Mar 31, 2018
INDEPENDENT AUDITOR''S REPORT
To,
The Members of
SHIRPUR GOLD REFINERY LIMITED
1. report on the standalone ind as financial STATEMENTS
We have audited the accompanying Standalone Ind AS financial statements of SHIRPUR GOLD REFINERY LIMITED
("the Company"), which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss, including the Statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the Ind AS financial statements).
2. MANAGEMENT''S RESPONSIBILITY FORTHE STANDALONE IND AS FINANCIAL STATEMENTS
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs, profit/loss and other comprehensive income, the Statement of changes in equity and Cash flows 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.
This responsibility also includes maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3. AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
I n 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 thereunder.
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 disclosure in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also include 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 Ind AS financial statements.
4. EMPHASIS OF MATTER
Reference is invited to Note No 50, in continuation of the preceding year''s, wherein details of the robbery on 24 April 2015, of gold weighing 60 kgs during transit had been reported. Of the said 60 Kgs Gold, the seizure was made of 13.6939 kgs including 2 kgs from site of robbery and other assets of the robbers, which were in Police Custody and had been taken possession by the Company on 19 April 2017, pursuant to the Order of the Session Court, Mumbai. For the balance gold of 46.3062 Kgs valued at '' 1241.71 Lakhs including expenses of '' 16.52 lakhs is pending for settlement with the Insurance company till the date of this report.
Our Opinion on the standalone Ind AS financial statements is not modified in respect of the above matter.
5. 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:
(a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2018;
(b) In the case of the Statement of Profit and Loss, of the profit (and other comprehensive income) for the year ended on that date;
(c) In the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date and
(d) I n the Statement of changes in equity, of changes in equity for the year ended on that date.
6. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
(a) As required by the ''Companies (Auditor''s Report) Order, 2016'' (the "Order") issued by the Central Government of India in terms of Section 143 (11) of the Act and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure "A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
(b) 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, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of accounts.
(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 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, with reference to standalone Ind AS financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
(g) 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 standalone Ind AS financial statements - Refer Note 33. to the standalone Ind AS financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts.
iii. There has been no amount required to be transferred to the Investor Education and Protection Fund by the Company during the year ended 31st March, 2018.
iv. The disclosers in the standalone Ind AS financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made since they do not pertain to the financial year ended 31 March 2018.
i) FIXED ASSETS:
a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) The Company has a regular program of physical verification of its fixed assets, in phased manner designed to cover all the items during the year. In our opinion, this program and periodicity is reasonable having regard to the size of the company and the nature of its assets. In accordance with this program, fixed assets have been physically verified by the Management during the year and as per the information and explanations given, records produced, we observe that no material discrepancies were noticed on such verification.
c) In our opinion and according to information and explanations given to us and on the basis of an examination of the records of the Company, the title deeds of immovable properties, as disclosed in Note no.
2 on fixed assets to the financial statements, are held in the name of the Company.
ii) Inventory:
As per the information and explanations given, the inventories have been physically verified by the Management at reasonable intervals during the year. In our opinion the procedure of such physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the company and nature of its business. No material discrepancies were noticed on such physical verification of inventories as compared to book records
iii) Loans, secured or unsecured granted covered u/s 189 of the Act:
According to the information and explanations given to us, the Company has not granted any secured or unsecured loans except to its wholly owned subsidiary, covered in the Register maintained under Section 189 of the Act.
iv) Loan to directors, investment, and guarantees u/s 185 & 186 of the Act:
In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to the loan/guarantees given and investments made.
v) Public Deposits:
In our opinion and according to the information and explanations given to us, the company has not accepted deposits from the public in accordance with the provision of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under.
vi) Cost Records:
According to information and explanation given to us, the Central Government has not prescribed under sub- Section(1) of Section 148 the Act, the maintenance of cost records under the Companies (Cost Records and Audit) Rules,
2014 hence this clause is not applicable to the Company.
vii) Payment of statutory dues:
a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and material statutory dues have generally been regularly deposited during the year with the appropriate authorities.
There are no undisputed amounts payable in respect of the aforesaid dues, which were in arrears as at 31st March, 2018 for a period of more than six months from the date they became payable.
b) According to information and explanations given to us and the records of company examined by us, there are no other dues of Income Tax or Sales Tax or Service Tax or Goods and Service Tax or duty of Customs or duty of Excise or Value added tax which have not been deposited by the Company on account of disputes, except for the following
i. Disputed Liabilities under Income tax Act 1961:
Nature of Statute |
Amount (in Million) |
Period to which the amount relate (Assessment Year) |
Forum where dispute is pending |
Income Tax |
0.62 |
2001 - 02 |
Income Tax Appellate Tribunal, Mumbai- Appeal heard and order awaited |
viii) Default on dues of the financial institutions, banks and government:
In our opinion and according to the information and explanations given to us, the Company has not defaulted during the year in repayments of dues to its financial institutions, bankers and Government. The Company did not have any outstanding debentures during the year.
ix) Application Of term loans and public offers:
In our opinion and according to the information and explanation given to us the Company has taken Long term working capital loan from financial institution and has utilized for the purpose for which it was raised. The Company has not raised money by way of initial public offer or further public offer (including debt instruments) during the year.
x) Frauds:
During the course of our examination of books of accounts and records of the company, carried out in accordance
with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance of material fraud on the Company or by the Company, noticed or reported during the year, nor have been informed of such cases by the management.
xi) Managerial remuneration:
According to information & explanations given to us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Act.
xii) Nidhi Companies:
According to the information and explanations given to us, the Company is not a Nidhi Company as prescribed under Section 406 of the Act. Accordingly, paragraph 3(xii) of the order and the Nidhi Rules, 2014 are not applicable.
xiii) Transactions with related parties:
According to information and explanations given to us, all transactions with the related parties are in compliance with the Section 177 and 188 of the Act, and the details have been disclosed in the Note no. 51 to the standalone Ind AS financial statements as required by the applicable accounting standards.
xiv) Preferential allotment or private placement of securities:
According to information and explanations given to us and based on our examination of the records, during the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv) Non-cash transactions with Directors:
According to information and explanations given to us and based on our examination of the records, during the year the Company has not entered into non-cash transactions with directors or person connected with him.
xvi) Registration with Reserve Bank of India:
According to information & explanations given to us, Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act,1934.
