracts or arrangements referred to in
section 301 of the Companies Act, 1956 that need to be entered into the
register maintained under that section.
Hence, Clause 4(v) (b) of the Order is not applicable to the Company.
7. The Company has not accepted any deposits from public & accordingly
Clause 4(vi) of the Order is not applicable to the Company.
8. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
9. The Central Government has prescribed maintenance of Cost Records
under Section 209 (1) (d) of the Companies Act, 1956 in respect of
certain manufacturing activities of the Company. We have broadly
reviewed the accounts and records of the Company in this connection and
are of the opinion, that prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, made a
detailed examination of the same.
10. In respect of statutory dues :
a) The undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other statutory dues have been
regularly deposited with the appropriate authorities. No undisputed
amounts payable in respect of the aforesaid dues were outstanding as at
31st March 2011 for a period of more than six months from the date of
becoming payable.
b) The disputed statutory dues on account of income tax, sales tax,
wealth tax, service tax, custom
duty, excise duty and cess, as applicable, aggregating to Rs. 522.35
lacs, that have not been deposited on account of matters pending before
appropriate authorities are as under:
Sl Name of the Nature of Forum where dispute Amount
No. statute Dues is pending (Rs.in
lacs)
01. Central Excise Act, Excise Duty Various Assessing, 234.50
1944 Appellate Tribunal
Authorities
02. Central Sales Tax Sales Tax Various Assessing, 287.85
Act and Sales Tax Appellate,
of various states Tribunal & Revision
Board
Authorities
TOTAL: 522.35
11. The Company has no accumulated loss and has not incurred any cash
loss during the financial year covered by our audit or in the
immediately preceding financial year.
12. Based on the audit procedures and as per the information &
explanation given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
13. According to information & explanation given to us, no loan or
advance has been granted by the Company on the basis of security by way
of pledge of shares, debentures and other securities.
14. The Company is not a chit fund or a nidhi or a mutual benefit
fund/society. Therefore, clause 4(xiii) of the Order is not applicable
to the Company.
15. The Company has not dealt or traded in shares, securities, and
hence clause 4 (xiv) of the Order is not applicable.
16. According to information & explanation given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
17. The Company has availed of term loan and the same has been
utilized for intended purposes.
18. On an overall examination of the balance sheet of the Company, we
report that funds raised on short-term basis have not been used for
long-term investment.
19. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956.
20. The Company has not raised any money by way of public issue or
issued debentures during the year under audit.
21. Based on the audit procedures performed for reporting on the true
& fair view of the financial statements and as per the information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year under audit
causing the financial statements to be materially misstated.
For CHATURVEDI & PARTNERS
Chartered Accountants
Firm Reg No. 307068E
A K Dubey
Partner
Membership No. 054975
Place : Delhi
Date : 7th May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Shalimar Paints
Limited as at 31st March, 2010, the Profit and Loss Account and also
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the CompanyÃs
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 of
our opinion.
3. As required by the Companies (AuditorÃs Report) Order, 2003 (as
amended), hereinafter, referred to as the ÃOrderà issued by the Central
Government of India in terms of sub-section (4A) of section 227 of the
Companies Act, 1956, we enclose in the annexure a statement based on
the information and explanations given to us on the matters specified
in paragraph 4 and 5 of the said Order.
4. Further to our comments in annexure referred to in paragraph 3
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 purpose 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;
iii) The Balance Sheet, Profit & 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 & Loss Account and Cash
Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred in sub-section (3C) of Section 211 of the
Companies Act, 1956;
v) On the basis of written representation received from directors, as
on 31st March, 2010 and taken on
record by the Board of Directors, we report that none of the directors
are disqualified as on 31st March, 2010 from being appointed as
directors in terms of clause (g) of sub-section (1) of Section 274 of
the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the annexed accounts, read together with
Notes on Account in Schedule 19, give the information required by the
Companies Act, 1956, in the manner so required, and present a true and
fair view, in conformity with the accounting principles generally
accepted in India:
(a) in so far as it relates to the Balance Sheet, of the state of
affairs of the Company as at 31st March, 2010;
(b) in so far as it relates to the Profit and Loss Account, of the
profit of the Company for the year ended on that date; and
(c) in so far as it relates to the Cash Flow Statement, of the cash
flows of the Company for the year ended on that date.