Report on the Internal Financial Controls under Clause (i) of Sub-Section3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of SHIRPUR GOLD REFINERY LIMITED ("the Company") as at 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.
1. Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ("ICAI"). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to 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.
2. Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section143(10) of the Act, 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 auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
3. Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
(a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(b) 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
(c) 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.
4. 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.
5. Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were, operating effectively as at 31st March, 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.
For B S SHARMA & CO.,
Chartered Accountants
FR No. 128249W
CA B S SHARMA,
PROPRIETOR,
Membership No. 031578
Place: Mumbai, 29th May, 2018
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Shirpur Gold Refinery Limited, ("the Company") which comprise the
Balance Sheet as at March 31, 2015, 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,
which have been signed under reference to this report.
2. MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements to give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting the frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial control,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
3. AUDITORS' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act and the Rules made
thereunder including the accounting and auditing standards and matters
which are required to be included in the audit report.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements, issued by the Institute of Chartered
Accountants of India. Those Standards and pronouncements require that
we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give true and fair view,
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the company had in place an adequate internal financial control
system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
4. OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the State of Affairs of the
Company as at March 31,2015;
(b) In the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
5. Report on other Legal and Regulatory Requirements
As required by'The Companies (Auditor's Report) Order, 2015', issued by
the Central Government of India in terms of sub- section (11) of
section 143 of the Act (hereinafter referred to as the "Order"), and on
the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
6. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) In our opinion, the Balance Sheet, the Statement of Profit & Loss
and the Cash Flow Statement dealt with by this Report are in agreement
with the books of accounts.
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 written representations received from the directors
as on March 31, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on March 31,2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters to be included in the Auditors'
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to our best of our knowledge and
belief, and according to the information and explanations given to us :
i. The Company has no pending litigations as at March 31, 2015 having
impact on its financial position as stated in the financial statements.
ii. The Company has made in the financial statements provisions as at
March 31,2015, as required under the applicable law or accounting
standards, for material foreseeable gains or losses, if any, on long
term contracts including derivative contracts.
iii. There was no amount, required to be transferred to the Investor
Education and Protection Fund by the Company during the year ended
March 31,2015.
Referred to in Paragraph 5 of the Independent Auditors'Report of even
date to the members of SHIRPUR GOLD REFINERY LIMITED on the standalone
financial statements as of and for the year ended March 31, 2015
i) a) The company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
b) According to the information and explanation given to us by the
Management majority of the fixed assets are physically verified by the
management according to a phased program design to cover all the items
during the year which, in our opinion, is reasonable having regard to
the size of the company and the nature of its assets. Pursuant to the
program, the fixed assets have been physically verified by the
Management during the year and no material discrepancies have been
noticed on such verification.
ii) a) The inventory, including stocks with certain third
parties for job work, had been physically verified by the Management at
reasonable intervals during the year. In respect of an inventory lying
with the third parties, these have been confirmed by them. In our
opinion, the frequency of verification is reasonable. b) In our
opinion the procedures of such physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. No
material discrepancies were noticed on such physical verification of
inventory as compared to book records.
iii) a) Based on our verification of the books and records and
as per information and explanations provided to us by the management,
the company has not granted Secured or unsecured loans to persons
covered in the Registers maintained under section 189 of the Act.
b) Since no loans or advances in the nature of loans are given to
parties covered under Section 189 of the Act and as detailed herein
above, the rest of the provisions in sub-clause iii(a) and iii (b) are
not applicable.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and its nature of business
for the inventory and fixed assets and for sale of goods. Further, on
the basis of our examination of the books and records of the Company,
and according to the information and explanations given to us, we have
neither come across, nor have been informed of, any continuing failure
to correct major weaknesses in the aforesaid internal control system.
v) a) In our opinion and according to the information and
explanations given to us, the Company has not accepted deposits as
covered under the provisions of sections 73 to 76 or any other relevant
provisions of the Act and the rules framed there under, hence this
clause is not applicable.
b) In view of our comments at Sr no.v (a) above, no order has been
passed by the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any court or any other tribunal, is not
applicable.
vi) We have been informed by the management that the maintenance of
cost records is not prescribed by the Central Govt. under sub-section
(1) of section 148 of the Act.
vii) a) According to the books and records as produced
and examined by us in accordance with Generally Accepted Auditing
Practices in India and also based on management representations,
undisputed statutory dues in respect of provident fund, employee state
insurance, income tax, wealth tax, service tax, sales tax, value added
tax, excise duty, cess and other material statutory dues have generally
been regularly deposited by the company.
b) According to information and explanations given to us and the
records of company examined by us, details of dues of Income tax, Sales
tax, MVAT and export obligations under EPCG Scheme, which have not been
deposited as on 31st March, 2015 on account of disputes/ under the
Schemes are given below:
(i) MVAT deferred of '/Million 496.02 till the year end under Sales Tax
Incentive Scheme of 1993 by the Government of Maharashtra, (Scheme
PSI-1993) is considered in the Accounts as Deferred Sales Tax Liability
and stated in Note 3. The Deferred Sales Tax Liability for the years
ended 31st March 2011 to 31st March 2015 aggregating to Rs./Millions
496.02 is repayable in five respective equal annual installments
starting from financial year 2021-22 to 2025-26.
(ii) Sales Tax Demand for F.Y. 2004-05 of Rs./Millions 0.87 and F.Y.
2007-08 of Rs./Millions 0.59 against which Rs./Millions 0.10 and Rs./Millions
0.20 is deposited respectively and stay obtained pending hearing of the
appeal and disposal.
(iii) Export Obligation under EPCG Scheme remaining to be fulfilled by
exports is Rs./Millions 1930.85 as per Note No. 29.
(iv) Disputed Liabilities under Income tax Act 1961:
Asst Year Forum where pending In Million
2001-02 Income Tax Appellate Tribunal
i. Regular Assessment demand 0.62
ii. Penalty u/s 271(1)(c) 3.32
2008-09 Commissioner of Income Tax (Appeals)
Penalty u/s 271(1)(c) 157.92
(v) The Income tax department's appeal before Hon'ble Bombay High Court
against the order of the Income Tax Appellate Tribunal in favour of the
Company setting aside the penalty of Rs./Millions 111.36 levied under
section 271(1)(c) of the Income Tax Act 1961 by Assessing Officer, for
the Assessment year 2007- 08, has been dismissed by the apex court,
resulting in remission of the said demand of Rs.111.36 millions.
c) As per the records of the company, there is no amount required to be
transferred to Investor's Education and Protection Fund in accordance
with the relevant provisions of the Companies Act 1956 (1 of 1956) and
rules made there under.
viii) The Company has accumulated losses at the end of the financial
year. The Company has not incurred any cash losses in the financial
year ended on that date or in the immediately preceding financial year.
ix) According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at balance
sheet date.
x) As per the information and explanations given to us, records as
produced, the company has not given any guarantee for loans taken by
others from any bank or financial institutions.
xi) As per the information and explanations given, the company has not
applied for any term loans during the year, hence we have no comment to
make of their purpose and applications.
xii) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance
material of fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For B. S. SHARMA & Co.,
CHARTERED ACCOUNTANTS,
FR No. 128249W
CA B. S. SHARMA,
PROPRIETOR.
Membership No. 031578
Place: Mumbai
Dated: 19th May 2015
Mar 31, 2014
1. We have audited the accompanying financial statements of Shirpur
Gold Refi nery Limited ("the Company") which comprise the Balance Sheet
as at 31 March, 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, which have been
signed under reference to this report.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
2. The Management is responsible for the preparation of these fi
nancial statements that give a true and fair view of the financial
position, financial performance and cash fl ows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of Section 211 of the Companies Act, 1956 ("the Act") read with
the General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013
and in accordance with the accounting principles generally accepted in
India. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or
error.
AUDITORS'' RESPONSIBILITY
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements, plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from
material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity''s internal control . An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by the management,
as well as evaluating the overall presentation of the financial
statements.
5. We believe that the audit evidence we have obtained is suffi cient
and appropriate to provide a basis for our audit opinion.
OPINION
6. In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon, 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 31 March, 2014;
b) In the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
7. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of Section 227 of the Act, we give in the Annexure
a statement on the matters specifi ed in paragraphs 4 and 5 of the
Order.
8. As required by Section 227(3) of the Act, 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 and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of Section 211 of the Companies Act,1956 read
with the General Circular 15/2013 dated 13 September 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act 2013; and
(v) On the basis of written representation received from the directors
as on 31 March 2014 and taken on record by the Board of Directors, none
of the directors is disqualifi ed as at 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
STATEMENT REFERRED TO IN PARAGRAPH (7) UNDER THE HEADING OF "REPORT ON
OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE.
A. FIXED ASSETS:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets, except for furniture and fittings.
(b) Fixed assets were physically verifi ed by the management during the
year. In our opinion, the periodicity of verification is reasonable,
having regard to the size of the Company and nature of its assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verifi cation.
(c) None of the fixed asset had been disposed off during the year.
B. INVENTORIES:
(ii) (a) The inventories have been physically verifi ed by the
management, at reasonable intervals during the year. In our opinion,
the frequency of verifi cation is reasonable, having regard to the size
of the company and nature of its business.
(b) As per the information and explanations given to us, the procedures
of physical verifi cation of inventories followed by the management, in
our opinion, are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) The company has maintained proper records of inventories. No
material discrepancies were noticed on physical verifi cation of
inventories as compared to the book records.
C. LOANS & ADVANCES:
(iii) In respect of the loans, advances in the nature of loans, secured
or unsecured, granted or taken by the Company to/from companies, fi rms
or other parties covered in the register maintained under Section 301
of the Companies Act 1956 (the Act) we report:
(a) As per the information and explanations given, the company has not
granted any loans, secured or unsecured, to companies, fi rms or other
entities covered in the register maintained under Section 301 of the
Act.
(b) As per information and explanation given, the Company has taken
unsecured loan from a Company covered in the register maintained under
section 301 of the Act. The amount received is Rs./Millions 120.00 and
repaid is Rs./Millions 60.00 during the year. The balance at the year end
is Rs./Millions 60.00. The terms and conditions of such loan are
resonable having regard to prevailing market terms and conditions for
such unsecured loans and are not prejudicial to the interest of the
Company.
D. INTERNAL CONTROLS:
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures and systems
commensurate with the size of the Company and the nature of its
business, with regard to the purchases of inventory, fi xed assets and
for sale of goods. We have not observed any continuing failure to
correct major weaknesses in internal control system of the company.
E. TRANSACTIONS U/S 301:
(v) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act 1956, to
the best of our information and explanations given to us:
(a) These particulars of contracts or arrangements referred to in
Section 301 that needed to be entered in the register maintained under
the said Section, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, where each of such transactions for cash is in excess of Rs.
5,00,000/- in respect of any party, the transactions have been made at
the prevailing market prices at relevant time for cash, which prima
facie appears to be reasonable
F. PUBLIC DEPOSITS:
(vi) The Company has not accepted any deposits from the public under
the provisions of Section 58A, 58AA or other relevant provisions of the
Companies Act 1956 and rules made thereunder. Therefore,
the provisions of Clause (vi) of Paragraph 4 of the Order are not
applicable to the Company.
G. INTERNAL AUDIT:
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business
H. COST RECORDS:
(viii) In our opinion and according to the information and explanations
given to us, the Central Government vide order dated 6h November 2012
has directed the company to maintain the cost records with effect from
financial year 2013-14 and obtain Cost Auditor''s Report thereon as
prescribed under the Companies (Cost Accounting Records) Rules 2011,
read with Section 209(1)(d) of the Act. We have broadly examined the
books of accounts maintained by the Company pursuant to the said rules
and section 209(1) (d)of the Act, in respect of the products mentioned
therein and are of the opinion that prima-facie, the prescribed
accounts and records have been made and maintained.However, we have not
carried out a detailed examination of the records with a view to
determine whether these are accurate or complete
I. STATUTORY DUES:
(ix) According to the records of the company examined by us and
information and explanations given to us in respect of statutory dues:
(a) The Company has generally been regular in depositing with
appropriate authorities, undisputed statutory dues including Provident
Fund, Investor Education & Protection Fund, Employees'' State Insurance,
Income Tax, Sales Tax, Custom duty, Excise duty, Cess and other
material statutory dues applicable to it.