1. In respect of its fixed assets :
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The fixed assets have been verified periodically by the management
during the year in a phased manner, which in our opinion is reasonable,
having regard to the size of the Company and nature of its assets. No
material discrepancies were noticed on such physical verification.
c) The Company has not disposed of substantial part of fixed assets
during the year under audit and the going concern status of the Company
is not affected.
2. In respect of its inventory:
a) The inventories have been physically verified by the management at
regular intervals during the year.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventory. There were
no material discrepancies noticed on physical verification of inventory
as compared to the book records.
3. The Company has not granted any loan to companies, firms or other
parties covered in the register maintained under section 301of the
Companies Act, 1956. Hence, clauses 4(iii) (b), (c) and (d) of the
Order are not applicable to the Company.
4. The Company has not taken loan, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Act.
5. In our opinion, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of Inventory, fixed assets and also for the
sale of goods & services. During the course of our audit, we have not
observed any major weaknesses in internal control system relating to
these areas.
6. According to information & explanation furnished to us, we are of
the opinion that there are no contracts or arrangements referred to in
section 301 of the Companies Act, 1956 that need to be entered into the
register maintained under that section.
Hence, Clause 4(v) (b) of the Order is not applicable to the Company.
7. The Company has not accepted any deposits from public & accordingly
Clause 4(vi) of the Order is not applicable to the Company.
8. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
9. The Central Government has prescribed maintenance of Cost Records
under Section 209 (1) (d) of the Companies Act, 1956 in respect of
certain manufacturing activities of the Company. We have broadly
reviewed the accounts and records of the Company in this connection and
are of the opinion, that prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, made a
detailed examination of the same.
10. In respect of statutory dues :
a) The undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund,
Employeesà State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other statutory dues have been
regularly deposited with the appropriate authorities. No undisputed
amounts payable in respect of the aforesaid dues were outstanding as at
31st March 2010 for a period of more than six months from the date of
becoming payable.
b) The disputed statutory dues on account of income tax, sales tax,
wealth tax, service tax, custom
duty, excise duty and cess, as applicable, aggregating to Rs. 381.69
lacs, that have not been deposited on account of matters pending before
appropriate authorities are as under:
Sl Name of the statute Nature of Dues Forum where dispute is pending
Amount
No. (Rs.in lacs)
01. Central Excise Act, 1944 Excise Duty
Commissioner of Central
Excise 149.06
(Appeals)
02. Central Sales Tax Act and Sales Tax
Commissioner (Appeals)/ 232.63
Sales Tax Act of various states Appellate Tribunal
TOTAL: 381.69
11. The Company has no accumulated loss and has not incurred any cash
loss during the financial year covered by our audit or in the
immediately preceding financial year.
12. Based on the audit procedures and as per the information &
explanation given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
13. According to information & explanation given to us, no loan or
advance has been granted by the Company on the basis of security by way
of pledge of shares, debentures and other securities.
14. The Company is not a chit fund or a nidhi or a mutual benefit
fund/society. Therefore, clause 4(xiii) of the Order is not applicable
to the Company.
15. The Company has not dealt or traded in shares, securities, and
hence clause 4 (xiv) of the Order is not applicable.
16. According to information & explanation given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
17. The Company has availed of term loan and the same has been
utilized for intended purposes.
18. On an overall examination of the balance sheet of the Company, we
report that funds raised on short-term basis have not been used for
long-term investment.
19. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956.
20. The Company has not raised any money by way of public issue or
issued debentures during the year under audit.
21. Based on the audit procedures performed for reporting on the true
& fair view of the financial statements and as per the information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year under audit
causing the financial statements to be materially misstated.
For CHATURVEDI & PARTNERS
Chartered Accountants
A K Dubey
Partner
Membership No. 054975
Place : Kolkata.
Date : 28th May, 2010
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article