(b) There were no undisputed statutory dues including Provident Fund,
Investor Education & Protection Fund, Employees'' State Insurance,
Income Tax, Sales Tax, Custom duty, Excise duty, Cess and other
material statutory dues in arrears as at 31st March 2014 for a period
of more than six months from the date they became payable.
(c) Details of dues of Income tax, Sales tax, MVAT and export
obligations under EPCG Scheme, which have not been deposited as on 31st
March 2014 on account of disputes / under the Schemes are given below:
(i) MVAT collected till the year end under Sales Tax Incentive Scheme
of 1993 by the Government of Maharashtra, (Scheme PSI-1993) is
considered in the Accounts as Deferred Sales Tax Liability and stated
in Note 3. The Deferred Sales Tax Liability for the years ended from
31st March 2011 to 31st March 2014 aggregating to Rs./Millions 278.61 is
repayable in five respective equal annual installments starting from
financial year 2021-22 to 2024-25.
(ii) Sales Tax Demand for F.Y 2004-05 of Rs./Millions 0.87 and F.Y
2007-08 of Rs./Millions 0.59 against which Rs./Millions 0.10 and Rs./Millions
0.20 is deposited respectively and stay obtained pending hearing of the
appeal and disposal.
(iii) Export Obligations under EPCG Scheme remaining to be fulfilled by
exports is Rs./Millons 4034.21 as per Note no.29.
(iv) Disputed Liabilities under Income tax Act 1961:
Assessment Year Forum where pending Rs in Millions
2001-02 Income tax Appellate Tribunal
i. Regular Assessment demand Rs. 0.62
ii. Penalty u/s 271(1) (c) Rs. 3.32
2008-09 Commissioner of Income tax
(Appeals)
Penalty u/s 271(1) (c) Rs.157.92
(v) The Income tax department has filed an Appeal before Hon''ble Bombay
High Court against the order of the Income Tax Appellate Tribunal in
favour of the Company setting aside the penalty of Rs./Millions 111.36
levied under section 271(1)(c) of the Income Tax Act 1961 by
Assessing officer, for the Assessment year 2007-08 and is pending
admission and hearing.
J. ACCUMULATED OR CASH LOSSES:
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the Financial
year under Audit and in the immediately preceding financial year.
K. OTHER CLAUSES:
(xi) The company has not defaulted in repayment of dues to banks and fi
nancial institutions during the year.
(xii) The Company has not granted any loans and advances by way of
pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund/nidhi/mutual benefit
fund/society. Therefore, the provisions of clause (xiii) of paragraph 4
of the Order are not applicable to the Company.
(xiv) The Company is not dealing or trading in shares, securities,
debentures or other investments.
(xv) According to information and explanation given to us, the Company
has not given any guarantee/s to banks or financial institutions for
loans taken by others.
(xvi) In our opinion and according to the information and explanations
given to us, the term loan has been utilized by the Company for the
purpose, wherever stipulated, for which it was obtained.
(xvii) In our opinion and according to the information and explanations
given to us, on an overall examination of the Balance Sheet of the
Company, we report that funds raised on short term basis have, prima
facie, not been used for long-term investments.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
Section 301 of the Act.
(xix) During the year the Company has not issued any debentures. Hence
the provisions of clause (xix) of the said Order is not applicable.
(xx) The Company has not raised any money by public issue during the
year.
(xxi) Based on the audit procedures performed and according to the
information and explanation given to us, no fraud on or by the company
has been noticed or reported during the year.
For B.S. SHARMA & Co.,
Chartered Accountants,
FRN No.128249W
CA B. S. SHARMA
PROPRIETOR,
Membership No. 031578
Place: Mumbai
Date : 23rd May 2014
Mar 31, 2013
REPORT ON THE FINANCIAL STATEMENTS
1. We have audited the accompanying financial statements of Shirpur
Gold Refinery Limited ("the Company") which comprise the Balance Sheet
as at 31st March 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
2. The Company''s 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
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards 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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
OPINION
6. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements
together with the notes thereon, give the information required by the
Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2013;
b) In the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
7. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), issued by the Central Government, 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.
8. As required by Section 227(3) of the Act, we reportthat:
(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 and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3 C) of Section 211 of the Act; and
(v) On the basis of written representation received from the directors
as on 31 st March 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as at 31 st March 2013, from
being appointed as a director in terms of clause (g) of sub-section(l)
of Section274 oftheAct
ANNEXURE TO THE AUDITORS'' REPORT
STATEMENT REFERRED TO IN PARAGRAPH (7) UNDER THE HEADING OF "REPORT ON
OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE.
A. FIXED ASSETS:
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets, except for furniture and fittings.
(b) Fixed assets were physically verified by the management during the
year. In our opinion, the periodicity of verification is reasonable,
having regard to the size of the Company and nature of its assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) None of the fixed asset had been disposed off during the year.
B. INVENTORIES:
2. (a) The inventories have been physically verified by the
management, at reasonable intervals during the year. In our opinion,
the frequency of verification is reasonable, having regard to the size
of the company and nature of its business.
(b) As per the information and explanations given to us, the procedures
of physical verification of inventories followed by the management, in
our opinion, are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) The Company is maintaining proper records of inventories. No
material discrepancies were noticed on physical verification of
inventories as compared to the book records.
LOANS & ADVANCES:
3. In respect of the loans, advances in the nature of loans, secured
or unsecured, granted or taken by the Company to/from companies, firms
or other parties covered in the register maintained under Section 301
of the Companies Act 1956 (the Act) we report:
(a) As per the information and explanations given, the Company has not
granted any loans, secured or unsecured, to companies, firms or other
entities covered in the register maintained under Section 301 of the
Act.
(b) As per information and explanation given, the Company has not taken
any loans, secured or unsecured,
D. INTERNAL CONTROLS:
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures and systems
commensurate with the size of the Company and the nature of its
business, with regard to the purchases of inventory, fixed assets and
for sale of goods. We have not observed any continuing failure to
correct maj or weaknesses in internal control system of the company.
E. TRANSACTIONS U/S 301:
5. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act 1956, to
the best of our information and explanations given to us:
(a) These particulars of contracts or arrangements referred to in
Section 301 that needed to be entered in the register maintained under
the said Section, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, where each of such transactions is in excess of T500,000/-
in respect of any party, the transactions have been made at the
prevailing market prices at relevant time for cash, which prima facie
appears to be reasonable.
F. PUBLIC DEPOSITS:
6. The Company has not accepted any deposits from the public under the
provisions of Section 58A, 58AA or other relevant provisions of the
Companies Act 1956 and rules made there under. Therefore, the
provisions of Clause (vi) of Paragraph 4 of the Order are not
applicable to the Company.
G. INTERNAL AUDIT:
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business
H. COST RECORDS:
8. In our opinion and according to the information and explanations
given to us, the Central Government vide Order dated 6th November 2012
has directed the company to maintain the cost records with effect from
Financial Year 2013-14 and obtain CostAuditor''s Report thereon as
prescribed under the Companies (CostAccounting Records) Rules 2011,
read with Section 209(1 )(d) of the Act. The company has appointed a
qualified Cost Accountant as required under the said Rules. However,
for the financial years ended 31st March 2012 and 2013, the company has
to file Compliance Report, as prescribed in the Order dated 4th June
2012. The company has filed such Compliance Report for the year ended
31 st March 2012.
I. STATUTORY DUES:
9. According to the records of the Company examined by us and
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, Investor Education &
Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Custom duty, Excise duty, Cess and other material statutory dues
applicable to it, with appropriate authorities.
(b) There were no undisputed statutory dues including Provident Fund,
Investor Education & Protection Fund, Employees'' State Insurance,
Income Tax, Sales Tax, Custom duty, Excise duty, Cess and other
material statutory dues in arrears as at 31 st March 2013 for a period
of more than six months from the date they became payable.
(c) Details of dues of Income tax, Sales tax, MVAT and export
obligations under EPCG Scheme which have not been deposited as on 31 st
March 2013 on account of disputes are given below:
(I) MVAT collected till the year end under Sales Tax Incentive Scheme
of 1993 by the Government of
Maharashtra, Scheme PSI-1993 is considered in the Accounts as Deferred
Sales Tax Liability and stated in Note 3. The Deferred Sales Tax
Liability for the year ended 31st March 2013,31st March 2012 and 31st
March 2011 of ^/Millions 110.09, (/ Millions 67.73 and ?/MiUi°m 19.80
respectively is repayable in five equal annual installments starting
from financial year 2023-24,2022-23 and financial year 2021-22
respectively.
(ii) Sales Tax Demand for 2007-08 of ?/Millions0.59 against which
^/Millions 0.20 is deposited and stay obtained and pending filing of an
appeal.
(iii) Export Obligations under EPCG Scheme remaining to be fulfilled by
exports of ?. /Millons 8709.80 as Detailed in Note no.29.
(iv) Income tax matters under Income tax Act 1961:
Assessment
Year Forum where pending Amt in ? in
Millions
2001 -02 Income tax Appellate Tribunal Rs. 0.06
i. Regular Assessment demand Rs. 3.32
ii. Penalty u/s.271(l)(c)
2008-09 Commissioner of Income tax (Appeals) Rs.15.79
Penalty u/s.271(l)(c)
J. ACCUMULATED OR CASH LOSSES:
10. The Company has accumulated losses of * /Millons 441.78 ((/Millons
464.58) at the end of the financial year. The Company has not incurred
cash losses in current financial year and in the immediately preceding
financial year.
K. OTHER CLAUSES:
11. The company has not defaulted in repayment of dues to banks and
financial institutions during the year.
12. The Company has not granted any loans and advances by way of
pledge of shares, debentures and other securities.
13. The Company is not a chit fund/nidhi/mutual benefit fund/society.
Therefore, the provisions of clause (xiii) of paragraph 4 of the Order
are not applicable to the Company.
14. The Company is not dealing or trading in shares, securities,
debentures or other investments.
15. According to information and explanation given to us, the Company
has not given any guarantee/s to banks or financial institutions for
loans taken by others.
16. In our opinion and according to the information and explanations
given to us, the term loan has been utilized by the Company for the
purpose, wherever stipulated, for which it was obtained.
17. In our opinion and according to the information and explanations
given to us, on an overall examination of the Balance Sheet of the
Company, we report that funds raised on short term basis have, prima
facie, not been used for long-term investments.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 ofthe Act.
19. During the year the Company has not issued any debentures, Hence
the provisions of clause (xix) ofthe said Order is not applicable.
20. The Company has not raised any money by public issues during the
year.
21. Based on the audit procedures performed and according to the
information and explanation given to us, no fraud on or by the company
has been noticed or reported during the year.
For B.S. SHARMA & Co.,
Chartered Accountants,
FRN No.l28249W
CA B. S. SHARMA PROPRIETOR,
Membership No. 031578
Place: Mumbai
Dated 30th May 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Shirpur Gold Refinery
Limited ("the Company") as at 31st March, 2012, the Statement of Profit
& Loss in the Revised form, as prescribed by the Central Government
vide Notification S0.447(E) at February 28, 2011 and the Cash Flow
Statement of the Company 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 the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of any material misstatement. An audit
includes, examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes,
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, (the
'Order') issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956 ("the Act") and on the basis of such
checks as we considered appropriate, and according to the information
and explanations given to us, we give in the Annexure a statement of
the matters specified in paragraphs 4 and 5 of the said Order to the
extent applicable to the Company.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet and the Statement of Profit and
Loss and the Cash Flow Statement dealt with by this report comply with
the accounting standards referred to in Section 211 (3C) of the Act;
e) On the basis of the written representations received from the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Director of the Company is
disqualified as on 31st March, 2012 from being appointed as a Director
in terms of clause (g) of sub- section (1) of Section 274 of the Act.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and Notes thereon, give the information
required by the Act, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2012;
(ii) in the case of the Statement of Profit and Loss of the, Loss of
the company for the year ended on that date and
(iii) in the case of Cash Flow Statement, of the Cash Flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Statement referred to in paragraph 3 of our report of even date on the
accounts of Shirpur Gold Refinery limited for the year ended on 31st
March, 2012.
A. FIXED ASSETS:
1) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets, except for furniture and fittings, as per available information.
(b) Fixed assets were physically verified by the management in a phased
periodical manner, which in our opinion is reasonable, having regard to
the size of the Company and nature of its assets. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification.
(c) None of the fixed asset had been disposed off during the year.
B. INVENTORIES:
2) (a) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable, having regard to the size of the company and nature of its
business.
(b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The company has maintained proper records of inventories. No
material discrepancies were noticed on physical verification of
inventories as compared to the book records.
C. LOANS & ADVANCES:
3) In respect of the loans, advances in the nature of loans, secured or
unsecured, granted or taken by the Company to/from companies, frms or
other parties covered in the register maintained under Section 301 of
the Companies Act 1956:
(a) As per the information and explanations given, the company has not
granted any loans, secured or unsecured, to companies, frms or other
entities covered in the register maintained under Section 301 of the
Act.
(b) As per the information and explanations given, the company has not
taken any loans, secured or unsecured, from companies, frms or other
entities covered in the register maintained under Section 301 of the
Act.
D. INTERNAL CONTROLS:
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures and systems
commensurate with the size of the Company and the nature of its
business, with regard to the purchases of inventories, fxed assets and
for sale of goods. We have not observed any continuing failure to
correct major weaknesses in internal controls systems of the company.
E. TRANSACTIONS U/S 301:
5) (a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act 1956, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, there are transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs.500,000/- in
respect of each party during the year and had been done at the
prevailing market prices for cash, hence appears to be reasonable as
per the information available with the company.
F. PUBLIC DEPOSITS:
6) The Company has not accepted any deposits from the public under the
provisions of Section 58A, 58AA or other relevant provisions of the
Companies Act 1956 and rules made there under. Therefore, the provisions
of Clause (vi) of Paragraph 4 of the Order are not applicable to the
Company.
G. INTERNAL AUDIT:
7) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
H. COST RECORDS:
8) In our opinion and according to the information and explanations
given to us, the Central Government has not prescribed the maintenance
of cost accounting records under Section 209(1)(d) of the Act.
I. STATUTORY DUES:
9) (a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education & Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth tax, Custom
duty, Excise duty, cess and material statutory dues applicable to it,
except for delay in payments of provident fund in few cases. And
undisputed Income Tax demand of Rs./Millions 3.94 for the Assessment year
2001-02.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March 2012 for a period of more than six months
from the date of becoming payable, except the following:
(c) MVAT collected of Rs./Millions 87.53 (19.80) till the year end, under
Sales Tax Incentive Scheme of 1993 by the Government of Maharashtra,
Scheme PSI-1993 is considered in the Accounts as Deferred Sales Tax
Liability and stated in Note no. 3 to the Financial Statements under
report, is to be repayable as per the terms and conditions contained in
the scheme.
(d) Sales Tax Demand for 2007-08 of Rs./Millions 0.59 against which
Rs./Millions 0.20 is deposited and stay obtained and pending fling of an
appeal.
(e) The Income tax Department has fled an appeal to the Hon'ble Bombay
High Court against the Order of the Income Tax Appellate Tribunal in
favour of the company setting aside the penalty levied by the Assessing
officer of Rs./Millions111.36 under Section 271(1) (c) of the Income Tax
Act 1961, for the Assessment year 2007-08, is pending admission, as
referred to in Note no.29;
(f) In connection with fulfllment of Export Obligations under EPCG
Scheme of Rs./Millions 12271.64 as detailed in Note no.29;
J. ACCUMULATED OR CASH LOSSES:
10) The Company has accumulated losses of Rs./Millions 464.58(323.01) at
the end of the financial year and has earned cash Profit of Rs./Millions
5.55 during the year under report compared to cash loss of Rs./Millions
69.85 in the preceding year.
K. OTHER CLAUSES:
11) The Company has not defaulted in repayment of dues to banks and
financial institutions during the year.
12) The Company has not granted any loans and advances by way of pledge
of shares, debentures and other securities.
13) The Company is not a chit fund/nidhi/mutual benefit fund/society.
Therefore, the provisions of clause (xiii) of paragraph 4 of the Order
are not applicable to the Company.
14) The Company is not dealing or trading in shares, securities,
debentures or other investments.
15) According to information and explanation given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
16) The Company has not raised any term loan during the year from any
nationalized banks or any financial institution. Hence, the provisions
of the said clause (xvi) of the Order are not applicable.
17) According to the Cash Flow statement and other records examined by
us and the information and explanations given, on an overall basis,
funds raised on short term basis have not, prima facie, been used for
long-term investments.
18) 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.
19) The Company has not issued any debentures, hence the provisions of
clause (xix) of the said Order is not applicable.
20) The Company has not raised any money by public issues during the
year.
21) According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the year.
For B. S. SHARMA & Co.,
Chartered Accountants
FRN N0.128249W
Place : Mumbai (CA B. S. SHARMA)
Date : 9th May, 2012 Proprietor
FCA 031578
Mar 31, 2011
1. We have audited the attached Balance Sheet of SHIRPUR GOLD REFINERY
LIMITED, as at 31st March, 2011, the related Profit and Loss Account
for the year ended on that date annexed thereto and the cash flow
statement for the year ended on that date, which we have signed under
reference to this report. 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 the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of any material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes,
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 and on the basis of such checks as we considered
appropriate, and according to the information and explanations given to
us, we give in the Annexure a statement of the matters specified in
paragraphs 4 and 5 of the said Order to the extent applicable to the
Company.
4. Attention is invited to the following Notes in Schedule 18 :
Note no.1(a) regarding non fulfillment of export commitment under EPCG
scheme and application for extention of time;
5. Further to our comments in the annexure referred to in paragraph 4
above, we report that :
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of 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 and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
d) In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
Section 211 (3C) of the Companies Act, 1956.
e) On the basis of the written representations received from the
Directors as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the Director of the Company is
disqualified as on 31st March, 2011 from being appointed as a Director
in terms of Section 274 (1) (g) of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with the significant accounting policies and Notes to Accounts
as per Schedule 18, give the information required by the Act, in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
(ii) in the case of the Profit and Loss Account, of the loss for the
year ended on that date; and
(iii) in the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Statement referred to in paragraph 3 of our report of even date on the
accounts of SHIRPUR GOLD REFINERY LIMITED for the year ended on 31st
March, 2011.
A. FIXED ASSETS :
1) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets, except for furniture and fittings.
(b) Some of the fixed assets were physically verified by the management
in accordance with the program of verification, which in our opinion
provides for physical verification of all the fixed assets at
reasonable intervals, having regard to the size of the Company.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) Fixed assets disposed off during the year, as reported in Note no.8
to Schedule 18, in our opinion, do not constitute substantial part of
the Fixed Assets and such disposal has not affected the going concern
status of the Company.
B. INVENTORIES :
2) (a) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable, having regard to the size of the Company and nature of its
business.
(b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanation
given, the Company has maintained proper records of inventories. No
material discrepancies were noticed on physical verification.
C. LOANS & ADVANCES :
3) The Company has neither taken nor granted any loans, secured or
unsecured, to companies, firms or other entities covered in the
register maintained under Section 301 of the Companies Act 1956.
Accordingly clauses (iii)(b) to (iii)(d) of paragraph 4 of the the
Order are not applicable to the Company.
D. INTERNAL CONTROLS:
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, with regard to the purchases of inventories, fixed assets and
for sale of goods. We have not observed any continuing failure to
correct major weaknesses in internal controls systems of the Company.
E. TRANSACTIONS U/S 301 OF THE COMPINES ACT, 1956 :
5) (a) According to the information and explanations given to us,
transactions that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered, in the
register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs.500,000/- in
respect of each party during the year, hence the details relating to
the reasonability or otherwise of the prices having regard to
prevailing market prices, is not applicable.
F. PUBLIC DEPOSITS :
6) The Company has not accepted any deposits from the public as per the
provisions of Section 58A, 58AA or other relevant provisions of the
Companies Act, 1956 and rules made thereunder.
G. INTERNAL AUDIT :
7) In our opinion, the Company has an internal audit system,
commensurate with the size and nature of its business.
H. COST RECORDS :
8) On the basis of the records produced, we are of the opinion that,
prima facie, the cost records and accounts prescribed by the Central
Government under Section 209(1)(d) of the Companies Act, 1956 have been
maintained. However, we are not required to and have not carried out
any detailed examination of such accounts and records.
I. STATUTORY DUES :
9) (a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education & Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth tax, Custom
duty, Excise duty, cess and material statutory dues applicable to it,
except for delays in payments of provident fund etc.
MVAT collected of Rs.197.98 lacs under the Deferred Sales Tax Liability
Scheme PSI-1993 of Government of Maharashtra, as appearing in Schedule
3 to the Financial statements under report, is to be repayable as per
the terms and conditions contained in the scheme.
(b) According to the information and explanation given to us, at the
last day of the financial year, there was no undisputed amount
outstanding in respect of such statutory dues which were due for more
than six months from the date they become payable.
(c) According to the information and explanations given to us, there
are no dues in respect of sales tax, income tax, customs duty, wealth
tax, excise duty, and cess that have not been deposited with the
appropriate authorities on account of any dispute.
J. ACCUMULATED OR CASH LOSSES :
10) The Company has accumulated losses of Rs.32,30.12 lacs (`10,14.32
lacs) at the end of the financial year and has incurred cash loss of
Rs.7,11.14 lacs (Rs.Nil) in the financial year under report. There is
no cash loss in the immediately preceding financial year.
K. OTHER CLAUSES :
11) As per the information and explanation given to us, the Company has
not defaulted in repayment of dues to a bank. The Company has not
issued any debentures.
12) Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and
advances on the basis of securities by way of pledge of shares,
debentures and other securities.
13) In our opinion, the provisions of any special Statute applicable to
Chit Fund, Nidhi or Mutual Benefits Fund/Societies are not applicable
to the Company.
14) According to the information and explanations given, the Company is
not dealing or trading in shares, securities, debentures or other
investments and hence requirements of Para 4(xiv) are not applicable to
the Company.
15) According to information and explanation given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
16) The Company has been sanctioned term loan during the year by a
nationalized bank but has not availed the same, hence the clause
relating to default on repayment etc., is not applicable.
17) According to the Cash Flow statement and other records examined by
us, and the information and explanations given, on an overall basis,
funds raised on short term basis have not, prima facie, been used for
long-term investments.
18) During the year the Company has not made any preferential allotment
of shares to parties and companies covered in the register maintained
U/s. 301 of the Companies Act, 1956.
19) During the year the Company has not issued any debentures and
hence, question of creating securities in respect thereof does not
arise.
20) The Company has not raised any money by public issues during the
year.
21) According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the year.
For B. S. SHARMA & Co.,
Chartered Accountants
FRN No.128249W
(CA B. S. SHARMA)
Proprietor
FCA 031578
MUMBAI
Dated : 06th July, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of SHIRPUR GOLD REFINERY
LIMITED, as at March 31, 2010, the related Profit and Loss Account for
the year ended on that date annexed thereto and the cash flow statement
for the year ended on that date, which we have signed under reference
to this report. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of any material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes,
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of Section 227(4A) of the
Act and on the basis of such checks as we considered appropriate, and
according to the information and explanations given to us, we give in
the Annexure a statement of the matters specified in paragraphs 4 and 5
of the said Order to the extent applicable to the Company.
4. Attention is invited to the following Notes in Schedule 15:
a) Note No. 2 regarding amalgamation of erstwhile Kala Kosh Auctions
Pvt. Ltd., a fully owned subsidiary of Jayneer Capital Pvt. Ltd., with
the Company under the Scheme of arrangement sanctioned by the Honble
Bombay High court and its effect given in the financial statements for
the year under review;
b) Note No. 3 regarding adoption of the deferred tax (DT) policy in the
year under report and consequential accounting of DT Assets;
c) Note No. 11 (a) relating to Non fulfillment of export commitment
under EPCG scheme;
5. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of 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 and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
d) In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
Section 211 (3C) of the act;
e) On the basis of the written representations received from the
directors, as on March 31, 2010 and taken on record by the board of
Directors, we report that none of the director of the Company is
disqualified as on March 31, 2010 from being appointed as a director in
terms of Section 274 (1) (g) of the act.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with the significant accounting policies and Notes to Accounts
as per Schedule 15 and Note No. 4 hereinbefore, give the information
required by the Act, in the manner so required and give, a true and
fair view in conformity with the accounting principles generally
accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010;
(ii) in the case of the Profit and Loss Account, of the loss for the
year ended on that date; and
(iii) in the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure referred to in Paragraph (3) of Auditors Report to the
members of SHIRPUR GOLD REFINERY LTD. on the accounts for the year
ended March 31, 2010
A. FIXED ASSETS:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets, except for furniture and fittings.
(b) As per information and explanations given, the management has
carried out physical verification of substantial part of fixed assets
in a phased program, which in our opinion is reasonable having regard
to the size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) During the year, there was no disposal of fixed assets.
B. INVENTORIES:
2. (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of such verification is
reasonable having regard to the nature of inventory.
(b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories and no
discrepancies were noticed on physical verification of the inventories
as compared to book records.
C. LOANS AND ADVANCES:
3. (a) According to the information and explanations given to us, no
secured or unsecured loans or advances in the nature of loans, has been
granted to companies, firms or other parties covered in the register
maintained under Section 301 of the Act.
(b) According to the information and explanations given to us, the
Company has not taken any loan or advances in the nature of loans,
secured or unsecured from Companies, firms or other parties covered in
the register maintained under Section 301 of the Act.
During the year secured loan of RsVthousands 227,23,22 (Rs./thousands
227,23,22) assigned to erstwhile Kala Kosh Auctions Pvt. Ltd., (KKAPL)
stood cancelled on its amalgamation with the Company w.e.f., April 1,
2009, pursuant to the Order dated 11th June 2010 of the Honble Bombay
High Court, in the Scheme of Arrangement under Section 391 to 394 of
the Act, as per Note No. 2 to Schedule 15 hereto.
INTERNAL CONTROL:
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and sale of scrap goods. We
have not observed any continuing failure to correct major weaknesses in
internal controls.
TRANSACTIONS U/S 301:
5. (a) According to the information and explanations given to us,
transactions that need to be entered into the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 500,000/- in
respect of each party during the year.
PUBLIC DEPOSITS:
6. According to the information and explanations given to us, the
Company has not accepted any deposits from the public during the year.
INTERNAL AUDIT SYSTEM:
7. The Company has an internal audit system commensurate with the size
of the Company and nature of its business.
COST RECORDS:
8. We are informed that the Central Government has not prescribed
maintenance of cost accounting records under Section 209 (1) (d) of the
Act in respect of the Companys activities.
STATUTORY DUES:
9. According to the information and explanations given to us and the
records of the Company examined by us in our opinion
a) The Company is generally regular, in depositing its Statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax (except delay in few instances in
depositing Income Tax deducted at source), VAT, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other material statutory dues
as applicable with the appropriate authority.
b) There are no undisputed amounts payable in respect of the aforesaid
dues which have remained outstanding as at March 31, 2010 for a period
of more than six months from the date they became payable.
c) There are disputed dues on account of Income Tax and VAT which have
not been deposited since appeal before authorities concerned in respect
of:
Name of the Statute Period Amount pending before
Rs./thousands
Income tax Act, 1961 AY 2007-08 11,13,60 CIT Appeals
Sales Tax (MVAT) FY 2004-05 15,05 Dy. Commissioner of
Sales Tax
ACCUMULATED OR CASH LOSSES:
10. The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses during the current
financial year. The accumulated losses of Rs./thousands 15,05,110 at
the beginning of the financial year had been adjusted against the
surplus of Rs./thousand 21,25,406 arising out of Scheme of Arrangement
as per Note No. 2 to Schedule 15 to financial statements, resulting in
net worth turning positive. On the basis of the financial statements
under review, in the immediate preceding financial year there was a
cash loss of Rs./Thousand 98,78.
OTHER CLAUSES:
11. There are no dues to any banks or financial institutions, as
informed. The dues to the banks of Rs./thousands 227,23,22, which were
assigned to erstwhile Kala Kosh Auctions Pvt. Ltd., (amalgamated with
the company), stood cancelled pursuant to the order dated June 11, 2010
of the Honble Bombay High Court sanctioning the Scheme of Arrangement
as per the Note No. 2 to Schedule 15, hence the clause relating to
default in repayment of dues to banks and/or financial institutions is
not applicable.
12. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The Company is not chit fund or a nidhi/ mutual benefit fund/
society.
14. The Company is not dealing in or trading in shares, securities,
debentures and other Investments.
15. According to information and explanation given to us, the company
has not given any guarantee for loans taken by others from banks or
financial institutions.
16. The Company has not raised any term loans during the year.
17. On the basis of review of utilization of funds which is based on
an overall examination of the Balance Sheet of the Company and related
information as made available to us, we report that no short term funds
have been used for long-term investments.
18. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The Company has not issued any secured debentures during the year.
20. The Company has not raised any money by public issue during the
year.
21. On the basis of our examination and according to the information
and explanations given to us, no fraud on or by the Company has been
noticed or reported during the year.
For B.S. SHARMA & Co.
Chartered Accountants
FRNo.128249W
(CA B. S. SHARMA)
Proprietor
Membership No. 031578
Mumbai
Dated : October 14, 2010